01—Abstract
Summary
Summary of the 10-Q filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Public Service Enterprise Group (PSEG) reported second-quarter 2026 net income of $334 milliona, or $0.67 per diluted share, down from $585 million, or $1.17 per share, in the second quarter of 2025.
For the six months ended June 30, 2026, net income was $1.075 billionb, or $2.15 per diluted share, versus $1.174 billion, or $2.35 per share, a year earlier. The decline was driven primarily by mark-to-market losses on non-trading commodity positions at PSEG Power in 2026 versus gains in 2025, partially offset by continued investment in transmission and distribution clause programs at PSE&G and higher capacity revenues at PSEG Power. Operating revenues were $2.554 billion for the quarter, down from $2.805 billion, while six-month operating revenues rose to $6.402 billion from $6.027 billion.
PSE&G, the regulated utility, contributed $342 millionc of second-quarter net income, up from $332 million, and $919 million for the first half, up from $878 million. PSEG Power & Other posted a second-quarter net loss of $8 million compared with $253 million of net income a year earlier. Management reiterated a regulated capital investment program of $22.5 billion to $25.5 billion for 2026 through 2030 and expects 6.0% to 7.5% compound annual growth in regulated rate base from year-end 2025 to year-end 2030.
Long-term debt rose to $22.741 billiond at June 30, 2026 from $21.670 billion at December 31, 2025, and the company declared a $0.67 per share dividend for the third quarter of 2026. Several items remain open. Pending regulatory matters include PSE&G's 2026 GPRC petition seeking $316 million and $52 million in annual electric and gas revenue increases, and a $166 million ZEC-related customer refund.
Environmental exposures at the Lower Passaic River and other Superfund sites are unresolved, and the company says future costs could be material. New Jersey legislation enacted in June and July 2026 requires transmission owners to join an RTO by January 1, 2027, which could reduce PSE&G's annual net income by approximately $40 million, and the Power NJ Act calls for procurement of at least 1,100 MW of new nuclear generation.
02—Key points
Key Highlights
- Net income fell to $334 million ($0.67 per diluted share) in Q2 2026 from $585 million ($1.17 per share) in Q2 2025, driven mainly by PSEG Power non-trading mark-to-market losses of $185 million after tax versus $136 million of gains a year earlier.
- PSE&G net income rose to $342 million in Q2 2026 from $332 million, and to $919 million for the first six months from $878 million, supported by continued T&D clause program investment.
- PSEG Power & Other swung to an $8 million net loss in Q2 2026 from $253 million of net income in Q2 2025.
- Regulated capital investment program of $22.5 billion to $25.5 billion for 2026-2030, with expected 6.0% to 7.5% rate base compound annual growth from year-end 2025 to year-end 2030.
- Long-term debt increased to $22.741 billion at June 30, 2026 from $21.670 billion at December 31, 2025; the company issued $1.5 billion of long-term debt in the first half of 2026.
- Board approved a $0.67 per share dividend for Q3 2026, an indicated annual rate of $2.68 per share.
- Pending PSE&G matters include a 2026 GPRC petition for $316 million in electric and $52 million in gas annual revenue increases, and New Jersey legislation that could reduce PSE&G's annual net income by about $40 million beginning January 1, 2027 if it loses its 50 basis-point transmission ROE adder.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 4, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.55B$2.81B | −8.9% |
| Operating Expenses | $2.09B$1.99B | +5.3% |
| Operating Income | $461.00M$817.00M | −43.6% |
| Interest Expense | $269.00M$248.00M | +8.5% |
| Net Income | $334.00M$585.00M | −42.9% |
| EPS (Basic) | $0.67$1.17 | −42.7% |
| EPS (Diluted) | $0.67$1.17 | −42.7% |
| Shares Outstanding (Basic) | 498.00M499.00M | −0.2% |
| Shares Outstanding (Diluted) | 499.00M500.00M | −0.2% |
05—Questions
Frequently Asked Questions
Why did PSEG's earnings decline in the second quarter of 2026?
The filing attributes the decline primarily to mark-to-market losses at PSEG Power in 2026 compared with gains in 2025. Net income from non-trading MTM activity was a loss of $185 million after tax in Q2 2026 versus a $136 million gain in Q2 2025. Increases from T&D clause programs at PSE&G and higher capacity revenues at PSEG Power partially offset the decline.
How did the regulated utility, PSE&G, perform?
PSE&G reported net income of $342 million for the quarter, up from $332 million, and $919 million for the first six months, up from $878 million. Operating revenues rose to $2.137 billion for the quarter from $2.031 billion, reflecting higher delivery, commodity and clause revenues.
What are the main regulatory risks ahead for PSE&G?
Key items include the pending 2026 GPRC cost recovery petition, the $166 million refund of ZEC payments to customers, and a FERC order setting a hearing on recovery of Roseland-Pleasant Valley project costs. New Jersey legislation requiring transmission owners to join an RTO effective January 1, 2027 could eliminate the 50 basis-point ROE adder, reducing annual net income by approximately $40 million.
What is the company's capital spending and growth outlook?
The company projects a regulated capital investment program of $22.5 billion to $25.5 billion for 2026 through 2030, within a total capital investment program of $24 billion to $28 billion. It 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. The company also states it expects operating cash flow, cash on hand and financing to fund planned capital expenditures and dividends.
What environmental and legal exposures does the filing disclose?
PSE&G and PSEG Power face Superfund cleanup exposure on the Lower Passaic River, where PSEG has about $66 million accrued and EPA plans total $2.3 billion for the Lower 8.3 miles and $550 million for the Upper 9 miles. The company states that additional costs could be material and cannot yet be estimated. Other matters include the Sewaren 7 contractor litigation seeking $68 million after partial dismissal, a Sherman Act antitrust class action over nuclear worker compensation, and retained legacy obligations at former fossil sites that the company says will likely be material in aggregate.
06—Continue