Pinnacle West Reports 2025 Third-Quarter Financial Results
PHOENIX--( BUSINESS WIRE)-- Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income attributable to common shareholders for the 2025 third quarter of $413.2 million, or $3.39 per diluted share of common stock. This result compares with consolidated net income of $395.0 million, or $3.37 per share of common stock, for the same period a year ago. However, through the first three quarters of the current year, the company’s earnings were 2.4% lower than in the first nine months of 2024.
The 2025 third-quarter results reflect an increase of about $18 million compared to the 2024 third quarter, primarily as a result of increased customer usage, customer growth and related pricing; higher transmission service revenues; lower operations and maintenance expenses; higher AFUDC; lower depreciation and amortization expenses mostly due to operations ceasing at Cholla, partially offset by increased plant additions and intangible assets. These positive factors were partially offset by the unfavorable impacts of weather effects versus the same period a year ago; higher interest charges; lower pension and other post-retirement non-service credits; higher income taxes due to higher pre-tax income and lower tax credits.
“Driven by one of the fastest-growing service territories in the country and the third-hottest Arizona summer on record, we experienced an increase in retail sales that helped contribute to solid third-quarter financial results,” said Pinnacle West Chairman, President and Chief Executive Officer Ted Geisler. “In addition, our employees continued to do what they do best: maintaining reliable electric service for our 1.4 million customers. Our diverse generation fleet – including critical baseload generating plants like Palo Verde and Four Corners – performed well, ensuring we met our customers’ energy needs.”
Providing Reliable Power Amid Record Growth and Demand
In addition to robust customer growth of 2.4% and weather-normalized sales growth of 5.4% (largely boosted by residential sales growth of 4.3%) during the quarter, weather variations also spurred an increase in customers’ energy consumption. While the average high and low temperatures were lower during the 2025 third quarter compared to last year’s record-setting third quarter, both periods recorded temperatures well over historical averages. As a result, the number of residential cooling degree-days (a utility’s measure of the effects of weather) in this year’s third quarter was 9.1% higher than historical 10-year averages.
On August 7, Arizona Public Service (APS) customers set an all-time record peak demand of 8,631 megawatts (MW), the third time this summer that demand surpassed the previous record set in 2024. These milestones mark the third consecutive year of record-breaking summer demand and underscore the strength of APS’s careful, long-term planning for adequate resources, combined with equipment maintenance programs and innovative customer demand side programs.
Arizona’s rapid population and economic growth further reinforce the importance of APS’s reliability and resiliency efforts. According to the U.S. Census Bureau, annual population gains in Maricopa County (home of the Phoenix metropolitan area) are among the highest in the United States since 2016.
Arizona’s business climate is equally strong. Site Selection Magazine recently named Maricopa County the top U.S. region for economic development, fueled in part by Phoenix’s tech momentum and advanced manufacturing boom. And, according to CBRE’s 2025 Scoring Tech Talent Report, Phoenix is now among the top 20 tech markets in North America.
Planning Ahead for Arizona’s Energy Future
As more people and businesses choose to move to Arizona, Geisler said the company remains focused on delivering safe, reliable and resilient energy to power the state’s future – supporting customers, communities and the economy, alike.
APS intends to invest more than $2.5 billion annually through 2028 for infrastructure additions and upgrades. In addition to already planned distribution and transmission improvements, last week APS announced plans for a proposed natural gas power plant site, that would be built near Gila Bend, Ariz., capable of adding up to 2,000 MW of reliable and flexible generation to APS’s system.
The Desert Sun Power Plant would support increasing energy needs from existing customers, as well as addressing unprecedented requests from extra-large energy users, such as data centers and manufacturers. The plant is expected to be completed in two phases.
Phase One (expected to enter service by late-2030) would support existing customers, plus new residential and business customers outside of the extra-large segment. Phase Two is earmarked for new, extra-large energy users and would be paid for by those customers through APS’s proposed subscription model, part of the company’s “growth pays for growth” strategy. This approach helps ensure that extra-large energy users pay for infrastructure they need without compromising reliability and affordability for the families and businesses that also count on APS for energy.
“Natural gas plays a vital role in providing around-the-clock reliability, especially during peak hours when solar and wind resources are unavailable,” said Geisler. “It is a critical component in our portfolio of diverse energy resources that ensures our customers have the reliable energy they need to live comfortably and do business in Arizona, while also keeping customer bills as low as possible.”
