Here’s What Lifted Xcel Energy (XEL) in Q3

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]