Analysis PEG
PSEG's $246 million profit drop hasn't changed its earnings target
PSEG kept its annual adjusted earnings target despite a sharp decline in reported profit. Our comparison explains the accounting swing and utility funding pressure.
Ticker Byline
Public Service Enterprise Group Incorporated
PSEG combines New Jersey regulated electric and gas infrastructure with nuclear generation. Market-linked accounting adjustments separate its reported and adjusted profit, while its utility investment plan uses internal cash and debt.
- Ticker
- PEG
- Exchange
- XNYS
- SEC CIK
- 0000788784
Public Service Enterprise Group Incorporated, known as PSEG (NYSE: PEG), owns New Jersey electric and gas utility PSE&G and nuclear generation operations. Utility investment recovery and power-generation returns drive its earnings.
September-quarter results
Amounts are USD millions except diluted earnings per share, for the three months ended September 30. Non-GAAP Operating Earnings is PSEG’s adjusted net-profit measure; it excludes nuclear trust and energy-contract valuation gains or losses and other material infrequent items, with related tax effects.
| Group results | 2026 | 2025 |
|---|---|---|
| Operating revenue | 3,020 | 3,226 |
| GAAP operating income | 622 | 855 |
| Net income | 376 | 622 |
| Diluted earnings per share | $0.76 | $1.24 |
| Adjusted net earnings | 574 | 565 |
| Adjusted earnings per share | $1.15 | $1.13 |
Quarterly adjustments added $198 million to reported net income in 2026, versus subtracting $57 million in 2025. The current bridge adds $21 million of nuclear trust losses and $251 million of energy-contract valuation losses, then deducts $74 million of related tax effects.
PSE&G utility net income fell to $506 million from $515 million as interest costs, tax timing and depreciation, the accounting charge for using long-lived assets, outweighed investment recovery and customer growth. Power & Other adjusted net earnings rose to $68 million from $50 million, helped by higher realized prices and output and the absence of a year-earlier refueling outage.
Targets and investment recovery
On November 2, PSEG kept its 2026 adjusted earnings forecast at $4.28 to $4.40 per share, unchanged from August 4. It also maintained its target of 6% to 8% compound annual adjusted earnings growth through 2030 and its $24 billion to $28 billion five-year capital plan without new equity or asset sales. Both were already stated in August.
Future results can test whether new investment recovery catches up with depreciation and financing costs. The current quarter included costs for investments not yet reflected in customer rates.
Cash flow and financing
Operating cash flow for the nine months ended September 30 was $2.537 billion, versus $2.577 billion in 2025. Cash additions to property, plant and equipment, including nuclear fuel, rose to $2.302 billion from $2.143 billion.
At September 30, consolidated debt was $25.634 billion, versus $24.074 billion at December 31, 2025. Cash and cash equivalents were $837 million, versus $132 million. PSEG expects internal funds and external debt to meet capital requirements over the next three years.
Latest reporting