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 six months ended June 30, 2025, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2024.

Executive Overview

Acting on Investment Opportunities. We operate in some of the most attractive jurisdictions in the country and the affordable, reliable power we provide continues to play a key role in bringing business and job growth to our region. Our service territories continue to experience accelerating investment opportunities driven by a deepening economic development pipeline and significant customer growth. To efficiently fund this growth and the related capital required in the coming years, we entered into two strategic transactions in the third quarter of 2025.

In August 2025, we entered into an Investment Agreement to receive $6 billion in exchange for a 19.7% indirect investment in Duke Energy Florida. Subject to regulatory approvals, the transaction is expected to be completed through a series of closings through mid-2028. In July 2025, we announced the sale of Piedmont’s Tennessee Business to Spire, Inc. for $2.48 billion. Subject to regulatory approvals, we expect to complete the Piedmont transaction in the first quarter of 2026. Proceeds from both transactions will support Duke Energy’s expanded 2025-2029 capital plan of $87 billion and limit the need for additional long-term debt or common equity through 2029.

Both of these transactions, along with our unwavering focus on operational excellence and value creation, demonstrate our continued ability to meet the unprecedented growth anticipated across our service territories in the decades ahead. See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for further information.

Building a Smarter Energy Future. During the six months ended June 30, 2025, we continued to move our regulatory strategy forward and execute on investments for building a smarter energy future 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. New rates were also effective in January 2025 for Duke Energy Florida's new three-year rate plan. In June 2025, Duke Energy Progress filed a South Carolina base rate case and Duke Energy Kentucky filed a natural gas base rate case. In July 2025, Duke Energy Carolinas filed a South Carolina base rate case. Our regulatory efforts focus on securing critical investments for reliable customer service while ensuring timely cost recovery across our service territories.

• In February 2025, Duke Energy Progress filed an application to construct and operate a second 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. In June 2025, Duke Energy Carolinas announced its intent to submit an application to the PSCSC for approval to build a new CC unit in Anderson County, South Carolina. 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 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 approving the settlement was received in June 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 and reached a comprehensive settlement with key parties in June 2025. In July 2025, the settlement was approved by the PSCSC and a financing order was issued in August 2025. We expect to securitize the related Carolinas' storm costs by the end of 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 building a smarter energy future for our customers.

MD&A			DUKE ENERGY

• In June 2025, the governor of North Carolina announced Amazon is planning to invest an estimated $10 billion to launch a new high-tech cloud computing and artificial intelligence innovation campus in Richmond County, North Carolina. The site selected for this project was included in Duke Energy's Site Readiness Program in 2019, a program that helps state, regional, and local economic development partners increase the competitiveness of potential industrial land. These new data centers will be located in Duke Energy Progress' service territory and the investment is expected to be among the largest in North Carolina's history, a testament to the impactful and ongoing work of continuing to bring economic development success to the vibrant communities we proudly serve.

Operational Excellence. In June 2025, as summer's first heat wave brought triple-digit temperatures to parts of North Carolina and South Carolina, our customers set a new summertime record for electricity usage, surpassing the previous summertime record set in July 2024. We maintain a focus on operational excellence and prepare for the arrival of extreme weather to deliver on customer commitments by identifying potential risks, effectively maintaining adequate short-term planning reserves, leveraging outage scheduling optimization, and controlling planned and emergent equipment issues.

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."

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. In June 2025, the EPA proposed to repeal EPA Rule 111. For more information, see "Other 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 vision for a smarter energy future.

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.

MD&A			MATTERS IMPACTING FUTURE RESULTS

Minority Interest in Duke Energy Florida

In August 2025, Duke Energy, Progress Energy and Florida Progress entered into an Investment Agreement for Florida Progress to receive $6 billion in exchange for a 19.7% indirect investment in Duke Energy Florida. The transaction is subject to the satisfaction of certain customary conditions described in the Investment Agreement, including receipt of the approval of the FERC and completion of review by the Committee on Foreign Investments in the United States (CFIUS), as well as approval, or a determination that the transaction does not require approval, by the NRC. The transaction is expected to be completed through a series of closings through June 30, 2028. Termination of the transaction under certain specified circumstances could require the investor to pay a $240 million termination fee to Progress Energy and result in Duke Energy seeking alternative funding sources through 2029, including additional long-term debt and common equity issuances. For additional information, see Note 2 to the Condensed Consolidated Financial Statements, “Dispositions.”

Sale of Piedmont's Tennessee Business

In July 2025, Piedmont entered into an agreement (Purchase Agreement) to sell Piedmont’s Tennessee Business. Completion of the transaction is subject to customary closing conditions, including approval from the TPUC and expiration or termination of the applicable waiting period under the HSR. There is no assurance of the transaction as failure to obtain related approvals or to satisfy conditions in the Purchase Agreement could result in termination of the transaction. The Purchase Agreement contains termination rights and Spire Inc. may be required to pay a termination fee equal to 6.5% of the purchase price under certain circumstances that result in termination of the transaction. Termination of the contract could also result in Duke Energy seeking alternative funding sources for its 2025-2029 capital and investment expenditures plan, including additional long-term debt and common equity issuances. Completion of the transaction could impact the operating revenues and profitability of Piedmont, including potential recognition of a gain on sale. In the third quarter of 2025, Duke Energy and Piedmont will reclassify the Piedmont disposal unit to assets held for sale. For additional information, see Note 2 to the Condensed Consolidated Financial Statements, “Dispositions.”

