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How Is PPL Using Digital Transformation to Improve Efficiency?

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Key Takeaways

  • PPL uses advanced automation and predictive tech to boost grid reliability and efficiency.
  • The company targets O&M cost cuts of $150M by 2025 and $175M by 2026.
  • PPL shares rose 2.3% in the past month, slightly outpacing the industry's 2.1% gain.

PPL Corporation (PPL - Free Report) benefits from digital transformation and automation by using advanced technology to enhance grid reliability, improve operational efficiency, enhance customer experience and meet increasing energy demands.

PPL’s smart grid reroutes power automatically, pinpoints issues to increase efficiency and handles two-way energy from distributed energy resources to ensure power reliability and quality. The company’s “Self-Healing Grid” responds to issues in real-time for improved reliability at a lower cost.

Real-time data from grid sensors is used by PPL's systems to detect impending equipment failure. By using predictive technology, one can detect issues early and avoid outages before they happen. PPL uses cutting-edge technologies, including Dynamic Line Rating sensors and automated switches and controllers, to better manage its distribution network.

For many problems, the automated grid and substation technologies eliminate the need for field staff to do on-site troubleshooting. This lowers travel expenses and frees up employees to work on more difficult projects.

PPL expects its operating and maintenance (O&M) costs to reduce at least $150 million by 2025 and $175 million by 2026. In the second quarter of 2025, PPL was able to reduce O&M costs by 1.4% year over year. These initiatives should boost the company’s margins and support earnings growth.

PPL leverages modern analytics to optimize asset value, assuring resource allocation through data-driven decision-making on capital investments and system maintenance. This should help PPL enhance its overall performance and improve customer service.

Utilities Driving Efficiency Through Digital Operations 

Xcel Energy (XEL - Free Report) : According to McKinsey & Company, it assisted XEL in establishing a Digital Operations Factory to provide insights and tools that empower users. Notably, multiple workflow automation, custom mobile applications and advanced analytics solutions were developed to streamline intensive processes. This made it possible for Xcel Energy to move closer to its objective of developing a clean energy advanced system and resources to help users make informed decisions about using renewable energy.

Exelon Corporation (EXC - Free Report) is focused on building value through technology by achieving cost savings, enhancing operational performance through real-time data and analytics, and improving customer experience with streamlined processes and better customer interfaces.

PPL’s Earnings Estimates

The Zacks Consensus Estimate for 2025 and 2026 EPS indicates an increase of 7.69% and 8.33%, respectively, year over year.

 

Zacks Investment Research
Image Source: Zacks Investment Research

PPL Stock Trading at a Premium

PPL is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 19.06X compared with the industry average of 14.86X.

 

Zacks Investment Research
Image Source: Zacks Investment Research

PPL Stock Price Performance

In the past month, the company’s shares have risen 2.3% compared with the industry’s 2.1% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

PPL’s Zacks Rank

PPL currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 


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