Pinnacle West Q4 2024 Earnings Report
Key Takeaways
Pinnacle West reported a consolidated net loss of $6.8 million for Q4 2024, translating to a loss of $0.06 per diluted share. Revenue for the quarter grew 10.5% year-over-year to $1.1 billion, driven by increased customer demand and rate adjustments. However, higher operations and maintenance costs, depreciation, and interest expenses negatively impacted profitability. Retail electricity sales grew by 5.7% year-over-year, and customer growth remained strong at 2.1%.
Revenue increased 10.5% year-over-year to $1.1 billion.
Net loss of $6.8 million, compared to near breakeven in Q4 2023.
Retail electricity sales grew by 5.7% year-over-year.
Customer base expanded by 2.1%, supporting long-term growth.
Pinnacle West Revenue
Pinnacle West EPS
Pinnacle West Revenue by Segment
Pinnacle West Revenue by Geographic Location
Forward Guidance
Pinnacle West expects steady growth driven by increasing demand, but faces cost pressures and regulatory risks.
Positive Outlook
- Forecasted EPS for 2025 between $4.40 and $4.60.
- Retail electricity sales expected to grow between 4% and 6% annually.
- Projected continued customer growth in the 1.5% to 2.5% range.
- Expansion of renewable energy capacity with planned additions of 9,805 MW.
- Strong operational performance of the Palo Verde Generating Station supporting clean energy goals.
Challenges Ahead
- Higher operating and maintenance costs expected to persist.
- Regulatory and policy uncertainties may impact future revenue recovery.
- Rising interest expenses could affect profitability.
- Potential variability in customer energy consumption patterns.
- Continued investments in infrastructure may strain cash flow in the short term.