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 vision for a smarter energy future.

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.

Special items included in the periods presented below include the following, which management believes do not reflect ongoing costs:

• Regulatory Matters primarily represents impairment charges related to the 2024 Duke Energy Carolinas' South Carolina rate case order.

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

Three Months Ended June 30, 2025, as compared to June 30, 2024

GAAP reported EPS was $1.25 for the three months ended June 30, 2025, compared to $1.13 for the three months ended June 30, 2024. In addition to the drivers below, GAAP reported EPS increased primarily due to impairments related to the 2024 South Carolina rate case in the prior year.

As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s adjusted EPS was $1.25 for the three months ended June 30, 2025, compared to $1.18 for the three months ended June 30, 2024. The increase in adjusted EPS was primarily due to the implementation of new rates and riders, partially offset by higher operation and maintenance expense and interest expense.

MD&A			DUKE ENERGY

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

			Three Months Ended June 30,
			2025												2024
(in millions, except per share amounts)			Earnings						EPS						Earnings						EPS
GAAP Reported Earnings/GAAP Reported EPS			$	971					$	1.25					$	886					$	1.13
Adjustments:
Regulatory Matters(a)			—						—						25						0.03
Discontinued Operations(b)			1						—						10						0.01
Adjusted Earnings/Adjusted EPS			$	972					$	1.25					$	921					$	1.18

Note: Total EPS may not foot due to rounding.

(a)Net of $8 million tax benefit. $42 million recorded within Impairment of assets and other charges, $2 million within Operations,

maintenance and other, and an $11 million reduction recorded within Interest Expense.

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

Six Months Ended June 30, 2025, as compared to June 30, 2024

GAAP Reported EPS was $3.00 for the six months ended June 30, 2025, compared to $2.57 for the six months ended June 30, 2024. In addition to the drivers below, GAAP reported EPS increased primarily due to impairments related to the 2024 South Carolina rate case in the prior year.

As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s adjusted EPS was $3.00 for the six months ended June 30, 2025, compared to $2.62 for the six months ended June 30, 2024. The increase in adjusted EPS was primarily due to the implementation of new rates and riders, higher sales volumes and favorable weather, partially offset by higher interest expense, operation and maintenance expense and depreciation expense on a growing asset base.

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

			Six Months Ended June 30,
			2025												2024
(in millions, except per share amounts)			Earnings						EPS						Earnings						EPS
GAAP Reported Earnings/GAAP Reported EPS			$	2,336					$	3.00					$	1,985					$	2.57
Adjustments:
Regulatory Matters(a)			—						—						25						0.03
Discontinued Operations(b)			1						—						13						0.02
Adjusted Earnings/Adjusted EPS			$	2,337					$	3.00					$	2,023					$	2.62

(a)Net of $8 million tax benefit. $42 million recorded within Impairment of assets and other charges, $2 million within Operations,

maintenance and other, and an $11 million reduction recorded within Interest Expense.

(b) 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.

MD&A			SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE

Electric Utilities and Infrastructure

			Three Months Ended June 30,																		Six Months Ended June 30,
(in millions)			2025						2024						Variance						2025						2024						Variance
Operating Revenues			7,045						$	6,820					$	225					$	14,185					$	13,623					$	562
Operating Expenses
Fuel used in electric generation and purchased power			1,898						2,247						(349)						4,017						4,602						(585)
Operation, maintenance and other			1,594						1,262						332						3,018						2,578						440
Depreciation and amortization			1,402						1,246						156						2,736						2,471						265
Property and other taxes			371						351						20						749						688						61
Impairment of assets and other charges			(1)						42						(43)						(1)						43						(44)
Total operating expenses			5,264						5,148						116						10,519						10,382						137
Gains on Sales of Other Assets and Other, net			8						1						7						9						7						2
Operating Income			1,789						1,673						116						3,675						3,248						427
Other Income and Expenses, net			163						141						22						297						272						25
Interest Expense			535						488						47						1,065						987						78
Income Before Income Taxes			1,417						1,326						91						2,907						2,533						374
Income Tax Expense			200						214						(14)						389						387						2
Less: Income Attributable to Noncontrolling Interest			23						22						1						48						35						13
Segment Income			$	1,194					$	1,090					$	104					$	2,470					$	2,111					$	359
Duke Energy Carolinas GWh sales			22,168						22,484						(316)						45,726						44,872						854
Duke Energy Progress GWh sales			17,058						17,214						(156)						35,243						33,342						1,901
Duke Energy Florida GWh sales			11,726						11,862						(136)						20,794						20,701						93
Duke Energy Ohio GWh sales			5,671						5,910						(239)						11,778						11,690						88
Duke Energy Indiana GWh sales			7,538						7,516						22						15,862						14,991						871
Total Electric Utilities and Infrastructure GWh sales			64,161						64,986						(825)						129,403						125,596						3,807
Net proportional MW capacity in operation																					55,216						54,578						638

Three Months Ended June 30, 2025, as compared to June 30, 2024

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

Operating Revenues. The variance was driven primarily by:

• a $279 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Indiana, Duke Energy Florida and Duke Energy Progress;

• a $235 million increase in storm recovery revenues at Duke Energy Florida;

• a $65 million increase in rider revenues primarily due to recovery of the SPP at Duke Energy Florida and the North Carolina Municipal Power Agency (NCEMPA) rider at Duke Energy Progress;

• a $30 million increase in weather-normal retail sales volumes; and

• a $29 million increase in other revenues due to higher transmission revenues.

