AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 28/10/2026
Moat—
Awaiting a sourced assessment under the current scoring policy and financial basis.
Pricing power—
Awaiting a sourced assessment under the current scoring policy and financial basis.
Predictability70
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 12.25
- Positive FCF years (%)
- 20.00
- FCF margin volatility (pp)
- 6.51
Financial strength6
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 0.00
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 14.86
- currentRatioGrade
- 9.18
- Net debt / operating income (x)
- 8.59
- Interest coverage (x)
- 2.63
- Current ratio (x)
- 0.86
Capital allocation55
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 6.07
- 3-year average dilution (%)
- 0.15
- 3-year average SBC / revenue (%)
- 0.49
- cashConversionGrade
- 0.00
Management—
Awaiting a sourced assessment under the current scoring policy and financial basis.
Evidence
Franchises and Licenses PPL Electric provides electricity delivery service in its service territory pursuant to certain franchises, licenses, statutory service areas, easements and other rights or permissions granted by the Pennsylvania state legislature, cities or municipalities or other entities.
Franchises and Licenses — PPL Electric service rights · Filed 20/02/2026
Competition Pursuant to authorizations from the Commonwealth of Pennsylvania and the PAPUC, PPL Electric operates a regulated distribution monopoly in its service area.
Competition — Pennsylvania regulated distribution monopoly · Filed 20/02/2026
Franchises and Licenses RIE provides electricity delivery service and natural gas distribution service in its service territory pursuant to certain franchises, licenses, statutory service areas, easements and other rights or permissions granted by the Rhode Island state legislature, cities or municipalities or other entities.
Franchises and Licenses — RIE service rights · Filed 20/02/2026
Competition There are currently no other electric or gas public utilities operating within the service area of RIE.
Competition — absence of other utilities within RIE service area · Filed 20/02/2026
Distribution RIE owns and maintains electric and natural gas distribution networks in Rhode Island.
Distribution — RIE ownership of delivery networks · Filed 20/02/2026
The PPL Electric transmission business, operating under a FERC-approved PJM Open Access Transmission Tariff, is subject to competition pursuant to FERC Order 1000 from entities that are not incumbent PJM transmission owners with respect to the construction and ownership of transmission facilities within PJM.
Competition — competitive transmission construction and ownership · Filed 20/02/2026
Alternative energy sources such as electricity, oil, propane and other fuels indirectly impact RIE's natural gas revenues.
Competition — alternative fuels affecting natural gas revenues · Filed 20/02/2026
Some large industrial and commercial customers, however, may physically bypass RIE's facilities and seek delivery service directly from interstate pipelines or other natural gas distribution systems.
Competition — potential physical bypass by large customers · Filed 20/02/2026
Distribution sales are regulated by the RIPUC, which is responsible for approving the rates and other terms of services as part of the rate making process.
Distribution — regulatory approval of rates and service terms · Filed 20/02/2026
For long-term contracts approved pursuant to LTCS or ACES on or after January 1, 2027, RIE is not entitled to any financial remuneration, unless otherwise granted by the RIPUC.
Utility rate regulation — remuneration for contracts approved from 2027 · Filed 20/02/2026
Also, the 2022 amendments to LTCS and ACES added a provision, which provides that for any calendar year in which RIE's actual return on equity exceeds the return on equity allowed by the RIPUC in the last general rate case, the RIPUC may adjust any or all remuneration to assure that such remuneration does not result in or contribute toward RIE earning above its allowed return for such calendar year.
Utility rate regulation — adjustment of remuneration above allowed returns · Filed 20/02/2026
101 Table of Contents PPL Electric's, RIE's, LG&E's and KU's base rates are determined based on cost of service.
Revenue accounting — cost-of-service base rates · Filed 20/02/2026
91 Table of Contents KU: Statement of Income Analysis Net income for the periods ended June 30 includes the following results: Three Months Six Months 2026 2025 $ Change 2026 2025 $ Change Operating Revenues Retail and wholesale $ 493 $ 465 $ 28 $ 1,112 $ 1,024 $ 88 Electric revenue from affiliate 12 7 5 18 12 6 Total Operating Revenues 505 472 33 1,130 1,036 94 Operating Expenses Operation Fuel 128 117 11 301 269 32 Energy purchases 7 7 — 13 14 (1) Energy purchases from affiliate 2 5 (3) 11 10 1 Other operation and maintenance 108 102 6 209 202 7 Depreciation 114 101 13 224 203 21 Taxes, other than income 14 13 1 27 25 2 Total Operating Expenses 373 345 28 785 723 62 Operating Income 132 127 5 345 313 32 Other Income (Expense) - net 6 5 1 13 10 3 Interest Expense 40 35 5 80 70 10 Income Before Income Taxes 98 97 1 278 253 25 Income Taxes 19 19 — 55 50 5 Net Income $ 79 $ 78 $ 1 $ 223 $ 203 $ 20 Operating Revenues The increase (decrease) in operating revenues was due to: Three Months Six Months Retail rates (a) $ 28 $ 64 Fuel and other energy purchases (b) 10 34 Off-system sales (c) (4) (5) Other (1) 1 Total $ 33 $ 94 (a)The increases were due to new base rates approved by the KPSC effective January 1, 2026.
