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Earnings Per Share (EPS): $3.39 for Q3 2025, a $0.02 increase year over year.

2025 EPS Guidance: Raised to $4.90 to $5.10 per share from $4.40 to $4.60.

Weather-Normalized Sales Growth: 5.4% for Q3 2025.

Residential Sales Growth: 4.3% for Q3 2025.

Commercial & Industrial (C&I) Sales Growth: 6.6% for Q3 2025.

Year-to-Date Residential Sales Growth: 2%.

Customer Growth Guidance: Narrowed to the high end of 2% to 2.5% for 2025.

2026 EPS Guidance: $4.55 to $4.75 per share.

2026 Customer Growth Expectation: 1.5% to 2.5%.

2026 Sales Growth Forecast: Weather-normalized sales growth of 4% to 6%.

Long-term Sales Growth Range: Raised to 5% to 7% through 2030.

Rate Base Growth: Expected 7% to 9% through 2028.

Equity Forecast: $1 billion to $1.2 billion of Pinnacle West equity through 2028.

Long-term EPS Growth Guidance: 5% to 7% based on the midpoint of original 2024 guidance.

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Release Date: November 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Pinnacle West Capital Corp (NYSE:PNW) delivered strong operational and financial performance in Q3 2025, with a focus on strategic investments for sustainable growth.

The company revised its 2025 earnings guidance upwards, reflecting increased sales and transmission revenue.

Pinnacle West Capital Corp (NYSE:PNW) successfully managed record peak demand days, showcasing industry-leading reliability.

Arizona's economic growth, driven by major employers and population increase, supports robust sales growth for Pinnacle West Capital Corp (NYSE:PNW).

The company is making significant investments in transmission and baseload generation to support long-term growth and reliability.

Pinnacle West Capital Corp (NYSE:PNW) faced lower weather-driven sales compared to the previous year's Q3.

Higher interest expenses and reduced pension and OPEB benefits partially offset the gains from increased sales.

The company anticipates a decrease in earnings per share in 2026 due to projected normal weather and higher financing costs.

Regulatory lag remains a challenge, impacting the company's ability to achieve consistent earnings growth.

The need for significant capital investments in transmission and generation could lead to increased equity needs and potential dilution.

Q: Can you provide more details on the timeline and progress for the new gas build and pipeline project? A: Theodore Geisler, CEO, explained that the pipeline is expected to be in service by 2029, with the first phase of the Desert Sun project serving committed customers by 2030. The company is confident in meeting these timelines, having secured key equipment and land. The second phase will cater to subscription customers, aligning with their ramp rates.

Q: How is the subscription model progressing, and what is the status of the 1.2-gigawatt opportunity? A: Theodore Geisler noted active discussions with counterparties for the first tranche of the subscription model, which aligns with the development of Phase 2 of Desert Sun. The model is well-received, and the company is optimistic about serving the 20-gigawatt queue in their service territory.

Q: Can you clarify the equity needs for 2026-2028 and any potential mitigation strategies? A: Andrew Cooper, CFO, stated that 85% of the 2026 equity need is covered, with $1 billion to $1.2 billion forecasted through 2028. The company aims to minimize equity dilution by reducing regulatory lag and securing upfront cash from large load customers.

Q: What are the assumptions for transmission capital investment post-2028, and what drives the $6 billion-plus potential? A: Andrew Cooper explained that the $6 billion-plus reflects strategic transmission projects in their 10-year plan, with a baseline of $300 million to $400 million annually. The potential for $850 million annually includes both core and strategic transmission investments.

Q: How does the 4.5 gigawatts of committed customer demand break down, and does it include residential or small commercial growth? A: Theodore Geisler highlighted a balanced mix of industrial growth, such as chip manufacturing and data centers, alongside robust residential and small business growth. This diversified demand supports their growth strategy and infrastructure development.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.