Pinnacle West Capital (PNW) Q3 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance in Q3 2025, with net income attributable to common shareholders rising to $413.2 million ($3.39 per diluted share), driven by customer growth, increased usage, and industry-leading reliability during record-peak demand and extreme weather events.

• Arizona's economic momentum is accelerating, supported by population growth, major investments from semiconductor and data center companies, and a robust business climate.

• Strategic investments in transmission, baseload generation, and infrastructure are underway to support robust customer and sales growth.

• Maintained a focus on cost control, customer affordability, and operational reliability, with a lean culture and flat core O&M despite a growing customer base.

• All-time record peak demand of 8,631 MW was set in August 2025, marking the third consecutive year of record-breaking summer demand.

Financial highlights

• Q3 2025 operating revenues were $1.82 billion, up from $1.77 billion in Q3 2024, with operating income at $581.8 million and net income at $413.2 million.

• Q3 2025 EPS was $3.39 per diluted share, up $0.02 year-over-year; year-to-date EPS was $5.03 (basic), down from $5.42 in 2024.

• 2025 EPS guidance was raised to $4.90–$5.10 per share, reflecting strong sales, above-normal weather, and increased transmission revenues.

• Weather-normalized sales growth reached 5.4% for the quarter, with 6.6% C&I and 4.3% residential growth; customer growth reached 2.4%.

• Gross margin for 2025 is projected at $3.21–$3.28 billion, and for 2026 at $3.31–$3.37 billion, excluding renewable and DSM program impacts.

Outlook and guidance

• 2026 EPS expected at $4.55–$4.75, lower than 2025 due to normal weather assumptions and higher financing and D&A costs.

• Long-term sales growth guidance raised to 5%–7% through 2030, with rate-based growth of 7%–9% through 2028.

• Affirmed long-term EPS growth guidance of 5%–7% based on 2024 midpoint.

• Customer growth guidance narrowed to the high end of 2%–2.5% for 2025; 2026 expected at 1.5%–2.5%.

• Retail electricity sales growth (excluding weather) projected at 4%–6% for 2025, and 5%–7% annually through 2030, driven by large load customers.