10-K: Duke Energy Reports Strong 2025 Earnings, Advances Energy Modernization

Duke Energy achieved its 2025 financial commitments with earnings growth above the midpoint of its adjusted EPS guidance, driven by infrastructure investments and service territory growth, while advancing strategic transactions and regulatory outcomes.

Summary

• GAAP Reported EPS increased to $6.31 in 2025 from $5.71 in 2024.
• Adjusted EPS increased to $6.31 in 2025 from $5.90 in 2024.
• Net Income Available to Duke Energy Corporation Common Stockholders was $4,912 million in 2025, up from $4,402 million in 2024.
• Total Operating Revenues for 2025 were $32,237 million, compared to $30,357 million in 2024.
• The Electric Utilities and Infrastructure (EU&I) segment income increased by $567 million to $5,337 million in 2025.
• The Gas Utilities and Infrastructure (GU&I) segment income increased by $105 million to $559 million in 2025.
• Duke Energy is targeting net-zero carbon emissions from electricity generation by 2050, having already achieved a 43% reduction from 2005 levels.
• Projected capital and investment expenditures are $17.75 billion in 2026, $19.5 billion in 2027, and $21.2 billion in 2028.
• The company issued $582 million and $461 million in North Carolina storm recovery bonds in September 2025, and $561 million in South Carolina storm recovery bonds in November 2025.
• The NRC issued a subsequent license renewal for Oconee, extending its operation to 2054.
• Duke Energy filed for a Certificate of Environmental Compatibility and Public Convenience and Necessity (CECPCN) for a new 1,365-MW natural gas combined cycle generating facility in Anderson County, South Carolina, with an estimated cost of approximately $3.2 billion, targeted for service by the end of 2030.
• An application was filed for a Certificate of Public Convenience and Necessity (CPCN) for two new 850 MW combustion turbines at the existing Buck CC station, targeted for service by the end of 2029.
• A personal productivity generative AI tool was deployed to approximately 10,000 employees across the enterprise.
• Smart, self-healing technology helped avoid approximately 2.2 million customer outages in 2025, saving around 5.2 million hours of total outage time.
• The company secured 87 economic development projects in 202 service territories, representing over $30 billion in new capital investment and approximately 29,000 new jobs.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance, with solid financial results, strategic asset optimization, and significant progress in energy modernization and regulatory approvals, despite ongoing macroeconomic and litigation challenges.

Positives

• Achieved 2025 financial commitments, delivering earnings growth above the midpoint of adjusted EPS guidance.
• Paid cash dividend for the 99th consecutive year and committed to continued dividend growth.
• Successfully executed strategic transactions, including the sale of Piedmont's Tennessee business for $2.48 billion and a $6 billion indirect investment in Duke Energy Florida, which will support the capital plan and displace planned debt/equity issuances.
• Demonstrated strong operational excellence, including effective storm response and ongoing grid hardening investments, leading to avoided outages.
• Achieved new records for combined peak usage in January 2025 and January 2026, showcasing system reliability during extreme weather.
• Maintained an industry-leading personal safety performance with a Total Incident Case Rate (TICR) better than target and 100 OSHA recordable injuries in 2025.
• Secured constructive regulatory and legislative outcomes, including new rate plans and modernized recovery mechanisms in Ohio (HB15), South Carolina (Act 41), and North Carolina (SB266).
• Achieved timely recovery of storm costs through securitization in North Carolina and South Carolina.
• The NRC issued a subsequent license renewal for Oconee, extending its operation by 20 years to 2054.
• Filed for subsequent license renewal for Robinson to extend operations to 2050.
• Filed a license application with FERC to extend the operating license for the Bad Creek Pumped Storage Hydroelectric Station for an additional 50 years.
• FERC approved the application to combine Duke Energy Carolinas and Duke Energy Progress utilities, which is expected to result in substantial cost savings.
• Received approval for CPCNs for new natural gas combined cycle units in Person County, NC, and Cayuga, IN, and filed applications for new units in Anderson County, SC, and at the Buck CC station, NC.
• Achieved significant economic development success in service territories, attracting over $30 billion in new capital investment and 29,000 new jobs in 2025.
• Received strong customer satisfaction scores in several jurisdictions.

