Xcel Energy (XEL) Q4 2024 earnings summary

Executive summary

• 2024 ongoing EPS reached $3.50, up from $3.35 in 2023, and GAAP EPS was $3.44, marking the 20th consecutive year meeting or exceeding guidance despite industry headwinds and a non-recurring $0.06 per share charge.

• Net income for 2024 was $1.94 billion, up from $1.77 billion in 2023; ongoing net income reached $1.97 billion.

• Over $7.5 billion invested in infrastructure, with a five-year base capital plan of $45 billion and over $10 billion in additional capital opportunities.

• Major milestones include Sherco solar project phase I, Harrington coal-to-gas conversion, and 97% wind fleet availability, with up to 29,000 MW of new generation planned.

• Strong data center customer pipeline and significant progress on resource plans and RFPs.

Financial highlights

• 2024 GAAP diluted EPS was $3.44, ongoing EPS was $3.50, and Q4 GAAP EPS was $0.81, all up year-over-year.

• Total operating revenues for 2024 were $13.44 billion, down from $14.21 billion in 2023; operating income was $2.39 billion.

• Ongoing EPS growth driven by favorable rate outcomes and higher recovery of infrastructure investments, offset by higher O&M, depreciation, and interest expenses.

• Rate cases and riders contributed $0.87 per share, higher other income added $0.16, while higher depreciation, amortization, interest, and O&M reduced EPS.

• 2024 weighted average retail electric sales growth was 7.1% (leap year adjusted); weather-adjusted electric sales grew 3% in Q4 and 1% for the year.

Outlook and guidance

• 2025 ongoing EPS guidance reaffirmed at $3.75–$3.85, targeting 7% growth from the midpoint of 2024, assuming constructive regulatory outcomes and normal weather.

• Long-term annual EPS growth targeted at 6–8% and annual dividend increases of 4–6%.

• Five-year base capital plan projects rate base growth over 9% and long-term EPS growth in the upper half of the 6–8% range.

• Key 2025 drivers: ~3% electric sales growth, ~1% natural gas sales growth, and increases in O&M, depreciation, and property taxes.

• Data center contracts expected to be fully executed by fall, supporting long-term sales growth.