Financial Performance - Dominion Energy reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and up from $0.55 per share a year ago, representing an earnings surprise of +8.70% [1] - The company posted revenues of $3.81 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.54%, compared to $3.49 billion in the same quarter last year [2] - Over the last four quarters, Dominion Energy has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Dominion Energy shares have increased approximately 8.5% since the beginning of the year, outperforming the S&P 500's gain of 7.8% [3] - The current Zacks Rank for Dominion Energy is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.14 on revenues of $4.08 billion, and for the current fiscal year, it is $3.39 on revenues of $15.24 billion [7] - The outlook for the Utility - Electric Power industry is positive, currently ranking in the top 33% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

[Second-Quarter 2025 Financial Results](index=1&type=section&id=Second-Quarter%202025%20Financial%20Results) Dominion Energy's Q2 2025 financial results show substantial year-over-year growth in both GAAP and non-GAAP earnings [Earnings Summary](index=1&type=section&id=Earnings%20Summary) Dominion Energy's Q2 2025 GAAP net income and non-GAAP operating earnings significantly increased year-over-year | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **GAAP Net Income** | $760 million | $563 million | +$197 million | | **GAAP EPS** | $0.88 | $0.64 | +$0.24 | | **Operating Earnings (non-GAAP)** | $649 million | $567 million | +$82 million | | **Operating EPS (non-GAAP)** | $0.75 | $0.65 | +$0.10 | - The primary differences between GAAP and operating earnings for the period include adjustments for gains and losses on nuclear decommissioning trust funds, the mark-to-market impact of economic hedging activities, and other specific items[4](index=4&type=chunk) [Financial Guidance](index=1&type=section&id=Financial%20Guidance) Dominion Energy reaffirms its full-year 2025 operating earnings guidance and other financial targets [2025 Full-Year Guidance](index=1&type=section&id=2025%20Full-Year%20Guidance) The company reaffirms its full-year 2025 operating earnings guidance and other financial targets - Dominion Energy affirmed its full-year 2025 operating earnings per share (EPS) guidance range of **$3.28 to $3.52**[5](index=5&type=chunk)[9](index=9&type=chunk) - The company uses non-GAAP operating earnings as its primary performance metric for public communications and internal budgeting It does not provide a corresponding GAAP equivalent for its guidance due to the inability to estimate the future impact of items like mark-to-market adjustments and gains/losses on nuclear decommissioning trust funds[10](index=10&type=chunk) [Financial Statements and Schedules](index=4&type=section&id=Financial%20Statements%20and%20Schedules) This section provides detailed consolidated financial statements and segment-level earnings analysis for the period [Consolidated Statements of Income (GAAP)](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20(GAAP)) Dominion Energy's Q2 2025 operating revenue and net income attributable to the company showed strong year-over-year growth | (in millions, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Operating Revenue** | $3,810 | $3,486 | | **Income from operations** | $1,096 | $805 | | **Net Income attributable to Dominion Energy** | $760 | $563 | | **Reported EPS - diluted** | $0.88 | $0.64 | [Segment Earnings Analysis](index=5&type=section&id=Segment%20Earnings%20Analysis) Q2 2025 operating earnings growth was primarily driven by the Dominion Energy Virginia and South Carolina segments | Operating Earnings by Segment (in millions) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Dominion Energy Virginia | $549 | $485 | +$64 | | Dominion Energy South Carolina | $109 | $69 | +$40 | | Contracted Energy | $47 | $100 | -$53 | | Corporate and Other | ($56) | ($87) | +$31 | | **Total Operating Earnings** | **$649** | **$567** | **+$82** | [Reconciliation of Reported to Operating Earnings](index=6&type=section&id=Reconciliation%20of%20Reported%20to%20Operating%20Earnings) This section details adjustments reconciling GAAP reported earnings to non-GAAP operating earnings for 2025 and 2024 [2025 Reconciliation (Schedule 2)](index=6&type=section&id=2025%20Reconciliation%20(Schedule%202)) Q2 2025 reconciliation shows a $111 million adjustment from reported to operating earnings, primarily due to NDT gains - For the six months ended June 30, 2025, the primary adjustment to reported earnings was a **$157 million** net market benefit, largely driven by a **$156 million** gain from nuclear decommissioning