01—Abstract
Summary
Summary of the 10-Q filed August 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Public Service Enterprise Group Incorporated (PSEG) reported second-quarter 2025 net income of $585 milliona, or $1.17 per diluted share, up from $434 million, or $0.87 per share, in the second quarter of 2024.
For the six months ended June 30, 2025, net income was $1.174 billionb, or $2.35 per diluted share, compared with $966 million, or $1.93 per share, a year earlier. Operating revenues were $2.805 billion for the quarter, up from $2.423 billion, and $6.027 billion for the six months, up from $5.183 billion. The filing attributes the improvement primarily to higher earnings from continued T&D clause investments and the settlement of PSE&G's distribution base rate case in October 2024, along with mark-to-market and Nuclear Decommissioning Trust fund activity.
Income tax expense rose sharply, reflecting higher pre-tax income and the absence of nuclear production tax credit benefits in 2025. Balance sheet leverage increased over the period. Long-term debt rose to $21.639 billionc at June 30, 2025 from $18.964 billion at December 31, 2024, reflecting $3.15 billion of debt issuance in the first six months against $1.6 billion of repayments.
Total capitalization was $38.310 billiond, and stockholders' equity was $16.671 billion. Net cash from operating activities was $1.527 billion for the six months, versus $1.143 billion a year earlier, while capital expenditures were $1.415 billion. Cash dividends paid were $629 million.
The company stated its liquidity was expected to be sufficient to meet projected stressed requirements over a 12-month horizon. Key items to watch include the expiration of the Zero Emission Certificate program for the Salem and Hope Creek nuclear plants on June 1, 2025, the nuclear production tax credit's effect on the company's hedging and revenue, New Jersey energy affordability measures following higher PJM capacity prices, the pending LIPA operations contract that expires December 31, 2025, and environmental remediation matters, including the Passaic River, for which PSEG cannot predict the ultimate cost.
02—Key points
Key Highlights
- Net income rose to $585 million ($1.17 per diluted share) in Q2 2025 from $434 million ($0.87 per share) in Q2 2024; six-month net income was $1.174 billion ($2.35 per share) versus $966 million ($1.93 per share).
- Operating revenues increased to $2.805 billion for Q2 2025 and $6.027 billion for the six months, up from $2.423 billion and $5.183 billion, respectively.
- PSE&G net income was $332 million in Q2 2025 versus $302 million, driven by the settlement of the 2024 distribution base rate case and continued T&D clause investments.
- PSEG Power & Other net income was $253 million in Q2 2025 versus $132 million, aided by $95 million of net gains on trust investments and higher realized prices, partly offset by higher income tax expense.
- Long-term debt increased to $21.639 billion at June 30, 2025 from $18.964 billion at year-end 2024, after $3.15 billion of new issuance and $1.6 billion of repayments in the first half.
- The ZEC program for Salem 1, Salem 2 and Hope Creek ended June 1, 2025, and the company did not record a nuclear PTC benefit for the first half of 2025 because estimated 2025 gross receipts exceed the phase-out amount.
- The company's regulated capital investment program for 2025–2029 is estimated at $21 billion to $24 billion, with a projected rate base compound annual growth rate of 6% to 7.5%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 5, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $2.81B$2.42B | +15.8% |
| Operating Expenses | $1.99B$1.84B | +8.0% |
| Operating Income | $817.00M$582.00M | +40.4% |
| Interest Expense | $248.00M$218.00M | +13.8% |
| Net Income | $585.00M$434.00M | +34.8% |
| EPS (Basic) | $1.17$0.87 | +34.5% |
| EPS (Diluted) | $1.17$0.87 | +34.5% |
| Shares Outstanding (Basic) | 499.00M498.00M | +0.2% |
| Shares Outstanding (Diluted) | 500.00M500.00M | 0.0% |
05—Questions
Frequently Asked Questions
What drove the increase in PSEG's earnings in the second quarter of 2025?
The filing attributes higher net income primarily to increased earnings at PSE&G from continued investments in T&D clause programs and the settlement of the distribution base rate case in October 2024. Changes in mark-to-market activity and Nuclear Decommissioning Trust fund activity also contributed, with net gains on trust investments rising to $95 million from $7 million.
How did PSEG's debt and capitalization change in the first half of 2025?
Long-term debt increased to $21.639 billion from $18.964 billion at December 31, 2024. The company issued $3.15 billion of long-term debt and repaid $1.6 billion, while commercial paper and loans fell to $650 million from $1.593 billion. Total stockholders' equity was $16.671 billion at June 30, 2025.
What happened to the nuclear production tax credit and ZEC revenues?
The Salem 1, Salem 2 and Hope Creek ZEC program concluded in May 2025, and the plants did not apply for the next ZEC eligibility period. PSEG did not record a PTC benefit in the first half of 2025 because estimated full-year 2025 gross receipts are above the phase-out amount. The filing notes that PTC amounts recorded could be adjusted materially based on future Treasury guidance.
What regulatory matters could affect PSEG's future results?
Key pending matters include the PSE&G BGSS rate increase request to about 36 cents per therm effective October 1, 2025, a 2025 GPRC petition seeking $207 million in electric and $24 million in gas revenue increases, and the BPU's consideration of the 2025 gas CIP petition. New Jersey bill-mitigation measures for the higher PJM capacity prices also include a summer disconnection moratorium that the filing says is likely to increase accounts receivable and bad debt expense.
What are the major environmental and litigation exposures disclosed?
The company has accrued approximately $66 million for the Lower Passaic River matter and has recorded a $186 million liability for MGP remediation, which the company says could range between $186 million and $210 million on an undiscounted basis. PSEG states it cannot predict the ultimate impact of the Passaic River matter, the Newark Bay and Hackensack River studies, or the Sherman Act antitrust class action filed in July 2025.
06—Continue