Group 1 - Scotiabank raised its price recommendation on Dominion Energy, Inc. to $67 from $63, maintaining a Sector Perform rating, citing effective execution and management commitments [1] - Dominion Energy projected annual profit below Wall Street expectations while increasing its five-year capital spending plan by nearly 30% to meet rising electricity demand [2] - The company contracted nearly 48.5 gigawatts of data center capacity, an increase of 1.4 GW from September, serving major technology companies and holding a significant market position in Virginia [3] Group 2 - Dominion Energy provides regulated electricity service to approximately 3.6 million homes and businesses across Virginia, North Carolina, and South Carolina, and regulated natural gas service to about 500,000 customers in South Carolina [4] - The company expects to spend $64.7 billion on capital investments between 2026 and 2030, up from a previous plan of $50.1 billion through 2029 [3]

Core Insights - The impact of tariffs on U.S. imports has caused market fluctuations, affecting various businesses by increasing costs of essential goods like steel and electronics [1] Group 1: Dominion Energy - Dominion Energy serves 4.5 million electric and natural gas customers in Virginia, North Carolina, and South Carolina, and can petition for rate increases to offset higher costs due to tariffs [4] - The company reported a revenue increase of 14% to $16.5 billion in 2025, with earnings per share (EPS) rising 48% to $3.45, and expects operating EPS growth of 5% to 7% annually through 2030 [6] - Dominion's capital spending plan was increased by about $15 billion to meet rising electricity demand from data centers, which have seen a compound annual growth rate of about 20% since 2016 [7] - The current dividend yield for Dominion Energy is around 4% [8] Group 2: Williams Companies - Williams Companies operates 33,000 miles of pipelines, delivering about one-third of the natural gas used in the U.S., with minimal tariff impact due to its domestic focus [10] - The company reported a 9% increase in adjusted EBITDA to $7.8 billion in 2025, marking 13 consecutive years of growth, and its share price has risen over 21% this year [11] - Williams reported revenue of $11.9 billion in 2025, up 13.7%, with EPS increasing 17.5% to $2.14, and has raised its dividend by 5% this year, marking the 52nd consecutive year of dividend payments [12]

Dominion Energy, Inc. (NYSE:D) is among the 15 Best Electric Utility Stocks to Invest In Now. Morgan Stanley Retains an Equal Rating on Dominion Energy, Inc. (D) Dominion Energy, Inc. (NYSE:D) is among the Best Utility Stocks. On February 20, 2026, Morgan Stanley increased Dominion Energy, Inc. (NYSE:D)'s price objective to $67 from $63 while maintaining an Equal Weight rating. Morgan Stanley upgraded its price estimates for North American Regulated and Diversified Utilities and IPPs. The firm noted tha ...

Core Viewpoint - Dominion Energy Inc. stock is currently priced at $64.45, reflecting a 0.72% decrease in the current market session, but has seen a 4.32% increase over the past month and an 11.66% increase over the past year [1] Group 1: Stock Performance - The stock price of Dominion Energy has decreased by 0.72% in the current session [1] - Over the past month, the stock has increased by 4.32% [1] - In the past year, the stock has appreciated by 11.66% [1] Group 2: Valuation Metrics - The P/E ratio is a key metric for investors to assess the company's performance relative to its earnings and market data [2] - A higher P/E ratio may indicate that investors expect better future performance, potentially leading to overvaluation [2] - Dominion Energy has a lower P/E ratio compared to the Multi-Utilities industry average of 28.71, suggesting it may be undervalued [3]

This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. Dominion Energy’s utility business saw strong growth in electricity demand last year. The larger of its two regulated utilities, Dominion Energy Virginia, led the way with 5.4% weather-normalized sales growth. That trend is likely to continue, according to Dominion and PJM Interconnection, the regional grid operator. Though PJM dialed back its near-term load growth ...

Core Insights - Dominion Energy reported a revenue of $4.09 billion for the quarter ended December 2025, marking a 20.4% increase year-over-year and exceeding the Zacks Consensus Estimate by 14.9% [1] - The company's EPS for the quarter was $0.68, up from $0.58 in the same quarter last year, surpassing the consensus estimate of $0.64 by 5.59% [1] Revenue Performance - Total operating revenue for Dominion Energy Virginia was $3.02 billion, exceeding the average estimate of $2.5 billion by analysts, representing a year-over-year increase of 23.5% [4] - Total operating revenue for Contracted Energy reached $330 million, surpassing the average estimate of $255.25 million, with a year-over-year change of 28.4% [4] - Total operating revenue for Dominion Energy South Carolina was $846 million, compared to the average estimate of $790.89 million, reflecting a year-over-year increase of 5.6% [4] Stock Performance - Dominion Energy's shares have returned +10.7% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Dominion Energy is a significant player in the utility sector, focusing on electric power and natural gas, with a strong presence in the U.S. energy market [1] Financial Performance - Dominion Energy reported an EPS of $0.68 for the quarter ending December 2025, surpassing the estimated EPS of $0.66, consistent with its trend of exceeding expectations [2][6] - The company's revenue for the same quarter was approximately $4.09 billion, exceeding the estimated $3.64 billion, representing a 14.90% increase over the Zacks Consensus Estimate and a rise from $3.4 billion in the previous year [3][6] Strategic Outlook - Despite strong quarterly results, Dominion Energy has projected its annual profit to fall short of Wall Street expectations, but it plans a nearly 30% increase in its five-year capital spending to meet rising electricity demand, particularly from AI infrastructure [4][6] Market Position - The company has a P/E ratio of approximately 23.53, a price-to-sales ratio of about 3.48, and a debt-to-equity ratio of 1.75, indicating financial leverage [5] - A current ratio of 0.84 suggests the company's ability to cover short-term liabilities [5]