Negatives

• Industrial sales remained soft in 2025 due to overall weakness and manufacturing plant closings in certain jurisdictions.
• Continued high interest rates impacted industrial sales.
• Customer satisfaction across the industry was impacted by inflationary pressures and ongoing rate case activity on customer bills.
• There is a goodwill impairment risk for Duke Energy Ohio's GU&I reporting unit if economic conditions deteriorate.
• The company may need to seek alternative funding sources (additional long-term debt and common equity issuances) if the Florida Progress investment agreement or Piedmont's Tennessee business sale are not consummated.
• Ongoing litigation includes the Mooresville Coal Ash Class Action and Nuclear Compensation Class Action.
• The U.S. Court of Appeals for the Fourth Circuit reversed the district court's summary judgment in the NTE Carolinas II, LLC litigation, remanding the case for further proceedings.
• The Indiana Court of Appeals reversed an IURC decision that allowed Duke Energy Indiana to collect certain coal ash costs from customers, and the Indiana Supreme Court denied review.

Risks

• The ability to implement the business strategy, including meeting forecasted load growth demand, grid and fleet modernization objectives, and reducing carbon emissions, while balancing customer reliability and keeping costs as low as possible for customers.
• State, federal, and foreign legislative and regulatory initiatives, including compliance costs with existing and future environmental requirements and/or uncertainty of applicability or changes to such initiatives, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices.
• The extent and timing of costs and liabilities to comply with federal and state laws, regulations, and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate.
• The ability to timely recover eligible costs, including amounts associated with coal ash impoundment retirement obligations, asset retirement and construction costs related to carbon emissions reductions, and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process.
• The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process.
• The impact of extraordinary external events, such as a global pandemic, trade wars, or military conflict, and their collateral consequences, including the disruption of global supply chains or the economic activity in service territories.
• Costs and effects of legal and administrative proceedings, settlements, investigations, and claims.
• Industrial, commercial, and residential decline in service territories or customer bases resulting from sustained downturns of the economy, storm damage, reduced customer usage due to cost pressures from inflation, tariffs, or fuel costs, worsening economic health of service territories, reductions in customer usage patterns, or lower than anticipated load growth, particularly if usage of electricity by data centers is less than currently projected, energy efficiency efforts, natural gas building and appliance electrification, and use of alternative energy sources, such as self-generation and distributed generation technologies.
• Federal and state regulations, laws, and other efforts designed to promote and expand the use of energy efficiency measures, natural gas electrification, and distributed generation technologies, such as private solar and battery storage, in service territories could result in a reduced number of customers, excess generation resources, as well as stranded costs.
• Advancements in technology, including AI.
• Additional competition in electric and natural gas markets, municipalization, and continued industry consolidation.
• The influence of weather and other natural phenomena on operations, financial position, and cash flows, including the economic, operational, and other effects of severe storms, hurricanes, droughts, earthquakes, and tornadoes, including extreme weather associated with climate change.
• Changing or conflicting investor, customer, and other stakeholder expectations and demands, particularly regarding environmental, social, and governance matters and costs related thereto.
• The ability to successfully operate electric generating facilities and deliver electricity to customers, including direct or indirect effects resulting from an incident that affects the United States electric grid or generating resources.
• Operational interruptions to natural gas distribution and transmission activities.
• The availability of adequate interstate pipeline transportation capacity and natural gas supply.
• The impact on facilities and business from a terrorist or other attack, war, vandalism, cybersecurity threats, data security breaches, operational events, information technology failures, or other catastrophic events, such as severe storms, fires, explosions, pandemic health events, or other similar occurrences.
• The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory, and financial risks, including the financial stability of third-party service providers.
