EXELON CORP Q2 FY2025 earnings call

• Operating earnings in Q2 2025 were $0.39 per share, above first quarter expectations, driven by favorable timing and cost management at utilities, offsetting customer relief fund and storm impacts.
• PECO faced a large storm in June with over 325,000 outages, and Exelon's team worked tirelessly to restore power. Exelon is recognized as one of the most reliable utilities.
• Regulatory activity: Core rate case activity limited, but active in federal and state proceedings. Illinois legislative session had energy omnibus legislation, Pennsylvania and New Jersey discussing power market issues. States should consider options outside capacity market for energy security.
• Large load pipeline: Over 17 gigawatts held firm, with another 16 gigawatts expected to formalize by year-end. Transmission work associated with MISO Tranche 2.1 is advancing, and Exelon expects to invest $38 billion through 2028 with additional $10 billion to $15 billion in transmission work.
• Financial update: Completed nearly 80% of 2025 long-term debt financing, priced $700 million of equity needs via ATM, and projected financial flexibility.

Exelon earned $0.39 in operating earnings in the second quarter of 2025, which was lower than the $0.47 per share in the same period in 2024 by $0.08 per share. The decrease was primarily driven by $0.13 of higher distribution and transmission rates, offset by $0.07 of ComEd timing, $0.04 at corporate attributable to the customer relief fund, $0.03 of higher storm costs at PECO, $0.02 of higher interest at corporate and PHI, and other nonrecurring items. Year-to-date performance supports the goal of delivering full-year operating earnings of $2.64 to $2.74 per share, with annualized earnings growth expected to be 5% to 7% through 2028.

• Full-year operating earnings guidance for 2025 remains $2.64 to $2.74 per share, with goal to be at midpoint or better.
• Annualized earnings growth rate expected to be 5% to 7% through 2028, with expectation to be at midpoint or better.
• Anticipate earnings in next quarter to be approximately 29% of the midpoint of projected full-year earnings guidance, assuming normal weather and storm conditions and deferral of extraordinary storm costs at PECO.

• Weather volatility: Storms can impact operations and costs, as seen with PECO's large storm in June.
• Regulatory uncertainties: Outcomes of federal and state proceedings related to energy policy and rate cases are uncertain.
• Market supply cost issues: Volatility and unpredictability in supply costs, and market not responding fast enough to address energy needs.

Q: Which jurisdictions do you think is the most right for further action on utility-owned generation or more energy efficiency, storage, etc.?

A: It depends on how quickly jurisdictions are looking to move and where the need is coming from. Maryland has a request for 3,000 megawatts of power, and we need certainty, control for customer benefits, and will work with states. Mike Innocenzo added Maryland legislation will have clarity by October on whether 3,000 MW is met by competitive market.

Q: Timing on when the $10 billion to $15 billion of potential transmission opportunity could move into the base plan?

A: Normally done in Q4. We have cluster studies, ComEd grid plan to file in 2026, BGE looking at next filing. Transmission will be a big part of the updated plan in Q4, with certainty needed for generation opportunities. Organized under Head of Transmission to look at competitive transmission opportunities.

Q: Thoughts on regulated generation fitting into Exelon's model?

A: Simple yes, based on certainty, state control, and customer benefits. States need certainty, control, and customer benefits, and we believe in a portfolio approach with regulated generation complementing competitive markets.

Q: Data center discussions progress and timing?

A: Significant activity in Illinois, with active cluster studies in Illinois and Mid-Atlantic. Expect results in third and fourth quarter, with commercial discussions to follow. ComEd filed proposed changes to tariff for large load projects 50 MW or more.

Q: Large load pipeline timelines and gating factors?

A: 10% of load online by 2028, another 1/3 by 2030, 3/4 by 2034. Key is high confidence in phases, with no major barriers expected.

Q: PJM capacity auction results and customer bill impact?

A: BGE bill impact roughly $1.5, across system $1.5 to $4 increase. Need complementary solutions like energy efficiency and demand response while working with states to mitigate impacts. Broader recognition that supply costs drive customer bills and need for grid investments.