KU Statement of Income Analysis — realized retail rate increases and operating results · Filed 07/08/2026
If anticipated demand growth does not materialize, PPL could experience unrecovered capital investments.
Risk factors — potential unrecovered capital if anticipated demand fails · Filed 20/02/2026
Failure to complete our capital projects on schedule or on budget, or at all, could adversely affect our financial performance, operations and future growth if such expenditures are not granted rate recovery by our regulators.
Risk factors — project delivery and regulatory recovery · Filed 20/02/2026
RIE's natural gas tariffs include gas price pass-through mechanisms relating to its sale of natural gas as a commodity.
Competition — RIE commodity gas pass-through tariffs · Filed 20/02/2026
Therefore, customer natural gas purchases from alternative suppliers do not generally impact RIE's profitability.
Competition — profitability effect of alternative gas suppliers · Filed 20/02/2026
The RIPUC approved future cost recovery for RIE of any unfunded balance of the miscellaneous bill credits through future identified offsets and/or a reconciling recovery mechanism to be determined in conjunction with the 2026 electric retail rate filing to allow recovery by December 31, 2026.
Utility Rate Regulation — approved future recovery of bill credits · Filed 07/08/2026
As submitted in the initial application, in the first year of the rate plan RIE's proposed base distribution rates for electric and gas service are designed to collect additional annual operating revenue of approximately $181 million ($66 million or 18.2% in electricity revenues and $115 million or 36.4% in gas revenues).
Rhode Island rate proceedings — requested increases · Filed 07/08/2026
5 Table of Contents CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS PPL Corporation and Subsidiaries (Unaudited) (Millions of Dollars) Six Months Ended June 30, 2026 2025 Cash Flows from Operating Activities Net income $ 682 $ 597 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 713 646 Amortization 65 49 Defined benefit plans - income (7) (30) Deferred income taxes and investment tax credits 137 104 Stock-based compensation expense 31 26 Equity component of AFUDC (52) (35) Other (19) 12 Change in current assets and current liabilities Accounts receivable (31) (91) Accounts payable (192) (167) Unbilled revenues 138 63 Fuel, materials and supplies (42) 13 Prepayments (67) (56) Taxes payable (72) 40 Regulatory assets and liabilities, net (10) 64 Accrued interest 6 (5) Other (36) (52) Other operating activities Defined benefit plans - funding (8) (7) Other assets (101) (77) Other liabilities 5 21 Net cash provided by operating activities 1,140 1,115 Cash Flows from Investing Activities Expenditures for property, plant and equipment (2,339) (1,723) Other investing activities (68) 10 Net cash used in investing activities (2,407) (1,713) Cash Flows from Financing Activities Issuance of long-term debt 2,046 — Retirement of long-term debt (668) — Payment of common stock dividends (416) (392) Net increase (decrease) in short-term debt (391) 983 Debt issuance costs (38) (5) Other financing activities (13) (9) Net cash provided by financing activities 520 577 Net Decrease in Cash, Cash Equivalents and Restricted Cash (747) (21) Cash, Cash Equivalents and Restricted Cash at Beginning of Period 1,086 339 Cash, Cash Equivalents and Restricted Cash at End of Period $ 339 $ 318 Supplemental Disclosures of Cash Flow Information Significant non-cash transactions: Accrued expenditures for property, plant and equipment at June 30, $ 612 $ 450 The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.
PPL consolidated cash flows — operating cash, capital spending and financing · Filed 07/08/2026
Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended June 30 used in the EPS calculation are: Three Months Six Months 2026 2025 2026 2025 Income (Numerator) Net income attributable to PPL $ 230 $ 183 $ 682 $ 597 Less amounts allocated to participating securities — — 1 1 Net income available to PPL common shareowners - Basic and Diluted $ 230 $ 183 $ 681 $ 596 Shares of Common Stock (Denominator) Weighted-average shares - Basic EPS 752,358 739,276 752,062 738,986 Add: Dilutive share-based payment awards (a) 1,660 2,504 1,979 2,606 Add: Forward sale agreements 680 23 662 11 Add: Exchangeable Notes 2,527 738 2,490 369 Weighted-average shares - Diluted EPS 757,225 742,541 757,193 741,972 Basic EPS Net Income available to PPL common shareowners $ 0.31 $ 0.25 $ 0.91 $ 0.81 Diluted EPS Net Income available to PPL common shareowners $ 0.30 $ 0.25 $ 0.90 $ 0.80 (a) The Treasury Stock Method was applied to non-participating share-based payment awards.
