Public Service Enterprise Group Incorporated (PEG) is listed on NYSE and operates in the Regulated Electric industry (Utilities sector).
Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. It operates through two segments, PSE&G and PSEG Power. The PSE&G segment transmits electricity; distributes electricity and gas to residential, commercial, and industrial customers, as well as invests in solar generation projects, and energy efficiency and related programs; and offers appliance services and repairs. As of December 31, 2021, it had electric transmission and distribution system of 25,000 circuit miles and 862,000 poles; 56 switching stations with an installed capacity of 39,353 megavolt-amperes (MVA), and 235 substations with an installed capacity of 9,285 MVA; four electric distribution headquarters and five electric sub-headquarters; and 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 58 natural gas metering and regulating stations. Public Service Enterprise Group Incorporated was incorporated in 1985 and is based in Newark, New Jersey.
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 16 |
| Hold | 16 |
| Sell | 1 |
| Strong Sell | 0 |
Public Service Enterprise Group Incorporated (PSEG) is an energy company operating primarily in the Northeastern and Mid-Atlantic United States. It functions through two main segments: PSE&G and PSEG Power. The PSE&G segment is involved in the transmission and distribution of electricity and gas to residential, commercial, and industrial customers. It also invests in solar generation projects and energy efficiency programs, and provides appliance services and repairs. As of December 31, 2021, PSE&G managed an electric transmission and distribution system comprising 25,000 circuit miles and 862,000 poles, along with 56 switching stations and 235 substations. The company also operates four electric distribution headquarters and five electric sub-headquarters. In terms of gas infrastructure, PSE&G oversees 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, along with 58 natural gas metering and regulating stations. Public Service Enterprise Group Incorporated was established in 1985 and is headquartered in Newark, New Jersey.
Over the past three fiscal years, the company's financial performance has been marked by volatility across several key metrics. Revenue exhibited an inconsistent pattern, growing at a modest 4.1% CAGR from $11.24 billion in 2023 to $12.17 billion in 2025. Despite this revenue growth, profitability metrics showed mixed results. The gross margin expanded significantly by 26.0pp, reaching 69.0% in 2025, indicating improved cost efficiency at the production level. However, operating and net margins both compressed, with operating margin decreasing by 8.3pp to 24.5% and net margin declining by 5.5pp to 17.3%, suggesting challenges in managing operating expenses and other costs. Earnings per share (EPS) also declined, with a negative CAGR of 9.4%, dropping from $5.13 in 2023 to $4.21 in 2025, partially due to a slight increase in share count by 0.2%, which diluted per-share gains.
Cash flow generation was inconsistent, with operating cash flow (OCF) decreasing from $3.81 billion in 2023 to $2.37 billion in 2025, reflecting a 21.1% annual decline. Free cash flow (FCF) also showed volatility, turning negative in 2024 before recovering to $325 million in 2025, though this was still below the 2023 level of $481 million. The company's net debt increased consistently, rising from $20.35 billion in 2023 to $24.24 billion in 2025, which, combined with a net debt to EBITDA ratio of 5.23x, indicates a growing leverage position. Despite these challenges, the company maintained an interest coverage ratio above 3x, suggesting it can still meet its interest obligations. However, liquidity remains a concern with both the current and quick ratios below 1, highlighting potential short-term financial constraints. Overall, while the company has shown some areas of strength, such as gross margin improvement, it faces significant challenges in cash flow generation and managing its debt levels.
Public Service Enterprise Group Incorporated (PSEG) is set to announce its first quarter 2026 financial results on May 5. The earnings call, scheduled for 11:00 a.m. ET, will cover financial performance, guidance, capital investments, and regulatory activities. This announcement is significant as PSEG is a member of the S&P 500 Index and has maintained its position on the Dow Jones Sustainability North America Index for 17 years. In other developments, PSEG Long Island recently celebrated National Lineworker Appreciation Day, acknowledging the efforts of approximately 700 lineworkers who ensure reliable electric service to 1.2 million customers. Additionally, PSE&G is actively participating in New Jersey's second energy efficiency triennium, aiming to extend programs through June 2028, which have already resulted in nearly $900 million in annual energy savings and significant carbon emission reductions. Lastly, PSEG Long Island marked Earth Month by distributing free trees and energy-saving products to promote environmental sustainability. These initiatives highlight PSEG's commitment to operational excellence and community engagement.