Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following combined Management’s Discussion and Analysis of Financial Condition and Results of Operations is separately filed by Duke Energy and Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. However, none of the registrants make any representation as to information related solely to Duke Energy or the Subsidiary Registrants of Duke Energy other than itself.

DUKE ENERGY

Duke Energy, an energy company headquartered in Charlotte, North Carolina, operates in the U.S. primarily through its subsidiaries, Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. Duke Energy’s consolidated financial information includes the results of the Subsidiary Registrants, which along with Duke Energy, are collectively referred to as the Duke Energy Registrants.

Management’s Discussion and Analysis should be read in conjunction with the Condensed Consolidated Financial Statements and Notes for the three months ended March 31, 2025, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2024.

Executive Overview

Advancing Regulatory Initiatives and Energy Modernization. During the three months ended March 31, 2025, we continued to move our regulatory strategy forward and execute on investments for energy modernization while maintaining our focus on safety and operational excellence, our customers, growth of our business as well as the engagement and empowerment of our employees. These priorities enable us to provide strong, sustainable value for our employees, customers, communities and shareholders.

• In January 2025, Piedmont and Duke Energy Indiana received constructive orders on their general rate cases from the NCUC and IURC, respectively. New rates were effective in November 2024 for Piedmont and late February 2025 for Duke Energy Indiana. Additionally, new rates were effective in January 2025 for Duke Energy Florida's new three-year rate plan.

• In February 2025, Duke Energy Progress filed an application to construct and operate a second hydrogen-capable advanced-class CC unit in Person County at the Roxboro Plant in North Carolina and Duke Energy Indiana filed for a CPCN for the Cayuga CC Project. In March 2025, a final air permit was issued for the Cayuga CC Project. These advanced natural gas plants, along with our planned CTs at the existing Duke Energy Carolinas' Marshall Steam Station, will provide critical generation as we continue to modernize our energy infrastructure in the coming years.

• We reached key milestones to recover costs related to critical storm restoration activities from the 2024 historic storm season while also seeking to minimize customer bill impacts resulting from hurricanes Debby, Helene and Milton. In February 2025, the FPSC voted to approve Duke Energy Florida's storm cost recovery of approximately $1.1 billion over 12 months beginning in March 2025. In March 2025, Duke Energy Carolinas filed a petition for storm securitization with the PSCSC for authorization to finance the estimated South Carolina-retail allocable share of storm costs. In April 2025, Duke Energy Carolinas and Duke Energy Progress received a constructive order from the NCUC on Phase I proceedings in North Carolina related to storm securitization and reached a settlement with the North Carolina Public Staff to resolve all remaining issues in Phase 2 in advance of the evidentiary hearing. A Phase 2 order is expected in June 2025.

• Our nuclear sites continue to benefit our customers and communities by reliably generating large amounts of electricity with low operating costs, providing thousands of well-paying jobs and producing economic and tax benefits for our local communities. In March 2025, the NRC issued the subsequent renewed licenses for Oconee, allowing an additional 20 years of operation of the units through 2053 and 2054. Oconee is the first of Duke Energy's nuclear facilities to reach this significant milestone and receive approval to operate for 80 years. In April 2025, we submitted a subsequent license renewal application to the NRC for Robinson, which would extend the plant's operations an additional 20 years through 2050. We've also continued to sell nuclear PTCs in 2025 as allowed under the IRA, working to further lower the cost of the energy modernization for our customers.

See Notes 4 and 16 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Income Taxes," for additional information.

Matters Impacting Future Results

The matters discussed herein could materially impact the future operating results, financial condition and cash flows of the Duke Energy Registrants and Business Segments.

Regulatory Matters

Coal Ash Costs

In April 2024, the EPA issued the 2024 CCR Rule, which significantly expands the scope of the 2015 CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities and previously unregulated coal ash sources at regulated facilities. Duke Energy is participating in legal challenges to the 2024 CCR Rule.

Cost recovery for future expenditures is anticipated and will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of reasonable and prudently incurred costs associated with Duke Energy’s regulated operations. For more information, see "Other Matters" and Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters."

MD&A			MATTERS IMPACTING FUTURE RESULTS

Storm Cost Recovery

From August through October 2024, a series of major storm events occurred that resulted in significant damage to utility infrastructure within our service territories and primarily impacted Duke Energy Carolinas', Duke Energy Progress' and Duke Energy Florida's electric utility operations. Hurricanes Debby, Helene and Milton caused widespread outages and included unprecedented damage to certain assets, including the hardest-hit areas on the western coast of Florida and certain regions in western North Carolina and upstate South Carolina. Appropriate storm cost recovery mechanisms are in place to track and recover incremental costs from such events. Funding restoration activities and, in some cases, the complete rebuild of critical infrastructure, for a series of sequential events of this magnitude has resulted in incremental financing needs until cost recovery occurs and may impact the near-term results of operations, financial position, or cash flows of the impacted registrants. Regulatory filings have been made or are in process for recovery of storm costs across all jurisdictions and full recovery is expected by early 2026. For more information related to storm cost estimates, regulatory asset deferrals, and financing activities, see "Liquidity and Capital Resources" and Notes 4 and 6 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Debt and Credit Facilities."

