Pinnacle West Capital (PNW) Q4 2024 earnings summary

Executive summary

• Achieved or exceeded nearly all 2024 targets, with strong service reliability, customer experience improvements, and a 13th consecutive year of dividend increases.

• Full-year 2024 net income attributable to common shareholders was $608.8 million ($5.24 per diluted share), up from $501.6 million ($4.41 per diluted share) in 2023, driven by new customer rates, retail sales growth, and a hot summer.

• Constructive regulatory outcomes included a 9.55% ROE, adoption of a formula rate policy, and a new policy statement on formula rates to reduce regulatory lag.

• Leadership transition announced, with CEO retirement effective March 31, 2025, and a seamless succession plan in place.

• Completed procurement of nearly 7,300 MW of new resources for 2026-2028 and advanced clean energy initiatives.

Financial highlights

• Full-year 2024 EPS was $5.24, up from $4.41 in 2023 and above guidance; Q4 2024 loss of $0.06 per share.

• Operating revenues for 2024 were $5.13B, up from $4.70B in 2023; operating income rose to $1.01B.

• Customer growth at 2.1% for 2024, with full-year sales growth at 5.7%, near the high end of guidance.

• C&I sales growth at 9.7% and residential sales growth at 1.1% for 2024.

• O&M expenses increased to $1.17B in 2024; D&A and interest charges also rose year-over-year.

Outlook and guidance

• 2025 weather-normalized EPS guidance is $4.40–$4.60 per share, with retail customer growth of 1.5%–2.5%.

• Weather-normalized retail electricity sales growth expected at 4%–6%, with 3%–5% from large manufacturing and data centers.

• Reaffirmed long-term EPS growth guidance of 5%–7% based on the midpoint of the original 2024 guide.

• Planned additions of 9,805 MW of renewable, battery storage, and natural gas capacity between 2025 and 2028, with over 90% carbon-free.

• Capital and financing plans reaffirmed, focusing on infrastructure, reliability, and meeting demand.