Core Insights - Xcel Energy missed third-quarter profit estimates due to increased interest charges and higher operating and maintenance expenses [1] Financial Performance - The company reported a decline in profits compared to expectations, primarily impacted by rising costs associated with interest and operational activities [1]

MINNEAPOLIS--(BUSINESS WIRE)--Xcel Energy Inc. (NASDAQ: XEL) today reported 2025 third quarter GAAP earnings of $524 million, or $0.88 per share, compared with $682 million, or $1.21 per share in the same period in 2024 and ongoing earnings of $737 million, or $1.24 per share compared with $707 million or $1.25 per share in the same period in 2024. See Note 6 for reconciliation from GAAP to ongoing earnings. Third quarter ongoing earnings reflect higher depreciation, interest charges and O&. ...

Financial Performance - Xcel Energy reported Q3 2025 GAAP earnings of $524 million, or $0.88 per share, down from $682 million, or $1.21 per share in Q3 2024[2]. - Ongoing earnings for Q3 2025 were $737 million, or $1.24 per share, compared to $707 million, or $1.25 per share in the same period last year[2]. - Year-to-date GAAP diluted earnings per share were $2.47 in 2025, compared to $2.63 in 2024, while ongoing diluted earnings per share increased to $2.84 from $2.69[7]. - Xcel Energy reaffirmed its 2025 ongoing earnings per share guidance of $3.75 to $3.85 and initiated 2026 guidance of $4.04 to $4.16[7]. - For Q3 2025, GAAP EPS was $0.88, down from $1.21 in 2024, with higher electric revenues contributing $0.28 to the change[24]. - Ongoing earnings for Q3 2025 were $737 million, compared to $707 million in Q3 2024[98]. - Xcel Energy's 2025 ongoing earnings guidance is a range of $3.75 to $3.85 per share[101]. Revenue and Sales - Total operating revenues for Q3 2025 were $3.915 billion, up from $3.644 billion in Q3 2024, with electric revenues at $3.638 billion compared to $3.393 billion[12]. - Total retail electric sales growth for Xcel Energy was 1.1% in Q3 2025, with residential sales increasing by 1.6%[28]. - Electric revenues increased by $245 million in Q3 2025 compared to 2024, driven by recovery of higher costs and regulatory outcomes[31]. - Capital rider revenue is projected to increase by $255 million to $265 million[102]. Expenses and Charges - Operating expenses increased to $3.166 billion in Q3 2025 from $2.733 billion in Q3 2024, driven by higher depreciation, interest charges, and O&M expenses[12]. - The company reported a significant charge of $287 million related to Marshall Wildfire litigation in Q3 2025[12]. - O&M expenses rose by $37 million in Q3 2025, primarily due to increased benefits and healthcare costs[35]. - Interest charges increased by $58 million in Q3 2025, largely due to higher debt levels and interest rates[37]. Debt and Capitalization - Total debt as of September 30, 2025, was $33.365 billion, representing 61% of total capitalization, up from $29.114 billion (60%) at the end of 2024[40]. - Xcel Energy's total capitalization increased to $54.546 billion in Q3 2025 from $48.636 billion in Q4 2024[40]. - Xcel Energy plans to fund capital expenditures with approximately 40% equity and 60% debt[41]. - As of October 27, 2025, Xcel Energy Inc. holds a Baa1 credit rating from Moody's and a BBB rating from S&P Global Ratings, both with a stable outlook[41]. Infrastructure and Investment - The company’s updated five-year infrastructure investment plan aims to meet increased energy demand and support carbon reduction goals[4]. - Base capital expenditures forecast for 2026-2030 totals $60 billion, with $13.79 billion planned for 2026[41]. - PSCo's resource plan includes a forecasted need of 5-14 GW of new generation capacity through 2031, with a focus on renewables and firm dispatchable resources[72]. Rate Requests and Regulatory Matters - NSP-Minnesota's filed base revenue request for 2025 is $344 million, with proposed adjustments totaling $295 million[49]. - NSP-Minnesota filed a request for a net annual electric rate increase of $44 million (15%) in South Dakota, based on a rate base of approximately $1.2 billion and a requested ROE of 10.3%[52]. - NSP-Minnesota also requested an annual electric rate increase of approximately $45 million (19.3%) in North Dakota, with a rate base of approximately $817 million and a requested ROE of 10.3%[54]. - NSP-Wisconsin is seeking a total electric revenue increase of $94 million (11.8%) in 2026 and an incremental $57 million (7.1%) in 2027, based on an electric rate base of $2.9 billion in 2026[64]. Legal and Litigation Matters - The Marshall Fire is estimated to have caused more than $2 billion in property losses, with ongoing litigation involving PSCo[78]. - PSCo expects to pay approximately $640 million related to settlements, with $353 million expected to be reimbursed by insurance coverage[83]. - As of September 30, 2025, a remaining estimated liability of $640 million is presented in other current liabilities, with no estimated liability recognized as of December 31, 2024[84]. - Xcel Energy recorded $410 million of total estimated losses related to the Smokehouse Creek Fire Complex, representing a $120 million increase from June 30, 2025[90]. - Settlements reached as of the filing date total $361 million of expected loss payments, with $219 million paid through September 30, 2025[89]. Tax and Book Value - Effective income tax rate for Q3 2025 was 1.5%, compared to 1.4% in Q3 2024, reflecting a 0.1% increase[39]. - Book value per share increased to $36.11 as of September 30, 2025, from $34.61 in 2024[104].

