Company Overview - Dominion Energy Inc., based in Richmond, VA, was founded in 1909 and is involved in producing and transporting energy in the United States. The company operates in both regulated and non-regulated electricity distribution, generation, and transmission businesses, and sells electricity at wholesale prices to rural electric cooperatives and municipalities [12]. Zacks Rank and Style Scores - Dominion Energy holds a Zacks Rank of 3 (Hold) with a VGM Score of B, indicating a moderate outlook [13]. - The company has a Momentum Style Score of A, reflecting a positive trend with shares up 5.9% over the past four weeks [13]. - Two analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $3.39 per share [13]. Investment Considerations - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Dominion Energy is recommended for investors' consideration [14].

Group 1: AI Industry Overview - The AI revolution is rapidly gaining traction, with major corporations adopting the technology, making it a significant trend on Wall Street [2][3] - Nvidia is currently a leading player in the AI sector, producing essential components for AI systems, and its valuation appears reasonable compared to historical averages [3][4] Group 2: Nvidia's Position and Risks - Nvidia's price-to-earnings (P/E) ratio stands at 39x, which is above the technology sector average of around 33x, indicating it is not necessarily a cheap stock [4] - Early leaders in technology sectors do not always maintain their dominance, as evidenced by the decline of Yahoo! in favor of Google [4][5] Group 3: Dominion Energy as an Alternative Investment - Dominion Energy is positioned as a regulated electric utility that will benefit from the growing demand for electricity driven by the AI industry, with data center power demand expected to increase by 300% over the next decade [6] - The company has undergone a corporate repositioning to focus solely on regulated electric utility operations, although it has cut its dividend and is working to align its payout ratio with industry averages [7] Group 4: Dividend and Growth Potential of Dominion - Dominion offers a dividend yield of 4.9%, significantly higher than the utility average of 2.9% and Nvidia's 0.05% [7] - The company has experienced an 88% growth in demand from data centers between July 2024 and December 2024, supporting its long-term earnings growth projection of 5% to 7% [8] Group 5: Investment Considerations - Dominion represents a low-risk turnaround opportunity with a connection to the AI sector, making it potentially more attractive for long-term dividend investors compared to the volatility associated with Nvidia [9] - Other utilities and technology companies, such as Bloom Energy and NuScale Power, are also positioned to benefit from the AI industry's growth, but Dominion's combination of high dividend yield and growth potential is noteworthy [10][11]

Core Insights - Dominion Energy reported revenue of $4.08 billion for the quarter ended March 2025, reflecting a 12.2% increase year-over-year and a surprise of +6.76% over the Zacks Consensus Estimate of $3.82 billion [1] - Earnings per share (EPS) for the quarter was $0.93, compared to $0.55 in the same quarter last year, resulting in an EPS surprise of +20.78% against the consensus estimate of $0.77 [1] Revenue Breakdown - Total operating revenue for Dominion Energy Virginia was $2.79 billion, exceeding the average estimate of $2.63 billion by analysts, marking a year-over-year increase of +12.3% [4] - Total operating revenue from Contracted Energy was $307 million, slightly above the estimated $299.84 million, but showing a year-over-year decline of -0.3% [4] - Total operating revenue for Dominion Energy South Carolina reached $951 million, surpassing the average estimate of $920.84 million, with a year-over-year increase of +6.5% [4] Stock Performance - Over the past month, shares of Dominion Energy have returned -3.3%, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Dominion Energy's latest earnings report showed a nearly 1% increase in stock price, outperforming the S&P 500 index's 0.6% rise [1] Financial Performance - In the first quarter, Dominion reported revenue of just under $4.08 billion, reflecting a 12% year-over-year improvement [2] - Operating earnings reached $803 million, or $0.93 per share, compared to $485 million in the previous year [2] - Both revenue and adjusted net income exceeded analyst expectations, with consensus estimates of $3.78 billion for revenue and $0.77 per share for adjusted net income [3] Growth Drivers - The growth was primarily driven by customers in Virginia and South Carolina, particularly due to the demand for electricity from data centers related to artificial intelligence [4] Future Outlook - Dominion reaffirmed its full-year 2025 guidance, expecting operating earnings of $3.28 to $3.52 per share, with a projected annual growth rate of 5% to 7% through 2029 [5] - The company plans to maintain its annual dividend payment of $2.67 per share until it achieves a utility industry-aligned payout ratio [5] Strategic Positioning - Dominion is positioned as a key provider in a region with growing power needs driven by the demand for AI technologies, suggesting a favorable investment opportunity [6]

