PSEG (PEG) Q3 2026 earnings: utility profit fell as nuclear carried growth

PSEG (NYSE: PEG) reported results for the third quarter of 2026 (ended September 30) on November 2, 2026, in an 8-K earnings release and its 10-Q. Consolidated earnings rose slightly, while profit at its regulated utility fell [1]. Three questions framed the quarter: could nuclear earnings grow after zero emission certificates (ZECs) ended, could the utility outrun depreciation and interest without new rates, and could cash flow and interest support an investment plan with no new equity? Nuclear was confirmed; the other two came in below their prior baselines. Non-GAAP operating earnings were $1.15 per share, up from $1.13, and the company maintained full-year guidance of $4.28-$4.40 per share [2]. For now, earnings growth rests on nuclear; utility growth awaits new rates.

PSEG is a utility holding company centered on New Jersey. Its utility, PSE&G, delivers electricity and gas and recovers its investment and return through regulated rates [3]; it earned more than 80% of group net income in 2025 [4]. PSEG Power owns 3,758 MW of nuclear capacity and sells energy and capacity in the PJM power market [5].

PSE&G third-quarter profit fell year over year

PSE&G net income was $506 million in the third quarter, down 1.7% from $515 million a year earlier [1]. Delivery revenues rose only $8 million [6], while depreciation and interest together rose $35 million [7]. Management attributed the decline to depreciation and interest on investments not yet reflected in current rates, and to the timing of taxes [8]. Nine-month delivery revenues rose $142 million [9]; the company did not fully explain the third-quarter slowdown.

Until new rates arrive, more investment means more profit pressure. Regulated investment was about $1.1 billion in the quarter; the roughly $4.2 billion full-year plan is unchanged [2]. The company anticipates filing by year-end 2026 to address regulatory lag [10]; the CEO said the filing will align with the Governor's goal of keeping rates flat, with details not yet released [11]. October rate roll-ins and the 2027 transmission formula update will recover part of the gap [12]. New Jersey legislation could also cost PSE&G its 50-basis-point transmission ROE adder, about $40 million of annual net income [13].

Nuclear earnings grew as expected

PSEG Power & Other non-GAAP operating earnings were $68 million in the third quarter, up 36% year over year [1]. Nuclear generation was 8,172 GWh, up 3.4% [14], with a 95.5% capacity factor [15]. Capacity revenue rose $19 million, and higher realized prices and volumes added $29 million [16]; PSEG's average capacity price rose from $270 to $329 per MW-day [17]. The company said its 2026 portfolio should keep realized nuclear value above the production tax credit floor [18].

Two caveats limit this result. First, part of the gain reflects a low base: operating and maintenance costs fell because last year's third quarter included a Hope Creek refueling outage [8], while tax timing reduced earnings by about $0.02 per share [19]. Second, the fourth quarter carries a new generation risk: in October, a Salem 1 refueling inspection found thermal shield degradation inside the reactor vessel, extending the outage [20]. Generation was 23,948 GWh through nine months [14], so reaching the company's full-year forecast of 30-32 TWh [21] requires about 6,050 GWh or more in the fourth quarter. No multi-year nuclear sales contract has been signed; the PJM reliability backstop auction is set for March 2027 at the earliest [22].

Hedge collateral weighed on cash flow as debt kept rising

Operating cash flow for the first nine months was $2.537 billion, down $40 million year over year [23]. The main causes were a $388 million net cash collateral outflow, compared with an inflow a year earlier, and the ZEC refund payment [24]; PSE&G's own operating cash flow rose $528 million [25]. PSEG Power had net cash collateral postings of $610 million at September 30 [26]. Rising power prices require more collateral on forward sales; it is released as contracts settle.

Interest is growing faster than earnings. Consolidated interest expense was $280 million in the quarter, up 10.7% [27], including $183 million at PSE&G [28]; interest paid over nine months was $799 million [29]. Total debt reached $25.634 billion at September 30, up $1.56 billion from the start of the year [30]. PSEG issued $2.9 billion of long-term debt in the first nine months [31] against $2.302 billion of capital expenditures [32], and PSEG Power issued $400 million of notes in September [33]. The company reaffirmed that its five-year investment plan requires no new equity or asset sales [34].