Focus on Community Resilience and Financial Support
While APS’s infrastructure investments help ensure the grid will meet Arizona’s growing energy needs, Geisler added that the company’s commitment goes beyond reliability.
“While summer has ended and temperatures have begun to cool off, some of our customers continue to face economic hardships that make it a challenge to pay their bills or make repairs to vital heating and cooling equipment,” he said. “As a result, we are partnering with community nonprofits that can provide much-needed assistance directly to our customers who need it most.”
APS is expanding community support efforts this year by granting an additional $3 million in shareholder funds to nonprofit organizations that provide utility bill assistance, air conditioner repair and replacement and housing support across Arizona. “Altogether, since 2021, our company has provided $6.1 million to support heat relief efforts in Arizona, inclusive of this contribution and previously pledged $2.5 million for crisis bill assistance this year alone,” Geisler added.
These efforts are part of a broader, ongoing collaboration between APS and groups like St. Vincent de Paul, AllThrive 365, Chicanos Por La Causa, the American Red Cross, Maricopa County Human Services and Wildfire to help Arizonans in need.
APS also remains committed to providing cost-effective demand-side management, energy efficiency and renewable energy programs that help customers manage their energy use and reduce their impact on the grid. These initiatives – which help reduce overall energy demand and support clean energy development – remain at the heart of APS’s growth strategy.
“As we look ahead, our employees remain focused on powering Arizona’s future with infrastructure that’s built to withstand challenges, adapt to growth and support the evolving needs of our customers and communities,” Geisler stated. “By investing in both infrastructure and community partnerships, APS is helping power Arizona now and into the future.”
Financial Outlook
Given the positive customer and sales growth and impact of weather and through the first three quarters of the year – partially offset by higher than previously forecasted operations and maintenance expenses – the company is adjusting its 2025 consolidated earnings guidance upward to a range of $4.90 to $5.10 per diluted share.
Looking forward, the Company estimates its 2026 consolidated earnings will be within a range of $4.55 to $4.75 per diluted share on a weather-normalized basis.
Key factors and assumptions underlying the 2025 and 2026 outlook can be found in the third-quarter 2025 earnings presentation slides at pinnaclewest.com/investors.
Conference Call and Webcast
Pinnacle West invites interested parties to listen to the live webcast of management’s conference call to discuss the Company’s financial results and recent developments, and to provide an update on the company’s long-term financial outlook, at 11 a.m. ET (9 a.m. Arizona time) today, Nov. 3. The webcast can be accessed at pinnaclewest.com/presentations and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 502381. A replay of the call also will be available at pinnaclewest.com/presentations or by telephone until 11:59 p.m. ET, Monday, Nov. 10, 2025, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 53038.
General Information
Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of nearly $30 billion, about 6,500 megawatts of generating capacity and approximately 6,400 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to about 1.4 million Arizona homes and businesses. For more information about Pinnacle West, visit the company’s website at pinnaclewest.com.
Dollar amounts in this news release are after income taxes. Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West’s operating statistics and earnings, please visit pinnaclewest.com/investors.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to:
These and other factors are discussed in the most recent Pinnacle West/APS Form 10-K and 10-Q along with other public filings with the Securities and Exchange Commission, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law.
2025
2024
2025
2024
$
1,820,741
$
1,768,801
$
4,211,772
$
4,029,507
655,969
631,382
1,513,048
1,426,418
299,617
308,061
886,331
837,905
224,555
229,450
688,388
664,761
58,416
52,777
175,421
170,592
338
145
1,964
2,306
1,238,895
1,221,815
3,265,152
3,101,982
581,846
546,986
946,620
927,525
17,671
9,588
45,687
28,790
2,777
12,188
9,427
36,633
12,473
6,774
42,038
43,234
(8,159
)
(4,013
)
(14,988
)
(14,580
)
24,762
24,537
82,164
94,077
125,179
109,925
343,649
318,590
(13,979
)
(11,901
)
(35,640
)
(36,078
)
111,200
98,024
308,009
282,512
495,408
473,499
720,775
739,090
77,894
74,227
106,729
110,539
417,514
399,272
614,046
628,551
4,306
4,306
12,918
12,918
$
413,208
$
394,966
$
601,128
$
615,633
119,623
113,729
119,578
113,682
121,956
117,119
121,861
115,717
$
3.45
$
3.47
$
5.03
$
5.42
$
3.39
$
3.37
$
4.93
$
5.32