Duke Energy reports strong Q3 results with $1.81 EPS, narrows guidance for 2025, and reaffirms 5-7% growth through 2029.

OPERATOR - (00:01:17)

Hello everyone and thank you for joining us today for the Duke Energy Center's third quarter 2025 earnings call. My name is Sami and I'll be coordinating your call today. During the presentation, you can register a question by pressing STAR followed by one on your telephone keypad. If you change your mind, please press STAR followed by two on your telephone keypad to remove yourself from a question queue. I'd now like to hand over to our host, Abby Motzinger, the Vice President of Investor Relations, to begin. Please go ahead, Abby.

Abby Motzinger - Vice President of Investor Relations - (00:01:45)

Thank you, Sami and good morning everyone. Welcome to Duke Energy's third quarter 2025 earnings review and business update. Leading our call today is Harry Sedaris, President and CEO, along with Brian Savoy, Executive Vice President and CFO. Today's discussion will include the use of non-GAAP financial measures and forward looking information. Actual results may differ from forward looking statements due to factors disclosed in today's materials and in Duke Energy's SEC filings. The appendix of today's presentation includes supplemental information along with a reconciliation of non-GAAP financial measures. With that, let me turn the call over to Harry.

Harry Sedaris - President and CEO - (00:02:28)

Thank you, Abby and good morning everyone. Today we announced strong results for the third quarter with adjusted earnings per share of $1.81 compared to $1.62 last year. Driven by continued growth in our electric utilities. We are well positioned for a solid finish to the year and are narrowing our full year guidance range to $6.25 to $6.35. I'm proud of how our teammates are executing our strategy, delivering value for our customers, communities and shareholders every day while preparing our system to serve the growing energy needs of tomorrow. We approach 2026 with momentum and as our company converts large load economic development prospects into tangible projects with signed electric service agreements and we are already turning dirt on projects to meet this load of growth. We're carrying out an ambitious generation build that will add more than 13 gigawatts of capacity to our system in the next five years. With a maturing pipeline and concrete investment plans in place, we're reaffirming our long term EPS growth rate of 5 to 7% through 2029 and have confidence we will earn in the top half of the range beginning in 2028. Moving to slide 5. As load growth materializes and we invest in modernizing our system, we expect our new five year capital plan to be between 95 and 105 billion dollars, increasing the largest investment plan in the industry. The step up is primarily related to investments in new generation that will drive earnings based growth of more than 8.5% through 2030. We will provide additional details on the updated capital and financing plan on our fourth quarter call in February. As the investment needs of our utilities accelerate, I want to underscore that customer value and affordability remain front and center. Our job is to address the needs of all customers from large industrial customers that are competing against a global market to residential customers that are managing their household budgets. This focus starts with cost management which is a core competency for Duke Energy. We continue to leverage AI and pursue a technology enabled industry leading cost structure as we invest in our system. Other tools we are utilizing to keep rates as low as possible include the combination of Duke Energy Carolinas and Duke Energy Progress Utilities which if approved would save retail customers more than $1 billion through 2038 storm cost securitization, which is expected to save customers in the Carolinas up to 18% on their bills compared to traditional recovery mechanisms energy tax credits, which collectively result in hundreds of millions of dollars in annual savings and we're protecting existing customers through tariff structures and contract provisions for new large load projects. These are just a few of the many solutions we employ to ensure our 10 million customers receive the service they count on at a fair price. We recognize that our work to provide affordable energy for customers is never done, but we are proud that average rate changes have paced below the rate of inflation over the last DECade and that our rates are well below the national average. Turning to Slide 6 the majority of our capital plan increase relates to our record generation build which is hitting a new gear. Last month we filed our updated Carolinas Resource Plan in North Carolina which expands upon the previous filing approved by regulators in 2024 and presents an updated path to continue to meet the needs of our customers reliably and affordably. The plan maintains an all of the above strategy and supports the work already underway to meet near term growth. Importantly, the updated IRP results in annual customer bill impacts of approximately 2% over the coming DECade below the rate of inflation and significantly lower than the previously approved plan. The roadmap we laid out isn't just a long term view. We're actively executing on generation build. Today we're on track to add more than eight and a half gigawatts of new dispatchable generation across our service territories over the next five years. This includes over 1 gigawatt of upgrades to maximize the value of our existing fleet and 7 and a half gigawatts of new natural gas in the Carolinas. We have secured all major permit approvals, gas supply long lead equipment and workforce contracts for our Person County Combined Cycle Units and construction has commenced at the site. We also recently filed Certificates of Public Convenience and Necessity (CPCNs) for the Anderson County Combined Cycle and Smith Combustion Turbine Projects. We expect approvals on both these sites in mid-2026. In Indiana, we appreciate the Commission's recent approval of our CPCN for the Cayuga Combined Cycle Gas Units, a critical project to meet the state's growing power needs. The order approved two settlements reached in the case as well as semiannual CWIP recovery through a rider. This recovery mechanism will support the balance sheet through the construction cycle and reduce overall costs to the customers. All of the work underway today will enable us to continue to serve our customers reliably and affordably into the future. Beyond supplying power, these grid and generation investments deliver significant value to our communities. In September, we partnered with ENY to estimate the economic impact of our divestment plan. The 10 year capital plan we laid out in February will equate to over $370 billion in economic output, including approximately $130 billion in labor income, and will contribute more than $200 billion to the GDP for the communities we serve. The investment will also support nearly 170,000 jobs annually. We are privileged to be a critical economic driver of the communities we serve and and we look forward to growing together in the DECades to come. In closing, the fundamentals of our business are the strongest they've ever been. We're powering tremendous growth across the Southeast and Midwest with solid plans based on concrete projects that provide a durable Runway of investment well into the future. We're meeting our financial and strategic objectives while continuing our focus on operational excellence, and I am confident the tailwinds we see will continue to strengthen. With that, let me turn the call over to Brian.

