Duke Energy beats quarterly estimates on higher electricity rates
Duke Energy reported better-than-expected first-quarter results, driven by higher electricity rates and increased retail sales. The utility's revenue reached $8.25 billion, surpassing analysts' estimates of $8.06 billion. Adjusted earnings from electric utilities rose to $1.28 billion, while gas utilities reported $349 million in adjusted profit. The colder winter contributed to higher energy demand, and the company’s nuclear plants provided over half of the electricity in the Carolinas. Adjusted profit per share was $1.76, exceeding the forecast of $1.60.
May 6 (Reuters) - Utility Duke Energy (DUK.N) on Tuesday beat Wall Street expectations for first quarter revenue and profit, helped by higher electricity rates, retail sales and a colder winter.
U.S. utilities have been making a case for higher customer electricity bills as power usage surges rapidly in the wake of growing AI data centers, increased domestic manufacturing and the electrification of industries.
Power demand in the U.S. is expected to hit record highs in 2025 and 2026, according to the U.S. Energy Information Administration.
The U.S. nuclear industry, too, has become popular again after years of no growth, as businesses search for clean energy to supply data centers.
In late March, the U.S. Nuclear Regulatory Commission (NRC) renewed the operating licenses for Duke Energy’s Oconee Nuclear Station for 20 more years.
Duke Energy’s six nuclear plants supplied over half of the electricity for their customers in the Carolinas in 2024. These plants accounted for over 96% of the company’s clean energy production.
A colder-than-expected-winter also helped the utility as customers needed more electricity and natural gas to heat their homes.
Adjusted earnings from its electric utilities segment for the first quarter was $1.28 billion, up from $1.02 billion during the same reporting period last year.
Its gas utilities segment posted an adjusted profit of $349 million in the first quarter, compared with $284 million a year earlier.
Quarterly revenue was reported at $8.25 billion, beating analysts’ estimate of $8.06 billion, according to data compiled by LSEG.
The Charlotte, North Carolina-based company posted an adjusted profit of $1.76 per share for the three months ended March 31, compared with analysts’ average estimate of $1.60 per share.