• The timing and extent of changes in commodity prices, including any impact from increased tariffs, export controls, and interest rates, and the ability to timely recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets.
• The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions, an individual utility's generation portfolio, and general market and economic conditions.
• Credit ratings of the Duke Energy Registrants may be different from what is expected.
• Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds.
• Construction and development risks associated with the completion of capital investment projects, including risks related to financing, timing and receipt of necessary regulatory approvals, obtaining and complying with terms of permits, meeting construction budgets and schedules, obtaining sufficient skilled labor, and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all.
• Changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants.
• The ability to control operation and maintenance costs.
• The level of creditworthiness of counterparties to transactions.
• The ability to obtain adequate insurance at acceptable costs and recover on claims made.
• Employee workforce factors, including the potential inability to attract and retain key personnel.
• The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent).
• The performance of projects undertaken by businesses and the success of efforts to invest in and develop new opportunities.
• The effect of accounting and reporting pronouncements issued periodically by accounting standard-setting bodies and the SEC.
• The impact of United States tax legislation to financial condition, results of operations, or cash flows and credit ratings.
• The impacts from potential impairments of goodwill or investment carrying values.
• Asset or business acquisitions and dispositions may not be consummated or yield the anticipated benefits, which could adversely affect financial condition, credit metrics, or ability to execute strategic and capital plans.
• The actions of activist shareholders could disrupt operations, impact the ability to execute on the business strategy, or cause fluctuations in the trading price of common stock.
• Federal or state policies could be enacted that restrict the availability of, and increase the costs associated with the use of, fuels or generation technologies, such as natural gas or nuclear power, that enable Duke Energy to reduce its carbon emissions.
• New EPA rules issued in April 2024 impose stringent GHG emission reduction standards, revised air toxic limits, and wastewater discharge limitations that may impact the achievement of carbon-reductions, and operational timeline and costs associated with certain new and existing generation.
• Supportive policies may be needed to facilitate the siting and cost recovery of transmission and distribution upgrades needed to accommodate the build out of new generation facilities, including large volumes of renewables and energy storage.
• The company may be constrained by the ability to procure resources or labor needed to build new generation at a reasonable price as well as to construct projects on time.
• New technologies that are not yet commercially available or are unproven at utility scale will likely be needed, including carbon capture and sequestration and supporting infrastructure as well as new resources capable of following electric load over long durations such as advanced nuclear, hydrogen, and long-duration storage.
• Failure to receive approval from the NRC for the relicensing of any nuclear reactors could affect the ability to achieve net-zero carbon emissions from electricity generation by 2050.
• The transition to and expansion of certain low-carbon resources, such as renewables without cost-effective storage, may challenge the ability to meet customer expectations of reliability and value in a carbon constrained environment, particularly as demand increases.
• If regulators decided to discontinue the use of tariff mechanisms or other mechanisms intended to stabilize utility margins, it would negatively impact results of operations, financial position, and cash flows.
• Regulatory authorities can disallow the recovery of a portion of fuel and purchased power costs, which would adversely impact earnings and cash flows.
• Increased competition resulting from deregulation or restructuring legislation could have a significant adverse impact on results of operations, financial position, or cash flows and utility businesses.
• The establishment of municipal utilities within service territories could further intensify competition.
• Changes to federal regulations are continuous and ongoing, and there is no assurance that laws, regulations, and policies, including tax incentives and credits, will not be changed in ways that result in material modifications of business models and objectives or affect returns on investment.