Partially offset by:

• a $393 million decrease in fuel revenues primarily due to net lower rates in the current year.

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

*•*a $332 million increase in operation, maintenance and other primarily driven by higher storm amortization at Duke Energy Florida, increased costs related to customer products and services programs, litigation and environmental costs and higher employee-related expenses in the current year, as well as joint owner reimbursements in the prior year at Duke Energy Carolinas and increase in TDSIC rider amortizations at Duke Energy Indiana;

*•*a $156 million increase in depreciation and amortization primarily due to higher depreciable base across all jurisdictions and higher depreciation rates driven by rate cases; and

• a $20 million increase in property and other taxes due to a higher base on which property taxes are levied, partially offset by sales and use tax at Duke Energy Carolinas and Duke Energy Progress.

MD&A			SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE

Partially offset by:

*•*a $349 million decrease in fuel used in electric generation and purchased power primarily due to higher recovery of fuel expense in the prior year at Duke Energy Carolinas and Duke Energy Progress, and lower fuel cost recovery and lower purchased power driven by the expiration of contracts in the prior year at Duke Energy Florida, partially offset by higher fuel costs and purchased power at Duke Energy Ohio; and

• a $43 million decrease in impairment of assets and other charges primarily related to the impacts of the 2024 South Carolina rate case order at Duke Energy Carolinas in the prior year.

Other Income and Expense. The increase was primarily driven by higher AFUDC equity rate and base compared to the prior year across all jurisdictions.

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

Income Tax Expense. The decrease in tax expense was primarily due to an increase in the amortization of income tax credits and lower state tax expense, partially offset by higher pretax income. The ETRs for the three months ended June 30, 2025, and 2024, were 14.1% and 16.1%, respectively. The decrease in the ETR was primarily due to an increase in the amortization of income tax credits and lower state tax expense.

Six Months Ended June 30, 2025, as compared to June 30, 2024

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

Operating Revenues. The variance was driven primarily by:

• a $497 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Indiana, Duke Energy Florida and Duke Energy Progress;

• a $264 million increase in storm recovery revenues at Duke Energy Florida;

• a $150 million increase in weather-normal retail sales volumes;

• a $104 million increase in rider revenues primarily due to the SPP at Duke Energy Florida, NCEMPA rider true-up, the recovery of South Carolina storm recovery charges through securitization and recovery of North Carolina residential decoupling revenues at Duke Energy Progress, as well as the Uncollectible Expense Riders and Distribution Capital Investment Rider and higher OVEC rider collections and OVEC sales into PJM Interconnection, LLC at Duke Energy Ohio;

• an $86 million increase in retail sales due to favorable weather compared to prior year; and

• a $65 million increase in other revenues due to higher transmission revenues across all jurisdictions and higher Clean Energy Connection subscription revenues at Duke Energy Florida.

Partially offset by:

• a $649 million decrease in fuel revenues primarily due to net lower rates in the current year, partially offset by higher volumes.

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

*•*a $440 million increase in operation, maintenance and other primarily driven by higher storm amortization at Duke Energy Florida, increased costs related to customer products and services programs, litigation and environmental costs and higher employee-related expenses in the current year, as well as joint owner reimbursements in the prior year at Duke Energy Carolinas, an increase in TDSIC rider amortizations at Duke Energy Indiana and higher storm costs at Duke Energy Progress;

• a $265 million increase in depreciation and amortization primarily due to higher depreciable base across all jurisdictions and higher depreciation rates driven by rate cases; and

• a $61 million increase in property and other taxes due to a higher base on which property taxes are levied, partially offset by sales and use tax at Duke Energy Carolinas and Duke Energy Progress.

Partially offset by:

*•*a $585 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 higher fuel costs and purchased power at Duke Energy Progress and Duke Energy Ohio; and

• a $44 million decrease in impairment of assets and other charges primarily related to the impacts of the 2024 South Carolina rate case order in the prior year at Duke Energy Carolinas and Duke Energy Progress.

Other Income and Expense. The increase was primarily driven by higher AFUDC equity rate and base compared to the prior year across all jurisdictions.

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

MD&A			SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income mostly offset by an increase in the amortization of EDIT and income tax credits. The ETRs for the six months ended June 30, 2025, and 2024, were 13.4% and 15.3%, respectively. The decrease in the ETR was primarily due to an increase in the amortization of income tax credits and lower state tax expense.