EPA Regulations of GHG Emissions

In April 2024, the EPA issued final rules under section 111 of the Clean Air Act (EPA Rule 111) regulating GHG emissions from existing coal-fired and new natural gas-fired power plants. Duke Energy is analyzing the potential impacts the rules could have on the Company, which could be material and may influence the timing, nature and magnitude of future generation investments in our service territories. Cost recovery for future expenditures will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of reasonable and prudently incurred costs associated with Duke Energy’s regulated operations. Duke Energy is participating in legal challenges to the final rules. For more information, see "Other Matters."

Ohio Substitute House Bill 15

On April 30, 2025, Ohio Substitute House Bill 15 (HB 15) was passed and sent to the governor of Ohio. Duke Energy Ohio anticipates HB 15 will become law by August 10, 2025. HB 15 eliminates Duke Energy Ohio's Legacy Generation Rider (LGR) upon the effective date of HB 15 and prevents the PUCO from future reauthorization of similar arrangements. As a result of HB 15, any future losses related to Duke Energy Ohio's Inter-Company Power Agreement with OVEC will not be recoverable from retail customers. Regulatory assets related to OVEC at the time of HB 15 becoming effective also may not be recoverable. Therefore, future losses related to Duke Energy Ohio's Inter-Company Power Agreement with OVEC would no longer be deferred or recovered from customers and will negatively impact Duke Energy Ohio’s results of operations, financial position and cash flows. For more information, see Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters."

Supply Chain

The Company continues to monitor the ongoing stability of markets for key materials and supplies. Public policy outcomes, including potential impacts from new or escalating tariffs or other actions from federal executive orders, federal legislation or other rulemakings, could disrupt or impact Duke Energy's supply chain, future financial results, capital plan execution or the ability to execute on the Company's plan to modernize energy infrastructure.

Goodwill

The Duke Energy Registrants performed their annual goodwill impairment tests as of August 31, 2024. As of this date, all of the Duke Energy Registrants' reporting units' estimated fair values materially exceeded the carrying values except for the GU&I reporting unit of Duke Energy Ohio. While no goodwill impairment charges have been recorded in the accompanying Condensed Consolidated Statements of Operations, the potential for deteriorating economic conditions impacting GU&I's future cash flows or equity valuations of peer companies could impact the estimated fair value of GU&I, and goodwill impairment charges could be recorded in the future.

Other

Duke Energy continues to monitor general market conditions, including the potential for interest rate pressures on the Company's cost of capital, which may impact Duke Energy's capital plan execution, future financial results or the ability to execute on the Company's plan to modernize energy infrastructure.

Results of Operations

Non-GAAP Measures

Management’s Discussion and Analysis includes financial information prepared in accordance with GAAP in the U.S., as well as certain non-GAAP financial measures, adjusted earnings and adjusted EPS, discussed below. Non-GAAP financial measures are numerical measures of financial performance, financial position or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, financial measures presented in accordance with GAAP. Non-GAAP measures presented may not be comparable to similarly titled measures used by other companies because other companies may not calculate the measures in the same manner.

Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings and adjusted EPS. Adjusted earnings and adjusted EPS represent income from continuing operations available to Duke Energy Corporation common stockholders in dollar and basic per share amounts, adjusted for the dollar and per share impact of special items. Special items represent certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance. The most directly comparable GAAP measures for adjusted earnings and adjusted EPS are GAAP Reported Earnings (Loss) and GAAP Reported Basic Earnings (Loss) Per Share, respectively.

There were no special items included in the periods presented.

Discontinued operations primarily represents the operating results of Duke Energy's Commercial Renewables Disposal Groups.

MD&A			DUKE ENERGY

Three Months Ended March 31, 2025, as compared to March 31, 2024

GAAP reported EPS and adjusted EPS were $1.76 for the three months ended March 31, 2025, compared to $1.44 for the three months ended March 31, 2024. GAAP reported EPS and adjusted EPS increased primarily due to higher retail sales volumes and implementation of new rates and riders as well as improved weather, partially offset by higher interest expense and operation and maintenance expense.

The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.

			Three Months Ended March 31,
			2025												2024
(in millions, except per share amounts)			Earnings						EPS						Earnings						EPS
GAAP Reported Earnings/GAAP Reported Earnings Per Share			$	1,365					$	1.76					$	1,099					$	1.44
Adjustments:
Discontinued Operations(a)			—						—						3						—
Adjusted Earnings/Adjusted EPS			$	1,365					$	1.76					$	1,102					$	1.44

(a)Recorded in Loss from Discontinued Operations, net of tax.

SEGMENT RESULTS

The remaining information presented in this discussion of results of operations is on a GAAP basis. Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests and preferred stock dividends. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements.

Duke Energy's segment structure includes the following segments: EU&I and GU&I. The remainder of Duke Energy’s operations is presented as Other. See Note 3 to the Condensed Consolidated Financial Statements, “Business Segments,” for additional information on Duke Energy’s segment structure.