Brian Savoy - Executive Vice President and CFO - (00:09:39)

Thanks Harry and good morning everyone. As shown on Slide 7, we continue to build on the momentum from the first half of the year with reported and adjusted earnings per share of $1.81 in the third quarter. This represents over 11% growth versus adjusted earnings per share of $1.62 last year, putting us firmly on track to deliver the targeted growth in 2025. Within the segments, electric utilities and infrastructure was up 24 cents, driven by higher retail sales volumes and the implementation of new rates across many of our jurisdictions. Weather was above normal in the quarter but not as favorable as the prior year, and interest expense increased as we execute our growing investment plans. Gas, utilities and infrastructure results were largely flat to last year, consistent with the seasonality of the LDC business and finally, the other segment was down $0.04 primarily due to higher interest expense. As we think about the remainder of the year, recall that we have a demonstrated track record of managing agility in both directions. In the fourth quarter of last year, we implemented an extensive one time cost savings and agility measures in response to the historic 2024 storm season. In contrast, our strong year to date results in 2025, including favorable weather, provide an opportunity to reinvest in the system. With these fourth quarter considerations and year to date performance in mind, we are highly confident in achieving our narrowed EPS guidance range of 625 to 635. Looking ahead to 2026 growth drivers on Slide 8 we expect the constructive regulatory outcomes that are driving 2025 results to continue next year. We are progressing through our multi year rate plans in North Carolina and Florida and will implement phase two of the Indiana rate case in March. Midwest and Florida grid riders will continue to provide steady growth. We also expect new rates in South Carolina to be effective in the first quarter of 2026. We were pleased to reach constructive settlements last week with the ORs and other intervenors in our DEP rate case. The settlements, which are subject to Commission approval, are based on a 9.99% ROE and 53% equity ratio and resolve all open items in the case. Our DEC South Carolina rate case continues to progress as well and we expect final orders in both cases by year end. I'd also like to highlight that in North Carolina we provided 30 day notice of our plans to file rate cases for both DEC and DEP later this month. We expect new rates to be effective in early 2027 and we'll provide additional details once the filings are made. As we move through the remainder of the decade, our long term earnings growth is underpinned by our attractive jurisdictions which are benefiting from population migration and growing economies. These tailwinds provide an extensive Runway of capital development deployment opportunities which drive steady and increasing rate base growth. With solid business environments and efficient recovery mechanisms in place, we are well positioned to deliver 5 to 7% earnings growth through 2029 with confidence to earn in the top half of the range beginning in 2028. Turning to slide 9 one of our strategic priorities is to solidify our late stage economic development pipeline and convert prospects into firm projects. We've been working closely with state and local partners to deliver on that commitment. Internally, we've developed new teams dedicated to speed and execution and implemented creative solutions that accelerate the time to power. These efforts are yielding tangible results with approximately 3 gigawatts of signed electric service agreements with data centers this year alone. This includes ESAs signed this quarter with Digital Realty and edged who are making multibillion dollar investments in North Carolina to support AI infrastructure. And we're not just signing data centers. Our economic development activities have yielded over $11 billion of capital commitments from other commercial and industrial customers in 2025. These projects are expected to bring an additional 25,000 jobs to our service territories and support our load growth projections in a rapidly changing external environment where affordability is paramount. I want to emphasize that our electric service agreements contain terms that protect our existing customer base and ensure new large load projects pay their fair share. Terms include minimum take provisions, termination charges and refundable capital advances. As a testament to our work delivering on this wave of economic development, in September we were recognized with EEI's outstanding customer engagement Award. This award is given directly by corporate customers and highlights our ability to collaborate among broad stakeholder groups on complex projects and we are just getting started. Active site evaluations are progressing across all of our service territories and many more projects are moving to advanced stage. As our economic development pipeline has matured over the past year, we are more confident than ever in our ability to capture the once in a generation load growth opportunity in front of us. Turning to the balance sheet on slide 10, I first want to recognize the work of our regulators and other stakeholders to address cost recovery from last year's historic storm season in record time. With their support, we were able to successfully issue North Carolina storm securitization bonds approximately one year after Hurricane Elaine, and we expect to issue South Carolina bonds before year end. Securitization is one of the many tools available to help mitigate rate increases for customers. With the North Carolina bonds projected to save customers up to 18% compared to traditional recovery methods and in Florida, 1.1 billion of storm costs will be fully recovered by February 2026. As a result, bills are expected to decrease by approximately $40 a month beginning in March across all three jurisdictions. The timely recovery process helps maintain credit quality and reinforces our expectation of achieving 14% or higher FFO to debt by year end. As discussed on the second quarter call, we are targeting 15% FFO to debt over the long term, which provides 200 basis points of cushion above our Moody's downgrade threshold and 300 basis points above our S and P downgrade threshold. Our balance sheet will continue to improve as we receive proceeds from the Tennessee and Florida transactions, which we expect to close in early 2026 as Harry discussed earlier, we expect our new five year capital plan to be between 95 and 105 billion dollars. Consistent with previous guidance, we'll target 30 to 50% equity funding for this incremental growth capital transaction proceeds will satisfy equity needs in 2026 and remaining common equity issuances to support growth represent a very modest percentage of our market cap and will help maintain credit quality during this period of unprecedented capital deployment. We will provide more detail on our capital and financing plan on our fourth quarter call in February. Moving to Slide 11, we are well positioned to deliver earnings within our narrowed guidance range in 2025 as well as 5 to 7% growth through 2029. As load growth and capital accelerate, we have confidence we will earn in the top half of the range beginning in 2028. Our extensive Runway of capital investments coupled with efficient recovery mechanisms position us to achieve our growth targets, which combined with our attractive dividend yield, provide a compelling risk adjusted return for shareholders. With that, we'll open the line for your questions.