Gas Utilities and Infrastructure

			Three Months Ended June 30,																		Six Months Ended June 30,
(in millions)			2025						2024						Variance						2025						2024						Variance
Operating Revenues			$	493					$	381					$	112					$	1,633					$	1,283					$	350
Operating Expenses
Cost of natural gas			158						78						80						532						310						222
Operation, maintenance and other			129						117						12						254						246						8
Depreciation and amortization			112						96						16						219						194						25
Property and other taxes			41						38						3						88						84						4
Total operating expenses			440						329						111						1,093						834						259
Operating Income			53						52						1						540						449						91
Other Income and Expenses, net			14						17						(3)						32						34						(2)
Interest Expense			65						61						4						130						122						8
Income Before Income Taxes			2						8						(6)						442						361						81
Income Tax (Benefit) Expense			(4)						2						(6)						87						71						16
Segment Income			$	6					$	6					$	—					$	355					$	290					$	65
Piedmont LDC throughput (dekatherms)			125,745,045						128,266,775						(2,521,730)						307,204,892						291,531,790						15,673,102
Duke Energy Midwest LDC throughput (Mcf)			13,882,749						12,969,694						913,055						54,338,433						46,167,345						8,171,088

Three Months Ended June 30, 2025, as compared to June 30, 2024

GU&I’s results were impacted primarily by margin growth, partially offset by higher depreciation and amortization. The following is a detailed discussion of the variance drivers by line item.

Operating Revenues. The variance was driven primarily by:

• an $80 million increase in cost of natural gas revenues primarily due to higher capacity charges, partially offset by lower natural gas costs passed through to customers and higher secondary marketing;

• a $12 million increase due to higher pricing from the 2024 Piedmont North Carolina rate case; and

• a $6 million increase in Midwest rider revenue.

Operating Expenses. The variance was driven primarily by:

• an $80 million increase in the cost of natural gas due primarily to higher capacity charges and lower secondary marketing, partially offset by lower natural gas costs passed through to customers;

• a $16 million increase in depreciation and amortization primarily due to higher depreciable base; and

• a $12 million increase in operations, maintenance and other primarily due to higher customer charges, labor and service company costs.

Income Tax (Benefit) Expense**.** The decrease in tax expense was primarily due to lower state tax expense. The ETRs for the three months ended June 30, 2025, and 2024, were (200)% and 25%, respectively. The decrease in the ETR was primarily due to lower state tax expense.

Six Months Ended June 30, 2025, as compared to June 30, 2024

GU&I’s results were impacted primarily by higher revenues from the North Carolina rate case, partially offset by higher depreciation and amortization. The following is a detailed discussion of the variance drivers by line item.

Operating Revenues. The variance was driven primarily by:

• a $222 million increase in cost of natural gas revenues primarily due to higher commodity prices, an increase in volumes and lower secondary marketing, partially offset by lower natural gas costs passed through to customers;

• an $84 million increase due to higher pricing from the 2024 Piedmont North Carolina rate case; and

• a $16 million increase in Midwest rider revenue.

MD&A			SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE

Operating Expenses. The variance was driven primarily by:

• a $222 million increase in the cost of natural gas primarily due to higher commodity prices, an increase to volumes and lower secondary marketing, partially offset by lower natural gas costs passed through to customers; and

• a $25 million increase in depreciation and amortization primarily due to higher depreciable base.

Income Tax (Benefit) Expense**.** The increase in tax expense is primarily due to an increase in pretax income.

Other

			Three Months Ended June 30,																		Six Months Ended June 30,
(in millions)			2025						2024						Variance						2025						2024						Variance
Operating Revenues			$	40					$	40					$	—					$	82					$	78					$	4
Operating Expenses			62						70						(8)						144						126						18
Gains on Sales of Other Assets and Other, net			6						6						—						11						11						—
Operating Loss			(16)						(24)						8						(51)						(37)						(14)
Other Income and Expenses, net			42						67						(25)						62						146						(84)
Interest Expense			318						306						12						636						600						36
Loss Before Income Taxes			(292)						(263)						(29)						(625)						(491)						(134)
Income Tax Benefit			(77)						(77)						—						(164)						(141)						(23)
Less: Preferred Dividends			13						14						(1)						27						53						(26)
Net Loss			$	(228)					$	(200)					$	(28)					$	(488)					$	(403)					$	(85)

Three Months Ended June 30, 2025, as compared to June 30, 2024

Other's results were impacted by higher interest expense and lower equity earnings from the NMC investment.

Operating Expenses. The decrease was driven by contributions to the Duke Energy Foundation in the prior year.

Other Income and Expenses, net. The decrease was primarily due to lower equity earnings from the NMC investment.

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

Income Tax Benefit. The tax benefit was flat compared to prior year primarily due to an increase in pretax losses offset by tax impacts related to the NMC investment. The ETRs for the three months ended June 30, 2025, and 2024, were 26.4% and 29.3%, respectively. The decrease in the ETR was primarily due to tax impacts related to the NMC investment.

Six Months Ended June 30, 2025, as compared to June 30, 2024

Other's results were impacted by higher interest expense, lower equity earnings from the NMC investment and lower return on investments that fund certain employee benefit obligations.

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

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

Interest Expense. The increase was primarily due to higher outstanding long-term debt balances, partially offset by lower commercial paper borrowings.

Income Tax Benefit. The increase in the tax benefit was primarily due to an increase in pretax losses. The ETRs for the six months ended June 30, 2025, and 2024, were 26.2% and 28.7%, respectively. The decrease in the ETR was primarily due to the tax impacts related to the NMC investment.

