North America Power & Utilities: 3Q Regulated Utilities Earnings Preview

Barclays presents its 3Q26 regulated utilities EPS preview for North America Power & Utilities, including single-name considerations for AEE, AWK/WTRG, CNP, CPK, D, EMA, ETR, EVRG, EXC, HTO, NEE, NI, OGE and WEC. The firm expects about 40% of the sector benchmark to revise capital plans and EPS outlooks this quarter, driving the utilities' current 8% average EPS growth proposition higher, with earnings revisions continuing on the back of large load contracts. It reaffirms a Positive view on the sector into 3Q, arguing that the end of US midterm elections, management responses to higher interest rates (a marginal headwind of 1% or less to EPS), and likely further increases to sales, RAB and EPS outlooks create a positive setup. AEE, WEC, FE and XEL are viewed as well positioned, while AEP, PEG, HE and PCG/EIX are seen as more negative into the quarter. OGE is downgraded to Equal Weight from Overweight.