Electric Utilities and Infrastructure

									Three Months Ended March 31,
(in millions)																					2025						2024						Variance
Operating Revenues																					$	7,140					$	6,803					$	337
Operating Expenses
Fuel used in electric generation and purchased power																					2,119						2,355						(236)
Operation, maintenance and other																					1,424						1,317						107
Depreciation and amortization																					1,334						1,225						109
Property and other taxes																					378						337						41
Total operating expenses																					5,255						5,234						21
Gains on Sales of Other Assets and Other, net																					1						6						(5)
Operating Income																					1,886						1,575						311
Other Income and Expenses, net																					134						131						3
Interest Expense																					530						499						31
Income Before Income Taxes																					1,490						1,207						283
Income Tax Expense																					189						173						16
Less: Income Attributable to Noncontrolling Interest																					25						13						12
Segment Income																					$	1,276					$	1,021					$	255
Duke Energy Carolinas GWh sales																					23,558						22,388						1,170
Duke Energy Progress GWh sales																					18,185						16,128						2,057
Duke Energy Florida GWh sales																					9,068						8,839						229
Duke Energy Ohio GWh sales																					6,107						5,780						327
Duke Energy Indiana GWh sales																					8,324						7,475						849
Total Electric Utilities and Infrastructure GWh sales																					65,242						60,610						4,632
Net proportional MW capacity in operation																					55,139						54,504						635

Three Months Ended March 31, 2025, as compared to March 31, 2024

EU&I’s results were driven by higher revenues from rate cases across multiple jurisdictions and higher weather-normal retail sales volumes, offset by higher depreciation and operation, maintenance and other expense. The following is a detailed discussion of the variance drivers by line item.

MD&A			SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE

Operating Revenues. The variance was driven primarily by:

• a $218 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Progress, Duke Energy Indiana, and Duke Energy Florida;

• a $120 million increase in weather-normal retail sales volumes;

• a $75 million increase in retail sales due to favorable weather compared to prior year, including the impacts of decoupling;

• a $42 million increase in wholesale revenues, net of fuel, due to higher sales volumes at Duke Energy Progress;

• a $39 million increase in rider revenues primarily due to Environmental Compliance rider coal ash recovery and Midcontinent Independent System Operator, Inc. (MISO) at Duke Energy Indiana and Storm Protection Plan at Duke Energy Florida;

• a $29 million increase in storm recovery revenues at Duke Energy Florida;

• an $18 million increase in higher transmission revenues due to higher demand and higher Clean Energy Connection subscription revenues at Duke Energy Florida; and

• an $11 million increase in revenues related to higher OVEC rider collections and OVEC sales into PJM Interconnection, LLC at Duke Energy Ohio.

Partially offset by:

• a $256 million decrease in fuel revenues primarily due to net lower fuel cost recovery and lower rates in the current year.

Operating Expenses*.* The variance was driven primarily by:

*•*a $109 million increase in depreciation and amortization primarily due to higher depreciable base and the implementation of the North Carolina MYRP increase at Duke Energy Progress, higher depreciable base at Duke Energy Florida, higher net amortizations and higher depreciation rates driven by the South Carolina rate case and the North Carolina MYRP increase at Duke Energy Carolinas and higher depreciation rates from the rate case at Duke Energy Indiana;

*•*a $107 million increase in operation, maintenance and other primarily driven by higher storm costs at Duke Energy Progress, higher storm amortization at Duke Energy Florida and higher employee-related expenses in the current year, as well as joint owner reimbursements in the prior year at Duke Energy Carolinas; and

• a $41 million increase in property and other taxes due to a higher base on which property taxes are levied at Duke Energy Ohio, Duke Energy Progress and Duke Energy Carolinas.

Partially offset by:

*•*a $236 million decrease in fuel used in electric generation and purchased power primarily due to lower fuel cost recovery and lower purchased power driven by the expiration of contracts in the prior year at Duke Energy Florida, and higher recovery of fuel expense in the prior year at Duke Energy Carolinas, partially offset by Duke Energy Progress and Duke Energy Ohio.

Interest Expense. The increase was primarily driven by higher outstanding debt balances at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida and interest rates at Duke Energy Florida.

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT and income tax credits. The ETRs for the three months ended March 31, 2025, and 2024, were 12.7% and 14.3%, respectively. The decrease in the ETR was primarily due to an increase in the amortization of income tax credits.

MD&A			SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE

Gas Utilities and Infrastructure

									Three Months Ended March 31,
(in millions)																					2025						2024						Variance
Operating Revenues																					$	1,140					$	902					$	238
Operating Expenses
Cost of natural gas																					374						232						142
Operation, maintenance and other																					125						129						(4)
Depreciation and amortization																					107						98						9
Property and other taxes																					47						46						1
Total operating expenses																					653						505						148
Operating Income																					487						397						90
Other Income and Expenses, net																					18						17						1
Interest Expense																					65						61						4
Income Before Income Taxes																					440						353						87
Income Tax Expense																					91						69						22
Segment Income																					$	349					$	284					$	65
Piedmont LDC throughput (dekatherms)																					181,459,847						163,265,015						18,194,832
Duke Energy Midwest LDC throughput (Mcf)																					40,455,684						33,197,651						7,258,033

Three Months Ended March 31, 2025, as compared to March 31, 2024

GU&I’s results were impacted primarily by margin growth. The following is a detailed discussion of the variance drivers by line item.