OPERATOR - (00:18:30)

Thank you very much. To ask a question, please press star followed by one on your telephone keypad. Now, if you change your mind, please press star followed by two. Preparing to ask your question, please ensure your device is unmuted locally. Our first question comes from Julian Demoulin Smith from Jefferies. Your line is open, Julian. Please go ahead.

Julian Demoulin Smith - Equity Analyst - (00:18:52)

Hey, good morning, team. Thank you guys very much for the time. I appreciate it. Nicely done today. Appreciate the extra details versus your traditional cadence.

Harry Sedaris - President and CEO - (00:19:00)

Good morning, Julian.

Abby Motzinger - Vice President of Investor Relations - (00:19:01)

Good morning, Julian.

Julian Demoulin Smith - Equity Analyst - (00:19:02)

Thank you. Hey, absolutely. So maybe just to kick off here, considering those details that you guys gave us here, can you speak a little bit to the incremental capital that you guys are looking at? I know it's still a range, but how you, when you think about layering that in, is that sort of ratable across the period? Or when you think about layering in that last year, 2030, does that finally represent a further acceleration even relative to 28 and 29? You know what I mean? Like in theory, the move up from 87 by 10 billion could be ratable across the forecast period, or it could be heavily weighted to that final year in 2030. You haven't quite given us the full details here, but I'm curious as to, you know, as you think about the cadence of this data center ramp playing itself out, is it really truly weighted towards that last year? Can you speak to that a little bit?

Harry Sedaris - President and CEO - (00:19:54)

Yeah, I'll take that, Julian. And good morning. You know, the way I would think about it, as we're signing up These large load customers, we have more visibility into the infrastructure bills we need to make to serve them. And this update in the capital plan has that. Plus, as we get deeper into the energy modernization strategy, we're investing more. So you know, we knew 2030 was going to be higher than 2025 rolling off. But I would think of it as we're adding capital in every year of the plan and it's to build to that ramp of these large customers as we get more firm contracts signed and more visibility into the infrastructure needs of those customers.

