Pinnacle West Q2 Earnings In Line With Estimates, Revenues Rise Y/Y

Core Insights - Pinnacle West Capital Corporation (PNW) reported second-quarter 2025 earnings of $1.58 per share, matching the Zacks Consensus Estimate but down from $1.76 per share in the same quarter last year [1][8] Total Revenues of PNW - Total sales for the quarter reached $1.36 billion, exceeding the Zacks Consensus Estimate of $1.26 billion by 7.5% and representing a 3.8% increase from $1.31 billion in the year-ago quarter [2][8] PNW's Operational Highlights - Total operating expenses amounted to $1.05 billion, reflecting a 6.1% year-over-year increase due to higher fuel and purchased power costs, increased operations and maintenance expenses, and higher depreciation and amortization [3] - Operating income was $307.6 million, down 1.9% from $313.7 million in the prior-year quarter [3] - Total interest expenses were $113.5 million, up 4.2% from $108.9 million in the previous year [3] PNW's Financial Highlights - As of June 30, 2025, cash and cash equivalents totaled $18.8 million, a significant increase from $3.84 million as of December 31, 2024 [4] - Long-term debt, less current maturities, stood at $8.51 billion compared to $8.06 billion as of December 31, 2024 [4] - Net cash flow from operating activities for the first half of 2025 was $663.3 million, up from $537.1 million in the same period last year [4] PNW's Guidance - The company expects consolidated earnings for 2025 to be in the range of $4.40-$4.60 per share, with the Zacks Consensus Estimate at $4.53, which is higher than the midpoint of the company's guidance [5] - Pinnacle West plans to invest $7.6 billion from 2025 to 2027 to enhance its operations [5] - Management anticipates a 1.5-2.5% increase in retail customers for 2025 [5] PNW's Zacks Rank - Pinnacle West currently holds a Zacks Rank 3 (Hold) [6]