Operating Revenues. The variance was driven primarily by:

• a $142 million increase in the cost of natural gas due primarily to higher rates, an increase to volumes and lower secondary marketing, partially offset by lower natural gas costs passed through to customers; and

• a $72 million increase due to North Carolina base rate increases.

Operating Expenses. The variance was driven primarily by:

• a $142 million increase in the cost of natural gas due primarily to higher rates, higher volumes and lower secondary marketing, partially offset by lower natural gas costs passed through to customers; and

• a $9 million increase in depreciation and amortization primarily due to higher depreciable base.

Income Tax Expense**.** The increase in tax expense was primarily due to an increase in pretax income. The ETRs for the three months ended March 31, 2025, and 2024, were 20.7% and 19.5%, respectively. The increase in the ETR was primarily due to a decrease in the amortization of EDIT.

Other

									Three Months Ended March 31,
(in millions)																					2025						2024						Variance
Operating Revenues																					$	42					$	38					$	4
Operating Expenses																					82						56						26
Gains on Sales of Other Assets and Other, net																					5						5						—
Operating Loss																					(35)						(13)						(22)
Other Income and Expenses, net																					20						79						(59)
Interest Expense																					318						294						24
Loss Before Income Taxes																					(333)						(228)						(105)
Income Tax Benefit																					(87)						(64)						(23)
Less: Preferred Dividends																					14						39						(25)
Net Loss																					$	(260)					$	(203)					$	(57)

Three Months Ended March 31, 2025, as compared to March 31, 2024

Other's results were impacted by higher interest expense driven by higher outstanding long-term debt balances and lower returns on investments.

Operating Expenses. The increase was driven by higher loss experience related to captive insurance claims.

MD&A			SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE

Other Income and Expenses, net. The variance was primarily due to lower return on investments that fund certain employee benefit obligations, lower equity earnings from the NMC investment and lower yields on captive insurance investments.

Interest Expense. The increase was primarily due to higher outstanding long-term debt balances.

Preferred Dividends. The decrease was due to the redemption of the Company’s Series B Preferred Stock in the prior year.

Income Tax Benefit. The increase in the tax benefit was primarily due to higher pretax losses. The ETRs for the three months ended March 31, 2025, and 2024, were 26.1% and 28.1%, respectively. The decrease in the ETR was primarily due to unfavorable tax impacts related to lower investment returns.

DUKE ENERGY CAROLINAS

Results of Operations

			Three Months Ended March 31,
(in millions)			2025						2024						Variance
Operating Revenues			$	2,524					$	2,407					$	117
Operating Expenses
Fuel used in electric generation and purchased power			803						860						(57)
Operation, maintenance and other			484						452						32
Depreciation and amortization			432						397						35
Property and other taxes			102						94						8
Total operating expenses			1,821						1,803						18
Gains on Sales of Other Assets and Other, net			—						1						(1)
Operating Income			703						605						98
Other Income and Expenses, net			61						61						—
Interest Expense			200						180						20
Income Before Income Taxes			564						486						78
Income Tax Expense			51						56						(5)
Net Income			$	513					$	430					$	83

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.

Increase (Decrease) over prior year			2025
Residential sales			10.9		%
Commercial sales			2.2		%
Industrial sales			(2.8)		%
Wholesale power sales			6.3		%
Joint dispatch sales			45.1		%
Total sales			5.2		%
Average number of customers			2.0		%

Three Months Ended March 31, 2025, as compared to March 31, 2024

Operating Revenues. The variance was driven primarily by:

• a $114 million increase due to higher pricing from the North Carolina MYRP increase and the South Carolina rate case;

• a $34 million increase in weather-normal retail sales volumes; and

• a $30 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling.

Partially offset by:

• a $57 million decrease in fuel revenues due to lower fuel rates, partially offset by higher volumes, including JDA sales.

Operating Expenses**.** The variance was driven primarily by:

*•*a $35 million increase in depreciation and amortization primarily due to higher net amortizations and depreciation rates driven by the South Carolina rate case and North Carolina MYRP increase;

*•*a $32 million increase in operation, maintenance and other primarily due to higher employee-related expenses in the current year and joint owner reimbursements in the prior year; and

• an $8 million increase in property taxes and other taxes primarily due to a higher base upon which property taxes are levied.

MD&A			DUKE ENERGY CAROLINAS

Partially offset by:

• a $57 million decrease in fuel used in electric generation and purchased power primarily due to the increased recovery of fuel cost in the prior year, partially offset by higher purchased power costs, including JDA, natural gas prices and volumes.

Interest Expense. The increase was primarily due to higher outstanding debt balances.

Income Tax Expense**.** The decrease in tax expense was primarily due to an increase in the amortization of income tax credits and EDIT, partially offset by an increase in pretax income.