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

LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX

			Three Months Ended June 30,																		Six Months Ended June 30,
(in millions)			2025						2024						Variance						2025						2024						Variance
Loss From Discontinued Operations, net of tax			$	(1)					$	(10)					$	9					$	(1)					$	(13)					$	12

Three Months Ended June 30, 2025, as compared to June 30, 2024

The variance was primarily driven by operating results related to the sale of the Commercial Renewables Disposal Groups.

Six Months Ended June 30, 2025, as compared to June 30, 2024

The variance was primarily driven by operating results related to the sale of the Commercial Renewables Disposal Groups.

MD&A			DUKE ENERGY CAROLINAS

DUKE ENERGY CAROLINAS

Results of Operations

			Six Months Ended June 30,
(in millions)			2025						2024						Variance
Operating Revenues			$	4,755					$	4,704					$	51
Operating Expenses
Fuel used in electric generation and purchased power			1,374						1,609						(235)
Operation, maintenance and other			984						895						89
Depreciation and amortization			914						834						80
Property and other taxes			187						183						4
Impairment of assets and other charges			(1)						34						(35)
Total operating expenses			3,458						3,555						(97)
Gains on Sales of Other Assets and Other, net			6						1						5
Operating Income			1,303						1,150						153
Other Income and Expenses, net			122						123						(1)
Interest Expense			400						348						52
Income Before Income Taxes			1,025						925						100
Income Tax Expense			87						104						(17)
Net Income			$	938					$	821					$	117

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			5.6		%
Commercial sales			(0.1)		%
Industrial sales			(1.4)		%
Wholesale power sales			3.8		%
Joint dispatch sales			17.7		%
Total sales			1.9		%
Average number of customers			2.0		%

Six Months Ended June 30, 2025, as compared to June 30, 2024

Operating Revenues. The variance was driven primarily by:

• a $212 million increase due to higher pricing from the South Carolina rate case and Year 2 of the North Carolina MYRP;

• a $50 million increase in weather-normal retail sales volumes; and

• a $29 million increase in retail sales due to improved weather compared to prior year.

Partially offset by:

• a $241 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 $235 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; and

• a $35 million decrease in impairment of assets and other charges primarily related to the 2024 South Carolina rate case order in the prior year.

Partially offset by:

• an $89 million increase in operation, maintenance and other primarily due to increased costs related to customer products and services programs, litigation and environmental costs, employee-related expenses in the current year and higher joint owner reimbursements in the prior year; and

• an $80 million increase in depreciation and amortization primarily due to higher net amortizations and depreciation rates driven by the 2024 South Carolina rate case and Year 2 of the North Carolina MYRP.

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

MD&A			DUKE ENERGY CAROLINAS

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

			Six Months Ended June 30,
(in millions)			2025						2024						Variance
Operating Revenues			$	7,036					$	6,585					$	451
Operating Expenses
Fuel used in electric generation and purchased power			2,131						2,345						(214)
Operation, maintenance and other			1,531						1,216						315
Depreciation and amortization			1,240						1,155						85
Property and other taxes			347						324						23
Impairment of assets and other charges			—						9						(9)
Total operating expenses			5,249						5,049						200
Gains on Sales of Other Assets and Other, net			12						13						(1)
Operating Income			1,799						1,549						250
Other Income and Expenses, net			130						122						8
Interest Expense			558						525						33
Income Before Income Taxes			1,371						1,146						225
Income Tax Expense			218						190						28
Net Income			$	1,153					$	956					$	197

Six Months Ended June 30, 2025, as compared to June 30, 2024

Operating Revenues. The variance was driven primarily by:

• a $264 million increase in storm recovery revenues at Duke Energy Florida;

• a $169 million increase due to higher pricing from the 2024 Duke Energy Florida rate case and Duke Energy Progress Year 2 of the North Carolina MYRP;

• a $77 million increase in rider revenues primarily due to higher rates for the SPP at Duke Energy Florida and NCEMPA rider, the recovery of South Carolina storm recovery charges through securitization and recovery of North Carolina residential decoupling revenues at Duke Energy Progress;

• a $55 million increase in other revenues due to higher transmission revenues at Duke Energy Florida and Duke Energy Progress, and higher Clean Energy Connection subscription revenues at Duke Energy Florida;

• a $49 million increase in weather-normal retail sales volumes at Duke Energy Progress; and

• a $39 million increase in retail sales due to improved weather compared to the prior year at Duke Energy Florida and Duke Energy Progress.

Partially offset by:

• a $231 million decrease in fuel revenues primarily due to lower fuel and capacity rates billed to retail customers at Duke Energy Florida and lower retail fuel rates at Duke Energy Progress, partially offset by an increase in fuel volumes at Duke Energy Progress.

Operating Expenses. The variance was driven primarily by:

*•*a $315 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;

*•*an $85 million increase in depreciation and amortization due to higher depreciable base at Duke Energy Florida and Duke Energy Progress and Year 2 of the North Carolina MYRP at Duke Energy Progress; and

• a $23 million increase in property and other taxes primarily due to higher base upon which property taxes are levied at Duke Energy Florida and Duke Energy Progress.

Partially offset by:

*•*a $214 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 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.

MD&A			PROGRESS ENERGY

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 lower state tax expense.

