Duke Energy Reports Q4 and Provides 2025 Guidance Outlook

Duke Energy (NYSE: DUK) has reported its financial results for the fourth quarter of 2024, showcasing a notable improvement in its earnings per share (EPS). The company recorded a reported EPS of $1.54, up from $1.27 in the same quarter of the previous year. Adjusted EPS for the quarter stood at $1.66, compared to $1.51 in the fourth quarter of 2023.

This growth in adjusted EPS was primarily driven by increased revenue from rate hikes and riders, though it faced some pressure from rising interest expenses and depreciation on an expanding asset base. The Electric Utilities and Infrastructure segment reported a segment income of $1,208 million, up from $1,135 million in the same quarter last year on a reported basis.

On an adjusted basis, this segment’s income was $1,238 million, reflecting a $0.16 per share increase from the previous year. The growth was attributed to rate increases and riders, which helped offset higher depreciation costs. In the Gas Utilities and Infrastructure segment, reported segment income was slightly down at $189 million compared to $192 million in the previous year. However, on an adjusted basis, the segment income increased to $231 million from $192 million, representing a $0.05 per share rise. The improvement was largely due to rate increases and riders, though offset by increased interest expenses and depreciation.

Duke Energy Misses Expectations with Q4 Results

When comparing the current quarter’s performance against market expectations, Duke Energy’s results were a mixed bag. The company exceeded the EPS expectation of $1.68 with a reported EPS of $1.54, though it fell short of the consensus. However, the adjusted EPS of $1.66 was closer to the anticipated figure. The revenue for the quarter was $7.36 billion, slightly below the expected $7.7 billion, indicating a shortfall in meeting revenue expectations.

The Electric Utilities and Infrastructure segment’s performance was driven by strategic rate hikes and riders, which helped mitigate the impact of rising operational costs. In contrast, the Gas Utilities and Infrastructure segment showed a decline in reported income due to impairments in renewable natural gas investments, although adjusted results indicated a positive trend.

The company’s effective tax rate also showed a favorable trend, with the reported effective tax rate decreasing to 8.1% from 9.7% in the previous year. This was primarily due to increased amortization of excess deferred taxes and production tax credits (PTCs), which positively impacted the overall financial performance.

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Duke Energy Expects Adj. EPS in $6.17 to $6.42 Range for 2025

Looking ahead, Duke Energy has introduced its guidance for 2025, projecting an adjusted EPS range of $6.17 to $6.42. The company is also extending its long-term adjusted EPS growth rate of 5% to 7% through 2029, based on the 2025 midpoint of $6.30. This guidance reflects Duke Energy’s strategic focus on capital investments and operational efficiency.

The company has unveiled a five-year capital plan of $83 billion aimed at funding new generation projects and meeting the growing energy demand. This ambitious plan underscores Duke Energy’s commitment to transitioning towards cleaner energy sources while maintaining reliability and affordability for its customers.

With the transition in leadership to Harry Sideris as the next CEO, Duke Energy is poised to execute the next phase of its business strategy. Sideris has expressed a strong commitment to investing in critical infrastructure to support technological advancements and economic growth while ensuring energy reliability and security.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.