PROGRESS ENERGY

Results of Operations

			Three Months Ended March 31,
(in millions)			2025						2024						Variance
Operating Revenues			$	3,467					$	3,228					$	239
Operating Expenses
Fuel used in electric generation and purchased power			1,106						1,143						(37)
Operation, maintenance and other			688						628						60
Depreciation and amortization			631						587						44
Property and other taxes			172						158						14
Total operating expenses			2,597						2,516						81
Gains on Sales of Other Assets and Other, net			6						7						(1)
Operating Income			876						719						157
Other Income and Expenses, net			55						62						(7)
Interest Expense			275						260						15
Income Before Income Taxes			656						521						135
Income Tax Expense			110						86						24
Net Income			$	546					$	435					$	111

Three Months Ended March 31, 2025, as compared to March 31, 2024

Operating Revenues. The variance was driven primarily by:

• an $86 million increase due to higher pricing from the Duke Energy Florida and Duke Energy Progress North Carolina MYRP increases;

• a $41 million increase in weather-normal retail sales volumes at Duke Energy Progress and Duke Energy Florida;

• a $34 million increase in wholesale revenues, net of fuel, due to higher sales volumes at Duke Energy Progress;

• a $31 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling, at Duke Energy Florida and Duke Energy Progress;

• a $29 million increase in storm recovery revenues at Duke Energy Florida;

• a $21 million increase in rider revenues primarily due to higher rates for the Storm Protection Plan at Duke Energy Florida; and

• an $18 million increase in higher transmission revenues due to higher demand and rates and higher Clean Energy Connection subscription revenues at Duke Energy Florida.

Partially offset by:

• a $42 million decrease in fuel and capacity revenues primarily due to lower fuel and capacity rates billed to retail customers at Duke Energy Florida, partially offset by an increase in fuel volumes at Duke Energy Progress.

Operating Expenses. The variance was driven primarily by:

*•*a $60 million increase in operation, maintenance and other primarily due to higher storm amortization at Duke Energy Florida and higher storm costs in the current year at Duke Energy Progress;

*•*a $44 million increase in depreciation and amortization due to higher depreciable base at Duke Energy Florida and Duke Energy Progress and the implementation of the North Carolina MYRP increase at Duke Energy Progress; and

• a $14 million increase in property and other taxes primarily due to higher base upon which property taxes are levied at Duke Energy Progress and Duke Energy Florida.

MD&A			PROGRESS ENERGY

Partially offset by:

*•*a $37 million decrease in fuel used in electric generation and purchased power primarily due to lower fuel cost recovery and lower purchased power costs driven by expiration of contracts in the prior year at Duke Energy Florida and increased recovery of fuel cost in the prior year at Duke Energy Progress, partially offset by higher volumes at Duke Energy Progress and higher fuel costs driven by higher natural gas prices at Duke Energy Florida.

Interest Expense. The increase was primarily due to higher outstanding debt balances at Duke Energy Progress and Duke Energy Florida and higher interest rates at Duke Energy Florida.

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of income tax credits and EDIT.

DUKE ENERGY PROGRESS

Results of Operations

			Three Months Ended March 31,
(in millions)			2025						2024						Variance
Operating Revenues			$	2,018					$	1,788					$	230
Operating Expenses
Fuel used in electric generation and purchased power			725						620						105
Operation, maintenance and other			398						375						23
Depreciation and amortization			357						339						18
Property and other taxes			60						51						9
Total operating expenses			1,540						1,385						155
Gains on Sales of Other Assets and Other, net			—						1						(1)
Operating Income			478						404						74
Other Income and Expenses, net			37						36						1
Interest Expense			128						120						8
Income Before Income Taxes			387						320						67
Income Tax Expense			56						48						8
Net Income			$	331					$	272					$	59

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.

Increase (Decrease) over prior period			2025
Residential sales			14.6		%
Commercial sales			3.0		%
Industrial sales			10.5		%
Wholesale power sales			13.1		%
Joint dispatch sales			48.4		%
Total sales			12.8		%
Average number of customers			1.9		%

Three Months Ended March 31, 2025, as compared to March 31, 2024

Operating Revenues. The variance was driven primarily by:

• a $94 million increase in fuel revenues due to higher fuel volumes, partially offset by lower retail fuel rates;

• a $34 million increase in wholesale revenues, net of fuel, due to higher sales volumes;

• a $32 million increase due to higher pricing from the North Carolina MYRP increase;

• a $27 million increase in weather-normal retail sales volumes; and

• a $15 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling.

MD&A			DUKE ENERGY PROGRESS

Operating Expenses. The variance was driven primarily by:

• a $105 million increase in fuel used in electric generation and purchased power primarily due to higher volumes, including JDA purchases, and natural gas prices, partially offset by increased recovery of fuel cost in the prior year;

*•*a $23 million increase in operation, maintenance and other primarily due to higher storm costs in the current year;

• an $18 million increase in depreciation and amortization primarily due to higher depreciable base and the implementation of the North Carolina MYRP increase; and

• a $9 million increase in property taxes primarily due to due to a higher base upon which property taxes are levied.

Interest Expense. The increase was driven primarily by higher outstanding debt balances.

DUKE ENERGY FLORIDA

Results of Operations

			Three Months Ended March 31,
(in millions)			2025						2024						Variance
Operating Revenues			$	1,444					$	1,436					$	8
Operating Expenses
Fuel used in electric generation and purchased power			381						523						(142)
Operation, maintenance and other			286						251						35
Depreciation and amortization			274						248						26
Property and other taxes			112						106						6
Total operating expenses			1,053						1,128						(75)
Gains on Sales of Other Assets and Other, net			1						1						—
Operating Income			392						309						83
Other Income and Expenses, net			18						24						(6)
Interest Expense			118						111						7
Income Before Income Taxes			292						222						70
Income Tax Expense			58						43						15
Net Income			$	234					$	179					$	55

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Wholesale power sales include both billed and unbilled sales. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.