Conclusion

This quarter changed where PSEG's earnings growth comes from. Until new rates take effect, utility depreciation and interest grow ahead of revenue, and utility profit declined; nuclear capacity and hedged power prices turned into earnings and carried consolidated growth. Utility cash generation improved, but collateral and the ZEC refund pulled down consolidated cash flow, while debt and interest kept rising. The nuclear price advantage runs through May 2027. Next come the size and timing of the year-end filing, Salem 1's return, and whether collateral falls.

Sources

• [1] PEG 8-K filed 2026-11-02 (3Q26 earnings release, Ex.99) · results by segment
• [2] PEG 8-K filed 2026-11-02 (3Q26 earnings slides, Ex.99.1) · Q3 highlights
• [3] PEG 10-K filed 2026-02-26 · customer mix and CIP decoupling
• [4] PEG 10-K filed 2026-02-26 · 2025 net income by segment
• [5] PEG 10-K filed 2026-02-26 · nuclear generation business and BGSS gas supply
• [6] PEG 10-Q filed 2026-11-02 · MD&A · PSE&G 3Q variance
• [7] PEG 10-Q filed 2026-11-02 · MD&A · PSE&G results table
• [8] PEG 8-K filed 2026-11-02 (3Q26 earnings release, Ex.99) · segment commentary
• [9] PEG 10-Q filed 2026-11-02 · MD&A · PSE&G 9M variance
• [10] PEG 10-Q filed 2026-11-02 · MD&A · executive overview: PSE&G
• [11] PEG earnings call 2026-11-02 (3Q26) summary · Q&A
• [12] PEG 8-K filed 2026-11-02 (3Q26 earnings slides, Ex.99.1) · PSE&G regulatory highlights
• [13] PEG 10-Q filed 2026-11-02 · MD&A · transmission ROE
• [14] PEG 8-K filed 2026-11-02 (3Q26 earnings release, Ex.99) · Attachment 6 nuclear generation measures
• [15] PEG 8-K filed 2026-11-02 (3Q26 earnings slides, Ex.99.1) · PSEG Power financial considerations
• [16] PEG 10-Q filed 2026-11-02 · MD&A · PSEG Power & Other 3Q variance
• [17] PEG 8-K filed 2026-11-02 (3Q26 earnings slides, Ex.99.1) · PJM capacity auction results
• [18] PEG 10-Q filed 2026-11-02 · MD&A · executive overview: hedging
• [19] PEG earnings call 2026-11-02 (3Q26) summary · segment performance
• [20] PEG 10-Q filed 2026-11-02 · MD&A · executive overview: PSEG Power
• [21] PEG 8-K filed 2026-11-02 (3Q26 earnings slides, Ex.99.1) · nuclear generation measures
• [22] PEG 10-Q filed 2026-11-02 · MD&A · demand, supply and energy costs
• [23] PEG 8-K filed 2026-11-02 (3Q26 earnings release, Ex.99) · Attachment 4 cash flows
• [24] PEG 10-Q filed 2026-11-02 · MD&A · liquidity: operating cash flows
• [25] PEG 10-Q filed 2026-11-02 · MD&A · liquidity: PSE&G operating cash flows
• [26] PEG 8-K filed 2026-11-02 (3Q26 earnings slides, Ex.99.1) · liquidity and net cash collateral postings
• [27] PEG 10-Q filed 2026-11-02 · MD&A · PSEG results of operations table
• [28] PEG 8-K filed 2026-11-02 (3Q26 earnings release, Ex.99) · Attachment 1 consolidating statement 3Q26
• [29] PEG 10-Q filed 2026-11-02 · consolidated cash flows · supplemental cash flow information
• [30] PEG 8-K filed 2026-11-02 (3Q26 earnings release, Ex.99) · Attachment 3 capitalization
• [31] PEG 10-Q filed 2026-11-02 · consolidated cash flows · financing activities
• [32] PEG 10-Q filed 2026-11-02 · consolidated cash flows · investing activities
• [33] PEG 8-K filed 2026-11-02 (3Q26 earnings slides, Ex.99.1) · debt maturity footnote
• [34] PEG 8-K filed 2026-11-02 (3Q26 earnings release, Ex.99) · CEO statement