2Q Preview: Regulatory derisking and set up for 2H capex updates in focus; Buy SRE, XEL

Research evidence excerpt

2Q Preview: Regulatory derisking and set up for 2H capex updates in focus; Buy SRE, XEL

Equity Research

16 July 2026 | 2:11AM EDT

AMERICAS UTILITIES

2Q Preview: Regulatory derisking and set up for 2H capex updates in

focus; Buy SRE, XEL

We update our estimates for the Utilities in our regulated coverage ahead of 2Q Carly Davenport

+1(212)357-1914 |

earnings. Despite the quarter expected to be on the quieter side, we see upside carly.davenport@gs.com

Goldman Sachs & Co. LLC

opportunities from the companies that are derisking their regulatory calendars as we

Beatriz Abreu, CFAhead into 2H2026 and are focused on execution as we look towards the 3Q/4Q +1(212)357-0455 |

updates where utilities will typically roll out their five-year capital plans. This quarter, beatriz.abreu@gs.comGoldman Sachs & Co. LLC

we expect management commentary on 1) regulatory developments at the state Jaya Patel

and regional power market levels, 2) large load pipelines and response to local +1(212)357-9901Goldman Sachs & Co.| jaya.patel@gs.comLLC

pushback on data centers, and 3) generation opportunities and potential Ananya Jaison

incremental capex. From here, we see upside to stocks like Buy rated SRE and XEL +1(332)245-7625 | ananya.jaison@gs.com

which have strong upside opportunities around large load and a path to regulatory Goldman Sachs India SPL

derisking (SRE asset sales close, XEL rate case settlements approvals) in 2H. We see

downside risk on 2Q for Sell rated EXC, which is exposed to regulatory/legislative risk

across states in its PJM footprint due to affordability concerns.

Where we see the most upside to consensus around 2Q26 results. We see the

most upside from SRE into 2Q results where we are 3% above consensus and are

encouraged by the opportunities from its Texas exposure.