trusts (NDT)[22](index=22&type=chunk) | Reconciliation (in millions) | Q2 2025 | | :--- | :--- | | Reported earnings (GAAP) | $760 | | Adjustments (pre-tax income of $217M, tax expense of $106M) | ($111) | | **Operating earnings (non-GAAP)** | **$649** | [2024 Reconciliation (Schedule 3)](index=7&type=section&id=2024%20Reconciliation%20(Schedule%203)) Full-year 2024 reconciliation involved a $416 million pre-tax net loss adjustment, including asset charges and discontinued operations - Key pre-tax adjustments for full-year 2024 excluded from operating earnings included: - **$276 million** in regulated asset retirements and other charges - **$229 million** in nonregulated asset impairments and other charges - A net benefit of **$228 million** from discontinued operations - A net market loss of **$11 million** from NDT, hedging, and pension plans[26](index=26&type=chunk)[31](index=31&type=chunk) [Year-over-Year Earnings Reconciliation (Schedule 4)](index=8&type=section&id=Year-over-Year%20Earnings%20Reconciliation%20(Schedule%204)) The $0.10 increase in Q2 2025 operating EPS was driven by Virginia and South Carolina segments, offset by Contracted Energy | Change in Operating EPS (Q2 2025 vs Q2 2024) | EPS Impact | | :--- | :--- | | Dominion Energy Virginia | +$0.06 | | Dominion Energy South Carolina | +$0.05 | | Contracted Energy | ($0.07) | | Corporate and Other | +$0.06 | | **Total Change in Operating EPS** | **+$0.10** | - The Dominion Energy Virginia segment's EPS growth was driven by rider equity return (**+$0.17**), partially offset by the sale of a noncontrolling interest (**-$0.10**) and higher interest expense (**-$0.03**)[32](index=32&type=chunk) - The Contracted Energy segment's performance was negatively impacted by planned Millstone outages, which reduced EPS by **$0.07**[32](index=32&type=chunk)[33](index=33&type=chunk)

Core Viewpoint - Dominion Energy is expected to report its second-quarter 2025 results on August 1, with a prior earnings surprise of 20.78% in the last quarter [1] Group 1: Factors Impacting Q2 Performance - Earnings are likely to benefit from ongoing regulated investment, new electric rates, higher demand in service territories, and nuclear production tax credits [2][8] - Robust commercial load growth driven by data centers and customer growth in Virginia and South Carolina is expected to contribute positively [3] - However, higher financing costs, share dilution, planned nuclear unit outages, and increased depreciation, depletion, and amortization (DD&A) may offset some of these positives [3][8] Group 2: Q2 Expectations - The Zacks Consensus Estimate for earnings is set at 69 cents per share, indicating a year-over-year increase of 25.4% [4][8] - Revenue is estimated at $3.64 billion, reflecting a 4.55% increase from the previous year [4] Group 3: Earnings Prediction Model - The current Earnings ESP for Dominion Energy is 0.00%, suggesting that an earnings beat is not predicted this time [5][6] - The company holds a Zacks Rank of 3, indicating a hold position [6] Group 4: Comparisons with Other Stocks - Essential Utilities (WTRG) is expected to report an earnings beat with an Earnings ESP of +6.90% and a Zacks Rank of 2 [7] - IDACORP (IDA) and ONE Gas Inc. (OGS) are also anticipated to report earnings beats, with respective Earnings ESPs of +4.55% and +3.22% [9][10]

Industry Overview - The Zacks Utility – Electric Power industry offers attractive investment opportunities due to stable cash flows and predictable earnings from a regulated business model [1] - U.S.-focused utilities benefit from long-term power purchase agreements, insulating them from economic fluctuations [1] - Rising electricity demand from AI data centers, electric vehicles, and reshoring manufacturing activities creates new opportunities for utilities [1] Clean Energy Transformation - The industry is transforming with a global push for decarbonization, leading utilities to invest in clean energy infrastructure like solar, wind, and battery storage [2] - Early adopters of renewable technologies are positioned to capitalize on market expansion and attract investor interest [2] Company Analysis: Dominion Energy - Dominion Energy is a solid long-term investment with a regulated utility model and reliable dividend payments [3] - The company is reshaping its energy portfolio by investing in renewables and shedding non-core assets [3] - Dominion plans to invest $50 billion through 2029 to modernize its grid and expand clean energy capacity [7][12] - The current dividend yield for Dominion is 4.6% [9][20] - Dominion's debt-to-capital ratio is 58.94% [7][14] - The long-term earnings growth per share for Dominion is projected at 13.59% [8] Company