Brian Savoy - Executive Vice President and CFO - (00:20:35)

And I would add, Julian, it's a very dynamic environment out there. And you saw us raise from 83 to 87 earlier this year with the, with the Brookfield deal in Florida. And then you're seeing our capital expand here because of what we're seeing in data center growth and economic development as well as our modernization that Brian mentioned. So we'll continue to evaluate and update as we move.

Julian Demoulin Smith - Equity Analyst - (00:21:03)

I know it is truly unusual for you guys to update twice in a given year outside of your typical cadence of 4Q. So I hear you on that one. Can you speak a little bit more to what that incremental potential is by this roughly 10 billion. Like what's comprised within that? Is that principally just, you know, transmission and generation for new data centers or are there other pieces in there?

Brian Savoy - Executive Vice President and CFO - (00:21:29)

No, Julian, it's more than that, but it does encompass that. So as we sign more energy service agreements, that's a trigger to invest more transmission and potentially generation in this five year plan. But we're also evaluating LDC investments that could support the new generation at our Piedmont Natural Gas company. And all those investments along with the bullpen of T and D investments that we've got that we haven't pulled onto the field quite yet. We're evaluating all those factors as well as customer affordability as we finalize our final our capital plan. That's why we didn't come out with a single point estimate this time because we're still running our models and evaluating rate rate cases over time and how that might show up.

Harry Sedaris - President and CEO - (00:22:19)

And Julian, we'll give have more details in February like we normally do on financing that plan as well as what the details are of that.

Julian Demoulin Smith - Equity Analyst - (00:22:30)

But needless to say, you've been pretty committed to the balance sheet. You think the F O to debt. Regardless of where this lands, you're going to stick with this updated level pro forma for what you did with deferral lose here?

Brian Savoy - Executive Vice President and CFO - (00:22:42)

Absolutely. We are committed to 15% FFO over time and we're on target to be over 14 this year as committed.

Julian Demoulin Smith - Equity Analyst - (00:22:52)

Yep. Excellent. Alrighty. Well, thank you guys very much. I'll leave it there.

Brian Savoy - Executive Vice President and CFO - (00:22:56)

Appreciate it, Julian.

OPERATOR - (00:22:57)

Thank you. Our next question comes from Carly Davenport from Goldman Sachs. Your eyes open, Carly.

Carly Davenport - Equity Analyst - (00:23:07)

Good morning. Thank you for taking questions. Hey, thanks for taking this question.

Harry Sedaris - President and CEO - (00:23:13)

Good morning, Carly.

Carly Davenport - Equity Analyst - (00:23:16)

Thanks for the time. I guess maybe just on the Carolinas irp, you have included an option for nuclear there, including an AP1000 starting in potentially 2037. I guess just with some of the announcements that we've seen across the broader nuclear space recently, just curious how you might envision Duke playing a role in this build out, particularly as an operator.

Harry Sedaris - President and CEO - (00:23:41)

Yeah, great question, Carly. As you know, we operate 11 low cost, safe, reliable nuclear reactors today. So nuclear is a big part of our business. It makes sure that our customers get reliable and affordable power every day. We earn over $500 million of tax credits a year that go back to our customers from those nuclear plants. So we feel nuclear is a very important part of the future. With that said, there's a lot of things that we have to determine and figure out before we move forward. We're encouraged to see the government and some of the partnerships with Westinghouse that were recently announced leaning into this and addressing supply chain concerns, which is one of the items that we have on our list. We still need to figure out what we're going to do with cost overrun protection and how we're going to protect our investors and our customers from overruns on those products projects, as well as how we're going to protect the balance sheet if we move forward with nuclear. So we're working to resolve those, working with government officials as well as some of the tech customers. So we'll continue to work that. If you remember last year, our IRP had only SMRs in it. We were asked by the North Carolina Commission to explore light water reactors as well. So we filed a report this past March to show what it would take or what would be an AP1000 type project. So we've added that into our plans in our model and we'll continue to evaluate both of those SMRs as well as large water reactors. But again, nothing going forward until we have those other items resolved.

Carly Davenport - Equity Analyst - (00:25:21)

Very clear. Okay, great. Thank you. And then maybe just another on Carolina's resource planning, you know, as you laid out the updated plan, the share of gas stayed pretty consistent with the prior plan, I guess. Would you expect that to move higher to the extent that there's expanded natural gas pipeline capacity into the Southeast and would Something like the MVP Boost project. Potentially be a needle mover there.