Market Overview - U.S. stocks experienced a decline, with the Dow Jones index dropping over 700 points, down 1.46% to 48,901.83, NASDAQ falling 1.03% to 22,650.14, and S&P 500 decreasing 0.95% to 6,843.89 [1] - Consumer staples shares increased by 1.2%, while financial stocks fell by 3.2% [1] Company Earnings - A company reported operating earnings of 68 cents per share, exceeding the consensus estimate of 67 cents and up from 58 cents per share in the same quarter last year [2] - Total operating revenue reached $4.093 billion, surpassing the analyst estimate of $3.653 billion and reflecting a 20.38% increase from the previous year [2] Commodity Market - Oil prices decreased by 0.3% to $66.26, while gold prices increased by 2.9% to $5,225.90 [3] - Silver prices rose by 5% to $86.420, whereas copper prices fell by 1.2% to $5.7705 [3] European Market - European shares were mostly lower, with the eurozone's STOXX 600 declining by 0.45%, while Spain's IBEX 35 Index rose by 0.56% [4] - London's FTSE 100 fell by 0.02%, Germany's DAX decreased by 1.06%, and France's CAC 40 dropped by 0.22% [4] Asian Market - Asian markets closed higher, with Hong Kong's Hang Seng index gaining 2.53% and India's BSE Sensex increasing by 0.58% [5]

Financial Guidance - The company expects 2026 operating earnings per share, excluding RNG 45Z credit income, to be between $3.40 and $3.60, with a midpoint of $3.50, representing a 6.1% increase from the 2025 guidance midpoint of $3.30 [1] - Full-year 2025 operating earnings were reported at $3.42 per share, exceeding the guidance midpoint, with operating earnings excluding RNG 45Z credits at $3.33 per share [3] - The long-term operating earnings per share growth rate is reaffirmed at 5% to 7% annually, with expectations to achieve the upper half of this range starting in 2028 [16][18] Capital Investment - The five-year total capital estimate has been increased from $50 billion to approximately $65 billion, a 30% increase, with over 90% of this increase occurring at Dominion Energy Virginia [9] - Nearly two-thirds of the updated capital spend will be eligible for recovery, subject to regulatory approval [10] - The capital investment growth is supported by a diverse portfolio of projects, including electric transmission, distribution, and gas generation [12] Regulatory and Construction Updates - The Coastal Virginia Offshore Wind (CVOW) project is over 70% complete, with first power expected to be delivered by March [23] - The project budget stands at $11.5 billion, including a contingency of $155 million [24] - The Virginia State Corporation Commission approved the large load provisions to ensure fair cost allocation among customers [41] Customer Affordability and Efficiency - The company maintains competitive rates, with current customer rates at both DEV and DESC lower than the national average by 4% and 12%, respectively [30] - Average residential electric customer bills as a percentage of median household income have improved by 7% and 29% more than the national utility average since 2014 [30] - The company has driven down operational costs through improved processes and technology, focusing on maintaining affordability while ensuring reliability [32] Data Center Demand - The data center pipeline has increased to over 48 gigawatts, reflecting a 3% growth since September 2025 [33] - The majority of demand growth is driven by cloud and inference data center modules, which are considered lower risk [35] - The forecasted data center demand through 2045 is fully covered by existing signed contracts, indicating a stable growth outlook [36] Safety Performance - The company achieved a record OSHA recordable rate of 0.26 in 2025, continuing a positive trend in safety performance [22] - The focus on safety is emphasized as a core value, reflecting the company's commitment to its employees and operational excellence [22]

Core Insights - The company expects to outperform in 2025 due to high-quality earnings and strong credit results, achieving the highest CFO pre-working-capital to debt metric since 2012 [1] - A 30% increase in the five-year capital plan to $65 billion is primarily driven by Dominion Energy Virginia, which is home to the world's largest data center market [1] - Data center demand is characterized as 'high quality' and 'low risk', with forecasts based on over 20 gigawatts of signed Electrical Service Agreements (ESAs) rather than preliminary inquiries [1] - Existing signed contracts are projected to cover forecasted data center demand through 2045, providing a realistic 20-year growth runway [1] - Operational efficiency is a core strategic pillar, with the company maintaining residential rates below the national average despite significant load growth [1] - The Coastal Virginia Offshore Wind (CVOW) project is over 70% complete, with a focus on 'prudent construction management' by deliberately slowing initial turbine iterations for long-term reliability [1] - Strategic positioning in South Carolina aims to close the earned ROE gap through a pending rate case and potential legislative shifts towards more frequent formulaic rate reviews [1]