Financial Data and Key Metrics Changes - The company reported earnings of $0.86 per share for Q3 2025, an increase from $0.71 per share in Q3 2024, reflecting a $0.15 increase year-over-year [15][16] - The earnings increase was primarily driven by $0.12 from higher distribution and transmission rates and $0.06 from favorable storm conditions [15][16] - The company reaffirmed its operating earnings guidance for 2025 at $2.64-$2.74 per share, aiming to deliver at the midpoint or better [6][16] Business Line Data and Key Metrics Changes - The operational performance of the utility companies ranked one, two, four, and seven among peers, improving from last year's rankings of one, three, five, and eight [7][8] - The company is on track for rate cases at Delmarva Power and Atlantic City Electric, with a new rate case filed at Pepco, Maryland [9][17] Market Data and Key Metrics Changes - The Illinois Clean and Reliable Grid Affordability Act was passed, supporting resource adequacy and expanding energy efficiency budgets [10][46] - Maryland initiated a request for merchant generator proposals for up to three gigawatts of new energy supply, although disclosed capacity levels fell short of targets [11][12] Company Strategy and Development Direction - The company aims to continuously improve operational performance while maintaining below-average rates for customers [8][24] - The focus is on leveraging technology and advocating for rate-making constructs that support efficient planning and investment [26][27] - The company is committed to working with states to address energy security needs and ensure reliable access to energy [12][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving the operating earnings guidance and highlighted the importance of addressing customer frustrations regarding high energy costs [34][35] - The company is focused on maintaining a strong balance sheet and delivering consistent growth and long-term value [22][27] Other Important Information - The company has issued $1 billion in debt, completing its planned long-term debt issuances for the year, supported by strong investor demand [19][20] - The company continues to advocate for favorable tax treatment to enhance its credit metrics [22] Q&A Session Summary Question: Thoughts on Maryland's RFP and competing options - Management commended Maryland for initiating the process but noted that the responses fell short of needs, emphasizing the focus on affordability and reliability [34][35] Question: Resource adequacy discussions in Pennsylvania - Management confirmed ongoing discussions with various stakeholders and expressed optimism about reaching agreements on long-term resource adequacy solutions [36][38] Question: Investment opportunities from new Illinois legislation - Management highlighted the potential for enhanced energy efficiency programs and the importance of investing in the grid to maintain reliability and support economic development [44][46] Question: Clarification on the ACE rate case - Management expressed confidence in reaching a settlement for the ACE rate case, emphasizing transparency and collaboration with stakeholders [60][62] Question: Updates on the large load pipeline and TSA agreements - Management provided insights into the implementation of transmission services agreements to solidify projects and protect customer interests [68][70]

Financial Data and Key Metrics Changes - Xcel Energy reported earnings of $0.75 per share for Q2 2025, an increase from $0.54 per share in Q2 2024, driven by higher revenue from electric and natural gas services and increased AFUDC [19][20] - Weather-normalized electric sales increased by 3.5% for the second quarter, with a full-year forecast of 3% growth [20] Business Line Data and Key Metrics Changes - The company invested $2.6 billion in resilient and reliable energy infrastructure during the quarter [6] - The capital plan was updated to include an additional $15 billion in capital investment to meet customer needs, primarily in Texas and New Mexico [10][12] Market Data and Key Metrics Changes - Strong energy demand is noted from the electrification of transportation, manufacturing, and home heating [9] - The company anticipates needing between 15 and 29 gigawatts of new generation capacity by 2031, with significant contributions expected from wind and solar [15] Company Strategy and Development Direction - Xcel Energy is focused on a $45 billion infrastructure investment forecast to meet increased energy demand and strengthen transmission and distribution systems [9] - The company is navigating a rapidly evolving energy policy landscape, with a focus on federal legislation impacting tax credits and permitting [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on earnings guidance for the 21st consecutive year, highlighting a strong track record in the industry [7] - The company is actively working through resource planning processes in Colorado, which may require significant new generation to meet reliability and customer demands [12] Other Important Information - Xcel Energy is making progress in wildfire risk mitigation, with significant investments approved