01—Abstract
Summary
Summary of the 10-Q filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Public Service Enterprise Group Incorporated (PSEG) reported first-quarter 2026 net income of $741 milliona, or $1.48 per diluted share, up from $589 million, or $1.18 per share, in the first quarter of 2025.
Operating revenues rose to $3.85 billionb from $3.22 billion. The increase was driven primarily by continued investment in transmission and distribution clause programs at PSE&G and by higher gas sales and capacity revenues at PSEG Power, partly offset by non-trading mark-to-market and nuclear decommissioning trust activity. PSE&G contributed $577 million of net income and PSEG Power & Other contributed $164 million.
The company reaffirmed a regulated capital investment program of $22.5 billion to $25.5 billionc for 2026 through 2030, within a total capital program of $24 billion to $28 billion, and expects regulated rate base to grow at a compound annual rate of 6.0% to 7.5% from year-end 2025 to year-end 2030. Long-term debt rose to $22.7 billion from $21.7 billion after PSE&G issued $1.0 billion of secured medium-term notes and retired $450 million. Liquidity totaled $3.5 billion of available credit at March 31, 2026, and the board approved a $0.67 per share quarterly dividend for the second quarter of 2026.
Key risks include PJM capacity market price-cap extensions and a planned reliability backstop auction, regulatory uncertainty in New Jersey, pending environmental remediation at the Lower Passaic River and other sites, a Sherman Act antitrust class action, and the potential loss of PTC-related value. The filing also notes that a $2.3 billiond EPA cleanup plan for the Lower 8.3 miles of the Passaic River and a $550 million plan for the Upper 9 miles remain unresolved, with PSEG accruing about $66 million for this matter.
02—Key points
Key Highlights
- Net income rose to $741 million ($1.48 per diluted share) in Q1 2026 from $589 million ($1.18 per share) in Q1 2025.
- Operating revenues increased to $3,848 million from $3,222 million, with PSE&G revenues at $3,085 million and PSEG Power & Other at $1,416 million (before eliminations).
- PSE&G net income reached $577 million versus $546 million a year earlier, driven by T&D clause programs; PSEG Power & Other net income was $164 million versus $43 million.
- Regulated capital investment program of $22.5 to $25.5 billion for 2026-2030 implies rate base growth of 6.0% to 7.5% compound annually through 2030.
- Long-term debt increased to $22,665 million from $21,670 million on the consolidated balance sheet after $1.0 billion of new PSE&G secured notes issued in the quarter.
- Liquidity remained solid with $3.5 billion of available credit across PSEG, PSE&G and PSEG Power facilities as of March 31, 2026, with a 2031 maturity extension on the revolvers.
- Quarterly dividend of $0.67 per share approved for Q2 2026, an indicative annual rate of $2.68 per share.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 5, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.85B$3.22B | +19.4% |
| Operating Expenses | $2.77B$2.42B | +14.4% |
| Operating Income | $1.07B$797.00M | +34.9% |
| Interest Expense | $272.00M$241.00M | +12.9% |
| Net Income | $741.00M$589.00M | +25.8% |
| EPS (Basic) | $1.48$1.18 | +25.4% |
| EPS (Diluted) | $1.48$1.18 | +25.4% |
| 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 first-quarter 2026 earnings?
The filing attributes the increase primarily to continued investment in transmission and distribution clause programs at PSE&G and to higher gas sales and capacity revenues at PSEG Power, combined with mark-to-market and nuclear decommissioning trust activity. Net Non-Trading mark-to-market losses were $30 million after tax in 2026 compared with $135 million in 2025.
What is the outlook for PSEG's capital investment?
For 2026 through 2030, the regulated capital investment program is estimated at $22.5 billion to $25.5 billion, within a total capital program of $24 billion to $28 billion. Management expects a compound annual growth rate in regulated rate base of 6.0% to 7.5% from year-end 2025 to year-end 2030.
What are the main regulatory and market risks flagged in the filing?
Key risks include PJM capacity market issues, with FERC accepting an extension of the price cap for the 2028/29 and 2029/30 delivery years and a reliability backstop auction targeted for September 2026. New Jersey policy is uncertain following the new administration's executive orders, and the company cannot predict the outcome of a FERC complaint over Roseland-Pleasant Valley project cost recovery.
What environmental and litigation exposures does PSEG disclose?
The Lower Passaic River Superfund matter has an EPA cleanup plan estimated at $2.3 billion for the Lower 8.3 miles and $550 million for the Upper 9 miles, and PSEG has about $66 million accrued. Other items include a Sherman Act class action filed in July 2025 against 26 nuclear generation companies and a $68 million claim by Durr Mechanical Construction. The company states it cannot predict these outcomes.
How much liquidity and debt capacity does PSEG have?
As of March 31, 2026, total committed credit facilities were $3.8 billion, with $3.5 billion of available liquidity. Management stated that liquidity, including access to external financing, was expected to be sufficient to meet projected stressed requirements over a 12-month horizon. Commercial paper outstanding at PSEG was $165 million, and PSE&G had none.
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