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Mar 31
Pinnacle West Q1 2025 Earnings Report
Reported a consolidated net loss attributable to common shareholders for the first quarter of 2025
Key Takeaways
Pinnacle West reported a net loss of $4.6 million for Q1 2025, a decrease from a net income of $16.9 million in the same period last year. The loss was primarily driven by higher operating and maintenance expenses, increased depreciation and amortization, lower pension and benefit credits, reduced other income, and higher interest charges. These negative impacts were partially offset by favorable new customer rates, a gain from a non-utility equity investment, lower income taxes, higher transmission revenue, and increased revenue from the LFCR adjustor mechanism.
Consolidated net loss attributable to common shareholders was $4.6 million for Q1 2025, compared to net income of $16.9 million for Q1 2024.
The decrease in net income was primarily due to higher operating and maintenance expenses, depreciation and amortization, and interest charges.
New customer rates, a gain from a non-utility equity investment, and higher transmission revenue partially offset the negative factors.
Retail customer growth was 2.3% and retail sales increased 2.1% quarter over quarter.
Pinnacle West
Pinnacle West
Forward Guidance
For 2025, the company continues to estimate consolidated earnings within a range of $4.40 to $4.60 per diluted share on a weather-normalized basis.
Positive Outlook
- Customer and electricity sales growth remain robust.
- Arizona's overall economy is strong.
- Arizona's population is growing faster than the national average.
- Phoenix remains a top industrial real estate market.
- Company is focused on summer reliability and safety preparations.
Challenges Ahead
- Higher operations and maintenance expense in Q1.
- Increased depreciation and amortization expense in Q1.
- Lower pension and other benefit service cost credits in Q1.
- Lower other income due to prior year gain on sale of subsidiary.
- Higher interest charges in Q1.