Xcel Energy (XEL) Q3 2025 earnings summary

Executive summary

• Q3 2025 ongoing EPS was $1.24, nearly flat from $1.25 in Q3 2024, with GAAP EPS at $0.88 due to a $287–$290 million Marshall Wildfire settlement charge.

• Year-to-date ongoing EPS rose to $2.84 from $2.69, while GAAP EPS was $2.47, down from $2.63.

• Net income for Q3 2025 was $524 million, down from $682 million in Q3 2024.

• Ongoing earnings were impacted by higher depreciation, interest, and O&M expenses, partially offset by increased recovery of infrastructure investments.

• Reaffirmed 2025 ongoing EPS guidance and introduced 2026 guidance, maintaining a strong track record of meeting targets.

Financial highlights

• Total operating revenues for Q3 2025 were $3,915 million, up from $3,644 million in Q3 2024; nine-month revenues were $11,108 million.

• Ongoing Q3 2025 EPS was $1.24; GAAP EPS was $0.88 due to a non-recurring charge.

• Regulatory outcomes and electric/natural gas sales growth increased earnings by $0.18; higher AFUDC added $0.08.

• O&M expenses increased $37 million in Q3 and $131 million year-to-date, mainly due to higher benefits, healthcare, and nuclear generation costs.

• Weather-normalized electric sales grew 2.5% year-to-date, with full-year 2025 forecast at 3% growth.

Outlook and guidance

• Reaffirmed 2025 ongoing EPS guidance of $3.75–$3.85; initiated 2026 guidance at $4.04–$4.16.

• Long-term EPS growth objective updated to 6–8%+, expecting to deliver 9% average growth through 2030.

• Dividend growth objective of 4–6%, with payout ratio trending toward 45–55%.

• 2025 and 2026 guidance assumes constructive regulatory outcomes, 3% retail electric sales growth, and flat to 1% natural gas sales growth.

• O&M expenses forecast to increase 5% for 2025 and 3% for 2026.