PEG earnings analysis
What we found in PEG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
PSEG's second-quarter revenue declined 9% year over year to $2.554 billion and GAAP diluted EPS decreased to $0.67 from $1.17, primarily reflecting adverse commodity mark-to-market results at PSEG Power. The regulated PSE&G segment remained constructive, with revenue up $106 million to $2.137 billion and six-month PSE&G operating cash flow up $212 million to $1.166 billion. Management continues to emphasize a $22.5 billion-$25.5 billion regulated investment plan, but regulatory outcomes—including a potential $40 million annual impact from loss of the voluntary-RTO ROE adder—are a notable offset.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Regulated utility revenue grew 5%
- PSE&G operating revenue rose $106 million year over year to $2.137 billion. Delivery revenue increased $40 million, including $10 million from higher transmission revenue tied primarily to rate-base investment.
- Capacity and realized power revenue improved
- PSEG Power & Other capacity revenue increased $51 million in the quarter, primarily from higher capacity prices, while higher realized prices and volumes added $37 million to generation revenue.
- Operating cash flow strengthened
- Six-month operating cash flow increased $294 million year over year. PSE&G operating cash flow rose to $1.166 billion from $954 million, supported by lower net regulatory deferrals, lower receivables/unbilled revenue, and higher earnings.
- Large regulated investment runway
- PSEG expects $22.5 billion-$25.5 billion of regulated investment during 2026-2030, supporting expected 6.0%-7.5% regulated rate-base CAGR through 2030. The broader total capital program is $24 billion-$28 billion.
- Nuclear fleet delivered high availability
- Nuclear operations remained strong in the first half: units generated approximately 15.8 TWh with a 93.7% capacity factor. Management expects its 2026 nuclear portfolio position to realize value above the PTC eligibility level.
- Liquidity remains substantial
- Liquidity was $3.210 billion at June 30, 2026, against total committed facilities of $3.825 billion. PSEG also prepaid its $500 million variable-rate term loan in June 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- MTM swing drove revenue and EPS decline
- Quarterly operating revenue declined $251 million, or 9%, to $2.554 billion, and diluted GAAP EPS fell to $0.67 from $1.17. The principal driver was a $450 million year-over-year adverse swing in PSEG Power generation mark-to-market results.
- Mandatory RTO rule may reduce ROE earnings
- New Jersey legislation requires transmission owners to join an FERC-approved RTO effective January 1, 2027. PSEG says this could eliminate PSE&G's 50-basis-point voluntary-RTO ROE adder and reduce annual net income and cash inflows by approximately $40 million.
- PJM capacity-market reform remains uncertain
- PJM proposed a Reliability Backstop Procurement to address a 6.8 GW shortfall for 2028/2029, seeking 15-year commitments from new generation resources. The eventual cost allocation to load-serving entities and customers, and the outcome of the FERC proceeding, remain uncertain.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.67
- Segment
- PSE&G operating revenue: $2.137 billion, up $106 million year over year from $2.031 billion.
- Segment
- PSEG Power & Other operating revenue: $417 million, down $386 million year over year from $803 million (derived from consolidated and PSE&G segment revenue disclosed in the filing).
What they said about what is next.
The 10-Q contains no explicit numerical EPS or revenue guidance. Management reiterated a 2026-2030 regulated capital-investment range of $22.5 billion-$25.5 billion and expected regulated rate-base CAGR of 6.0%-7.5% from year-end 2025 through year-end 2030.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- Public Service Enterprise Group (PEG) reported robust Q1 2026 results, with EPS of $1.55, exceeding estimates of $1.44, and revenue of $3.85 billion, surpassing expectations of $3.34 billion. The company's performance…
- 10-K · February 26, 2026
- PSEG’s 2025 10-K emphasizes a regulated-growth strategy centered on PSE&G’s transmission & distribution investments and PSEG Power’s nuclear generation. Management highlights regulatory support (a $17.8 billion rate…
- 10-Q · November 3, 2025
- PSEG reported a strong quarter with consolidated operating revenues of $3,226 million (Q3 2025) up $584 million versus Q3 2024 ($2,642 million) and diluted EPS of $1.24 (Q3 2025) versus $1.04 a year ago. Operating…
- 10-Q · July 30, 2024
- PSEG reported consolidated operating revenues of $2,423 million for the quarter (essentially flat vs $2,421 million in Q2 2023) but saw operating income fall to $582 million from $794 million and net income decline to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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