• New state legislation in response to federal environmental regulations could impose carbon reduction objectives that are more aggressive than the company's plans.
• Sustained downturns or sluggishness in the economy generally affect the markets in which the company operates and negatively influence operations, potentially leading to reduced sales and cash flows.
• A continuation of adverse economic conditions, including economic downturn or high commodity prices, could negatively impact the financial stability of certain customers and result in their inability to pay for services.
• Emerging large loads, such as hyperscale data centers and industrial facilities, present unique risks due to their high demand, rapid fluctuations, and unpredictable operational profiles, which can further strain bulk power system reliability and grid stability.
• Failure to comply with evolving regulatory requirements and reliability standards, including those established by NERC and regional entities, could result in penalties, operational restrictions, or reputational harm.
• Natural disasters or operational accidents (e.g., wildfires, earthquakes, hurricanes, natural gas transmission pipeline explosions) could have direct or indirect impacts, leading to lost operating revenues, property damage, personal injury, reputational harm, and unexpected expenses.
• A CCR-related operational incident could have a material adverse impact on the reputation and results of operations, financial position, or cash flows.
• The scope and complexity of coal ash closure work and the amount of CCR material could be greater than estimates, materially increasing compliance expenditures and rate impacts.
• Advances in distributed generation technologies may reduce the cost of alternative methods of producing power to a level competitive with central power station electric production.
• The electrification of buildings and appliances currently relying on natural gas could reduce the number of customers in the natural gas distribution business.
• Regulatory lag in adjusting rates for the impact of conservation measures could have a negative financial impact.
• The increasing use of social media and conflicting expectations and demands regarding environmental, social, and governance concerns may accelerate and increase the potential scope of negative publicity and impact reputation, business, results of operations, or financial condition.
• The overall operating results may fluctuate substantially on a seasonal and quarterly basis and thus makes period-to-period comparison less relevant.
• Sustained severe drought conditions could impact generation by hydroelectric plants, as well as fossil and nuclear plant operations.
• If transmission is disrupted, or if transmission capacity is inadequate, the ability to sell and deliver products may be hindered.
• The different regional power markets have changing regulatory structures, which could affect growth and performance in these regions.
• A significant disruption to interstate natural gas pipelines capacity or reduction in natural gas supply could reduce the normal interstate supply of natural gas and thereby reduce earnings.
• If additional natural gas infrastructure cannot be built at a pace that meets demand, then growth opportunities could be limited.
• Supply chain disruptions, inflation, tariffs, and export restrictions may increase costs, extend lead times for critical equipment, and/or delay construction and maintenance activities.
• Fluctuations in commodity prices or availability may adversely affect various aspects of operations as well as results of operations, financial position, and cash flows.
• Cyberattacks and data security breaches could adversely affect businesses, including disruption of operations, theft of confidential information, financial loss, increased regulation, litigation, and reputational damage.
• Duke Energy Ohio's and Duke Energy Indiana's membership in an RTO presents risks that could have a material adverse effect on their results of operations, financial position, and cash flows.
• The company has incurred, and may incur additional costs or delays in the construction of new plants or facilities and may not be able to recover investments in whole or in part.
• The ability to obtain adequate insurance at acceptable costs is a risk.
• Failure to complete strategic transactions could adversely affect financial condition, credit profile, and ability to execute the business strategy.
• Poor investment performance of pension plan holdings and other factors impacting pension plan costs could unfavorably impact liquidity and results of operations.
• The failure of information technology systems, or the failure to enhance existing information technology systems and implement new technology, could adversely affect businesses.
• Potential terrorist activities, or military or other actions, could adversely affect businesses.
• Failure to attract and retain an appropriately qualified workforce could unfavorably impact results of operations.