Core Insights - Dominion Energy Inc. reported first-quarter 2025 operating earnings of 93 cents per share, exceeding the Zacks Consensus Estimate of 77 cents by 20.8% and showing a 69.1% increase from the previous year [1] - Revenues reached $4.07 billion, surpassing the Zacks Consensus Estimate of $3.81 billion by 6.8% and increasing 12.2% from $3.63 billion in the year-ago quarter [2] Financial Performance - Total operating expenses rose 1.9% year over year to $2.85 billion, attributed to increased operations and maintenance expenses [3] - Operating earnings for the quarter were $803 million, reflecting a 65.6% year-over-year increase [4] Segment Performance - Dominion Energy Virginia reported net income of $561 million, up 32.3% year over year [5] - Dominion Energy South Carolina's net income increased by 90% to $152 million [5] - Contracted Energy segment net income decreased by 10.6% to $109 million [5] - Corporate and Other segment reported a net loss of $19 million, an improvement from a loss of $141 million in the prior year [5] Financial Position - Current assets as of March 31, 2025, were $355 million, up from $310 million as of December 31, 2024 [6] - Total long-term debt increased to $35.4 billion from $33.03 billion as of December 31, 2024 [6] - Cash used in operating activities was ($1.18 billion), compared to $1.98 billion in the year-ago period [6] Guidance - Dominion Energy reiterated its 2025 operating earnings guidance of $3.28-$3.52 per share, with the Zacks Consensus Estimate at $3.38 per share [7] - The company expects to achieve annual operating earnings growth of 5-7% through 2029 and plans to invest $50 billion from 2025 to 2029 [7]

Core Insights - Data center demand remains strong in Northern Virginia, with no signs of slowing according to Dominion Energy executives [1][3][5] - Dominion Energy is closely collaborating with major tech companies investing heavily in data centers for AI model training [2][5] - Despite market speculation regarding potential pullbacks in tech sector investments due to tariffs and economic concerns, data center customers continue to invest in new projects [4][5][6] Company Performance - Dominion Energy has 40 gigawatts of data center capacity in various stages of contracting, indicating robust demand [5] - The company has maintained its full-year operating earnings guidance of $3.28 to $3.52 per share, reflecting confidence in ongoing demand [7] - Dominion's shares rose approximately 1% following the positive outlook on data center demand [7] Industry Trends - Executives from Amazon and Nvidia confirmed at a recent energy conference that data center demand is not slowing down [7] - The tech sector's investment in data centers is driven by the need for rapid expansion to support AI initiatives [6]