Earnings per share — income growth and increased share count · Filed 07/08/2026
Invitium is actively engaged with hyperscalers, landowners, natural gas pipeline companies and turbine manufacturers, and has secured multiple land parcels and placed deposits on future turbine purchases to enable the build of new generation.
Generation development — land parcels and turbine deposits · Filed 07/08/2026
No ESSAs with developers or hyperscalers have been signed as of the filing date of this Form 10-Q.
Generation development — no signed developer or hyperscaler ESSAs at filing · Filed 07/08/2026
In 2025, PPL achieved $170 million in annual operations and maintenance savings, compared to the 2021 baseline, to keep energy affordable.
Board message — reported annual operations and maintenance savings · Filed 01/04/2026
In 2025, our operating companies achieved first-quartile or near first-quartile transmission and distribution reliability and top-decile generation performance, despite increasingly severe weather events and rising system demands across our service territories.
2025 performance achievements — reported reliability and generation performance · Filed 01/04/2026
PPL also achieved the midpoint of our 2025 ongoing earnings forecast, representing 7.1% growth over the previous year.
2025 performance achievements — forecast attainment and ongoing earnings growth · Filed 01/04/2026
52 PPL CORPORATION 2026 Proxy Statement Table of Contents EXECUTIVE COMPENSATION 2025 Performance Unit Award Grants (80% of Total LTI) The performance units awarded in 2025 were designed to align the interests of our NEOs with those of our shareowners by directly linking NEO pay with sustained long-term company performance over a designated performance period.
Executive compensation — performance units actually awarded in 2025 · Filed 01/04/2026
Target award values are established at the start of the year, and the actual number of shares that an NEO receives is contingent on PPL’s TSR performance relative to the companies in the compensation peer group, the company’s EG performance and LTS metrics, as follows.
Executive compensation — conditions determining actual performance shares · Filed 01/04/2026
Corporate Governance and Compensation Facts Corporate Governance or Compensation Matter PPL’s Practice Board Composition, Leadership and Operations Current Number of Directors 10 Independence of Current Directors 90% Board Committee Membership Independence (except Executive Committee and ad hoc committees) Yes Independent Chair of the Board Yes Voting Standards in Director Elections: Majority with Plurality Carve-out for Contested Elections Yes Annual Director Elections for All Directors Yes Resignation Policy in Uncontested Elections Yes Limits on Director Service on Other Boards Yes Table of Contents Corporate Governance or Compensation Matter PPL’s Practice Board Composition, Leadership and Operations Mandatory Retirement Age Yes (75) Mandatory Tenure No Average Nominee Age 66 Average Nominee Tenure 10 years Directors Attending Fewer than 75% of Meetings None Annual Board and Committee Self-Evaluation Process Yes Number of Board Meetings Held in 2025 6 Total Number of Board and Committee Meetings Held in 2025 27 Proxy Access Bylaw Yes Independent Directors Meet without Management Present Yes Governance and Sustainability Practices Board and Committee Oversight of Safety Yes Board Oversight of Cybersecurity Yes Board and Committee Oversight of Sustainability Disclosure Yes Board Oversight of Corporate Culture Yes Code of Conduct for Directors, Officers and Employees Yes Robust Stock Ownership Policies Yes Insider Trading Policy Includes Anti-hedging and Anti-pledging Policy Yes Shareowner Engagement Practice Yes Long-Term Incentives Aligned with Sustainability Goals Yes Carbon Reduction Goal Includes Net-Zero by 2050 Yes Voluntary Framework Disclosures (GRI, TCFD, SASB & EEI-AGA) Yes Corporate Political Contribution Policy and Related Disclosure Yes Equal Employment Demographic Metrics Disclosure (EEO-1 Report) Yes Climate Policy Principles Yes Environmental Policy Statement Yes Health and Safety Policy Statement Yes Human Rights Policy Statement Yes Supplier Code of Conduct Yes Material Related-Party Transactions with Directors None Independent Auditor Deloitte & Touche LLP Compensation Practices CEO Pay Ratio 74:1 Compensation Recoupment (Clawback) Policy Yes Employment Agreements for Executive Officers No Pay-for-Performance Yes Double-Trigger Change-in-Control Provisions Yes Percentage of 2025 CEO Incentive Compensation at Risk 88% Performance-based Percentage of 2025 CEO Long-term Incentive Compensation 73% Tax “Gross-ups” for Change-in-Control Severance Agreements None Annual Risk Assessment of Compensation Policies and Practices Yes Independent Compensation Consultant Frederic W.
Governance and compensation facts — existing board and compensation practices · Filed 01/04/2026
In 2025, director attendance at Board and committee meetings was 100%.
Board attendance — actual 2025 meeting attendance · Filed 01/04/2026
The Audit Committee of PPL approved 100% of the 2025 and 2024 services provided by Deloitte.
Audit Committee — approval of auditor services in 2025 and 2024 · Filed 20/02/2026