Analysis: Vistra Corp. - Vistra offers a strong investment opportunity with a diversified multi-fuel generation portfolio [4] - The company plans to invest $2.27 billion in 2025, increasing from previous years [12] - Vistra's current dividend yield is 0.46% [9][20] - The debt-to-capital ratio for Vistra is 77.12% [7][14] - The long-term earnings growth per share for Vistra is projected at 13.18% [6] Financial Metrics Comparison - Dominion is trading at a Price/Earnings Forward 12-month ratio of 16.74X, while Vistra is at 26.94X [17] - Return on Equity (ROE) for Vistra is 87.33%, compared to Dominion's 9.51% [16] - Dominion's shares have gained 3.8% month-to-date, while Vistra's shares have increased by 2.2% [18] Conclusion - Dominion is currently in a better position compared to Vistra, with a better dividend yield, cheaper valuation, lower debt usage, and superior price performance [20]

Core Viewpoint - Dominion Energy is expected to report quarterly earnings of $0.69 per share, reflecting a 25.5% increase year-over-year, with revenues projected at $3.64 billion, a 4.5% increase from the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised upward by 0.4% in the last 30 days, indicating analysts' reassessment of their initial estimates [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Total operating revenue- Dominion Energy Virginia' to be $2.67 billion, representing a 5.1% increase from the year-ago quarter [5]. - The expected 'Total operating revenue- Contracted Energy' is projected at $262.43 million, indicating a decrease of 7.6% year-over-year [5]. - The consensus estimate for 'Total operating revenue- Dominion Energy South Carolina' is $765.60 million, reflecting a 0.5% increase from the previous year [6]. Stock Performance - Over the past month, shares of Dominion Energy have returned 2.6%, compared to a 3.6% increase in the Zacks S&P 500 composite [6]. - Dominion Energy currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [6].

Group 1: Company Performance - Dominion Energy's stock closed at $58.00, reflecting a -1.28% change from the previous day, underperforming the S&P 500's daily gain of 0.02% [1] - Over the past month, shares of Dominion Energy have increased by 5.15%, while the Utilities sector gained 1.54% and the S&P 500 gained 4.93% [1] Group 2: Upcoming Earnings - Dominion Energy is set to release its earnings report on August 1, 2025, with an expected EPS of $0.69, indicating a 25.45% growth compared to the same quarter last year [2] - The consensus estimate projects revenue of $3.7 billion, reflecting a 6.02% increase from the equivalent quarter last year [2] Group 3: Fiscal Year Estimates - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $3.39 per share and revenue of $15.43 billion, representing changes of +22.38% and +6.72% respectively from the previous year [3] - Recent changes in analyst estimates are crucial as they reflect near-term business trends and indicate analysts' favorable outlook on the company's health and profitability [3] Group 4: Valuation Metrics - Dominion Energy has a Forward P/E ratio of 17.32, which is lower than the industry average Forward P/E of 18.46 [6] - The company has a PEG ratio of 1.27, compared to the average PEG ratio of 2.62 for the Utility - Electric Power industry [6] Group 5: Industry Ranking - The Utility - Electric Power industry, part of the Utilities sector, holds a Zacks Industry Rank of 56, placing it in the top 23% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Group 1 - Dominion Energy's stock increased by 1.42% to $58.51, outperforming the S&P 500's daily gain of 0.06% and the Dow's increase of 0.41%, while the Nasdaq decreased by 0.39% [1] - Over the past month, Dominion Energy's shares appreciated by 3.24%, surpassing the Utilities sector's gain of 1.55% but lagging behind the S&P 500's gain of 5.88% [1] Group 2 - Dominion Energy is expected to report earnings on August 1, 2025, with an anticipated EPS of $0.75, reflecting a 36.36% increase compared to the same quarter last year, and revenue is projected to be $3.7 billion, indicating a 6.02% rise [2] - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $3.39 per share and revenue of $15.37 billion, representing increases of 22.38% and 6.32% respectively from the previous year [3] Group 3 - Recent estimate revisions are linked to stock price performance, and positive revisions indicate optimism about the business outlook [3][4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have returned an average annual gain of 25% since 1988, with Dominion Energy currently holding a Zacks Rank of 2 (Buy) [5] Group 4 - Dominion Energy has a Forward P/E ratio of 17, which is lower than the industry average of 