Can Kentucky's Economic Development Drive PPL's Long-Term Growth?

PPL Corporation PPL is benefiting from economic development across its Kentucky service territory, which is driving expectations for higher electricity demand and creating opportunities for additional generation and infrastructure investment. Rising demand from data centers, manufacturing and other large customers could support customer growth and expand the regulated rate base.

In its second-quarter 2026 update, PPL reported a 6% sequential increase in its development pipeline to 13.7 gigawatts (GW) of potential load growth, comprising 11.6 GW from data centers and 2.1 GW from manufacturing and other projects. Projects supported by signed reimbursement agreements rose to 1.3 GW from approximately 0.9 GW in the first quarter of 2026. This suggests that more prospective customers are progressing toward commitments for new electric service.

PPL’s probability-weighted forecast points to 3.7 GW of new load by 2032, more than double the amount included in its 2025 Certificate of Public Convenience and Necessity (“CPCN”) filing. Higher demand could require new generation resources, with PPL potentially filing a CPCN by year-end. Possible resources include the 266 megawatts (MW) Lewis Ridge project, 400 MW of deferred batteries and additional natural-gas generation. These projects could represent $3.5 billion to $4 billion of incremental investment between 2027 and 2032.

PPL plans to invest about $23 billion through 2029, supporting annual rate-base growth of 10.3% and earnings per share (EPS) growth at the upper end of its 6-8% target. Overall, rising load and related generation investment could make Kentucky an important contributor to PPL’s long-term growth.

Economic Expansion Strengthens Utility Growth Prospects

Economic expansion increases electricity demand from businesses, industries and households, creating new opportunities for utilities. Rising consumption supports revenue growth, infrastructure investment and long-term expansion across regulated service territories nationwide.

Duke Energy Corporation DUK benefited from economic development, securing $5 billion of investment in the first half of 2026. Rising demand also supported 7.8 GW of data-center agreements and long-term infrastructure investment.

NextEra Energy NEE gains from Florida’s growing economy through Florida Power & Light. In second-quarter 2026, customer growth and mix contributed 1.4 percentage points to retail sales, while average customer accounts increased 1.5% year over year.

The Zacks Rundown on PPL

PPL’s Earnings Estimates

The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 7.18% and 8.32%, respectively.

Image Source: Zacks Investment Research

PPL's Debt to Capital

PPL's debt-to-capital currently stands at 57.46%, lower than the electric power industry’s 61.32%.

Image Source: Zacks Investment Research

PPL’s Stock Price Performance

In the past six months, the company’s shares have plunged 12.8% compared with the industry’s 11.1% decline.

Image Source: Zacks Investment Research

PPL’s Zacks Rank

PPL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research