Future Outlook

Duke Energy's strategy focuses on meeting rapidly growing energy needs and powering the modern economy by safely transforming and readying its system through investments in innovative technologies, replacing aging resources, modernizing infrastructure, and integrating efficiency programs. The company aims for net-zero carbon emissions from electricity generation by 2050, deploying $200 billion to $220 billion in capital into regulated businesses over the next decade. This includes approximately 7,500 MW of new natural gas generation projects under construction or seeking approval, and leveraging AI and digital tools for reliability and customer service. Future progress will require further technological advancement in areas like advanced nuclear, long-duration energy storage, carbon capture, and zero-carbon fuels. The company will continue to advocate for public policy and regulatory models that support reliable energy delivery, timely cost recovery, and cost stability for customers.

Management Comments

• "We are proud of the constructive regulatory outcomes that we advocated for our customers as we prepare for growth in energy demand driven by ongoing migration into our attractive service territories, continued electrification and onshoring from domestic industries, data center growth and other investments, including those related to support the broader utilization of AI."
• "The fundamentals of our business remain strong and allow us to deliver earnings growth and pay common stock dividends in a low-risk, predictable and transparent way."
• "We are committed to manage a business portfolio that delivers a reliable and growing dividend and our company remains focused on maintaining reliability, providing value and keeping costs as low as possible to deliver on the commitments made to our customers, communities, employees, investors and other stakeholders."
• "Our workforce and contract partners work hard to prepare for storm season through drills, material planning, call center readiness, contingency planning and customer communications."
• "In such extreme circumstances, our immediate priority is, and always will be, executing the extensive storm preparation and response work to ensure the safe, timely and efficient restoration of service to impacted customers as quickly as possible."
• "We've built a culture of continuous improvement and continue to identify ways to reduce operating costs, remaining focused on organization simplification, automation and continued operational excellence."
• "Our plan for energy modernization will continue to focus on delivering cleaner energy in a manner that protects grid reliability and maintains low costs for our customers while also meeting the growing energy demands of the economically vibrant communities we serve."

Industry Context

StockSavvy.ai notes that Duke Energy's strategic focus on energy modernization, grid resilience, and carbon emission reduction aligns with broader utility industry trends driven by increasing demand, climate change concerns, and technological advancements like AI. The company's success in attracting significant economic development, particularly data centers, highlights the growing energy needs of the modern economy and the critical role utilities play in supporting this growth. The ongoing regulatory efforts to establish multi-year rate plans and cost recovery mechanisms reflect a sector-wide shift towards more predictable and stable financial frameworks to support large-scale capital investments required for the energy transition.

Comparison to Industry Standards

• Duke Energy's safety performance, as measured by the Occupational Safety and Health Administration's (OSHA) Total Incident Case Rate (TICR), is industry-leading, with the company anticipating ranking first among North American combined gas and electric companies in an annual industry safety survey for the 11th consecutive year.
• The company's 43% reduction in CO2 emissions from electricity generation since 2005 positions it favorably in the context of industry-wide decarbonization efforts, although the 2050 net-zero target is a common aspiration across many utilities.
• The deployment of smart, self-healing technology, which avoided approximately 2.2 million customer outages in 2025, demonstrates a commitment to grid modernization and reliability that is a key benchmark for leading utilities.

