Financial Data and Key Metrics Changes - For Q1 2025, the company reported a loss of $0.04 per share compared to earnings of $0.15 per share in Q1 2024, primarily due to the sale of Wright Canyon Energy in 2024 which provided a one-time benefit of $0.15 [15][16] - The increase in O&M, interest expense, and depreciation and amortization negatively impacted financial results, while new rates effective March 8, 2024, provided a $0.29 year-over-year benefit [16][19] - Weather-normalized sales growth was 2.1% for the quarter, with expectations of overall growth meeting guidance of 4% to 6% for the year [19][20] Business Line Data and Key Metrics Changes - Customer growth for the quarter was strong at 2.3%, near the high end of annual guidance, driven by significant growth in manufacturing and data center customers [18][19] - The company experienced a weather-normalized sales growth of 2.1%, with C&I growth at 5.3% due to the ramp-up of manufacturing and data center customers [19][20] Market Data and Key Metrics Changes - Arizona's economy is thriving, with significant investments in semiconductor manufacturing, including TSMC's increased investment to $165 billion, which is expected to create tens of thousands of high-paying jobs [6][20] - Arizona's total international exports rose nearly 12% in 2024, the highest growth rate in the country, led by sectors such as mining, semiconductors, and aerospace products [8] Company Strategy and Development Direction - The company is focused on enhancing customer experience and reliability, with ongoing investments in grid infrastructure and advanced digital platforms [9][12] - A rate case filing is planned for midyear, aiming to recover costs and develop a modernized rate structure to support high load factor customers [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing their strategy while creating customer and shareholder value, highlighting the robust growth in Arizona's economy and the need for continued investments [14][22] - The company is preparing for a significant increase in demand due to the growth of high load factor customers and ongoing economic development in the region [20][22] Other Important Information - The company has been recognized as one of the most trustworthy companies in America for 2024 by Newsweek [12] - The company is actively evaluating project proposals for new resources to be in service between 2028 and 2030, seeking at least 2,000 megawatts [11][55] Q&A Session Summary Question: Impact of TSMC customer additions on long-term forecast - The first fabrication facility is included in the forecast, and the ramp-up in C&I sales is attributed to TSMC and data centers [27][28] Question: Confirmation of retail rate return on new disclosures - The pipeline of opportunities extends beyond the three-year plan, with strategic transmission projects and generation investments highlighted [31][32] Question: Update on high load factor customer pipeline - The company remains committed to four gigawatts and has interest from over 10 gigawatts, with ongoing assessments of customer needs [43][44] Question: Regulatory lag expectations for 2026 - The focus is on minimizing regulatory lag through the upcoming rate case, with intentions to design a formula rate plan to address this issue [40][41] Question: Update on coal plant closure - The Cholla coal plant has been retired in accordance with federal law, and the company is exploring future repurposing options for the site [94][95] Question: Clarification on residential sales growth trends - The underlying sales growth trends are strong, with adjustments in accounting for unbilled revenues impacting reported figures [102][103] Question: Timing for formula rate adjustments - The intent is to have the first formula rate adjustment in 2027 following the conclusion of the current rate case [107][108]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a loss of $0.04 per share compared to earnings of $0.15 per share in Q1 2024, primarily due to the sale of Wright Canyon Energy in 2024 which provided a one-time benefit of $0.15 [14][15] - The increase in operational and maintenance (O&M) expenses, interest expense, and depreciation and amortization negatively impacted financial results, while new rates effective March 8, 2024, provided a $0.29 year-over-year benefit [15][20] - Weather-normalized sales growth was 2.1% for the quarter, driven by strong commercial and industrial (C&I) growth of 5.3% [18][19] Business Line Data and Key Metrics Changes - Customer growth for the quarter was strong at 2.3%, near the high end of annual guidance, with Maricopa County being the third fastest growing county in the US [16] - The company’s capital plan is designed to meet the needs of ongoing customer growth and ensure reliable service [16][20] - The company expects overall weather-normalized sales growth to meet guidance expectations of 4% to 6% for the year [18] Market Data and Key Metrics Changes - Arizona's economy is thriving, with significant investments in semiconductor and advanced manufacturing, including TSMC's increased investment to $165 billion [5][19] - Arizona's total international exports rose nearly 12% in 2024, the highest growth rate in the country, driven by sectors such as mining and aerospace [6][7] Company Strategy and Development Direction - The company is focused on providing reliable service and enhancing customer experience through investments in digital platforms and infrastructure [11][12] - A rate case filing is planned for midyear 2025 to recover costs and investments, aiming to modernize the rate structure and reduce regulatory lag [12][21] - The company is actively evaluating project proposals for new resources to be in service between 2028 and 2030, seeking at least 2,000 megawatts [10][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the strategy while creating customer and shareholder value [13] - The regulatory environment is being addressed to minimize lag and ensure competitive returns on equity [40][42] - The company is exploring future opportunities for repurposing retired coal plant sites for new generation technologies [92] Other Important Information - The company was recognized by Newsweek as one of the most trustworthy companies in America for 2024 [11] - The company is in the final stages of planned maintenance activities for generation units, with Palo Verde unit one expected to return to service in early May [10][12] Q&A Session Summary Question: Impact of TSMC customer additions on long-term outlook - The first fabrication facility is in full production, and the ramp-up in C&I sales is partly due to TSMC and data centers [28] - Future fabs are expected to accelerate, with ongoing evaluations of infrastructure needs [30] Question: Current pipeline of high load factor customers - The company remains committed to four gigawatts and is assessing interest from an additional 10 gigawatts [44] Question: Regulatory lag and formula rate plan - The intent is to minimize regulatory lag through the upcoming rate case, with a formula rate plan designed for annual adjustments [40][42][104] Question: Update on Eldorado investment - A gain was recognized due to higher profitability from a long-standing investment in an electric switchgear company [87][88] Question: Coal plant closure and future plans - The Cholla coal plant has been retired, and the site is being evaluated for potential new generation technologies [92][93] Question: Sales growth trends and residential usage - Underlying sales growth trends remain strong, with adjustments in accounting impacting reported figures [96][98]