Financial Performance - Net income for the three months ended March 31, 2025, was $692 million, compared to $441 million for the same period in 2024, representing a 57% increase [16]. - Comprehensive income attributable to Dominion Energy increased to $650 million in Q1 2025 from $434 million in Q1 2024, a growth of 50% [16]. - Dominion Energy reported a net income of $692 million for the three months ended March 31, 2025, compared to $441 million for the same period in 2024, representing a 57% increase [27]. - Operating revenue for Virginia Electric and Power Company increased to $2,765 million in Q1 2025, up from $2,489 million in Q1 2024, reflecting an 11% growth [30]. - The company reported a comprehensive income of $523 million for the three months ended March 31, 2025, compared to $468 million for the same period in 2024, an increase of 11.7% [33]. - Dominion Energy's net income attributable from continuing operations was $647 million for the three months ended March 31, 2025, compared to $323 million in 2024, representing a 100% increase [80]. - The effective tax rate for Dominion Energy was 7.4% for the three months ended March 31, 2025, down from 14.5% in 2024 [77]. - Dominion Energy's basic EPS from continuing operations increased to $0.75 for the three months ended March 31, 2025, compared to $0.36 in 2024, a 108% increase [80]. Assets and Liabilities - Total assets as of March 31, 2025, reached $104.555 billion, up from $102.415 billion at the end of 2024, indicating a 2.1% increase [19]. - Cash and cash equivalents increased to $355 million in Q1 2025 from $310 million in Q4 2024, a rise of 14.5% [19]. - Customer receivables decreased to $2.045 billion in Q1 2025 from $2.169 billion in Q4 2024, a decline of 5.7% [19]. - Property, plant, and equipment net value rose to $71.169 billion in Q1 2025 from $68.862 billion in Q4 2024, an increase of 3.8% [19]. - Total current liabilities decreased from $9,289 million as of December 31, 2024, to $8,778 million as of March 31, 2025, a reduction of approximately 5.5% [22]. - Long-term debt rose to $39,949 million as of March 31, 2025, compared to $37,525 million at the end of 2024, indicating a 6.4% increase [22]. - Dominion Energy's total liabilities increased to $73,833 million as of March 31, 2025, from $72,223 million at the end of 2024, marking a 2.2% rise [22]. - Shareholders' equity increased to $30,722 million as of March 31, 2025, from $30,192 million at the end of 2024, a growth of 1.8% [22]. Cash Flow and Operating Activities - Cash provided by operating activities was $1,183 million for the three months ended March 31, 2025, down from $1,982 million in the same period of 2024, a decline of 40% [27]. - Net cash provided by operating activities for the three months ended March 31, 2025, was $1,142 million, down from $1,475 million in 2024, a decrease of 22.6% [42]. - Cash, restricted cash, and equivalents at the end of the period increased to $294 million, up from $125 million, marking a growth of 135.2% [42]. - Dominion Energy's total cash, restricted cash, and equivalents amounted to $477 million in Q1 2025, compared to $336 million in Q1 2024, a 42% increase [54]. Investments and Expenditures - Accrued capital expenditures for Dominion Energy reached $1,037 million in Q1 2025, compared to $753 million in Q1 2024, indicating a 37.7% increase [58]. - Total investments decreased to $4,204 million as of March 31, 2025, from $4,290 million at the end of 2024, a decline of 2.01% [38]. Regulatory and Strategic Initiatives - The company is actively pursuing market expansion and strategic acquisitions, including the sale of its membership interests in various subsidiaries to Enbridge, expected to be completed by September 2024 [11]. - Virginia Power proposed a base rate increase of $822 million effective January 2026, with an incremental increase of $345 million effective January 2027 [145]. - Virginia Power filed its annual fuel factor to recover an estimated $2.6 billion in projected fuel expenses for the rate year beginning July 1, 2025 [146]. - Virginia Power's renewable generation projects are expected to cost approximately $605 million and be operational between 2026 and 2028 [149]. - The Chesterfield Energy Reliability Center project is expected to cost approximately $1.5 billion and have a generating capacity of 944 MW, pending approval [150]. Debt and Financing Activities - The company issued $3,200 million in long-term debt during Q1 2025, compared to $1,000 million in the same period of 2024, reflecting a significant increase in financing activities [27]. - Dominion Energy's joint revolving credit facility was increased from $6.0 billion to $7.0 billion, with letters of credit support raised from $2.0 billion to $3.0 billion [172]. - At March 31, 2025, Dominion Energy's commercial paper outstanding was $1.638 billion, with available capacity under the credit facility at $4.355 billion [173]. - Virginia Power requested approval to issue and sell up to $3.5 billion of common stock to maintain credit metrics and fund capital expenditures [147]. Environmental and Regulatory Compliance - The company is evaluating the need for entrainment controls under the final rule of Section 316(b) of the CWA, which could materially impact financial condition and cash flows [199]. - Dominion Energy expects that existing regulatory frameworks in Virginia and South Carolina will mitigate potential impacts from compliance costs associated with environmental regulations [202]. Miscellaneous - Dominion Energy recorded dividends of $11 million on Series C Preferred Stock for both Q1 2025 and Q1 2024 [185]. - The company has $0.9 billion available for stock repurchase as of March 31, 2025, from an authorized $1.0 billion program [190]. - Dominion Energy has $56 million in reserves recorded for remediation work associated with former manufactured gas plant sites as of March 31, 2025 [205]. - Virginia Power recorded $50 million in reserves for remediation activities as of March 31, 2025 [205].

Financial Data and Key Metrics Changes - The company reported first quarter operating earnings of $0.93 per share, which includes $0.03 from better than normal weather, $0.02 from RNG 45Z income, and $0.02 from better than expected sales [4] - GAAP results for the first quarter were $0.75 per share, and the company affirmed its financial guidance for 2025 operating earnings per share of $3.28 to $3.52, with a midpoint of $3.4 [4][5] - The company sold approximately $1 billion of forward settled common equity under its existing ATM program at a weighted average price of approximately $57 [5] Business Line Data and Key Metrics Changes - The Coastal Virginia offshore wind project is 55% complete and is on schedule for first electricity delivery in early 2026 and full completion by the end of next year [9][10] - The project has created approximately 2,000 direct and indirect jobs and generated $2 billion in economic activity [10] - The project’s updated cost is $10.8 billion, which is expected to increase residential customer bills by an average of $0.04 per month over the life of the project [15] Market Data and Key Metrics Changes - The company has approximately 40 gigawatts of data center capacity in various stages of contracting, with about 10 gigawatts contracted under electric service agreements [6] - There has been no observed evidence of slowing demand from data center customers across the service area [6] Company Strategy and Development Direction - The company focuses on three priorities: achieving financial commitments, timely construction milestones for the Coastal Virginia offshore wind project, and constructive regulatory outcomes [3][22] - The company aims to provide reliable, affordable, and increasingly clean energy to its customers [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver on the financial plan, emphasizing a conservative approach to guidance to weather unforeseen challenges [6][7] - The company continues to achieve constructive outcomes in all regulated service areas, with ongoing discussions regarding energy legislation in South Carolina [18][19] Other Important Information - The company is actively engaged in discussions regarding a new proposed rate class for high energy users, including data centers, to ensure fair cost recovery and protect other customer classes [17][72] - The company is preparing for the Chesterfield Energy Reliability Center, a gas-fired electric generating facility expected to cost approximately $1.5 billion and be operational by 2029 [18] Q&A Session Summary Question: Can you provide insights on the Coastal Virginia offshore wind project and tariff impacts? - Management confirmed that suppliers are performing well, and there are no changes to delivery schedules due to tariffs [30] Question: What is the status of permitting for the Coastal Virginia offshore wind project? - The project is fully permitted, and management feels comfortable that it will continue moving forward [41] Question: How is data center demand looking? - Demand remains high, with customers planning for expansions well into the 2030s [62] Question: Can you elaborate on the new tariff structure for high energy users? - The new rate class will focus on minimum demand charges and includes a fourteen-year contract term for new customers [72] Question: What are the expectations regarding residential sales? - Residential sales showed slight weakness, but overall sales trends are strong, particularly in the commercial segment [80]

