Duke Energy Corporation 5.625%

What they do

EU&I generates, transmits, distributes and sells electricity to approximately 8.7 million retail customers over roughly 90,000 square miles in six states, through Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Indiana and Duke Energy Ohio. GU&I houses the gas utilities, including Piedmont. Duke Energy also holds regulated operations in Kentucky through Duke Energy Ohio's wholly owned subsidiary Duke Energy Kentucky.

Revenue drivers

• Electric Utilities and Infrastructure (EU&I) — The dominant segment: retail and wholesale electricity sales plus regulated infrastructure investment recovery. In Q2 2026 it reported segment income of $1,271 million, or $1,310 million adjusted, versus $1,194 million in Q2 2025.
• Gas Utilities and Infrastructure (GU&I) — Natural gas distribution and infrastructure, including Piedmont. Q2 2026 segment income was $10 million, versus $6 million in Q2 2025, with results held back by lower earnings from the sale of Piedmont's Tennessee business.
• Other — Holding company interest expense, unallocated corporate costs and the captive insurance company. It posted a Q2 2026 segment loss of $204 million, versus a $228 million loss in Q2 2025.

Recent performance

Duke Energy reported Q2 2026 reported EPS of $1.38 and adjusted EPS of $1.43, versus reported and adjusted EPS of $1.25 in Q2 2025. The difference between reported and adjusted EPS reflected charges related to regulatory settlements. Higher adjusted results were driven by recovery of infrastructure investments in growing jurisdictions, partly offset by higher depreciation on a larger asset base and higher interest expense. For full-year 2025, Duke reported revenue of $31.74 billion, net income of $4.97 billion and diluted EPS of $6.31. Latest quarterly revenue for the period ended 2026-06-30 was not provided in the excerpt.

Strategy

Management is prioritizing regulated infrastructure investment to serve customer growth and earn recovery in its jurisdictions. In August 2025, Duke entered an investment agreement with an affiliate of Brookfield Super-Core Infrastructure Partners to receive $6 billion for an eventual anticipated 19.7% indirect investment in Duke Energy Florida. Duke also sold its indirect 50% ownership interest in DATC Path 15 Transmission LLC in March 2025 and its 50% interest in Pioneer in November 2024. The company frames these moves alongside a generation build-out intended to support reliability and economic growth.

Risks

• Regulatory outcomes — A substantial portion of earnings depends on recovery of infrastructure costs through state and federal rate proceedings; Q2 2026 reported results included charges related to regulatory settlements.
• Rising depreciation and interest expense — Management cited higher depreciation on a growing asset base and higher interest expense as offsets to adjusted earnings growth in Q2 2026.
• Gas segment pressure — GU&I earnings were partly offset by lower earnings from the sale of Piedmont's Tennessee business, leaving segment income at just $10 million in Q2 2026.
• Environmental regulation — The 10-K MD&A notes that recently passed and potential future environmental statutes and regulations related to GHG emissions could significantly affect results of operations, cash flows or financial position, though Duke would seek regulatory recovery.

Outlook

Duke reaffirmed 2026 adjusted EPS guidance of $6.55 to $6.80 and a long-term adjusted EPS growth rate of 5% to 7% through 2030 off the 2025 midpoint of $6.30, with confidence to earn in the top half of the range beginning in 2028. Management does not forecast reported GAAP EPS or related long-term growth rates. CEO Harry Sideris said the company is well-positioned to deliver on its 2026 commitments and pursue growth opportunities in its states.