Pinnacle West Capital (PNW) Q1 2025 earnings summary

Executive summary

• Q1 2025 reported a consolidated net loss of $4.6 million, or $0.04 per share, compared to net income of $16.9–$17 million ($0.15 per share) in Q1 2024, mainly due to higher O&M, depreciation, and the absence of a one-time gain from the Bright Canyon Energy sale.

• Results aligned with expectations and prior guidance, with full-year 2025 earnings guidance reaffirmed.

• Arizona's economy and population are experiencing robust growth, especially in semiconductors, advanced manufacturing, and healthcare, with major investments from TSMC, NVIDIA, and Mayo Clinic.

• Customer growth remains strong at 2.3% year-over-year, near the high end of annual guidance, supporting ongoing system investments.

Financial highlights

• Operating revenues rose to $1.03–$1.032 billion in Q1 2025 from $951.7–$952 million in Q1 2024, with total electric sales up to 7,794 GWh from 7,476 GWh.

• EPS was $(0.04) in Q1 2025, down from $0.15 in Q1 2024, primarily due to the prior year's $0.15 one-time gain from the Bright Canyon Energy sale.

• Positive drivers included new rates effective March 2024, gains from El Dorado equity investment, and higher transmission sales.

• Negative drivers were higher O&M, interest expense, depreciation, and the roll-off of a positive OPEB service credit.

• Weather-normalized sales growth was 2.1% for the quarter, with C&I growth at 5.3%.

Outlook and guidance

• 2025 consolidated earnings guidance remains $4.40–$4.60 per diluted share on a weather-normalized basis.

• Full-year weather-normalized sales growth guidance reaffirmed at 4%–6%, with customer growth guidance at 1.5%–2.5%.

• Capital plan for 2024–2027 totals $9.66 billion, supporting reliability and growth, with annual capex of $2.4–$2.65 billion.

• O&M and financing guidance for 2025 remain unchanged; planned outages and IT project costs were anticipated.

• APS plans to file its next general rate case mid-year 2025.