Increase (Decrease) over prior period			2025
Residential sales			5.7		%
Commercial sales			2.3		%
Industrial sales			(5.9)		%
Wholesale power sales			1.9		%
Total sales			2.6		%
Average number of customers			1.6		%

Three Months Ended March 31, 2025, as compared to March 31, 2024

Operating Revenues. The variance was driven primarily by:

• a $54 million increase due to higher pricing from the Florida rate case;

• a $29 million increase in storm recovery revenues;

• a $21 million increase in rider revenues primarily due to higher rates for the Storm Protection Plan;

• an $18 million increase in transmission revenues due to higher demand and rates and higher Clean Energy Connection subscription revenues;

• a $16 million increase in retail sales due to improved weather compared to prior year; and

• a $14 million increase in weather-normal retail sales volumes.

Partially offset by:

• a $136 million decrease in fuel and capacity revenues primarily due to lower fuel and capacity rates.

MD&A			DUKE ENERGY FLORIDA

Operating Expenses. The variance was driven primarily by:

• a $142 million decrease in fuel used in electric generation and purchased power primarily due to lower fuel cost recovery and lower purchased power costs driven by the expiration of contracts in the prior year, partially offset by higher fuel costs driven by higher natural gas prices.

Partially offset by:

• a $35 million increase in operation, maintenance, and other primarily due to higher storm amortization; and

• a $26 million increase in depreciation and amortization primarily due to higher depreciable base.

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of income tax credits.

DUKE ENERGY OHIO

Results of Operations

			Three Months Ended March 31,
(in millions)			2025						2024						Variance
Operating Revenues
Regulated electric			$	487					$	458					$	29
Regulated natural gas			279						220						59
Total operating revenues			766						678						88
Operating Expenses
Fuel used in electric generation and purchased power			149						138						11
Cost of natural gas			101						61						40
Operation, maintenance and other			124						126						(2)
Depreciation and amortization			112						99						13
Property and other taxes			116						102						14
Total operating expenses			602						526						76
Operating Income			164						152						12
Other Income and Expenses, net			5						6						(1)
Interest Expense			47						45						2
Income Before Income Taxes			122						113						9
Income Tax Expense			22						19						3
Net Income			$	100					$	94					$	6

The following table shows the percent changes in GWh sales of electricity, dekatherms of natural gas delivered and average number of electric and natural gas customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.

			Electric			Natural Gas
Increase (Decrease) over prior year			2025			2025
Residential sales			12.2		%	29.6		%
Commercial sales			12.4		%	21.5		%
Industrial sales			(12.9)		%	22.7		%
Wholesale electric power sales			(13.8)		%	n/a
Other natural gas sales			n/a			0.2		%
Total sales			5.7		%	21.9		%
Average number of customers			0.9		%	0.4		%

Three Months Ended March 31, 2025, as compared to March 31, 2024

Operating Revenues. The variance was driven primarily by:

• a $45 million increase in fuel-related revenues primarily due to higher natural gas costs and higher full-service retail sales volumes;

• a $20 million increase in retail revenue riders primarily due to the Uncollectible Expense Riders, Distribution Capital Investment Rider and the Pipeline Modernization Mechanism;

• an $11 million increase in revenues related to higher OVEC rider collections and OVEC sales into PJM Interconnection, LLC; and

• an $11 million increase due to improved weather compared to prior year.

MD&A			DUKE ENERGY OHIO

Operating Expenses. The variance was driven primarily by:

• a $51 million increase in fuel expense primarily driven by higher retail prices for natural gas and purchased power and an increase in purchased power volumes;

• a $14 million increase in property and other taxes primarily due to a higher base upon which property taxes are levied and higher franchise taxes; and

• a $13 million increase in depreciation and amortization primarily driven by an increase in distribution plant in service and higher amortization related to the increased collections of the uncollectible rider.

DUKE ENERGY INDIANA

Results of Operations

			Three Months Ended March 31,
(in millions)			2025						2024						Variance
Operating Revenues			$	858					$	759					$	99
Operating Expenses
Fuel used in electric generation and purchased power			260						271						(11)
Operation, maintenance and other			195						180						15
Depreciation and amortization			192						169						23
Property and other taxes			18						14						4
Total operating expenses			665						634						31
Operating Income			193						125						68
Other Income and Expenses, net			10						13						(3)
Interest Expense			59						57						2
Income Before Income Taxes			144						81						63
Income Tax Expense			18						14						4
Net Income			$	126					$	67					$	59

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.

Increase (Decrease) over prior year			2025
Residential sales			13.1		%
Commercial sales			7.0		%
Industrial sales			(15.3)		%
Wholesale power sales			42.5		%
Total sales			11.4		%
Average number of customers			1.6		%

Three Months Ended March 31, 2025, as compared to March 31, 2024

Operating Revenues. The variance was driven primarily by:

• a $40 million increase in weather-normal retail sales volumes;

• an $18 million increase primarily due to higher pricing from the Indiana rate case, net of certain rider revenues moving to base;

• a $12 million increase in retail sales due to improved weather compared to prior year;

• an $8 million increase in wholesale revenues, including fuel, primarily due to an increase in sales in the current year; and

• an $8 million increase in rider revenues primarily due to Environmental Compliance rider coal ash recovery and MISO rider adjustments, partially offset by the completion of refunds related to the Supreme Court coal ash amortization in the prior year.