Key Takeaways XEL's Q3 earnings estimate stands at $1.31 per share, up 4.8% year over year.Data center demand, EV growth and economic expansion are likely to have supported quarterly performance.July storms in Minnesota and South Dakota are likely to pressure Q3 results through infrastructure damage.Xcel Energy (XEL) is scheduled to release third-quarter 2025 results on Oct. 30, before market open. The company delivered an earnings surprise of 19.05% in the last reported quarter.Let’s discuss the factors th ...

Core Viewpoint - Xcel Energy is positioned as a strong utility company with potential for earnings surprises, supported by recent analyst upgrades and market interest [2][3][6] Company Overview - Xcel Energy (NASDAQ:XEL) provides electricity and natural gas services across multiple states in the U.S., competing with major players like Duke Energy and Southern Company [1] Stock Performance - Morgan Stanley raised its price target for Xcel Energy to $86 from $80, indicating a potential increase of 6.32% from the current stock price of $80.97, which has seen a slight increase of 0.41% [2][6] - The stock has traded between $80.59 and $81.35 on the current day, with a market capitalization of approximately $47.89 billion [4] Earnings Outlook - Zacks Investment Research highlights Xcel Energy for its potential to exceed earnings expectations, suggesting that it could surprise investors in upcoming earnings reports [3][6] - Analysts adjusting earnings estimates may signal potential surprises, making Xcel Energy a stock to watch closely in the utility sector [5]

Core Points - Xcel Energy has appointed Bria Shea as president of Xcel Energy – Minnesota, North Dakota, and South Dakota, effective immediately [1] - Shea will be responsible for overseeing the company's strategic planning, financial results, and operational outcomes [1] - The focus areas for Shea include operational excellence, customer service, energy innovation, speed to power, and personal and public safety [1]

Market Overview - The US equity market experienced a rally in Q3 2025, with the S&P 500 Index increasing by 8.12% during the quarter [1] - Bonds also saw gains, with the Bloomberg U.S. Aggregate Bond Index rising by 2.03% [1] - The composite return for Aristotle Capital's Value Equity Strategy was 4.33% gross of fees and 3.82% net of fees, underperforming the Russell 1000 Value Index's return of 5.33% and the S&P 500 Index's return of 8.12% [1] Company Focus: Xcel Energy Inc. - Xcel Energy Inc. (NASDAQ:XEL) is highlighted as a key stock, with a one-month return of 13.34% and a 52-week gain of 29.33% [2] - As of October 15, 2025, Xcel Energy's stock closed at $81.80 per share, with a market capitalization of $48.379 billion [2] Legal and Regulatory Developments - Xcel Energy's shares rose following the announcement of comprehensive settlements totaling $640 million related to the 2021 Marshall Fire in Colorado, with $350 million covered by insurance [3] - The settlement was below worst-case estimates and alleviated a significant legal overhang for the company [3] - Xcel has proactively addressed fire risk by implementing a $1.9 billion wildfire mitigation plan in Colorado and a $500 million resiliency plan in Texas, aimed at strengthening the grid and reducing liability risk [3] Future Outlook - Xcel Energy is positioned to benefit from increasing demand for clean energy and electrification [3] - The company's five-year capital plan amounts to $45 billion, focusing on renewable energy projects and electric grid infrastructure [3] - Xcel's service territories are noted for having some of the best wind and solar resources in the country, supported by state policies promoting the transition away from coal [3] - Investments are expected to enhance Xcel's clean energy leadership, expand transmission capacity, and support higher normalized earnings and dividends [3]

Core Insights - The S&P 500 remains volatile despite a year-to-date gain of over 13%, influenced by renewed trade tensions with China and a resurgence of tariffs [1][2] - Investors are advised to consider defensive plays in light of slipping consumer confidence and broader economic concerns [2] Duke Energy - Duke Energy has a market value of nearly $100 billion and serves customers in the Midwest and South, with a recent investment of $6 billion from Brookfield Infrastructure Partners enhancing its credit profile [3][4] - The company is exploring the addition of new nuclear reactors over the next 12 years while maintaining its legacy fossil-fuel plants due to favorable regulatory changes [4] - Duke Energy offers a dividend yield of 3.33% with a strong history of dividend increases over 20 years, supported by a payout ratio of 69.27% [5] NextEra Energy - NextEra Energy operates both a regulated electric utility and a significant renewable energy business, appealing to investors interested in renewables [7][8] - The company reported a year-over-year adjusted EPS increase of over 9% while keeping residential bills below the U.S. average [8] - NextEra has a backlog of approximately 30 GW of energy resources, attracting institutional investors with nearly $17 billion in inflows over the past year [9][10] Xcel Energy - Xcel Energy, the smallest of the three companies, has a dividend yield of 2.82% and a history of 22 years of dividend increases [11] - The company recently settled a $640 million lawsuit related to the 2021 Marshall Fire, allowing it to refocus on its data center business, which targets 2.5 GW by 2030 [12][13] - This focus on data centers is expected to drive significant earnings growth, providing stability for investors [13]

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