The slight decline in EPS despite higher net income suggests the company is prioritizing growth investments over near-term profitability. Traders should monitor the 2026 guidance for signs of margin pressure from rising O&M and interest expenses, and watch for regulatory outcomes that could impact allowed ROE.
Price Chart
Executive Summary
Pinnacle West reported full-year 2025 net income of $616.5 million ($5.05 per share), up from $608.8 million ($5.24 per share) in 2024, driven by strong customer and sales growth. For 2026, the company maintains its earnings guidance of $4.55 to $4.75 per share, citing continued customer growth and infrastructure investments despite weather headwinds and higher operating expenses.
Key Financial Metrics
Key Facts
- 2025 full-year net income was $616.5 million, or $5.05 per diluted share, compared to $608.8 million, or $5.24 per share, in 2024.
- Fourth-quarter 2025 net income was $15.4 million, or $0.13 per diluted share, compared to a net loss of $6.8 million in the same period of 2024.
- The increase in 2025 earnings is primarily due to increased customer usage, customer growth, and higher transmission revenues, partially offset by weather effects and higher operating expenses.
- For 2026, the company continues to estimate earnings within a range of $4.55 to $4.75 per diluted share on a weather-normalized basis.
- APS experienced robust customer growth of 2.4% in 2025 and anticipates average annual growth of 1.5% to 2.5% through 2030.
- Weather-normalized retail electricity sales grew 5.0% in 2025, with future sales expected to increase 5% to 7% annually.
Financial Impact
Full-year net income increased by $7.7 million year-over-year, while EPS decreased by $0.19 due to share count growth. 2026 guidance implies a potential 10% decline in EPS at the midpoint.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Retail Residential | $2.5B | -0.8% |
| Business | $2.5B | +8.9% |
Risk Factors
- Earnings guidance for 2026 is below 2025 results, indicating potential margin compression.
- Higher interest, pension, and O&M expenses are offsetting growth benefits.
- The company continues to earn below its allowed return, highlighting regulatory recovery risks.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000764622-26-000010 |
| Document: pnw-20260225.htm | 0000764622-26-000010 |
| Document: q4_2025xearningsxfinal.htm | 0000764622-26-000010 |
| Document: 0000764622-26-000010-index-headers.html | 0000764622-26-000010 |
| Document: 0000764622-26-000010-index.html | 0000764622-26-000010 |
| Document: 0000764622-26-000010.txt | 0000764622-26-000010 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 4, 2026 8w ago | 8-K / 424B5 | $101.45 $97.66 | ▼ −3.74% | ▼ −2.50% | $95.32 (−6.04%) |
Jun 29, 2026 13w ago | 8-K | $107.00 $105.38 | ▼ −1.51% | ▼ −0.49% | $95.32 (−10.92%) |
Jun 8, 2026 16w ago | 8-K | $102.65 $108.61 | ▲ +5.81% | ▲ +4.36% | $95.32 (−7.14%) |
Jun 5, 2026 16w ago | 8-K | $101.29 $106.91 | ▲ +5.55% | ▲ +3.92% | $95.32 (−5.89%) |
Jun 5, 2026 16w ago | 424B5 | $101.29 $106.91 | ▲ +5.55% | ▲ +3.92% | $95.32 (−5.89%) |
Jun 1, 2026 17w ago | 424B5 | $97.48 $107.00 | ▲ +9.77% | ▲ +11.06% | $95.32 (−2.22%) |
May 4, 2026 21w ago | 8-K | $101.82 $97.48 | ▼ −4.26% | ▼ −9.91% | $95.32 (−6.38%) |
Apr 15, 2026 24w ago | 8-K | $103.25 $99.08 | ▼ −4.04% | ▼ −9.86% | $95.32 (−7.68%) |
Apr 3, 2026 25w ago | DEFA14A | $101.57 $101.82 | ▲ +0.25% | ▼ −8.74% | $95.32 (−6.15%) |
Feb 25, 2026 31w ago | 8-K | $98.91 $97.70 | ▼ −1.23% | ▲ +4.01% | $95.32 (−3.63%) |
US Market Status
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