DUKE ENERGY PROGRESS

Results of Operations

			Six Months Ended June 30,
(in millions)			2025						2024						Variance
Operating Revenues			$	3,699					$	3,424					$	275
Operating Expenses
Fuel used in electric generation and purchased power			1,299						1,217						82
Operation, maintenance and other			738						701						37
Depreciation and amortization			676						645						31
Property and other taxes			105						101						4
Impairment of assets and other charges			—						9						(9)
Total operating expenses			2,818						2,673						145
Gains on Sales of Other Assets and Other, net			—						1						(1)
Operating Income			881						752						129
Other Income and Expenses, net			87						73						14
Interest Expense			267						243						24
Income Before Income Taxes			701						582						119
Income Tax Expense			95						87						8
Net Income			$	606					$	495					$	111

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			8.0		%
Commercial sales			2.5		%
Industrial sales			6.2		%
Wholesale power sales			7.4		%
Joint dispatch sales			9.4		%
Total sales			5.7		%
Average number of customers			1.7		%

Six Months Ended June 30, 2025, as compared to June 30, 2024

Operating Revenues. The variance was driven primarily by:

• a $60 million increase due to higher pricing from Year 2 of the North Carolina MYRP;

• a $60 million increase in fuel revenues due to higher fuel volumes, partially offset by lower retail fuel rates;

• a $49 million increase in weather-normal retail sales volumes;

• a $37 million increase in rider revenues primarily due to NCEMPA rider, the recovery of South Carolina storm recovery charges through securitization and recovery of North Carolina residential decoupling revenues;

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

• a $17 million increase in retail sales due to improved weather compared to prior year.

Operating Expenses. The variance was driven primarily by:

• an $82 million increase in fuel used in electric generation and purchased power primarily due to higher volumes, including JDA purchases, and coal and natural gas prices, partially offset by increased recovery of fuel cost in the prior year;

*•*a $37 million increase in operation, maintenance and other primarily due to higher storm costs in the current year; and

• a $31 million increase in depreciation and amortization primarily due to higher depreciable base and Year 2 of the North Carolina MYRP.

Other Income and expenses, net. The increase was primarily due to higher AFUDC equity rate and base compared to the prior year.

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

MD&A			DUKE ENERGY PROGRESS

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

DUKE ENERGY FLORIDA

Results of Operations

			Six Months Ended June 30,
(in millions)			2025						2024						Variance
Operating Revenues			$	3,329					$	3,152					$	177
Operating Expenses
Fuel used in electric generation and purchased power			832						1,128						(296)
Operation, maintenance and other			786						507						279
Depreciation and amortization			564						510						54
Property and other taxes			242						223						19
Total operating expenses			2,424						2,368						56
Gains on Sales of Other Assets and Other, net			1						1						—
Operating Income			906						785						121
Other Income and Expenses, net			45						46						(1)
Interest Expense			234						225						9
Income Before Income Taxes			717						606						111
Income Tax Expense			139						118						21
Net Income			$	578					$	488					$	90

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			3.3		%
Commercial sales			0.3		%
Industrial sales			(2.7)		%
Wholesale power sales			(14.9)		%
Total sales			0.4		%
Average number of customers			1.5		%

Six Months Ended June 30, 2025, as compared to June 30, 2024

Operating Revenues. The variance was driven primarily by:

• a $264 million increase in storm recovery revenues;

• a $109 million increase due to higher pricing from the 2024 Florida rate case;

• a $43 million increase in other revenues due to higher transmission revenues primarily from higher demand and rates and Clean Energy Connection subscription revenues;

• a $40 million increase in rider revenues primarily due to higher rates for the SPP; and

• a $22 million increase in retail sales due to improved weather compared to prior year.

Partially offset by:

• a $291 million decrease in fuel revenues primarily due to lower fuel and capacity rates; and

• a $15 million decrease in wholesale base revenues primarily due to lower capacity volumes.

Operating Expenses. The variance was driven primarily by:

• a $279 million increase in operation, maintenance, and other primarily due to higher storm amortization;

• a $54 million increase in depreciation and amortization primarily due to higher depreciable base; and

• a $19 million increase in property and other taxes primarily due to higher base upon which property taxes are levied and higher gross receipts tax driven by higher revenues.

MD&A			DUKE ENERGY FLORIDA

Partially offset by:

• a $296 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.

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

			Six Months Ended June 30,
(in millions)			2025						2024						Variance
Operating Revenues
Regulated electric			$	985					$	934					$	51
Regulated natural gas			435						352						83
Total operating revenues			1,420						1,286						134
Operating Expenses
Fuel used in electric generation and purchased power			310						270						40
Cost of natural gas			136						82						54
Operation, maintenance and other			239						247						(8)
Depreciation and amortization			233						195						38
Property and other taxes			217						204						13
Total operating expenses			1,135						998						137
Operating Income			285						288						(3)
Other Income and Expenses, net			11						10						1
Interest Expense			98						92						6
Income Before Income Taxes			198						206						(8)
Income Tax Expense			34						35						(1)
Net Income			$	164					$	171					$	(7)

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			3.8		%	27.2		%
Commercial sales			4.2		%	22.3		%
Industrial sales			(14.2)		%	5.6		%
Wholesale electric power sales			(3.9)		%	n/a
Other natural gas sales			n/a			(0.1)		%
Total sales			0.8		%	17.7		%
Average number of customers			0.8		%	0.4		%

Six Months Ended June 30, 2025, as compared to June 30, 2024

Operating Revenues. The variance was driven primarily by:

• a $68 million increase in fuel-related revenues primarily due to higher natural gas costs passed through to customers and higher full-service retail sales volumes;

• a $23 million increase in retail revenue riders primarily due to the Uncollectible Expense Riders and Distribution Capital Investment Rider;

• a $20 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.