Harry Sedaris - President and CEO - (00:25:47)

Yeah, there's a lot of gas in that plant as well as a lot of batteries and solar. So we continue our all of the above strategy and how we serve our load going forward. We've done a lot of work to secure gas through the early part of 2030 and we continue to work on beyond that. We do expect as economic development growth continues, we will need more gas and more pipelines and are working with the companies to provide that. So we'll continue to update the process and the progress on that. We feel like dispatchable power is critical to serve these new loads and gas is the, the source that we're focused on right now.

Carly Davenport - Equity Analyst - (00:26:30)

Great. Thanks so much for the color.

Harry Sedaris - President and CEO - (00:26:34)

Thank you.

OPERATOR - (00:26:37)

Our next question comes from Shah Bareza from Wells Fargo. Your line is open, Shah. Please go ahead.

Alex - (00:26:45)

Hey, good morning, everyone. It's actually Alex on for Char. Thanks for taking our questions.

Harry Sedaris - President and CEO - (00:26:51)

Good morning, Alex. Morning.

Alex - (00:26:54)

So, just wanted to touch on the earnings outlook. So you know you've indicated you expect to be at the high end of the 5 to 7 starting in 28. Just sort of want to get a sense, you know, is there any potential for that growth to begin ramping sooner? And if you can just remind us what drives the Delta between the 5 to 7 EPS growth and that 8, 8 and a half rate base growth you have out there.

Brian Savoy - Executive Vice President and CFO - (00:27:16)

That'S great, Alex. And it's the right question as we have these incremental investments, capital plans expanding and customers are getting signed up. I would first say that every year the plan is within the 5 to 7%, but 28 is an inflection point where we're investing more capital in Florida. We're completing the multi year rate plan. The transaction with Brookfield will be completed and we talked about expanding capital Florida in that period. And we're also seeing many of the large load customers we're signing up today are coming online. Their projects will be. We have more visibility in their construction projects. Their projects will be completed in 2H27. So the ramp will begin. But it really hits an inflection point in 2028 and it continues to grow into the early 30s. So that gives us high confidence that we're going to be in the top half of the growth range in 2028. And now I want to underscore the growth is strong and I would think of it as a CAGR in the top half in 2028 off of 2025, base of 630, not just an annual Growth.

Alex - (00:28:27)

Got it. Okay. Super helpful there.

Brian Savoy - Executive Vice President and CFO - (00:28:31)

And I would add it's, you know, we feel it's durable too. Beyond that, you know, we'll continue, we see the prospects continuing. So we feel like this is a long term play for us.

Alex - (00:28:44)

Great. Got it. Thank you. So, and just, just on the funding. So, you know, you still have a good amount of equity out there. You've done good deals in Tennessee and Florida, which have been accretive. So just any other opportunities around asset recycling or should we assume equity and equity like instruments going forward? Thank you.

Brian Savoy - Executive Vice President and CFO - (00:29:03)

Yes, Alex, our focus is on digesting those two big deals that we announced earlier this year. And then we'll continue to fund, like we've mentioned before, 30 to 50% of our plan with equity, depending on the projects. We'll update the details of that in February as we always do. But we're committed to protecting the balance sheet, meeting that 15% FFO that we committed to and being above 14% this year.

Alex - (00:29:32)

Got it. Thanks. I'll leave it there.

Brian Savoy - Executive Vice President and CFO - (00:29:36)

Thank you.

OPERATOR - (00:29:38)

Our next question comes from Jeremy Tenay from JP Morgan. Your line is open. Please go ahead.

Diana Niles - Equity Analyst - (00:29:46)

Hey, good morning. Thanks for taking your questions. This is Diana Niles for Jeremy.

Harry Sedaris - President and CEO - (00:29:51)

Hi, Diane.

Diana Niles - Equity Analyst - (00:29:52)

Hey, good morning. Hey, good morning. If I may expand on Alex's first question, I was wondering to what extent does that High end of 5 to 7% reflect incremental capital and does any of that incremental capital factor into the confidence that you express today to hit the high end of the range starting in 2028?

Brian Savoy - Executive Vice President and CFO - (00:30:16)

Yeah. Diana, this is Brian. I'll take that as I think about the top half of the growth range and beginning in 2028, I would say it fits within any of the 95 to 105 billion capital range that, that we provided. It's not depending upon us being at the high end or it would be lower on the low end. It's contemplated in all those scenarios.