Operating Expenses. The variance was driven primarily by:

• a $23 million increase in depreciation and amortization primarily due to higher depreciation rates from the Indiana rate case; and

• a $15 million increase in operation, maintenance and other primarily due to an increase in rider amortizations.

MD&A			DUKE ENERGY INDIANA

Partially offset by:

• an $11 million decrease in fuel used in electric generation and purchased power primarily due to lower deferred fuel and MISO amortization, partially offset by higher coal and natural gas costs and higher purchased power expense.

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT.

PIEDMONT

Results of Operations

			Three Months Ended March 31,
(in millions)			2025						2024						Variance
Operating Revenues			$	857					$	676					$	181
Operating Expenses
Cost of natural gas			272						170						102
Operation, maintenance and other			96						95						1
Depreciation and amortization			70						62						8
Property and other taxes			18						15						3
Total operating expenses			456						342						114
Operating Income			401						334						67
Other Income and Expenses, net			13						17						(4)
Interest Expense			47						45						2
Income Before Income Taxes			367						306						61
Income Tax Expense			76						60						16
Net Income			$	291					$	246					$	45

The following table shows the percent changes in dekatherms delivered and average number of customers. The percentages for all throughput deliveries represent billed and unbilled sales. Amounts are not weather-normalized.

Increase (Decrease) over prior year			2025
Residential deliveries			17.1		%
Commercial deliveries			18.7		%
Industrial deliveries			0.2		%
Power generation deliveries			10.9		%
For resale			14.1		%
Total throughput deliveries			11.1		%
Secondary market volumes			31.7		%
Average number of customers			1.8		%

Three Months Ended March 31, 2025, as compared to March 31, 2024

Operating Revenues. The variance was driven primarily by:

• a $102 million increase in the cost of natural gas due to higher rates, higher volumes and lower secondary marketing, partially offset by lower natural gas costs passed through to customers; and

• a $72 million increase due to North Carolina base rate increases.

Operating Expenses. The variance was driven primarily by:

• a $102 million increase in the cost of natural gas due to higher rates, higher volumes and lower secondary marketing, partially offset by lower natural gas costs passed through to customers; and

• an $8 million increase in depreciation and amortization due to higher depreciable base.

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income.

MD&A			LIQUIDITY AND CAPITAL RESOURCES

LIQUIDITY AND CAPITAL RESOURCES

Sources and Uses of Cash

Duke Energy relies primarily upon cash flows from operations, debt and equity issuances and its existing cash and cash equivalents to fund its liquidity and capital requirements. Duke Energy’s capital requirements arise primarily from capital and investment expenditures, repaying long-term debt and paying dividends to shareholders. In 2024, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida began monetizing tax credits in the transferability markets established by the IRA and are working with the state utility commissions on the appropriate regulatory process to pass the net realizable value back to customers over time. See Note 16 to the Condensed Consolidated Financial Statements, “Income Taxes,” for further information. Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2024, included a summary and detailed discussion of projected primary sources and uses of cash for 2025 to 2027.

In 2025, Duke Energy executed several equity forward sales agreements as part of the ATM program. Settlement of the forward sales agreements is expected to occur by December 31, 2025. See Note 14 to the Condensed Consolidated Financial Statements, “Stockholders’ Equity” for further details.

In March 2025, Duke Energy extended the termination date of its existing Master Credit Facility to March 2030 and increased its capacity from $9 billion to $10 billion. As of March 31, 2025, Duke Energy had $475 million of cash on hand and $7.8 billion available under its Master Credit Facility. Duke Energy expects to have sufficient liquidity in the form of cash on hand, cash from operations and available credit capacity to support its funding needs.

See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for the timing and use of proceeds from the sale of certain Commercial Renewables assets to affiliates of Brookfield.

Debt

As discussed in Note 12 to the Condensed Consolidated Financial Statements, "Variable Interest Entities," Duke Energy Carolinas terminated and repaid DERF in January 2025 and Duke Energy Progress terminated and repaid DEPR in March 2025. As a result of these repayments, DERF and DEPR have ceased operations.

From August through October 2024, a series of major storm events occurred that resulted in significant damage to utility infrastructure within our service territories and primarily impacted Duke Energy Carolinas', Duke Energy Progress' and Duke Energy Florida's electric utility operations. As discussed in Note 4, to the Condensed Consolidated Financial Statements, "Regulatory Matters," hurricanes Debby, Helene and Milton caused widespread outages and included unprecedented damage to certain assets, including the hardest-hit areas on the western coast of Florida and certain regions in western North Carolina and upstate South Carolina. Funding restoration activities and, in some cases, the complete rebuild of critical infrastructure, for a series of sequential events of this magnitude have resulted in incremental financing needs until cost recovery occurs. See "Matters Impacting Future Results" for further details and Note 6 to the Condensed Consolidated Financial Statements, "Debt and Credit Facilities," for information regarding term loans executed in response to these major storm events.