Operating Expenses. The variance was driven primarily by:

• a $94 million increase in fuel expense primarily driven by higher retail prices for natural gas and purchased power and an increase in purchased power volumes;

MD&A			DUKE ENERGY OHIO

• a $38 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; and

• a $13 million increase in property and other taxes primarily due to a higher base upon which property taxes are levied and higher franchise taxes.

DUKE ENERGY INDIANA

Results of Operations

			Six Months Ended June 30,
(in millions)			2025						2024						Variance
Operating Revenues			$	1,679					$	1,506					$	173
Operating Expenses
Fuel used in electric generation and purchased power			479						494						(15)
Operation, maintenance and other			387						341						46
Depreciation and amortization			414						341						73
Property and other taxes			35						30						5
Total operating expenses			1,315						1,206						109
Operating Income			364						300						64
Other Income and Expenses, net			31						28						3
Interest Expense			116						115						1
Income Before Income Taxes			279						213						66
Income Tax Expense			36						36						—
Net Income			$	243					$	177					$	66

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			5.8		%
Commercial sales			5.0		%
Industrial sales			(6.2)		%
Wholesale power sales			17.2		%
Total sales			5.8		%
Average number of customers			1.5		%

Six Months Ended June 30, 2025, as compared to June 30, 2024

Operating Revenues. The variance was driven primarily by:

• a $116 million increase primarily due to higher pricing from the 2024 Indiana rate case, net of certain rider revenues moving to base;

• a $43 million increase in weather-normal retail sales volumes; and

• a $13 million increase in retail sales due to improved weather compared to prior year.

Partially offset by:

• a $10 million decrease in retail fuel revenues primarily due to lower fuel rates.

Operating Expenses. The variance was driven primarily by:

• a $73 million increase in depreciation and amortization primarily due to higher depreciation rates from the 2024 Indiana rate case; and

• a $46 million increase in operation, maintenance and other primarily due to an increase in the TDSIC rider amortization and higher employee-related expenses.

Partially offset by:

• a $15 million decrease in fuel used in electric generation and purchased power primarily due to lower deferred fuel and Midcontinent Independent System Operator, Inc.(MISO) amortization, partially offset by higher natural gas costs.

Income Tax Expense. Income tax expense was flat year over year primarily due to an increase in pretax income offset by an increase in the amortization of EDIT.

MD&A			PIEDMONT

PIEDMONT

Results of Operations

			Six Months Ended June 30,
(in millions)			2025						2024						Variance
Operating Revenues			$	1,192					$	920					$	272
Operating Expenses
Cost of natural gas			396						228						168
Operation, maintenance and other			199						180						19
Depreciation and amortization			141						126						15
Property and other taxes			37						31						6
Total operating expenses			773						565						208
Operating Income			419						355						64
Other Income and Expenses, net			25						34						(9)
Interest Expense			95						88						7
Income Before Income Taxes			349						301						48
Income Tax Expense			68						59						9
Net Income			$	281					$	242					$	39

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			9.3		%
Commercial deliveries			14.3		%
Industrial deliveries			0.1		%
Power generation deliveries			4.7		%
For resale			11.6		%
Total throughput deliveries			5.4		%
Secondary market volumes			61.7		%
Average number of customers			1.7		%

Six Months Ended June 30, 2025, as compared to June 30, 2024

Operating Revenues. The variance was driven primarily by:

• a $168 million increase in cost of natural gas revenues driven by higher commodity prices, higher volumes and lower secondary marketing, partially offset by lower natural gas costs passed through to customers; and

• an $84 million increase due to higher pricing from the 2024 North Carolina rate case.

Operating Expenses. The variance was driven primarily by:

• a $168 million increase in the cost of natural gas due to higher commodity prices, higher volumes and lower secondary marketing, partially offset by lower natural gas costs passed through to customers;

• a $19 million increase in operations, maintenance and other primarily due to higher customer charges, labor and service company costs; and

• a $15 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.

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.

MD&A			LIQUIDITY AND CAPITAL RESOURCES

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 June 30, 2025, Duke Energy had $344 million of cash on hand and $6.9 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 final proceeds received in April 2025 from the sale of certain Commercial Renewables assets to affiliates of Brookfield.

In July, Piedmont entered into an agreement with Spire Inc., to sell Piedmont’s Tennessee Business for $2.48 billion. Piedmont expects to complete the sale in the first quarter of 2026 and proceeds are expected to be used for debt reduction at Piedmont and to efficiently fund Duke Energy's capital plan, primarily by displacing the issuance of common equity in the near term. See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for further details.

In August 2025, Duke Energy, Progress Energy and Florida Progress entered into an Investment Agreement for Florida Progress to receive $6 billion in exchange for a 19.7% indirect investment in Duke Energy Florida. The transaction is expected to be completed through a series of closings through June 30, 2028. Proceeds from the minority interest investment are expected to be used to efficiently fund Duke Energy’s growing capital and investment expenditures plan, primarily by displacing planned issuances of long-term debt and common equity through 2029. See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for information on the timing and use of proceeds related to the transaction.