Diana Niles - Equity Analyst - (00:30:43)

Okay, thank you. Sorry. That'll do it.

Brian Savoy - Executive Vice President and CFO - (00:30:52)

Thank you. Thanks, Diana.

OPERATOR - (00:30:56)

As a reminder to ask a question, please press star followed by one on your telephone keypad. Our next question comes from David Paz from Wolf Research. Your line is open, David. Please go ahead. Thank you.

David Paz - (00:31:10)

Good morning. Just on your large load commentary, could you remind me what does the advanced pipeline or, sorry, the pipeline look like for large load and how much of that would you say is in advance discussions that could be added to the 3 gigawatts of ESAs you signed this year?

Harry Sedaris - President and CEO - (00:31:31)

Yeah. Good morning, David. Good to hear from you. You know, we have a very large and diverse pipeline of projects. I would say ours is just as big if not bigger than anybody else's out there. But really our focus has been on the projects that are from the credible hyperscalers as well as third party developers at least we feel like have the ability to get these projects through fruition. So we're working with them to get through the queue, to get through the funnel as we call it to be able to have these signed ESAs. We signed in the last six months 3 gigawatts of ESAs as we mentioned in our presentation and we continue to work with many others on that. So really focused on nailing down those energy service agreements because that's, that's what we feel is the right focus for us. So we're working through a large pipeline but really focused on developing those prospects into those final projects.

David Paz - (00:32:30)

Okay, so you wouldn't, you don't want to characterize how much are in like near term advanced discussions that could be signed over the next year or so.

Harry Sedaris - President and CEO - (00:32:40)

It's a very dynamic environment David. And you know we continue to work on it every day and, and we have a dedicated team like Brian mentioned earlier that is focused on this 24. 7 of how we get this into our system and into these signed agreements as fast as possible.

David Paz - (00:32:56)

Got it. Okay, I appreciate that and sorry to kind of go back to the EPS growth commentary. I just want to make sure I understood what you added. I think at the end of the durability of this growth starting in 28, so the upper half of your 5 to 7 beginning in 2028 and that's durable into the 30s at that same level off of a 20, I guess 7. Is that the way to think about it?

Brian Savoy - Executive Vice President and CFO - (00:33:26)

Yeah, that's a good assumption. You know, as these economic development projects come into play and we continue to invest in our system, we see that being a durable approach.

David Paz - (00:33:37)

Okay, thank you.

Brian Savoy - Executive Vice President and CFO - (00:33:40)

Thanks David.

OPERATOR - (00:33:45)

Our next question comes from Nicholas Campanella from Barclays. Your line is open. Nicholas, please go ahead.

Nicholas Campanella - Equity Analyst - (00:33:56)

Hey, good morning. Got on late so sorry if, sorry if I'm repeating a question I really just had. One was just the 30 to 50% of equity funding to fund the capital upside. What would kind of put you in the lower end of that range and what should we be watching there from the balance sheet side that could enable you to do less equity? Thanks.

Brian Savoy - Executive Vice President and CFO - (00:34:22)

Yeah Nick, great question. And you know we provided this range in previous quarters and it informed how we funded the capital plan in the current five year plan. What would determine the lower end would be investments with a higher velocity of recovery. So there's less equity need as you tack into those investments over time versus more investments that have a bit of slower recovery. Maybe it takes a while to get it into the rider mechanism or the like. You might need some balance sheet support. But, you know, the last. The last capital update, we were at 40% of the incremental growth capital funded with common equity or equity support. And I would think of it as the faster recovery capital would be in the low end and the slower recovery capital being in the. More like 50%.

Nicholas Campanella - Equity Analyst - (00:35:19)

All right, that's all for me. Thank you. Thanks, Ben.

OPERATOR - (00:35:27)

We currently have no further questions, so I'd like to hand back to Harry for some closing remarks. Thank you.

Harry Sedaris - President and CEO - (00:35:34)

Just to wrap up, I want to leave you all with three items. Number one, we see a lot of momentum into the end of this year and into 26 and beyond. Two, our business is in the strongest position it has ever been. And finally, I am confident we are going to earn in the top half of our 5 to 7 range beginning in 28. But more importantly, our plan is durable well into the future. So, again, thanks for joining us today and thank you for your investment in Duke Energy. Hope everybody has a great day.

OPERATOR - (00:36:09)

That concludes today's call. We thank everyone for joining. You may now disconnect your lines.