1Q26 Earnings In Review - Final

Research evidence excerpt

1Q26 Earnings In Review - Final

TD SECURITIES (USA) LLC INDUSTRY UPDATE

May 15, 2026

■Utilities: Electric Utilities 1Q26 Earnings In Review - Final

■Utilities: Gas Utilities

■Utilities: Multi-Utilities

■Utilities: Power Generation

Shelby Tucker, CFA THE TD COWEN INSIGHT

646 562 1322

Earnings were slightly below our expectations for EDCs, while IPPs beat our expectations off

shelby.tucker@tdsecurities.com

better retail margins than expected. Regulatory concerns remain a focus, even as announced

Eli Mingos capital plan increases were rewarded. Looking forward, we expect the cadence of capital plan

646 562 1407 increases to accelerate, although caution that over promising is an issue, with growth needing

eli.mingos@tdsecurities.com

to be cost-neutral.

Isaac von Hallberg

646 562 1464 ■Utilities are increasingly expected to demonstrate incremental growth as cost-neutral

isaac.vonhallberg@tdsecurities.com or, ideally, beneficial to existing ratepayers. Affordability has emerged as a prerequisite for

growth, with companies embedding it directly into strategy. Affordability is no longer a soft

Price Target Changes political risk, but a hard constraint on capital deployment. Utilities are increasingly relying

AEP $148.00 (Prior $141.00) on targeted rate mechanisms and tariff design to bridge the gap between growth and

ATO $196.00 (Prior $193.00) customer impacts. However, regulatory scrutiny is simultaneously intensifying, particularly

EXC $49.00 (Prior $51.00)

as affordability becomes more central to political and regulatory discourse. Valuation is

MDU $22.00 (Prior $20.00)

PNW $101.00 (Prior $100.00) increasingly linked not just to regulatory support, but to the sophistication and flexibility of

regulatory design.