Public Service Enterprise Group reported third-quarter 2026 non-GAAP operating earnings of $1.15 per share, edging past the $1.13 per share recorded during the same period in the prior year. Chair, President, and Chief Executive Officer Ralph LaRossa and Executive Vice President and Chief Financial Officer Daniel J. Cregg outlined the results during a conference call, pointing to transmission investments and steady nuclear operations as core supports for the utility’s reaffirmation of its full-year guidance.
Financial and Operating Metrics Overview
- Non-GAAP operating earnings reached $1.15 per share for the third quarter, compared to $1.13 per share a year earlier.
- Full-year 2026 non-GAAP operating earnings guidance was reaffirmed in the range of $4.28 to $4.40 per share.
- The company’s nuclear fleet operated at a 95.5% capacity factor during the quarter, producing 8.2 terawatt-hours of carbon-free energy.
Earnings Performance and Margin Drivers
The financial figures released for the quarter ending September 30 show a divergence between GAAP net income and non-GAAP operating results. GAAP net income dropped to $0.76 per share, down from $1.24 per share in the prior year period. Management attributed the non-GAAP operating earnings increase to utility margin growth stemming from ongoing transmission and energy efficiency investments. Distribution and transmission margins grew by $0.03 and $0.02 per share, respectively.
Higher depreciation and interest costs, however, exerted downward pressure on subsidiary net income. PSE&G net income dipped slightly to $506 million from $515 million in the prior-year period. According to Cregg, interest and depreciation expenses both climbed by $0.01 a share as a result of refinancing maturing debt at elevated long-term rates alongside taking on extra debt for capital expenditures. In order to handle borrowing expenses, the company floated $1 billion of secured notes in August 2026—comprising $650 million of 10-year notes yielding 5.4% and $350 million of 30-year notes yielding 6.05%—which was subsequently supplemented by $400 million of 5-year senior notes yielding 5.55% in September.
| Metric (Q3) | 2026 | 2025 |
|---|---|---|
| Non-GAAP Operating Earnings | $1.15 / share | $1.13 / share |
| GAAP Net Income | $0.76 / share | $1.24 / share |
| PSE&G Net Income | $506 million | $515 million |
| PSEG Power & Other Earnings | $68 million | $50 million |
PSEG Power Operations and Hedging Strategy
PSEG Power and Other posted non-GAAP operating earnings of $68 million for the third quarter, compared to $50 million in the prior-year period. This improvement drew support from higher realized market prices and the absence of a refueling outage at the Hope Creek nuclear facility. The nuclear fleet maintained robust output, running at a 95.5% capacity factor for the quarter and bringing total generation for the first nine months of 2026 to 23.9 terawatt-hours at a 94.3% capacity factor. Salem Unit 1 also completed a 491-day breaker-to-breaker run before entering its fall refueling outage.
Forward generation sales remained heavily insulated against spot price volatility. As of September 30, 2026, PSEG had sold forward 70 terawatt-hours of expected output, placing 2026 production more than 95% hedged. Furthermore, the company participated in the recent PJM capacity auction, clearing 3,600 megawatts of existing capacity at $325 per megawatt-day for the energy year beginning in June 2028.
Capital Spending and Regulatory Filings
PSEG is executing a capital investment plan totaling $24 billion to $28 billion through 2030, targeting a 6% to 7.5% rate base growth rate and a 6% to 8% compound annual earnings growth rate. During the third quarter, regulated capital investments reached $1.1 billion, contributing to a projected $4.2 billion full-year 2026 plan focused on infrastructure modernization. Management indicated that this multiyear program will be funded without issuing new equity or selling assets.
Regulatory developments in New Jersey shaped several operational adjustments during the period. An Infrastructure Advancement Program approved an annual revenue increase of $14 million effective October 1, 2026. A Clean Energy Future-EV initiative secured an $8 million annual revenue increase for electric vehicle infrastructure investments. Residential gas bills decreased by 5% starting October 1, 2026, following the approval of a gas filing with the BPU. LaRossa noted that PSEG intends to file a proposal with the New Jersey Board of Public Utilities to address the regulatory lag of capital investments completed since the last distribution rate case.
Liquidity stood at $3.9 billion at the close of September 2026, inclusive of over $830 million in cash on hand. Variable rate debt accounted for 3% of total debt at the end of the quarter.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
