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Xcel Energy Beats Q2 Earnings Estimates, Sales Miss, Adds Customers

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Key Takeaways

  • XEL posted Q2 EPS of 75 cents, up 38.9% year over year and 19.05% above the consensus estimate.
  • Earnings rose on better infrastructure recovery, offset partly by interest, O&M and depreciation costs.
  • XEL reaffirmed 2025 EPS guidance of $3.75 to $3.85 and plans $45B in infrastructure investments through 2029.

Xcel Energy Inc. (XEL - Free Report) reported second-quarter 2025 operating earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 63 cents by 19.05%. The bottom line also improved 38.9% from the year-ago quarter’s figure of 54 cents.
 
The year-over-year improvement in earnings per share was due to increased recovery of infrastructure investments, partially offset by higher interest charges, depreciation and O&M expenses.

It reported GAAP earnings of 75 cents per share compared with 54 cents in the year-ago quarter.

Total Revenues of XEL

Revenues of $3.28 billion missed the Zacks Consensus Estimate of $3.31 billion by 0.8%. However, the figure increased 8.6% from the year-ago quarter’s $3.02 billion.

Xcel Energy Inc. Price, Consensus and EPS Surprise

Xcel Energy Inc. Price, Consensus and EPS Surprise

Xcel Energy Inc. price-consensus-eps-surprise-chart | Xcel Energy Inc. Quote

XEL’s Segmental Results

Electric: This segment’s revenues totaled $2.87 billion, up 8.3% from $2.65 billion in the year-ago quarter.

Natural Gas: Revenues in this segment increased 11.5% to $396 million from $355 million in the year-ago quarter.

Other: Revenues amounted to $13 million compared with $14 million in the prior-year quarter.

Highlights of XEL’s Earnings Release

Total operating expenses increased 5.1% year over year to $2.71 billion. The increase in operating expenses was due to higher electric fuel and purchased power costs, and the cost of natural gas sold and transported. Operating income increased 28.5% year over year to $577 million.

Total interest charges and financing costs rose 6.3% from the prior-year quarter’s $303 million to $322 million.

In the first six months, Xcel Energy registered 2.7% growth in electric customer volume and a 0.4% decline in natural gas customer volume. In the second quarter, natural gas sales increased 0.9% from the year-ago period’s level, and electric sales volume increased 1%.

XEL’s Guidance

Xcel Energy reaffirmed its projection for 2025 earnings per share in the range of $3.75-$3.85. The Zacks Consensus Estimate is pegged at $3.81, a tad higher than the midpoint of the guided range of $3.80 per share.

XEL estimates retail electric sales to increase 3% in 2025. Natural gas sales volumes are anticipated to increase 1% from the year-ago level.

Xcel Energy plans to invest $45 billion in 2025-2029 to further strengthen its infrastructure.

XEL’s Zacks Rank

XEL currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2025 adjusted earnings of $1.05 per share, which beat the Zacks Consensus Estimate of $1.02 by 2.9%. The bottom line was also up nearly 9.4% year over year.

NEE’s long-term (three-to-five years) earnings growth rate is 7.89%. It delivered an average earnings surprise of 3.51% in the last four quarters.

American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2025 operating earnings per share (EPS) of $1.43, which beat the Zacks Consensus Estimate of $1.28 by 11.7%. The bottom line inched up 14.4% from $1.25 recorded in the year-ago quarter. 

AEP’s long-term earnings growth rate is 6.43%. It delivered an average earnings surprise of 6.61% in the last four quarters.

Exelon Corporation’s (EXC - Free Report) second-quarter 2025 earnings of 39 cents per share surpassed the Zacks Consensus Estimate of 37 cents by 5.4%. 

EXC’s long-term earnings growth rate is 6.34%. It delivered an average earnings surprise of 10.05% in the last four quarters.

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