Analysis PEG
PSEG's $246 million profit drop hasn't changed its earnings target
Market-linked adjustments flipped from gains to losses. The utility’s investment costs show another pressure beneath the group result.
PSEG’s third-quarter net income fell by $246 million from a year earlier, yet the New Jersey utility and nuclear power group kept its full-year earnings target. The explanation lies in what that target leaves out.
Reported net income was $376 million for the quarter ended September 30, 2026, down from $622 million. The company’s adjusted net-profit measure, called non-GAAP Operating Earnings, edged up to $574 million from $565 million.
The adjustments switched direction
Research by Ticker Byline shows that the net adjustments used to calculate that measure swung by $255 million from a year earlier. That more than offset the $246 million decline in reported profit, leaving the $9 million increase in adjusted earnings.
This quarter, PSEG added back losses on funds set aside for nuclear plant decommissioning and changes in the value of certain energy contracts. A year earlier, it removed gains instead.
| Q3 2026 profit bridge | USD millions |
|---|---|
| Reported net income | 376 |
| Add back nuclear trust losses | 21 |
| Add back energy-contract valuation losses | 251 |
| Related tax adjustment | -74 |
| Adjusted net earnings | 574 |
The utility and power businesses moved apart
The adjusted result also contains a real operating contrast. Utility subsidiary PSE&G earned $506 million, down from $515 million. Investment recovery and customer growth were more than offset by higher interest costs, the timing of taxes and depreciation, the accounting charge for using long-lived assets.
PSEG Power & Other increased adjusted net earnings to $68 million from $50 million. It benefited from avoiding a repeat of last year’s Hope Creek refueling outage, higher realized power prices and greater nuclear output.
PSEG maintained its 2026 adjusted earnings forecast of $4.28 to $4.40 per share, the same range it gave in August.
The investment plan still needs borrowing
The company also repeated its $24 billion to $28 billion five-year capital investment plan without issuing new shares or selling assets. Its quarterly report says capital requirements over the next three years will be funded through internal cash and external debt.
Consolidated debt stood at $25.6 billion at September 30, up from $24.1 billion at year-end. Operating cash flow for the first nine months was $2.54 billion, slightly below the prior year. How quickly investments enter customer rates matters: PSEG already points to depreciation and interest on investments not yet reflected in rates as a drag on utility earnings.
The PSEG company profile tracks reported and adjusted results, the funding position and the unchanged annual outlook.