Dominion Energy(US:D)2026-02-23 17:00Financial Data and Key Metrics Changes - For the full year 2025, the company reported operating earnings of $3.42 per share, exceeding the midpoint of guidance, with GAAP earnings at $3.45 per share, which was higher than operating EPS [5][6] - The company achieved a significant credit result, with Moody's full-year CFO pre-working capital to debt nearly 100 basis points above the downgrade threshold, marking the highest result since 2012 [6] Business Line Data and Key Metrics Changes - The Coastal Virginia Offshore Wind project is over 70% complete, with first power expected to be delivered by the end of March 2026, and the project budget stands at $11.5 billion [20][21] - The company increased its 5-year total capital estimate from $50 billion to approximately $65 billion, representing a 30% increase, with over 90% of this increase occurring at Dominion Energy Virginia [10][11] Market Data and Key Metrics Changes - In 2025, weather-normal sales in the Dominion Energy Virginia LSE increased by 5.4%, indicating strong demand growth [9] - The average residential electric customer bills as a percentage of median household income improved by 7% and 29% more than the national average for Dominion Energy Virginia and Dominion Energy South Carolina, respectively, since 2014 [27] Company Strategy and Development Direction - The company focuses on three principal priorities: achieving financial commitments, major construction milestones for the Coastal Virginia Offshore Wind project, and constructive regulatory outcomes [4] - The long-term operating earnings per share growth guidance is reaffirmed at 5%-7% annually, with a bias towards the upper half of that range starting in 2028 [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of the business plan, highlighting both tailwinds and headwinds, but maintaining a conservative approach to financial planning [17] - The company anticipates continued strong demand growth driven by data centers, with over 48 GW in various stages of contracting as of December 2025 [29][30] Other Important Information - The company has launched a new online platform to help customers manage their electric bills and has various programs to assist customers facing higher costs [27][28] - The Virginia State Corporation Commission approved the Certificate of Public Convenience and Necessity for the Chesterfield Energy Reliability Center, expected to cost approximately $1.5 billion [34] Q&A Session Summary Question: EPS growth and CapEx increase - The management explained that the EPS growth guidance for 2026 considers the impact of reduced Section 45Z credits and conservatism in financial planning, particularly regarding Millstone [44][45] Question: Data center customer ramp-up - Management confirmed that data center expectations are based on historical performance and existing contracts, with a focus on actual demand rather than speculative inquiries [49][51] Question: CVOW project timeline and cost sensitivity - The management clarified that the majority of turbine installations are expected in 2026, with a cadence of approximately 2.25 days per installation, and discussed the financial implications of potential delays [61][63] Question: Utility capital plan and PJM transmission - Management confirmed that the PJM transmission projects are included in the capital plan, with a portfolio approach extending beyond 2030 [71][73] Question: Dividend payout considerations - The management acknowledged the trend of peers reducing payout ratios and indicated that they would consider this when making decisions about future dividend growth [75][76] Question: New nuclear technology evaluation - Management stated that they are still evaluating new nuclear technology and do not have capital allocated for small modular reactors in the current 5-year plan [77]