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Jun 30
Pinnacle West Q2 2025 Earnings Report
Pinnacle West reported a decrease in net income and EPS for Q2 2025 compared to the same period in 2024, primarily due to cooler weather and higher operating expenses.
Key Takeaways
Pinnacle West Capital Corp. reported consolidated net income of $192.6 million, or $1.58 per diluted share, for the second quarter of 2025. This represents a decrease from $203.8 million, or $1.76 per diluted share, in Q2 2024. The decline was largely attributed to cooler weather, increased operations and maintenance expenses, and higher depreciation and interest charges, partially offset by higher transmission revenues and customer growth.
Consolidated net income attributable to common shareholders decreased to $192.6 million in Q2 2025 from $203.8 million in Q2 2024.
Diluted EPS fell to $1.58 in Q2 2025 from $1.76 in Q2 2024.
The financial results were impacted by 15.4% fewer cooling degree-days compared to the record-high temperatures in Q2 2024.
Arizona Public Service Co. (APS) experienced robust customer growth of 2.4% and sales growth of 5.2% in Q2 2025.
Pinnacle West
Pinnacle West
Forward Guidance
For 2025, Pinnacle West continues to estimate its consolidated earnings will be within a range of $4.40 to $4.60 per diluted share on a weather-normalized basis. The company is updating its clean energy goals from an aspirational 'zero-carbon' to 'carbon-neutral' by 2050, removing interim targets to prioritize reliability and affordability.
Positive Outlook
- Continued focus on reliable customer service amid extreme summer temperatures and increased customer demand.
- Robust customer and sales growth experienced by APS.
- Palo Verde Generating Station continues to be a foundational part of APS’s resource portfolio, providing reliable, low-cost, carbon-free electricity.
- Strategic planning for future energy needs, including agreements on over 800 megawatts of APS-owned resources coming online between 2026 and 2028.
- Commitment to providing assistance programs for customers in need, including financial aid and heat relief services.
Challenges Ahead
- Second-quarter financial results were lower than the same period in 2024 due to cooler weather.
- Higher operations and maintenance expense contributed to the decrease in net income.
- Lower pension and other postretirement non-service credits negatively impacted results.
- Higher depreciation and amortization expense due to increased plant additions and intangible assets.
- Higher interest charges and higher income taxes due to lower tax credits.