Pinnacle West Capital (PNW) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in 2025, with record demand, top-quartile reliability, and customer satisfaction improvements.

• Full-year 2025 net income attributable to common shareholders was $616.5 million ($5.05 per diluted share), down from $5.24 in 2024, reflecting robust customer and sales growth but higher expenses.

• Customer growth reached 2.4% in 2025, with weather-normalized retail electricity sales up 5.0% year-over-year.

• Focus remains on executing grid expansion, processing the rate case, and maintaining affordability for customers in 2026.

• Customer assistance programs provided $70 million in annual support, and customer satisfaction ranked in the first quartile nationally.

Financial highlights

• 2025 operating revenue was $5.34 billion, up from $5.12 billion in 2024.

• Q4 2025 EPS was $0.13, reversing a $0.06 loss in Q4 2024, driven by strong sales and cost management.

• Adjusted gross margin for 2025 was $3.25 billion; 2026 guidance is $3.31–$3.37 billion.

• Adjusted O&M expense for 2025 was $1.04 billion; 2026 guidance is $1.02–$1.04 billion.

• Retail customer growth reached 2.4% in 2025, with total customers at 1,446,756.

Outlook and guidance

• 2026 EPS guidance reaffirmed at $4.55–$4.75 per share, with long-term EPS growth target of 5%–7% through 2030.

• Weather-normalized sales growth guidance for 2026 remains 4%–6%, with Extra High Load Factor customers contributing 3%–5%.

• Long-term sales growth guidance raised to 5%–7% through 2030.

• 2026 capital investment plan totals approximately $2.6 billion, supporting reliability and growth.

• Rate base growth guidance remains 7%–9% through 2028.