PEG Q3 2025 Earnings: Key Takeaways from the 10-Q Filing

Public Service Enterprise Group (PEG), a cornerstone of New Jersey's energy landscape, recently released its financial results for the third quarter of 2025. For anyone interested in the performance of major utility and power generation companies, these filings offer a detailed look under the hood. We've examined the company's latest 10-Q filing with the SEC to break down the key numbers and what they tell us about the company's health.

Overall, PEG reported a strong quarter, with significant growth in both revenue and profit. The company's total revenue climbed to $3.2 billion, a notable 22% increase from the $2.6 billion reported in the same quarter last year. This top-line growth translated directly to the bottom line, with net income rising to $622 million, up from $520 million in Q3 2024. This resulted in a diluted earnings per share of $1.24, a solid improvement over last year's $1.04.

To better visualize how the company's revenue flows through its various costs to arrive at its net income, the following chart breaks down the quarterly income statement.

You might notice an "Unallocated" category with a negative value for revenue and cost of revenue in the diagram. This simply represents the elimination of intercompany sales—for instance, when the power generation segment sells energy to the utility segment. These are removed from the consolidated totals to avoid counting the same revenue twice.

A Tale of Two Segments

PEG's business is primarily divided into two segments, and their individual performances tell the story of the quarter.

• PSE&G (The Regulated Utility): This is the company's traditional and largest segment, responsible for electric and gas delivery to millions of customers in New Jersey. It was the primary engine of growth this quarter, posting $2.5 billion in revenue. The strong performance was largely driven by the settlement of a distribution base rate case in late 2024 and continued investments in its transmission and distribution grid, which expanded its regulated asset base. This segment generated a robust operating income of $702 million, underscoring the stability and profitability of the regulated utility model.

• PSEG Power & Other: This division includes the company's power generation assets, primarily its nuclear fleet, along with other energy-related businesses. It also saw impressive growth, with revenue hitting $749 million, a 28% jump from the prior year. This increase was fueled by higher capacity prices—the payments generators receive for being available to produce power—and better average realized prices for the energy it sold. The segment delivered an operating income of $153 million for the quarter.

Costs and Profitability

While revenues were up, so were costs. The company's cost of revenue, primarily comprised of energy costs, rose 26% to $1.1 billion. This increase was expected, as higher commodity prices for electricity and gas sold to customers are typically passed through.

Operating expenses, which include maintenance and depreciation, grew at a more moderate pace of 12% to $1.24 billion. Despite these rising costs, PEG successfully improved its profitability. The company's operating margin expanded to 26.5% from 24.3% in the same quarter last year, indicating effective cost management relative to its revenue growth.

In conclusion, Public Service Enterprise Group delivered a solid third-quarter performance, showcasing the strength of its dual-segment business model. The regulated utility provided a stable and growing earnings base, benefiting from recent rate case settlements and ongoing infrastructure investment. Simultaneously, the power generation segment capitalized on favorable market conditions. In an evolving energy market, PEG's results demonstrate a resilient strategy that leverages both regulated stability and competitive market opportunities.