Xcel Energy(US:XEL) ZACKS·2026-02-05 17:45Core Insights - Xcel Energy Inc. (XEL) reported fourth-quarter 2025 operating earnings of 96 cents per share, slightly missing the Zacks Consensus Estimate of 97 cents, but showing an 18.5% increase from the previous year [1] - Total revenues for XEL were $3.56 billion, falling short of the Zacks Consensus Estimate of $3.72 billion by 4.4%, yet representing a 14.1% increase from $3.12 billion in the year-ago quarter [2] Financial Performance - The electric segment generated revenues of $2.8 billion, up 16.6% from $2.41 billion in the prior year [3] - Natural gas segment revenues increased by 6% to $737 million from $695 million year-over-year [3] - Total operating expenses rose by 7.5% year-over-year to $2.98 billion, driven by higher costs of natural gas sold, operating and maintenance expenses, and taxes [4] - Operating income surged by 67.1% year-over-year to $580 million [4] - Interest charges and financing costs increased by 26.3% from $319 million to $403 million [4] Customer Metrics - In 2025, Xcel Energy experienced a 0.7% growth in electric customer volume and a 0.8% increase in natural gas customer volume [5] - Natural gas sales volume decreased by 1.2%, while electric sales volume increased by 2.2% [5] - Xcel Energy's residential bills for electric and natural gas are 28% and 12% lower than the national average, respectively [5] Future Guidance - Xcel Energy reaffirmed its 2026 earnings per share guidance in the range of $4.04-$4.16, with the Zacks Consensus Estimate at $4.12 [6] - The company anticipates a 3% increase in retail electric sales and a 1% increase in natural gas sales volumes for 2026 [6] Long-term Strategy - Xcel Energy aims for long-term annual earnings per share growth of 6-8% and dividend growth of 4-6% [8] - The company plans to invest $60 billion from 2026 to 2030 to enhance its infrastructure, including adding 7,500 megawatts of renewable generation, 3,000 megawatts of natural gas generation, and 1,900 megawatts of energy storage [8]