Powering Arizona's Future Forward Looking Statements Fourth-Quarter and Full-Year 2025 Financial Results February 25, 2026 This presentation contains forward-looking statements based on current expectations, including statements regarding our earnings guidance and financial outlook and goals. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "lik ...

Skip to main content Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv Pinnacle West posts quarterly profit on higher rates, robust power demand February 25, 20262:37 PM UTCUpdated ago By Reuters Feb 25 (Reuters) - Pinnacle West Capital (PNW.N), opens new tab reported a profit in the fourth quarter on Wednesday, compared with a year-ago loss, as the U.S. utility benefited from robust demand for power and higher electricity rates. U.S. utilities have been seeking ...

PHOENIX--(BUSINESS WIRE)--Pinnacle West 2025 financial results positively impacted by robust customer and sales growth. ...

Exhibit 99.1 For the quarter ended Dec. 31, 2025, Pinnacle West reported consolidated net income attributable to common shareholders of $15.4 million, or $0.13 per diluted share, compared with a net loss of $6.8 million, or a loss of $0.06 per diluted share, for the same period in 2024. The higher 2025 full-year results reflect an increase of about $8 million, primarily as a result of increased customer usage, customer growth and related pricing; higher transmission revenues; and impacts of the 2022 rate ca ...

Core Viewpoint - Pinnacle West Capital Corporation is experiencing a modest upward trend in analyst price targets, indicating increased confidence in its stock performance despite some concerns regarding earnings potential [2][3][6]. Group 1: Company Overview - Pinnacle West Capital Corporation operates primarily in Arizona through its subsidiary, Arizona Public Service Company, providing electricity generation, transmission, and distribution [1]. - The company serves approximately 1.3 million customers and utilizes a diverse energy mix, including coal, nuclear, gas, oil, and solar [1]. Group 2: Price Target and Analyst Ratings - The average price target for Pinnacle West's stock has increased from $93.33 last quarter to $96 last month, showing a positive trend [2]. - A year ago, the price target was $94.89, indicating a gradual increase in analyst confidence over time [2]. - Credit Suisse has set a lower price target of $73, reflecting concerns about the company's ability to meet earnings expectations [3][6]. - Pinnacle West has received a Zacks Rank 2 (Buy) upgrade, suggesting optimism about its earnings potential [4][6]. Group 3: Market Insights - Changes in consensus price targets and analyst ratings provide valuable insights into market perceptions of Pinnacle West's future prospects [5]. - Recent company news and earnings reports are crucial for understanding the factors influencing these targets and expectations [5].

Industry Overview - Renewable energy is increasingly recognized for its significant role in combating climate change, with wind power leading the transition toward renewables [1] - Wind energy has become one of the largest renewable sources of electricity generation in the United States, driven by abundant supply, sustainable technology, and lower production costs [2] Market Growth - The U.S. wind power capacity reached over 159 gigawatts (GW) by the end of 2025, accounting for nearly 11% of total utility-scale electricity generation [3][10] - The U.S. grid is projected to add 11.7 GW of wind generation capacity in 2025, reflecting an increase from around 6 GW added in the previous year [4] Future Projections - Wind power generation is expected to increase by approximately 6% in 2026 and 7% in 2027, supported by new capacity additions [4][10] Key Projects - Major upcoming wind projects include the 800-megawatt (MW) Vineyard Wind 1 in Massachusetts and the 715-MW Revolution Wind project in Rhode Island [5] Investment Opportunities - Leading wind energy companies such as Consolidated Edison, Pinnacle West Capital, AES Corporation, and Portland General Electric present compelling investment opportunities due to their strong market positions and growth potential [6] - Consolidated Edison is building the Brooklyn Clean Energy Hub, expected to accommodate up to 1,500 MW of electricity by 2028 [9] - Pinnacle West Capital has a capital investment plan of $8 billion for 2026-2028 and added 500 MW of wind power capacity in 2025 [12][13] - AES Corporation is making strategic investments in clean energy solutions and plans to add up to 1,300 MW of wind, solar, and battery energy storage by 2027 [15][17] - Portland General Electric is expanding its renewable portfolio and focusing on projects related to upgrades across its transmission and distribution systems [18][20]

Based in Phoenix, Arizona, Pinnacle West Capital Corporation (PNW) is a leading energy holding company. With a market cap of approximately $11.9 billion, it generates electricity from nuclear, natural gas, oil, coal, and solar facilities while overseeing a vast network of transmission lines, distribution systems, substations, and energy storage assets. Over the past 52 weeks, PNW stock gained 11.2%, slightly trailing the S&P 500 Index ($SPX), which rose 11.8% during the same period. This year, however, t ...

