Pinnacle West Capital (PNW) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong earnings and a return to profitability, with net income attributable to common shareholders of $33 million ($0.27 per share), up from a loss of $0.04 per share in Q1 2025, driven by higher transmission revenues, favorable weather, increased sales, and lower O&M expenses.

• Arizona's robust economic and population growth, especially in the semiconductor and manufacturing sectors, continues to drive customer and sales growth.

• Infrastructure investments and operational improvements are focused on supporting reliability, summer preparedness, and future growth.

• EPS guidance for 2026 is $4.55–$4.75, with long-term EPS and sales growth targets reaffirmed at 5%–7% through 2030.

• Major capital investments and subscription model contracts are supporting Arizona's rapid economic and industrial expansion.

Financial highlights

• Q1 2026 EPS was $0.27, up from a loss of $0.04 in Q1 2025, with net income rising to $33 million.

• Operating revenues increased to $1.15 billion from $1.03 billion year-over-year, and operating income rose to $131 million from $57 million.

• Transmission revenues contributed $0.16 per share; weather impact added $0.13 per share, and weather-normalized sales growth reached 9.4%.

• Customer growth was 2.2% for the quarter, near the high end of annual guidance.

• O&M expenses declined due to lower outage costs and reduced energy efficiency program spending.

Outlook and guidance

• Annual sales growth guidance remains at 4%–6%, with long-term sales and EPS growth targets reaffirmed at 5%–7% through 2030.

• 2026 consolidated earnings guidance is $4.55–$4.75 per diluted share on a weather-normalized basis.

• All equity funding needs for 2026 completed; nearly $850 million of priced equity available for future issuance.

• Capital plan and resource procurement aligned with ongoing and anticipated customer growth, with capital expenditures forecasted at $2.6 billion for 2026.

• APS is seeking a net base rate increase of $579.5 million (13.99%) in the 2025 Rate Case, with a hearing scheduled for May 2026.