Management Changes

Corporate Governance

Legal Proceedings

• **Mooresville Coal Ash Class Action Litigation**: A lawsuit filed on December 20, 2024, against Duke Energy, Duke Energy Carolinas, and Duke Energy Progress, alleging environmental contamination from coal ash disposal, seeking unspecified compensatory and punitive damages, injunctive relief, and remediation. An interim order dismissed the strict liability claim, and the court granted Duke Energy's motion to dismiss based on lack of subject-matter jurisdiction on February 12, 2026. The motion to dismiss for failure to state a claim was denied as moot.
• **Nuclear Compensation Class Action Litigation**: A putative class action lawsuit filed on July 11, 2025, against U.S. commercial nuclear power operators, including Duke Energy Corporation and Progress Energy, alleging a conspiracy to suppress compensation. An amended complaint was filed on November 5, 2025, adding Duke Energy Carolinas and Duke Energy Business Services as defendants. Defendants' omnibus motion to dismiss was filed on December 19, 2025, with a reply due on March 16, 2026.
• **NTE Carolinas II, LLC Litigation**: A lawsuit filed by Duke Energy Carolinas against NTE for breach of contract. The U.S. Court of Appeals for the Fourth Circuit reversed the district court's summary judgment on NTE's antitrust and unfair competition claims on August 5, 2024, remanding the case for further proceedings. The U.S. Supreme Court denied review on January 12, 2026. The district court judge has set the case for trial on March 9, 2026.
• **The Town of Carrboro Litigation**: A lawsuit filed on December 4, 2024, against Duke Energy, alleging concealment of fossil fuel emission dangers and misleading public statements, seeking unspecified monetary damages. The court granted Duke Energy's motion to dismiss based on lack of subject-matter jurisdiction on February 12, 2026.
• **Duke Energy Indiana Coal Ash Insurance Coverage Litigation**: A civil action filed in June 2022 against various insurance companies. Confidential settlements were reached from 2023 through 2025, with all payments received and the case dismissed. Duke Energy Indiana began refunding retail customers their share of coal ash insurance settlement proceeds in July 2025.
• **Duke Energy Ohio RTO Adder**: The OCC filed a complaint in February 2022. The Sixth Circuit reversed the FERC decision in January 2025, remanding the case. The U.S. Supreme Court denied appeal in November 2025, and the Sixth Circuit remanded the case back to FERC. An order from FERC is expected in the first quarter of 2026.
• **Duke Energy Kentucky 2022 Electric Base Rate Case Appeal**: Duke Energy Kentucky filed an appeal on December 14, 2023, with the Franklin County Circuit Court on certain matters for which the KPSC denied rehearing. The case is fully briefed, and Duke Energy Kentucky is awaiting the scheduling of oral arguments and the outcome of the appeal.
• **Duke Energy Indiana Coal Ash Recovery Appeal**: The Indiana Court of Appeals reversed the IURC decision on August 26, 2025, concluding that the IURC incorrectly allowed Duke Energy Indiana to collect certain coal ash costs from customers. The Indiana Supreme Court denied review on January 26, 2026. There were no material impacts on the results of operations, cash flows, or financial position as a result of this ruling, and Duke Energy Indiana is evaluating next steps.
• **TDSIC 2.0 Appeal**: The OUCC filed a notice of appeal in July 2022. The Indiana Supreme Court affirmed the IURC's decision on December 19, 2024. A motion for rehearing was denied on March 4, 2025. This matter is now fully resolved.
• **2024 Indiana Rate Case Appeal**: An industrial customer filed a notice of appeal on February 28, 2025, regarding cost of service allocation. The industrial customer's motion to dismiss its appeal was granted on May 14, 2025. This matter is now fully resolved.
• **Clean Energy Connection Appeal**: The League of United Latin American Citizens (LULAC) filed a notice of appeal in February 2021. The Supreme Court of Florida issued an order affirming the revised FPSC order on July 17, 2025. This matter is now fully resolved.

Related Party Transactions

• The Subsidiary Registrants engage in related party transactions in accordance with applicable state and federal commission regulations.
• Corporate governance and shared service expenses are charged to Subsidiary Registrants, primarily related to human resources, employee benefits, information technology, legal, and accounting fees.
• Indemnification coverages are provided by Bison, Duke Energy's wholly owned captive insurance subsidiary, to Subsidiary Registrants.
• Duke Energy Carolinas and Duke Energy Progress participate in a Joint Dispatch Agreement (JDA), which allows the collective dispatch of power plants between service territories to reduce customer rates.
• Piedmont provides long-term natural gas delivery service to certain Duke Energy Carolinas and Duke Energy Progress natural gas-fired generation facilities.
• Piedmont has related party transactions as a customer of its equity method investments in Pine Needle, Hardy Storage, and Cardinal natural gas storage and transportation facilities.
• The Subsidiary Registrants participate in a money pool arrangement with Duke Energy and certain of its other subsidiaries for short-term borrowing needs.
• Intercompany income tax receivables and payables exist under a tax-sharing agreement for the allocation of consolidated tax liabilities and benefits.

Stakeholder Impact

• **Shareholders**: Expected to benefit from reliable and growing dividends, attractive shareholder returns from optimized investments, and transparent financial reporting. Potential for stock price fluctuations due to activist shareholders or market perceptions remains a risk.
• **Customers**: Anticipated benefits include energy modernization, enhanced grid resilience, lower financing costs, stable pricing, and timely recovery of storm costs. Efforts are focused on keeping costs as low as possible, despite potential impacts from rate case activity on customer bills.
• **Employees**: The company is committed to fostering a high-performance and inclusive culture, building a pipeline of skilled workers, ensuring knowledge transfer, and providing market-driven compensation and comprehensive benefits. Safety remains a top priority, with industry-leading performance.
• **Communities**: Benefit from economic development projects, job creation, and capital investment in service territories. The Duke Energy Foundation makes charitable contributions, and the company aims to reflect community diversity in its workforce.
• **Regulators**: Engaged in ongoing collaboration on Integrated Resource Plans (IRPs), carbon reduction plans, rate cases, and compliance with environmental regulations. Regulatory outcomes significantly impact the company's operations and financial health.
• **Suppliers/Contractors**: Opportunities exist through framework agreements for critical equipment and services, but they are also exposed to supply chain disruptions and potential nonperformance risk.

