Financial Data and Key Metrics Changes - Second quarter operating earnings were $0.75 per share, including $0.02 from RNG 45Z credits and $0.01 from better than normal weather, with GAAP results at $0.88 per share [4][5] - The company reaffirmed existing financial guidance for 2025 operating earnings per share between $3.28 and $3.52, with a midpoint of $3.40 [5] Business Line Data and Key Metrics Changes - Positive factors contributing to the second quarter results included $0.07 from regulated investment growth, $0.07 from increased sales, and $0.05 from a DESC rate case settlement in 2024 [4] - Strong sales were noted in service areas driven by data center expansion and economic growth, with nine of the top ten peak days in Virginia occurring this year [6][7] Market Data and Key Metrics Changes - The Coastal Virginia offshore wind project is now 60% complete, with first electricity delivery expected in early 2026 and full completion scheduled for 2026 [11] - The project has created approximately 2,000 direct and indirect jobs and generated $2 billion in economic activity [12] Company Strategy and Development Direction - The company is focused on three principal priorities: achieving financial commitments, timely construction milestones for the Coastal Virginia offshore wind project, and constructive regulatory outcomes [3][34] - The updated project cost for the Coastal Virginia offshore wind project is $10.9 billion, with an expected increase in residential customer bills by an average of $0.03 per month [24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver on financial plans and credit targets, emphasizing a conservative approach to financial planning [8][34] - The company is actively working through regulatory approval processes for new projects, including the Chesterfield Energy Reliability Center [28] Other Important Information - The company reported a positive trend in employee safety, with an OSHA injury recordable rate of 0.28 for the first half of the year [10] - The company has maintained a regular cadence of Board refreshment, with new independent director Jeff Lyash joining the Board [33] Q&A Session Summary Question: Confirmation on the offshore wind project timeline and turbine installation - Management confirmed high confidence in the schedule, expecting the installation vessel in August and turbine installation to proceed without time restrictions [40][41] Question: Financial execution and guidance for fiscal 2025 - Management indicated a strong start to the year, biased towards the top half of the guidance range, with a focus on consistent execution [45][46] Question: Delay in PJM cost update for network upgrades - Management noted that PJM has a lot going on, and they do not expect significant changes in costs [53] Question: Impact of the OBB on Dominion - Management expressed satisfaction with the outcome of OB3, indicating that most tax credits would be preserved [61][62]

[Glossary of Terms](index=3&type=section&id=Glossary%20of%20Terms) This section defines abbreviations and acronyms used in the Form 10-Q, including CVOW, PJM, and VCEA - This section provides definitions for abbreviations and acronyms used throughout the Form 10-Q, such as CVOW (Coastal Virginia Offshore Wind), PJM (PJM Interconnection, LLC), and VCEA (Virginia Clean Economy Act)[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) [PART I. Financial Information](index=7&type=section&id=PART%20I.%20Financial%20Information) [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited consolidated financial statements for Dominion Energy and Virginia Power, including a revision for income tax misstatements on nuclear decommissioning trusts [Dominion Energy, Inc. Financial Statements](index=7&type=section&id=Dominion%20Energy%2C%20Inc.%20Financial%20Statements) Dominion Energy reported operating revenue of **$7.89 billion** and net income of **$1.43 billion** for H1 2025, with diluted EPS of **$1.65** Dominion Energy, Inc. Consolidated Statements of Income (Six Months Ended June 30) | (in millions, except per share amounts) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Revenue** | **$7,886** | **$7,118** | | Income from operations | $2,319 | $1,638 | | **Net Income Attributable to Dominion Energy** | **$1,425** | **$966** | | **EPS - Diluted** | **$1.65** | **$1.10** | Dominion Energy, Inc. Consolidated Balance Sheet Highlights (As of June 30, 2025) | (in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $6,956 | $6,613 | | Total property, plant and equipment, net | $73,284 | $68,862 | | **Total assets** | **$107,441** | **$102,415** | | Total current liabilities | $10,447 | $9,289 | | Total long-term debt | $40,294 | $37,525 | | **Total liabilities** | **$76,569** | **$72,613** | | **Total equity** | **$30,872** | **$29,802** | Dominion Energy, Inc. Consolidated Cash Flows (Six Months Ended June 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,429 | $2,838 | | Net cash provided by (used in) investing activities | $(6,385) | $1,328 | | Net cash provided by (used in) financing activities | $4,004 | $(4,260) | | **Increase (decrease) in cash** | **$48** | **$(94)** | [Virginia Electric and Power Company Financial Statements](index=14&type=section&id=Virginia%20Electric%20and%20Power%20Company%20Financial%20Statements) Virginia Power's operating revenue increased to **$5.48 billion** and net income to **$1.02 