Financial analysis of Public Service Enterprise

Public Service Enterprise Group (PEG) — FY2025 Annual Report

PSEG closed FY2025 with revenue of roughly $12.2 billion, an all-time high for the five-year window, and net income of $2.11 billion, up nearly 19% year-over-year. The recovery in profitability appears to reflect a partial rebound from the softer FY2024, though earnings remain below the $2.56 billion posted in FY2023. The most striking feature of the period sits outside the operating results: the stock price closed at $80.43, a figure that stands in sharp contrast to the sub-$18 levels recorded in prior years, which may indicate a stock split or a data-adjustment event rather than a genuine fivefold appreciation, and would explain the wide swing in the reported P/E ratio.

On the profitability side, revenue growth of roughly 18% outpaced the underlying earnings recovery, and operating margins settled near 24% — an improvement over FY2024 but well short of the 33% seen in FY2023. The composition of earnings continues to tilt toward the regulated utility: PSE&G contributed $1.75 billion of net income, while PSEG Power & Other delivered only $366 million, a meaningful recovery from FY2024's $225 million but still far from the $1.05 billion generated in FY2023. This pattern seems consistent with the company's stated pivot toward more predictable regulated returns, though it also underscores how volatile the generation segment's contribution can be from year to year.