Pinnacle West (PNW) Q4 2025 Earnings Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 25, 2026
AI-Generated Deep Dive Summary
Pinnacle West (PNW) reported a strong Q4 2025 performance, with earnings per share (EPS) of $0.13, marking a significant improvement from the prior year's $0.06 loss. The company attributed this turnaround to operational efficiency improvements and robust sales growth across both residential and commercial sectors. However, unfavorable weather conditions and increased financing and pension expenses partially offset these gains. For the full year, PNW achieved an EPS of $5.05, down from $5.24 in 2024, primarily due to a $0.71 negative impact from weather-related factors. Despite this, underlying business growth helped mitigate additional challenges.
The company highlighted impressive customer growth, with a 2.4% year-over-year increase reaching the upper end of its guidance range—a historically high level of new meter installations. This growth was driven by strong demand across both residential and commercial industrial segments, fueled by economic expansion in PNW's service territory. Notably, large load customers, particularly in the semiconductor sector, contributed significantly to long-term sales projections. Weather-normalized sales growth for Q4 came in at 6.8%, with the full year achieving a 5% increase, supported by 2% growth in residential and 7.5% in commercial and industrial segments.
PNW reaffirmed its 2026 EPS guidance of $4.55 to $4.75, maintaining its operational focus on efficiency and customer expansion. The company also reiterated its long-term sales growth target of 5%-7% annually through 2030, underpinned by committed projects and economic drivers. Operational execution remained strong, with a 3.3% year-over-year decline in operations and maintenance (O&M) per megawatt-hour,
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Originally published on The Motley Fool on 2/25/2026