18.52, indicating it is trading at a discount [6] - The company has a PEG ratio of 1.25, compared to the Utility - Electric Power industry's average PEG ratio of 2.67 [6] Group 5 - The Utility - Electric Power industry is part of the Utilities sector and currently holds a Zacks Industry Rank of 81, placing it in the top 33% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Overview - Dominion Energy Inc. is a major energy company based in Richmond, VA, engaged in regulated and non-regulated electricity distribution, generation, and transmission businesses [11] - The company was founded in 1909 and also sells electricity at wholesale prices to rural electric cooperatives, municipalities, and through wholesale electricity markets [11] Investment Ratings - Dominion Energy holds a Zacks Rank of 2 (Buy) and has a VGM Score of B, indicating strong potential for investors [12] - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 16.85, making it appealing to value investors [12] Earnings Estimates - For fiscal 2025, two analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing to $3.39 per share [12] - Dominion Energy has an average earnings surprise of +7.4%, suggesting a positive trend in earnings performance [12] Investment Recommendation - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Dominion Energy is recommended for investors looking for strong investment opportunities [13]

Company Performance - Dominion Energy's stock was down 1.14% at $56.55, trailing the S&P 500 which lost 0.4% [1] - Over the past month, shares of Dominion Energy gained 4.51%, while the Utilities sector lost 0.96% [1] Upcoming Earnings - Dominion Energy is set to announce its earnings on August 1, 2025, with expected earnings of $0.77 per share, indicating a year-over-year growth of 40% [2] - The consensus estimate for revenue is $3.69 billion, reflecting a 5.81% increase compared to the same quarter last year [2] Full Year Estimates - For the full year, analysts expect earnings of $3.39 per share and revenue of $15.37 billion, representing changes of +22.38% and +6.33% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Dominion Energy indicate positive sentiment regarding the company's business operations and profit generation capabilities [4] Zacks Rank and Performance - Dominion Energy currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [6] - The Zacks Rank system has a strong track record, with 1 stocks generating an average annual return of +25% since 1988 [6] Valuation Metrics - Dominion Energy has a Forward P/E ratio of 16.87, which is below the industry average of 18.15 [7] - The company's PEG ratio is 1.24, significantly lower than the industry average PEG ratio of 2.64 [7] Industry Context - The Utility - Electric Power industry, part of the Utilities sector, has a Zacks Industry Rank of 94, placing it in the top 39% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1: Market Overview - Stock market turbulence has returned, primarily due to tariffs, leading to increased volatility [1] - Investors are advised to be cautious but can still find opportunities in the current market [2] Group 2: Dominion Energy - Dominion Energy is highlighted as a strong utility stock, benefiting from stable revenue streams and regulated monopoly status [4] - The company serves 3.6 million customers in Virginia, North Carolina, and South Carolina, and provides natural gas to around 500,000 customers in South Carolina [5] - Dominion Energy has a forward dividend yield of 4.64%, making it attractive for income-focused investors [6] - The company operates in fast-growing markets, particularly in Virginia, which is a hub for data centers, enhancing its growth prospects [7] Group 3: Enbridge - Enbridge is noted for its stability following recent acquisitions, making it the largest natural gas utility in North America by volume [9] - The company maintains a utility-like business profile and offers a dividend yield of 6.11% [10] - Concerns about tariffs on Canadian imports affecting Enbridge are mitigated by the lower tariff rate on energy imports and the U.S. demand for Canadian fuels [11] Group 4: Vertex Pharmaceuticals - Vertex Pharmaceuticals specializes in therapies for cystic fibrosis, with a strong market position due to its unique offerings [12] - The company is expected to strengthen its CF business with the introduction of a new therapy, Alyftrek, which has a more convenient dosage [13] - Vertex has launched Journavx, a new class of pain medication, which is anticipated to become a blockbuster due to its non-opioid nature [14] - The company's pipeline includes promising candidates like povetacicept, targeting a larger patient population than cystic fibrosis [15]