Duke Energy’s Earnings Call Highlights Strong Start and Strategic Growth

Duke Energy ((DUK)) has held its Q1 earnings call. Read on for the main highlights of the call.

Duke Energy’s recent earnings call conveyed a positive sentiment, emphasizing a strong start to the year with remarkable growth in earnings and strategic advancements. Despite facing challenges such as tariffs and interest expenses, the company remains optimistic due to its robust pipeline and regulatory progress, suggesting a promising outlook.

Strong Start to 2025

Duke Energy reported a significant increase in first-quarter adjusted earnings per share, reaching $1.76, which marks a 22% rise over the same period in 2024. This growth was primarily driven by top-line increases in both electric and gas utilities, showcasing the company’s successful start to the year.

Nuclear Regulatory Approval

The company received approval to extend the operating license for the Oconee nuclear station for an additional 20 years. This extension secures over 2,600 megawatts of capacity into the 2050s, reinforcing Duke Energy’s long-term energy supply capabilities.

Robust Economic Development Pipeline

Duke Energy has signed new letter agreements for nearly 1 gigawatt of data center projects, with continued expansion in advanced manufacturing projects. This robust pipeline highlights the company’s commitment to economic development and infrastructure growth.

Strategic Partnership with GE

A new partnership with GE Vernova has been announced to secure up to 19 natural gas turbines. This collaboration ensures the timely delivery of infrastructure necessary to meet the growing energy demand.

Positive Regulatory and Legislative Moves

Duke Energy is engaged in ongoing discussions regarding the potential merger of DEC and DEP utilities, which is expected to generate over $1 billion in savings for customers, demonstrating positive regulatory and legislative progress.

Higher Interest Expense

The company’s first-quarter results were partially offset by higher interest expenses and depreciation. Despite this, the overall financial performance remained strong.

Tariff Impact on Capital Plan

Tariffs are estimated to impact 1% to 3% of Duke Energy’s 5-year capital plan. However, the company is taking measures to minimize these effects, ensuring continued financial stability.

Forward-Looking Guidance

Duke Energy reaffirmed its 2025 earnings guidance of $6.17 to $6.42 per share, with a projected long-term EPS growth rate of 5% to 7% through 2029. The company anticipates significant customer growth, particularly in the Southeast and Indiana, and expects load growth to accelerate starting in 2027. Strategic initiatives, including the extension of the Oconee nuclear station’s operating license and partnerships for natural gas turbines, are key to meeting future energy demands.

In summary, Duke Energy’s earnings call highlighted a strong start to 2025 with substantial growth and strategic initiatives. Despite challenges from tariffs and interest expenses, the company’s robust pipeline and regulatory advancements suggest a positive future outlook, making it an attractive prospect for investors.