Portland General Electric's Q2 adjusted EPS beats estimates on data center demand

Overview

• Portland General Electric Q2 adjusted EPS beats analyst expectations, per LSEG data

• Co reports 16.5% industrial load growth driven by data center demand

• Company reaffirms 2025 adjusted earnings guidance, indicating confidence in strategic initiatives

Outlook

• Portland General Electric reaffirms 2025 adjusted EPS guidance of $3.13 to $3.33

• Company expects energy deliveries to increase by 2.5% to 3.5% in 2025

• Portland General Electric anticipates capital expenditures of $1,215 mln in 2025

• Company projects operating and maintenance expenses between $795 mln and $815 mln

Result Drivers

• DATA CENTER DEMAND - Significant demand growth from data center customers drove 16.5% industrial load growth

• SEMICONDUCTOR AND TECH INFRASTRUCTURE - Continued demand growth from semiconductor manufacturing and technology infrastructure customers boosted revenues

• EXPENSE INCREASES - Operating and maintenance expenses rose due to wildfire mitigation, vegetation management, and business transformation costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy."

• Wall Street's median 12-month price target for Portland General Electric Co is $45.00, about 11.7% above its July 24 closing price of $39.73

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn5PKgY4a