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.

						Six Months Ended
						June 30,
(in millions)						2025						2024
Cash flows provided by (used in):
Operating activities						$	5,040					$	5,427
Investing activities						(6,264)						(6,575)
Financing activities						1,245						1,274
Net increase in cash, cash equivalents and restricted cash						21						126
Cash, cash equivalents and restricted cash at beginning of period						421						357
Cash, cash equivalents and restricted cash at end of period						$	442					$	483

OPERATING CASH FLOWS

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

						Six Months Ended
						June 30,
(in millions)						2025						2024						Variance
Net income						$	2,411					$	2,072					$	339
Non-cash adjustments to net income						4,088						3,241						847
Payments for asset retirement obligations						(241)						(262)						21
Working capital						(1,207)						(180)						(1,027)
Other assets and Other liabilities						(11)						556						(567)
Net cash provided by operating activities						$	5,040					$	5,427					$	(387)

MD&A			LIQUIDITY AND CAPITAL RESOURCES

The variance is primarily driven by:

• a $1,594 million decrease in net working capital and other assets and liabilities amounts, primarily due to lower recovery of fuel costs and the timing of accruals and payments, including payments related to restoration activities from the 2024 storm season.

Partially offset by:

• a $1,186 million increase in net income, after adjustment for non-cash items, primarily due to the implementation of new rates and riders, higher sales volumes and favorable 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.

						Six Months Ended
						June 30,
(in millions)						2025						2024						Variance
Capital, investment and acquisition expenditures						$	(6,428)					$	(6,212)					$	(216)
Proceeds from the sales of Commercial Renewables Disposal Groups and other assets						559						—						559
Other investing items						(395)						(363)						(32)
Net cash used in investing activities						$	(6,264)					$	(6,575)					$	311

The variance is primarily due to proceeds received from the sales of Commercial Renewables Disposal Groups, partially offset by higher capital expenditures within the EU&I segment in the current year.

FINANCING CASH FLOWS

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

						Six Months Ended
						June 30,
(in millions)						2025						2024						Variance
Issuances of long-term debt, net						$	3,033					$	3,641					$	(608)
Issuances of common stock						14						20						(6)
Notes payable, commercial paper and other short-term borrowings						(190)						(736)						546
Dividends paid						(1,610)						(1,590)						(20)
Contributions from noncontrolling interests						—						47						(47)
Other financing items						(2)						(108)						106
Net cash provided by financing activities						$	1,245					$	1,274					$	(29)

The variance is primarily due to:

• a $608 million decrease 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 $546 million increase 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.

MD&A			OTHER MATTERS

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 the 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 intended to issue a proposed reconsideration rule in spring 2025 and issue a final rule by December 2025. On April 25, 2025, the Court granted the EPA’s motion and ordered that the litigation continue to remain in abeyance pending further order of the Court. On June 17, 2025, the EPA published a proposed rule to repeal EPA Rule 111 based on a finding that fossil fuel-fired power plants “do not contribute significantly to dangerous air pollution” under the meaning of section 111 of the Clean Air Act. The EPA also published an alternative proposal to repeal a “narrower set of requirements” leaving in place only GHG emission standards for new and reconstructed stationary combustion turbine electric generating units. Comments on the proposed rule must be received by the EPA no later than August 7, 2025.

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. On June 13, 2025, the EPA requested, and the court granted, a 60-day extension of the abeyance to give the agency time to “decide the full scope of reconsideration.”

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.

South Carolina Energy Security Act

Act 41, also referred to as the South Carolina Energy Security Act, was signed into law on May 12, 2025. The law promotes evaluating new generation resources, including hydro pumped storage, hydrogen-capable natural gas, and advanced nuclear, while streamlining siting, permitting, and construction of certain new resources located in South Carolina. Act 41 establishes a new process for evaluating new potential generation projects over 75 MW located in North Carolina that are planned to serve South Carolina retail customers. This legislation also establishes an electric rate stabilization mechanism for electric utilities to elect into a framework that provides for annual adjustments to base rates, including for Construction Work in Progress and other cost categories. Electric utilities electing the mechanism must file a general rate case at least every five years.

North Carolina Power Bill Reduction Act

In 2021, the state of North Carolina passed HB951, which among other things, directed the NCUC to develop and approve a carbon reduction plan that would target a 70% reduction in CO2 emissions from Duke Energy Progress' and Duke Energy Carolinas' electric generation in the state by 2030 and carbon neutrality by 2050, considering all resource options and the latest technology, while balancing affordability and reliability for customers. On July 29, 2025, North Carolina Senate Bill 266, or the Power Bill Reduction Act (SB266), was passed into law which retained HB951's 2050 carbon neutrality goal but eliminated the state's interim 2030 carbon reduction target and implemented other actions designed to reduce electricity costs for customers including enhanced cost recovery mechanisms for baseload generation by establishing an annual Construction Work In Progress recovery for baseload generation and a construction project monitoring process. SB266 also provides more timely recovery of fuel costs, allows for the recovery of CTs in MYRP proceedings and authorizes the prudent continued use of securitization for certain costs and investments serving North Carolina retail electric customers, including increasing the eligible securitization amounts for sub-critical coal assets up to 100% of their respective net book value upon retirement.