Financial Data and Key Metrics Changes - The company reported first quarter operating earnings of $0.93 per share, which includes $0.03 from better than normal weather, $0.02 from RNG 45Z income, and $0.02 from better than expected sales [6][7] - GAAP results for the first quarter were $0.75 per share, and the company affirmed its financial guidance for 2025 operating earnings per share of $3.28 to $3.52, with a midpoint of $3.40 [6][7] - Approximately $1 billion of forward settled common equity was sold under the existing ATM program at a weighted average price of about $57 [7] Business Line Data and Key Metrics Changes - The Coastal Virginia offshore wind project is 55% complete and is on schedule for first electricity delivery in early 2026 and full completion by the end of next year [10][11] - The project has created approximately 2,000 direct and indirect jobs and generated $2 billion in economic activity [11] - The project’s updated cost is $10.8 billion, which is expected to increase residential customer bills by an average of $0.04 per month over the life of the project [15] Market Data and Key Metrics Changes - The company has approximately 40 gigawatts of data center capacity in various stages of contracting, with about 10 gigawatts contracted under electric service agreements [8] - There has been no observed evidence of slowing demand from data center customers across the service area [8] Company Strategy and Development Direction - The company focuses on achieving financial commitments, timely construction milestones for the Coastal Virginia offshore wind project, and constructive regulatory outcomes [5][22] - The company aims to provide reliable, affordable, and increasingly clean energy to its customers [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver on the financial plan and noted that the financial guidance is conservatively built to weather unforeseen challenges [8][9] - The regulatory landscape is supportive, with a proposed new rate class for high energy users, including data centers, to ensure they pay their fair share [17][75] Other Important Information - The company experienced a tragedy with the loss of a colleague, emphasizing its commitment to safety as a core value [9][10] - Diane Leopold, Executive VP & COO, announced her retirement effective June 1, marking her last earnings call [21] Q&A Session Summary Question: Can you provide insights on the Coastal Virginia offshore wind project and tariff impacts? - Management confirmed that suppliers are performing well, and there are no changes to delivery schedules due to tariffs [29][30] Question: What is the current status of monopile installations? - The monopile installation season has begun, with an expected pace of about 25 installations per month [32] Question: Any updates on permitting and regulatory interactions? - Management stated that they are fully permitted and have ongoing constructive conversations with regulatory agencies [40] Question: How is data center demand looking? - Demand remains high, with customers planning expansions well into the 2030s [66][67] Question: Can you elaborate on the new tariff structure for high energy users? - The new rate class focuses on minimum demand charges and aims to ensure that high energy users pay their fair share [73][75] Question: What are the expectations regarding PJM network cost upgrades? - Management does not expect significant changes in costs and will have final numbers in July [102] Question: How is the company managing tariff impacts across its business? - The company has diversified its supply chain and placed orders ahead of tariff effective dates to mitigate cost increases [46][48]

Core Insights - Dominion Energy reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and showing an increase from $0.55 per share a year ago, resulting in an earnings surprise of 20.78% [1] - The company generated revenues of $4.08 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.76%, compared to $3.63 billion in the same quarter last year [2] - The stock has added about 1% since the beginning of the year, while the S&P 500 has declined by 5.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $3.68 billion, and for the current fiscal year, it is $3.38 on revenues of $15.28 billion [7] - The estimate revisions trend for Dominion Energy is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Utility - Electric Power industry, to which Dominion Energy belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Fortis, another company in the same industry, is expected to report quarterly earnings of $0.69 per share, with revenues anticipated to be $2.38 billion, reflecting a 2.9% increase from the previous year [9][10]