for wildfire mitigation plans in Colorado and Texas [16][17] - The company has a strong balance sheet and credit metrics, maintaining a balanced mix of debt and equity to fund growth [26] Q&A Session Summary Question: CapEx upside and base capital plan - Management discussed the potential conversion of CapEx upside into the base capital plan, emphasizing transparency in the upcoming Q3 update [28][30] Question: Turbine procurement for gas generation - Management confirmed they have 19 turbine reservation slots to support upcoming projects, ensuring readiness for gas generation needs [36][37] Question: Impact of treasury order on renewable projects - Management indicated that they do not foresee significant impacts from the treasury order on their renewable projects, as they have already commenced physical construction [41][42] Question: Growth opportunities and equity needs - Management reiterated their strong balance sheet and commitment to a balanced mix of debt and equity for funding growth, with no interest in minority interest sales [92][93] Question: Marshall trial and settlement opportunities - Management confirmed they are prepared for the trial but remain open to settlement discussions [51][85] Question: Competitive transmission opportunities - Management stated they do not include competitive transmission projects outside their service territory in their capital plan [57][58] Question: Data center contracting progress - Management reported progress in contracting for data centers, with a robust pipeline and plans to reach 2.5 gigawatts by 2030 [60][61]

Financial Data and Key Metrics Changes - Revenue increased by 7% sequentially to $712 million, with growth in each end market sector led by gas utilities [9][25] - Adjusted gross profit margins were strong at 21.5%, above the target of 21% [10][29] - Adjusted EBITDA was $36 million, or 5.1% of sales, an improvement from the previous quarter [11][30] - Net income from continuing operations was $8 million, or $0.09 per diluted share, compared to a net loss in the previous quarter [30] Business Line Data and Key Metrics Changes - Gas utilities revenue was $273 million, an 8% increase driven by normalized buying patterns and increased capital budgets [26] - Diet sector revenue was $220 million, a 6% increase due to chemical project deliveries and mining activity [26] - PTI sector revenue was $219 million, an 8% increase attributed to U.S. midstream customer projects [26] Market Data and Key Metrics Changes - U.S. revenue was $591 million, a 9% increase, with all end market sectors improving [27] - International revenue was $121 million, down 1% due to reduced diet sector revenue [28] - The outlook for the international segment remains positive, expecting solid revenue growth for the fourth consecutive year [28] Company Strategy and Development Direction - The company is optimistic about the gas utilities business, forecasting strong demand growth and a significant backlog increase [12][34] - A $125 million share repurchase program has been initiated, reflecting confidence in financial strength [8][39] - The capital allocation strategy focuses on maintaining a healthy balance sheet, returning cash to shareholders, and investing in growth opportunities [9][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong sequential revenue improvement in the second quarter, despite macroeconomic uncertainties [23][24] - The gas utilities sector is expected to be resilient, with a backlog increase of 26% year-to-date [34] - The company is monitoring macroeconomic conditions closely, particularly regarding tariffs and oil prices, but has not seen significant changes in customer behavior [32][80] Other Important Information - The company generated $21 million of operating cash flow from continuing operations, reflecting strong working capital management [11][31] - Capital expenditures for the first quarter were $9 million, above historical averages due to ERP implementation [30][38] - The company targets operating cash flow of at least $100 million for 2025 [37] Q&A Session Summary Question: How is inflation tracking in the business today? - The tariff situation is dynamic, with significant impacts on steel and aluminum products, particularly from China [48][49] Question: Did inventory step up in the first quarter? - The company strategically increased inventory in anticipation of tariffs and to prepare for the year [53][54] Question: Any updates on opportunities in gas utilities? - The gas utilities business has returned to growth, with opportunities to increase market share and wallet share [55][56] Question: What is the outlook for the diet sector? - The diet sector backlog increased by 16%, primarily in refining and chemical spaces, with growth in mining initiatives [70][72] Question: How is the PTI business performing internationally? - The company projects growth in the PTI space internationally, particularly in the North Sea and Europe [88][89] Question: What is the impact of lower oil prices on upstream customers? - Lower oil prices may impact activity, but the customer base is resilient and not indicating significant budget reductions [80][81]