Pinnacle West Capital Corporation (PNW) reported first-quarter 2025 loss of 4 cents per share, which missed the Zacks Consensus Estimate of earnings of 5 cents by 180%. In the year-ago quarter, the company reported earnings of 15 cents per share.  (See the Zacks Earnings Calendar to stay ahead of market-making news.)Total Revenues of PNWSales for the quarter totaled $1.03 billion, which surpassed the Zacks Consensus Estimate of $0.96 billion by 7.7%. The top line also increased 8.4% from $0.95 million recor ...

Pinnacle West (PNW) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of $0.05. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -180%. A quarter ago, it was expected that this power company would post a loss of $0.15 per share when it actually produced a loss of $0.06, delivering a surprise of 60%.Over the last four quarters, the company has surpassed conse ...

Renewed, Reliable and Resilient First-Quarter Financial Results May 1, 2025 Forward Looking Statements 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," "likely," "should," "wil ...

Part I - Financial Information Presents the company's unaudited Q1 2025 financial statements, management's analysis, and market risk disclosures [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Provides the unaudited condensed consolidated financial statements for Pinnacle West and its subsidiary APS [Pinnacle West Capital Corporation Financial Statements](index=7&type=section&id=Pinnacle%20West%20Capital%20Corporation%20Financial%20Statements) Details the Q1 2025 financial performance and position for the parent company, Pinnacle West Pinnacle West - Q1 2025 vs. Q1 2024 Financial Highlights (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating Revenues** | $1,032,280 | $951,712 | | **Operating Income** | $57,222 | $66,792 | | **Net Income (Loss) Attributable to Common Shareholders** | $(4,644) | $16,862 | | **Diluted EPS** | $(0.04) | $0.15 | | **Net Cash from Operating Activities** | $401,895 | $347,353 | - Total assets increased to **$27.24 billion** as of March 31, 2025, from $26.10 billion at December 31, 2024, primarily driven by increases in property, plant and equipment and operating lease right-of-use assets[26](index=26&type=chunk) [Arizona Public Service Company Financial Statements](index=13&type=section&id=Arizona%20Public%20Service%20Company%20Financial%20Statements) Outlines the Q1 2025 financial performance and position for the subsidiary, APS APS - Q1 2025 vs. Q1 2024 Financial Highlights (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating Revenues** | $1,032,280 | $951,712 | | **Operating Income** | $60,715 | $70,884 | | **Net Income Attributable to Common Shareholder** | $279 | $15,117 | | **Net Cash from Operating Activities** | $408,674 | $365,980 | - APS's total assets grew to **$27.10 billion** as of March 31, 2025, from $25.99 billion at year-end 2024, reflecting continued investment in property, plant, and equipment[43](index=43&type=chunk) [Combined Notes to Condensed Consolidated Financial Statements](index=19&type=section&id=Combined%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Offers supplementary details and accounting policies related to the consolidated financial statements - On January 12, 2024, Pinnacle West completed the sale of its equity interest in **Bright Canyon Energy Corporation (BCE)**[52](index=52&type=chunk) - Pinnacle West's reportable business segment is its **regulated electricity segment**, which is conducted through its wholly-owned subsidiary, APS[57](index=57&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=73&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes Q1 2025 financial results, key business drivers, operational performance, and capital resources [Overview](index=73&type=section&id=Overview) Discusses the company's strategic focus on providing reliable, affordable, and clean energy in Arizona - The company's strategy focuses on creating a sustainable energy future for Arizona by providing **reliable, affordable, and