PSEG Beats Q3 Earnings Expectations With $1.24 EPS, Tightens 2025 Outlook

Public Service Enterprise Group (PSEG) has announced its financial results for the third quarter of 2025, showcasing a robust performance that surpassed market expectations. The company also provided updated guidance for the remainder of the year, reflecting its strategic focus and operational efficiency.

Net Income Climbs 20% Year-Over-Year as Power Pricing Strengthens

Public Service Enterprise Group (NYSE: PEG) reported its third-quarter financial results for 2025, revealing a net income of $622 million and earnings per share (EPS) of $1.24. This performance exceeded the market’s expectations, which had forecasted an EPS of $1.03. The company’s non-GAAP operating earnings were $565 million, translating to $1.13 per share, also surpassing the anticipated revenue of $2.73 billion and providing a strong indication of the company’s financial health.

The company’s results reflect a significant improvement compared to the same period in 2024, where net income was $520 million, and EPS stood at $1.04. PSEG attributed this growth to the impact of new rates from the October 2024 base rate case settlement and higher power pricing for the year-to-date period. Additionally, PSEG’s regulated investments, amounting to approximately $1 billion in the quarter, played a critical role in driving these positive results.

PSEG’s performance was driven by its core business segments, with PSE&G reporting net income of $515 million and PSEG Power & Other contributing $107 million. The company’s strategic focus on operational excellence and cost discipline has enabled it to maintain reliability and provide value to its customers, despite challenges such as a growing generation supply-demand imbalance and rising summer electric bills.

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PSEG Tightens Guidance Range and Reinforces Dividend Stability

Looking ahead, PSEG has narrowed its 2025 non-GAAP operating earnings guidance to the upper half of the range at $4.00 to $4.06 per share, from the previous range of $3.94 to $4.06. This adjustment reflects the company’s confidence in its ability to continue delivering strong financial performance throughout the remainder of the year.

PSEG’s capital investment program remains a key focus, with approximately $2.7 billion invested over the first nine months of 2025, as part of its planned $3.8 billion capital spending initiative. This program aims to modernize New Jersey’s energy infrastructure, meet load growth, and expand energy efficiency programs. The company’s solid balance sheet supports this investment strategy, allowing it to fund its five-year capital investment program of $22.5 billion to $26 billion without issuing new equity or selling assets.

Ralph LaRossa, PSEG’s chair, president, and CEO, reaffirmed the company’s five-year non-GAAP operating earnings growth outlook of 5% to 7% through 2029. He emphasized the potential for contracting nuclear output under multi-year agreements and exploring incremental investments to address the near-term need for additional supply due to growing customer demand. PSEG’s ability to maintain consistent and sustainable dividend growth further highlights its commitment to delivering long-term value to shareholders.

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.