Pinnacle West(PNW) - 2025 Q3 - Quarterly Results

Financial Performance - Consolidated net income for Q3 2025 was $413.2 million, or $3.39 per diluted share, compared to $395.0 million, or $3.37 per share, in Q3 2024, reflecting a 2.4% decrease in earnings year-to-date compared to the first nine months of 2024[1][2] - Net income attributable to common shareholders for the three months ended September 30, 2025, was $413,208, compared to $394,966 for the same period in 2024, reflecting a growth of 4.6%[28] - Total net income for the nine months ended September 30, 2025, was $614,046, a decrease from $628,551 in the same period of 2024, reflecting a decline of 2.3%[28] - Operating income for the nine months ended September 30, 2025, reached $946,620, up from $927,525 in the same period of 2024, indicating a year-over-year increase of 2.1%[28] - Earnings per diluted share for the three months ended September 30, 2025, were $3.39, compared to $3.37 for the same period in 2024, showing a growth of 0.6%[28] - Income before income taxes for the three months ended September 30, 2025, was $495,408, up from $473,499 in the same period of 2024, representing a growth of 4.6%[28] Revenue and Sales Growth - Operating revenues for the three months ended September 30, 2025, were $1,820,741, an increase of 2.9% from $1,768,801 in the same period of 2024[28] - Customer growth was 2.4% with weather-normalized sales growth of 5.4%, driven by a 4.3% increase in residential sales during the quarter[4] Expenses and Costs - Total operating expenses for the three months ended September 30, 2025, were $1,238,895, slightly higher than $1,221,815 in the same period of 2024, representing an increase of 1.4%[28] - Fuel and purchased power expenses for the three months ended September 30, 2025, were $655,969, compared to $631,382 in the same period of 2024, indicating an increase of 3.9%[28] - Interest expense for the three months ended September 30, 2025, totaled $111,200, an increase from $98,024 in the same period of 2024, reflecting a rise of 13.3%[28] Future Outlook - The company is adjusting its 2025 consolidated earnings guidance upward to a range of $4.90 to $5.10 per diluted share, reflecting positive customer and sales growth[18] - For 2026, the estimated consolidated earnings are projected to be between $4.55 and $4.75 per diluted share on a weather-normalized basis[19] Infrastructure and Investment - The company plans to invest over $2.5 billion annually through 2028 for infrastructure upgrades, including a proposed natural gas power plant capable of adding up to 2,000 MW of generation capacity[11][12] Energy Demand and Consumption - APS set an all-time record peak demand of 8,631 megawatts in August 2025, marking the third consecutive year of record-breaking summer demand[5][7] - The average residential cooling degree-days in Q3 2025 were 9.1% higher than the historical 10-year averages, indicating increased energy consumption due to weather[4] Community Support and Sustainability - APS has provided $6.1 million in support for heat relief efforts in Arizona since 2021, including $3 million in additional funds for community assistance this year[15] - The company emphasizes its commitment to renewable energy and energy efficiency programs as part of its growth strategy[17] Company Overview - Pinnacle West has consolidated assets of nearly $30 billion and provides retail electricity service to approximately 1.4 million customers in Arizona[21] Shareholder Information - The weighted-average common shares outstanding - diluted for the three months ended September 30, 2025, were 121,956, compared to 117,119 for the same period in 2024, indicating an increase of 4.9%[28]