Duke Energy

(a) Net of tax benefits of $15 million. $42 million recorded within Impairment of assets and other charges, $29 million recorded within Operating revenues, $2 million within Operation, maintenance and other, $11 million reduction recorded within Interest Expense, and a $4 million reduction within NCI for the year ended December 31, 2024.

(b) Net of tax benefit of $5 million. $17 million recorded within Operating Revenues, $1 million recorded within Operation, maintenance and other, and $3 million recorded within Other income and expenses.

(c) Recorded within Preferred Redemption Costs.

(d) Net of $11 million tax benefit. $69 million recorded within Equity in (losses) earnings of unconsolidated affiliates and $4 million recorded within Gains on sales of other assets and other, net.

(e) Net of $5 million tax benefit. $23 million recorded within Operation, maintenance and other.

(f) Recorded in Income (Loss) from Discontinued Operations, net of tax, and Net Income Attributable to NCI.

Basic EPS divides net income available to Duke Energy common stockholders, adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by weighted average common shares outstanding; diluted EPS reflects potential dilution from securities such as convertible debt or equity forward sale agreements, applying the if-converted method where applicable.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Preparation of financial statements requires the application of accounting policies, judgments, assumptions and estimates that can significantly affect the reported results of operations, cash flows or the amounts of assets and liabilities recognized in the financial statements. Judgments made include the likelihood of success of particular projects, possible legal and regulatory challenges, earnings assumptions on pension and other benefit fund investments and anticipated recovery of costs, especially through regulated operations.

Management discusses these policies, estimates and assumptions with senior members of management on a regular basis and provides periodic updates on management decisions to the Audit Committee. Management believes the areas described below require significant judgment in the application of accounting policy or in making estimates and assumptions that are inherently uncertain and that may change in subsequent periods.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

| | | | | | | | | | | |
| | Six Months Ended
| | June 30,
| (in millions) | 2026 | | 2025
| CASH FLOWS FROM OPERATING ACTIVITIES | | |
| Net income | $ | 1,241 | | | $ | 1,153 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Depreciation, amortization and accretion (including amortization of nuclear fuel) | 1,576 | | | 1,675 |
| Equity component of AFUDC | (64) | | | (51) |
| (Gains) losses on sales of other assets | (15) | | | (12) |
| Impairment of assets and other charges | 22 | | | — |
| Deferred income taxes | 428 | | | 122 |
| Payments for asset retirement obligations | (113) | | | (101) |
| (Increase) decrease in | | |
| Receivables | (247) | | | (176) |
| Receivables from affiliated companies | (106) | | | (76) |
| Inventory | (31) | | | 7 |
| Other current assets | (84) | | | 51 |
| Increase (decrease) in | | |
| Accounts payable | 7 | | | (624) |
| Accounts payable to affiliated companies | (90) | | | 198 |
| Taxes accrued | 126 | | | 109 |
| Other current liabilities | (110) | | | (128) |
| Other assets | (398) | | | (60) |
| Other liabilities | (80) | | | 78 |
| Net cash provided by operating activities | 2,062 | | | 2,165 |
| CASH FLOWS FROM INVESTING ACTIVITIES | | |
| Capital expenditures | (3,468) | | | (2,742) |
| Purchases of debt and equity securities | (4,029) | | | (1,638) |
| Proceeds from sales and maturities of debt and equity securities | 4,050 | | | 1,660 |
| Notes receivable from affiliated companies | 251 | | | (897) |
| Other | (153) | | | (211) |
| Net cash used in investing activities | (3,349) | | | (3,828) |
| CASH FLOWS FROM FINANCING ACTIVITIES | | |
| Proceeds from the issuance of long-term debt | 573 | | | 2,860 |
| Payments for the redemption of long-term debt | (99) | | | (459) |
| Notes payable to affiliated companies | 1,019 | | | (1,062) |
| Contributions from NCI | 2,782 | | | — |
|

Contributions from parent

| — | | | 300 |
| Dividends to parent | (2,797) | | | — |
| Other | 59 | | | (1) |
| Net cash provided by financing activities | 1,537 | | | 1,638 |
|

Net increase (decrease) in cash, cash equivalents and restricted cash

| 250 | | | (25) |
| Cash, cash equivalents and restricted cash at beginning of period | 139 | | | 160 |
| Cash, cash equivalents and restricted cash at end of period | $ | 389 | | | $ | 135 |
| Supplemental Disclosures: | | |
| Significant non-cash transactions: | | |
| Accrued capital expenditures | $ | 1,009 | | | $ | 827 |

See Notes to Condensed Consolidated Financial Statements

21

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.