Core Insights - The article emphasizes the importance of reassessing investment portfolios in light of ongoing market influences such as AI optimism, Federal Reserve policies, and geopolitical uncertainties [1] Sales Growth as an Indicator - Sales growth is highlighted as a more reliable metric for evaluating stocks compared to earnings, as it reflects real demand for products and services [2][3] - Companies with consistent top-line expansion are likely gaining market share and expanding their customer base, which can indicate future earnings potential [3] Contextual Importance of Sales Figures - It is crucial to benchmark sales growth against peers and industry cycles to differentiate between sustainable growth and temporary spikes [4] - Companies that can maintain growth across various conditions tend to generate more reliable cash flows, allowing for reinvestment and strategic initiatives [4] Stock Selection Criteria - Stocks are shortlisted based on criteria including 5-Year Historical Sales Growth greater than industry average and Cash Flow exceeding $500 million [5] - Additional metrics for stock selection include a Price-to-Sales (P/S) Ratio lower than the industry average, positive sales estimate revisions, operating margin above 5%, and Return on Equity (ROE) greater than 5% [6][7][8] Specific Company Insights - Universal Health Services (UHS) is expected to achieve a sales growth rate of 5.2% in 2026 and currently holds a Zacks Rank of 2 [9][10][11] - Pinnacle West Capital (PNW) is forecasted to have a sales growth rate of 4.6% in 2026, also holding a Zacks Rank of 2 [11] - Methanex Corporation (MEOH) is projected to see a sales increase of 9.8% in 2026 and carries a Zacks Rank of 2 [12]

Industry Overview - The Utility-Electric Power industry is focused on generating and delivering electricity to millions of customers in the U.S., with a strong shift towards cleaner fuel sources and reduced carbon emissions, supported by government initiatives [1] - The industry is investing in grid modernization and infrastructure improvements to enhance resilience against natural disasters like hurricanes, which helps in reducing outages and restoring power more quickly [1] Trends Impacting the Industry - Interest rates have decreased from a range of 5.25-5.50% to 3.75-4.00%, which is beneficial for utilities that rely on capital markets for financing infrastructure investments [4] - The share of U.S. electricity generation from renewables is projected to rise from 23% in 2025 to 28% in 2027, driven by growth in solar and wind capacity, aided by the Inflation Reduction Act [5] - Electricity consumption in the U.S. is expected to increase by 1% in 2026 and 3% in 2027, with prices for electricity also projected to rise across industrial, commercial, and residential sectors [6] Industry Performance - The Utility-Electric Power industry has outperformed the S&P 500 and its own sector over the past 12 months, gaining 24.2% compared to the sector's 21% and the S&P 500's 16.5% [10] - The industry's Zacks Rank is 87, placing it in the top 36% of over 244 Zacks industries, indicating positive near-term prospects [8][9] Valuation Metrics - The industry is currently trading at an EV/EBITDA multiple of 13.24X, compared to the S&P 500's 18.9X and the Utility sector's 12.48X, with historical trading ranges between 12.27X and 21.31X over the past five years [13] Investment Opportunities - NextEra Energy plans to invest over $74 billion through 2029 to modernize infrastructure and increase clean energy generation, with a long-term earnings growth forecast of 8.08% and a dividend yield of 2.67% [19][20] - Ameren Corporation expects to deploy over $26.3 billion in capital from 2025 to 2029, with a long-term earnings growth estimate of 8.52% and a dividend yield of 2.78% [23][24] - Alliant Energy anticipates long-term capital expenditures of $13.4 billion from 2026 to 2029, with a long-term earnings growth forecast of 7.15% and a dividend yield of 3.04% [27][28] - Pinnacle West Capital has a capital investment plan of $8 billion for 2026-2028, with a long-term earnings growth estimate of 3.56% and a dividend yield of 3.95% [31][32]

Core Viewpoint - Pinnacle West (PNW) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4]. - For Pinnacle West, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices as investors respond positively [5]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Pinnacle West's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Pinnacle West is projected to earn $4.78 per share, consistent with the previous year's figure, while the Zacks Consensus Estimate has increased by 0.8% over the past three months [8].