Cash Flow Information

The following table summarizes Duke Energy’s cash flows.

						Three Months Ended
						March 31,
(in millions)						2025						2024
Cash flows provided by (used in):
Operating activities						$	2,177					$	2,474
Investing activities						(3,300)						(3,342)
Financing activities						1,238						1,029
Net increase in cash, cash equivalents and restricted cash						115						161
Cash, cash equivalents and restricted cash at beginning of period						421						357
Cash, cash equivalents and restricted cash at end of period						$	536					$	518

OPERATING CASH FLOWS

The following table summarizes key components of Duke Energy’s operating cash flows.

						Three Months Ended
						March 31,
(in millions)						2025						2024						Variance
Net income						$	1,404					$	1,151					$	253
Non-cash adjustments to net income						1,800						1,589						211
Payments for asset retirement obligations						(102)						(115)						13
Working capital						(945)						(341)						(604)
Other assets and Other liabilities						20						190						(170)
Net cash provided by operating activities						$	2,177					$	2,474					$	(297)

MD&A			LIQUIDITY AND CAPITAL RESOURCES

The variance is primarily driven by:

• a $774 million decrease in net working capital and other assets and liabilities amounts, primarily due to the timing of accruals and payments, including payments related to restoration activities from the 2024 storm season.

Partially offset by:

• a $464 million increase in net income, after adjustment for non-cash items, primarily due to higher retail sales volumes and implementation of new rates and riders as well as improved weather, partially offset by higher interest expense and operation and maintenance expense.

INVESTING CASH FLOWS

The following table summarizes key components of Duke Energy’s investing cash flows.

						Three Months Ended
						March 31,
(in millions)						2025						2024						Variance
Capital, investment and acquisition expenditures						$	(3,148)					$	(3,215)					$	67
Other investing items						(152)						(127)						(25)
Net cash used in investing activities						$	(3,300)					$	(3,342)					$	42

The variance is primarily due to lower capital expenditures at Piedmont within the GU&I segment in the current year.

FINANCING CASH FLOWS

The following table summarizes key components of Duke Energy’s financing cash flows.

						Three Months Ended
						March 31,
(in millions)						2025						2024						Variance
Issuances of long-term debt, net						$	3,100					$	2,089					$	1,011
Issuances of common stock						7						4						3
Notes payable, commercial paper and other short-term borrowings						(1,055)						(191)						(864)
Dividends paid						(803)						(806)						3
Other financing items						(11)						(67)						56
Net cash provided by financing activities						$	1,238					$	1,029					$	209

The variance is primarily due to:

• a $1,011 million increase in proceeds from net issuances of long-term debt, primarily due to timing of issuances and redemptions of long-term debt;

Partially offset by:

• a $864 million decrease in net borrowings from notes payable and commercial paper.

OTHER MATTERS

Environmental Regulations

The Duke Energy Registrants are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal, coal ash and other environmental matters. These regulations can be changed from time to time and result in new obligations of the Duke Energy Registrants. Refer to Note 4, "Regulatory Matters," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2024, for more information regarding potential plant retirements and Note 4, "Regulatory Matters," to the Condensed Consolidated Financial Statements, for further information regarding regulatory filings related to the Duke Energy Registrants.

GHG Standards and Guidelines

In April 2024, the EPA issued final rules under section 111 of the Clean Air Act (EPA Rule 111) regulating GHG emissions from existing coal-fired and new natural gas-fired power plants, referred to as electric generating units. Duke Energy is participating in legal challenges to EPA Rule 111 as a member of Electric Generators for a Sensible Transition, a coalition of similarly affected utilities, and as a member of a utility trade group. The litigation is currently pending in the U.S. Court of Appeals for the District of Columbia Circuit (the Court). On February 5, 2025, the EPA requested the Court to withhold issuing an opinion and place the case in a 60-day abeyance to allow time for new EPA leadership to review the issues and EPA Rule 111 to determine how they wish to proceed. On February 19, 2025, the Court granted EPA’s request. On April 21, 2025, the EPA filed a motion with the Court requesting a continuing abeyance while it conducts a new notice-and-comment rulemaking to reconsider the challenged EPA Rule 111. As part of this request, the EPA indicated it intends to issue a proposed reconsideration rule in spring 2025 and issue a final rule by December 2025. On April 25, 2025, the Court granted EPA’s motion and ordered that the litigation continue to remain in abeyance pending further order of the Court.

MD&A			OTHER MATTERS

Coal Combustion Residuals

In April 2024, the EPA issued the 2024 CCR Rule, which significantly expands the scope of the 2015 CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities (Legacy CCR Surface Impoundments).Duke Energy, as part of a group of similarly affected electric utilities, filed a petition to challenge the 2024 CCR Rule in the U.S. Court of Appeals for the District of Columbia Circuit (the Court) on August 6, 2024. On February 13, 2025, the EPA requested the Court to withhold issuing an opinion and place the case in a 120-day abeyance to allow time for new EPA leadership to review the issues and the 2024 CCR Rule to determine how they wish to proceed. On that same day, the Court granted EPA’s motion to hold the case in abeyance pending further order of the Court.

Cost recovery for future expenditures is anticipated and will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of reasonable and prudently incurred costs associated with Duke Energy’s regulated operations.