billion** for H1 2025 Virginia Power Consolidated Statements of Income (Six Months Ended June 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating Revenue** | **$5,477** | **$5,026** | | Income from operations | $1,713 | $1,482 | | **Net Income Attributable to Virginia Power** | **$1,020** | **$938** | Virginia Power Consolidated Balance Sheet Highlights (As of June 30, 2025) | (in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total assets** | **$73,096** | **$68,387** | | **Total liabilities** | **$44,174** | **$43,291** | | **Total equity** | **$28,922** | **$25,096** | [Combined Notes to Consolidated Financial Statements](index=20&type=section&id=Combined%20Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, dispositions including East Ohio and Questar Gas, a **$10.9 billion** CVOW project cost increase, and Virginia Power's proposed rate hike - The company identified and corrected misstatements in previously issued financial statements related to income taxes associated with investments in qualified nuclear decommissioning trusts. The impact was determined not to be material to any prior period[61](index=61&type=chunk)[62](index=62&type=chunk) - Dominion Energy completed several major dispositions as part of its business review: - **Sale of East Ohio**: Closed in March 2024 for approximately **$6.6 billion**, including assumed debt - **Sale of Questar Gas and Wexpro**: Closed in May 2024 for approximately **$4.3 billion**, including assumed debt - **Sale of PSNC**: Closed in September 2024[73](index=73&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk) - The estimated total project cost for the CVOW Commercial Project is now approximately **$10.9 billion**, excluding financing costs. This reflects an estimated impact from tariffs effective in March-July 2025. Due to cost-sharing mechanisms, Virginia Power recorded impairment charges of **$96 million** for the six months ended June 30, 2025, for costs not expected to be recovered from customers[153](index=153&type=chunk)[155](index=155&type=chunk) - In March 2025, Virginia Power filed its 2025 Biennial Review, proposing a base rate increase of **$822 million** effective January 2026, with an additional **$345 million** increase effective January 2027. The proposal reflects an ROE of **10.40%**[170](index=170&type=chunk) - In April 2025, Dominion Energy amended its joint revolving credit facility, increasing the limit from **$6.0 billion** to **$7.0 billion** and extending the maturity to April 2030[205](index=205&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=60&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Dominion Energy's **35%** Q2 and **48%** H1 2025 net income growth, segment performance, liquidity, and future issues like the CVOW project and regulatory impacts [Results of Operations—Dominion Energy](index=62&type=section&id=Results%20of%20Operations%E2%80%94Dominion%20Energy) Dominion Energy's net income increased **35%** in Q2 and **48%** in H1 2025, driven by investment earnings and rider returns, despite asset sales Dominion Energy Consolidated Results Summary | (in millions, except EPS) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income attributable to Dominion Energy** | **$760** | **$563** | **$1,425** | **$966** | | **Diluted EPS** | **$0.88** | **$0.64** | **$1.65** | **$1.10** | - Key drivers for the YTD 2025 net income increase include the absence of prior-year negative market impacts on pension plans, higher rider returns from capital investments, increased gains on economic hedging, and new renewable energy tax credits[308](index=308&type=chunk) [Results of Operations—Virginia Power](index=64&type=section&id=Results%20of%20Operations%E2%80%94Virginia%20Power) Virginia Power's net income increased **12%** in Q2 and **9%** in H1 2025, driven by higher rider equity returns despite the CVOW project sale Virginia Power Net Income Summary | (in millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income attributable to Virginia Power** | **$535** | **$477** | **$1,020** | **$938** | [Segment Results of Operations](index=66&type=section&id=Segment%20Results%20of%20Operations) Dominion Energy Virginia's net income grew to **$1.11 billion**, while Dominion Energy South Carolina increased to **$261 million**, and Contracted Energy decreased to **$156 million** Net Income Contribution by Segment (Year-To-Date) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Dominion Energy Virginia | $1,110 | $909 | | Dominion Energy South Carolina | $261 | $149 | | Contracted Energy | $156 | $222 | | Corporate and Other | $(102) | $(314) | | **Consolidated** | **$1,425** | **$966** | [Liquidity and Capital Resources](index=69&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow decreased to **$2.4 billion**, investing activities used **$6.4 billion**, and financing provided **$4.0 billion**, with the credit facility increasing to **$7.0 billion** Summary of Cash Flows (Six Months Ended June 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Cash flows provided by operating activities | $2,429 | $2,838 | | Cash flows provided by (used in) investing activities | $(6,385) | $1,328 | | Cash flows provided by (used in) financing activities | $4,004 | $(4,260) | | **Net increase (decrease) in cash** | **$48** | **$(94)** | - During H1 2025, Dominion Energy and its subsidiaries issued a total of **$4.2 billion** in long-term