Next Steps

• Complete the sale of Piedmont's Tennessee business by March 31, 2026, subject to TPUC approval.
• The first closing of the indirect investment in Duke Energy Florida is expected in March 2026.
• Issue $9 billion in additional securities through debt capital markets in 2026.
• Settle ATM equity forward contracts by December 31, 2026.
• The evidentiary hearing for Duke Energy Carolinas' 2025 North Carolina Rate Case is scheduled to commence on July 7, 2026.
• The evidentiary hearing for Duke Energy Progress' 2025 North Carolina Rate Case is scheduled to commence on August 11, 2026.
• A FERC ruling is expected in 2027 for the Bad Creek Pumped Storage Hydroelectric Station license extension.
• Continue to deploy $200 billion to $220 billion of capital into regulated businesses over the next decade.
• Continue research and development of new carbon-free dispatchable technologies, including advanced nuclear, hydrogen, long-duration storage, and carbon capture.
• The NRC review and approval process for the Belews Creek ESP application is anticipated to take approximately 18 months.
• Construction of the Anderson County CC generating facility is anticipated to begin in 2027, with in-service by the end of 2030.
• Construction of the Buck CC CTs is planned to start in 2027, with units targeted to be placed in service by the end of 2029.
• Cayuga CC 1 is expected to be placed in service in 2029, and Cayuga CC 2 in 2030.
• The PSCSC is expected to make a decision on Duke Energy Carolinas' out-of-state certificate application for Marshall CTs by the end of July 2026.
• The PSCSC is expected to make a decision on Duke Energy Progress' out-of-state certificates application for Person County CC units by the end of July 2026.
• A FERC order is expected in Q1 2026 for the Duke Energy Ohio RTO Adder case.
• The EPA proposed rule for 2024 CCR Rule reconsideration is anticipated in Q1 2026, with final EPA action expected by October 2026.
• Duke Energy Indiana is evaluating next steps related to the Indiana Supreme Court's decision on coal ash costs.
• Defendants' reply is due on March 16, 2026, in the Nuclear Compensation Class Action lawsuit.
• Trial is set for March 9, 2026, in the NTE Carolinas II, LLC litigation.
• NCUC and PSCSC orders for the combination of Duke Energy Carolinas and Duke Energy Progress are anticipated in Q2 2026.
• Duke Energy Carolinas and Duke Energy Progress PBR applications for North Carolina include proposed cost recovery over a two-year MYRP period, with Year 1 rates effective no later than January 1, 2027.
• Duke Energy Kentucky's 2024 Electric Base Rate Case appeal on certain matters is awaiting the scheduling of oral arguments and outcome.
• Duke Energy Indiana's first GCT tariff for Cayuga CC CPCN-related costs is proposed to take effect in the first April 2026 billing cycle.
• Cynthia S. Lee will move into an advisor role effective March 1, 2026, until her retirement on December 31, 2026.

Key Dates

Recommendation

Duke Energy demonstrates strong financial performance with increased EPS and operating revenues, supported by strategic asset optimization through the sale of non-core assets and significant indirect investment. The company's aggressive capital expenditure plan for energy modernization, including new natural gas generation and nuclear license renewals, positions it for long-term growth and aligns with decarbonization goals. Constructive regulatory outcomes and a commitment to reliable, low-cost service enhance stability. While macroeconomic headwinds and ongoing litigation present risks, the company's proactive management of these challenges, coupled with its strong economic development pipeline and consistent dividend growth, makes it an attractive investment for long-term value.

Keywords

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