clean energy**, with a strong emphasis on customer experience and financial assistance programs[297](index=297&type=chunk)[298](index=298&type=chunk)[299](index=299&type=chunk) - APS is making significant investments in grid reliability, including a **Ten-Year Transmission Plan** and wildfire mitigation efforts such as installing AI-based fire sensing cameras and implementing a Public Safety Power Shutoff (PSPS) program[301](index=301&type=chunk)[303](index=303&type=chunk) - The company has a clean energy commitment with three main goals: achieve **100% clean, carbon-free electricity by 2050**; reach a **65% clean energy mix by 2030**; and **exit coal-fired generation by 2031**[315](index=315&type=chunk)[320](index=320&type=chunk) - APS is actively procuring new resources through All-Source Requests for Proposal (ASRFP), with the 2024 ASRFP seeking **2,000 MW of resources** for operation beginning in 2028 through 2030[326](index=326&type=chunk) [Key Financial Drivers](index=85&type=section&id=Key%20Financial%20Drivers) Highlights customer growth and increased electricity demand from data centers as primary financial drivers - Retail customer growth was **2.3%** for the period ended March 31, 2025, with a projected annual growth of **1.5% to 2.5%** through 2027[368](index=368&type=chunk) - Weather-adjusted retail electricity sales (kWh) are projected to increase by **4.0% to 6.0% annually** through 2027, largely driven by the growth of data centers and large manufacturing facilities[370](index=370&type=chunk) - Due to unprecedented demand from extra high load factor customers (>25 MW), APS has notified prospective customers that it **cannot commit to new large projects** at this time and has developed a prioritization queue[371](index=371&type=chunk) [Results of Operations](index=88&type=section&id=Results%20of%20Operations) Compares Q1 2025 operational results to Q1 2024, detailing factors driving the net income change - For Q1 2025, Pinnacle West reported a consolidated **net loss of $5 million**, a **$22 million decrease** from the $17 million net income in Q1 2024[383](index=383&type=chunk) Key Drivers of Change in Net Income (Q1 2025 vs Q1 2024, in millions) | Factor | Impact on Net Income | | :--- | :--- | | **Negative Drivers** | | | Higher operations and maintenance | $(42) | | Higher depreciation and amortization | $(25) | | Lower pension and other postretirement credits | $(9) | | Lower other income (incl. prior year BCE gain) | $(9) | | Higher interest charges | $(8) | | **Positive Drivers** | | | Favorable impact of new customer rates | $46 | | Lower income taxes | $10 | | Higher transmission & LFCR revenue | $10 | - Operations and maintenance expenses increased by **$42 million**, primarily due to higher costs for non-nuclear generation planned outages ($17 million) and information technology ($13 million)[387](index=387&type=chunk)[390](index=390&type=chunk) [Liquidity and Capital Resources](index=91&type=section&id=Liquidity%20and%20Capital%20Resources) Details cash flow activities, capital expenditure plans, and financing strategies for the company - Net cash from operating activities **increased by $55 million to $402 million** in Q1 2025, mainly due to higher cash receipts from electric revenues and lower taxes paid[401](index=401&type=chunk)[404](index=404&type=chunk) - Net cash used for investing activities **increased by $162 million to $586 million**, driven by a $123 million increase in capital expenditures and the absence of $39 million in proceeds from the BCE sale received in the prior year[401](index=401&type=chunk)[407](index=407&type=chunk) APS Estimated Capital Expenditures (in millions) | Year | Estimated Amount | | :--- | :--- | | 2025 | $2,400 | | 2026 | $2,550 | | 2027 | $2,650 | - As of March 31, 2025, Pinnacle West had outstanding forward sale agreements related to approximately **$825 million of common stock**, including agreements under its ATM program and a February 2024 