Pinnacle West(PNW) - 2025 Q2 - Quarterly Results

Financial Performance - Pinnacle West reported a consolidated net income of $192.6 million, or $1.58 per diluted share, for Q2 2025, down from $203.8 million, or $1.76 per diluted share, in Q2 2024, reflecting a 14.8% decrease in net income for the first half of 2025 compared to the same period in 2024[2][3] - Operating revenues for Q2 2025 reached $1,358,751 million, a 3.0% increase from $1,308,994 million in Q2 2024[27] - Operating income for the first half of 2025 was $364,774 million, down 4.1% from $380,539 million in the same period of 2024[27] - Net income attributable to common shareholders for Q2 2025 was $192,564 million, a decrease of 5.9% compared to $203,805 million in Q2 2024[27] - Earnings per share (diluted) for Q2 2025 was $1.58, down from $1.76 in Q2 2024, reflecting a 10.2% decline[27] - Total operating expenses for Q2 2025 were $1,051,199 million, an increase of 5.6% from $995,247 million in Q2 2024[27] - Interest expense for the first half of 2025 totaled $196,809 million, an increase of 6.7% compared to $184,488 million in the same period of 2024[27] - Fuel and purchased power expenses for Q2 2025 were $477,008 million, up 9.1% from $437,172 million in Q2 2024[27] - Income before income taxes for Q2 2025 was $231,888 million, a decrease of 3.0% from $240,532 million in Q2 2024[27] - Total other income for the first half of 2025 was $57,402 million, down 17.4% from $69,540 million in the same period of 2024[27] Customer Growth and Demand - Arizona Public Service Co. (APS) experienced customer growth of 2.4% and sales growth of 5.2% in Q2 2025, contributing to an all-time record peak demand of 8,527 megawatts on July 9, 2025[4][5] - The company continues to prioritize reliability and affordability in its service offerings, adapting to Arizona's growing population and energy needs[9] Energy Strategy and Goals - The company is updating its clean energy goals to aim for carbon neutrality by 2050, while currently, clean resources supply 54% of APS's energy mix[10][11] - APS plans to integrate a diverse energy mix, including solar, wind, and natural gas, to ensure reliability and meet growing demand, with over 800 megawatts of APS-owned resources scheduled to come online between 2026 and 2028[13] - The company emphasizes a balanced energy mix to support reliability while striving to lower emissions over time[12] Assistance Programs - APS offers various assistance programs for customers, including discounts of up to 60% for eligible vulnerable customers and emergency utility bill assistance of up to $1,000 annually[15][16] Weather Impact - The decrease in Q2 2025 results was primarily due to cooler weather, which led to 15.4% fewer cooling degree-days compared to the record-high temperatures in Q2 2024, impacting energy usage significantly[4]