debt[370](index=370&type=chunk) [Future Issues and Other Matters](index=73&type=section&id=Future%20Issues%20and%20Other%20Matters) Future issues include the **$10.9 billion** CVOW project, potential impacts from OBBBA legislation on IRA tax credits, and new EPA rules affecting power plant emissions - The CVOW Commercial Project's estimated total cost is approximately **$10.9 billion**. Major offshore construction began in May 2024, with **134 of 176** monopiles installed as of July 2025. Turbine installation is expected to begin in H2 2025[393](index=393&type=chunk)[396](index=396&type=chunk) - The OBBBA legislation modifies IRA tax credits, including terminating production and investment tax credits for wind and solar facilities placed in service after 2027, which could materially impact the company[397](index=397&type=chunk) - The SCESA, enacted in May 2025, establishes a rate stabilization mechanism allowing utilities like DESC to adjust base rates annually based on earned ROE, requiring a general rate case every five years[402](index=402&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from commodity prices, interest rates, and foreign currency, with sensitivity analyses showing potential **$41 million** and **$18 million** impacts - The company's primary market risks are commodity price, interest rate, foreign currency exchange rate, and equity securities price risk[406](index=406&type=chunk) - A hypothetical **10%** decrease in commodity prices would decrease the fair value of Dominion Energy's commodity derivatives by **$41 million** as of June 30, 2025[410](index=410&type=chunk) - A hypothetical **10%** increase in market interest rates would decrease Dominion Energy's earnings by **$18 million** due to its variable rate debt[413](index=413&type=chunk) - Foreign currency exchange risk is related to CVOW Commercial Project contracts denominated in approximately **€2.6 billion** and **5.1 billion Danish Krone**[406](index=406&type=chunk) [Controls and Procedures](index=76&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures are effective, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO of both Dominion Energy and Virginia Power concluded that the companies' disclosure controls and procedures are effective as of the end of the reporting period[422](index=422&type=chunk) - No changes occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the companies' internal control over financial reporting[423](index=423&type=chunk) [PART II. Other Information](index=77&type=section&id=PART%20II.%20Other%20Information) [Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory proceedings, with a **$1 million** disclosure threshold for governmental monetary sanctions - The company uses a disclosure threshold of **$1 million** for environmental proceedings where a governmental authority is a party and potential monetary sanctions are involved[425](index=425&type=chunk) [Risk Factors](index=77&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported during the quarter - No material changes to the company's risk factors were reported during the quarter[426](index=426&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=77&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Dominion Energy purchased **40,590** shares at **$56.33** for tax obligations, with **$0.92 billion** remaining under its stock repurchase authorization Dominion Energy Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | 4/1/25 - 4/30/25 | 31,733 | $56.26 | | 5/1/25 - 5/31/25 | 458 | $54.88 | | 6/1/25 - 6/30/25 | 8,399 | $56.67 | | **Total** | **40,590** | **$56.33** | - The company has approximately **$0.92 billion** remaining under its stock repurchase authorization as of June 30, 2025[427](index=427&type=chunk)[429](index=429&type=chunk) [Other Information](index=77&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the last fiscal quarter[430](index=430&type=chunk) [Exhibits](index=78&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance, debt instruments, and CEO/CFO certifications

Financial Performance and Guidance - Q2 2025 operating earnings per share was $075, which includes $002 from RNG 45Z income and $001 from favorable weather impact[8] - The company reaffirmed its 2025 guidance midpoint of $340 per share, including approximately $010 per share from RNG 45Z income[8] - The long-term operating EPS growth rate is projected at 5%-7% off 2025 operating EPS, excluding RNG 45Z income ($330)[8] - The 2025 dividend is expected to be $267 per share[8] Capital Activities - Dominion Energy Virginia is expected to issue $20-$25 billion in fixed income, with $13 billion already issued YTD[10] - Dominion Energy South Carolina has issued $05 billion in fixed income YTD, completing its guidance[10] - The company plans to issue $10 billion in 2025 and $06 billion in 2026 through At-The-Market (ATM) common equity offerings, with both amounts already issued YTD[11] Coastal Virginia Offshore Wind (CVOW) Project - The CVOW project is approximately 60% complete and remains on schedule for full completion by the end of 2026[16, 18] - The project is expected to deliver nearly 3 GW to Virginia's grid[16] - The total project costs, including financing, are estimated at $715 million[25] - The current capital budget for CVOW is $109 billion, which includes $193 million of estimated tariffs[30]

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]