Duke Energy CORP Q1 FY2025 earnings call

Harry's Statements - As the new CEO, emphasized Duke Energy's role in powering communities and the critical role of load growth driving infrastructure build. Highlighted first quarter adjusted earnings per share of $1.76, driven by electric and gas utilities growth. - Announced approval from Nuclear Regulatory Commission to extend Oconee nuclear station's operating license for 20 years, and intention to seek similar extensions for other reactors. Also, pursuing up-rate projects for existing units. - Mentioned progress on new generation projects: Carolinas commencing early site activities for combined cycle units, Indiana filing CPCNs for combined cycles, Florida investing in solar and battery storage, joining DOE grant application, and strategic partnership with GE Vernova to secure natural gas turbines. - Discussed working with regulators: On track to file merger application of DEC and DEP utilities in Carolinas later this year, targeting January 2027 for effective date; on track to issue storm securitization bonds in North and South Carolina by end of year; Florida began recovering 2024 hurricane costs; Kentucky electric rate case progressing with hearings later this month. ### Brian's Statements - Reported first quarter adjusted earnings per share of $1.76, 22% increase over first quarter 2024. - Weather normal volumes increased 1.8% versus last year, in line with full year projection. Residential volumes up over 3% due to customer growth and higher usage. - Reiterated commitment to credit ratings and strong balance sheet, on track to achieve 14% FFO to debt this year and improve above 14% over 5-year plan. - Talked about capital plan: Invested over $3 billion in the quarter, on track for $15 billion full year; evaluating impact of tariffs, estimating 1% - 3% impact on 5-year capital plan.

Duke Energy reported first quarter adjusted earnings per share of $1.76, which is $0.32 above last year, driven by top line growth across electric and gas utilities. Electric utilities and infrastructure was up $0.33 compared to last year, driven by higher sales volumes, improved weather, and new rates. Gas Utilities & Infrastructure results were up $0.08 compared to last year, driven by new rates at Piedmont, North Carolina. The other segment was down $0.08, primarily due to higher interest expense.

• Reaffirmed 2025 guidance range of $6.17 to $6.42 for earnings per share. - Maintained long-term EPS growth rate of 5% to 7% through 2029. - Confident in delivering the 2025 guidance range and potential to earn the top half of the range as load growth accelerates in the back end of the plan due to constructive regulatory outcomes providing a solid foundation and minimizing near-term regulatory exposure.

• Tariffs primarily affect capital, with an estimated impact of about 1% to 3% of the 5-year capital plan. - Economic and policy uncertainty could potentially impact industrial customer activity levels, though currently no knee-jerk reactions from customers but a cautionary stance is noted.

Q: Shar Pourreza from Guggenheim Partners asked about when to see guideposts around incremental CapEx opportunities above the base plan and if placeholder disclosure is considered.

A: Harry Sideris said they updated the plan in February with $83 billion for the next 5 years, continuing to work on the pipeline and would update as investment opportunities come along. Brian Savoy added they're updating resource plans and would update the investment community on capital if there's a catalyst, with February as the major capital update cycle.

Q: Julien Dumoulin-Smith from Jefferies asked about the 1 gigawatt data center signings, the GE partnership, and 2026 outlook.

A: Harry Sideris said the pipeline is robust and growing, and the GE partnership provides flexibility for quickly serving customers. Brian Savoy mentioned 2026 planning is underway and they're well-positioned to deliver on the growth range.

Q: Durgesh Chopra from Evercore ISI Group asked about financial implications of the DEDC merger and data center customer size.

A: Harry Sideris said the merger generates over $1 billion in savings for customers, focuses on operational and fuel savings, and the 1 gigawatt signed is from two customers.

Q: Carly Davenport from Goldman Sachs asked about IRA tax credits and industrial customer activity.

A: Harry Sideris said they advocate for nuclear tax credits to lower customers' bills and work with Washington on that. Brian Savoy said industrial customers have a cautionary stance due to economic and policy uncertainty but no change to 2025 load growth projection.