offering[399](index=399&type=chunk)[417](index=417&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=99&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Describes the company's exposure to interest rate, commodity price, and investment value risks - The company manages exposure to commodity price fluctuations in electricity and natural gas by using **derivative instruments** such as futures, forwards, options, and swaps[433](index=433&type=chunk) Fair Value of Energy Derivative Contracts by Maturity (as of March 31, 2025, in millions) | Year | Fair Value | | :--- | :--- | | 2025 | $51 | | 2026 | $31 | | 2027 | $5 | | 2028 | $(1) | | 2029 | $0 | | **Total** | **$86** | - A hypothetical **10% increase** in electricity and natural gas prices would result in a **$98 million gain** in the market value of the company's risk management assets and liabilities as of March 31, 2025[437](index=437&type=chunk) [Item 4. Controls and Procedures](index=100&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of the company's disclosure controls and internal financial reporting procedures - Both Pinnacle West's and APS's management, including their respective CEOs and CFOs, concluded that the companies' disclosure controls and procedures were **effective** as of March 31, 2025[441](index=441&type=chunk)[442](index=442&type=chunk) - There were **no changes in internal control over financial reporting** during the first quarter of 2025 that materially affected, or are reasonably likely to materially affect, the internal controls for either Pinnacle West or APS[443](index=443&type=chunk) Part II - Other Information Includes information on legal proceedings, risk factors, and other corporate disclosures [Item 1. Legal Proceedings](index=100&type=section&id=Item%201.%20Legal%20Proceedings) References notes within the financial statements for details on regulatory and environmental legal matters - Information regarding legal proceedings, including regulatory, environmental, and other matters, is detailed in **Note 6 and Note 10** of the financial statements[446](index=446&type=chunk)[447](index=447&type=chunk) [Item 1A. Risk Factors](index=101&type=section&id=Item%201A.%20Risk%20Factors) Refers to the company's 2024 Annual Report for a comprehensive discussion of business risk factors - The report directs readers to the Risk Factors section of the **2024 Form 10-K** for a comprehensive discussion of factors that could materially affect the business[448](index=448&type=chunk) [Item 5. Other Information](index=101&type=section&id=Item%205.%20Other%20Information) Discloses that no directors or officers adopted or terminated insider trading plans during the quarter - During the fiscal quarter ended March 31, 2025, **no directors or executive officers adopted or terminated** any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements[449](index=449&type=chunk)

"With Arizona's population growing faster than the national average, it's clear that people view Arizona as an attractive place to live and do business." Exhibit 99.1 FOR IMMEDIATE RELEASE May 1, 2025 Media Contact: Analyst Contact: Alan Bunnell (602) 250-3376 Amanda Ho (602) 250-3334 Website: pinnaclewest.com PINNACLE WEST REPORTS LOWER FIRST-QUARTER FINANCIAL RESULTS PHOENIX – Pinnacle West Capital Corp. (NYSE: PNW) today reported a consolidated net loss attributable to common shareholders of $4.6 million ...

Pinnacle West Capital Corporation (PNW) is scheduled to release first-quarter 2025 results on May 1, before market open. The company delivered an earnings surprise of 60% in the last reported quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Major Factors That Might Have Impacted PNW's Q1 PerformancePinnacle West Capital’s top-line performance is expected to have continued to benefit from ...

A month has gone by since the last earnings report for Pinnacle West (PNW) . Shares have added about 1.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Pinnacle West due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?Analyst ...

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