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Pinnacle West Tops Q3 Earnings & Revenues, '25 EPS View Raised

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Key Takeaways

  • Pinnacle West posted Q3 EPS of $3.39, topping estimates and rising 0.6% year over year.
  • Revenue grew 2.9% to $1.82B, exceeding expectations by 5.2%.
  • 2025 EPS view raised to $4.90-$5.10, with $8B investments planned for 2026-2028.

Pinnacle West Capital Corporation (PNW - Free Report) reported third-quarter 2025 earnings of $3.39 per share, which beat the Zacks Consensus Estimate of $3.04 by 11.5%. The bottom line also increased 0.6% from $3.37 in the year-ago quarter.

PNW’s Revenues

Sales for the quarter totaled $1.82 billion, which surpassed the Zacks Consensus Estimate of $1.73 billion by 5.2%. The top line also increased 2.9% from $1.77 billion recorded in the year-ago quarter.

PNW’s Operational Highlights

Total operating expenses were $1.24 billion, up 1.4% year over year. This was due to higher fuel and purchased power expenses.

Operating income totaled $581.8 million, up 6.4% from $547 million recorded in the year-ago quarter.

Total interest expenses were $125.2 million, up 13.9% from $109.9 million registered in the prior-year period.

PNW’s Financial Highlights

As of Sept. 30, 2025, cash and cash equivalents totaled $30.9 million compared with $3.8 million as of Dec. 31, 2024.

As of Sept. 30, 2025, long-term debt-less current maturities amounted to $9.20 billion compared with $8.06 billion as of Dec. 31, 2024.

Net cash flow provided by operating activities in the first nine months of 2025 totaled $1.33 billion compared with $1.17 billion in the year-ago period.

PNW’s Guidance

The company raised its 2025 consolidated earnings to the range of $4.90-$5.10 per share from the previous range of $4.40-$4.60 per share. The Zacks Consensus Estimate for the same is pegged at $4.56, lower than the company’s guided range.

Management now expects its retail customers to increase by 2-2.5% in 2025.

Pinnacle West plans to invest $8 billion in the 2026-2028 period to further strengthen its operations.

The company expects 2026 consolidated earnings to be in the range of $4.55-$4.75 per share on a weather-normalized basis. The Zacks Consensus Estimate for the same is pegged at $4.66, a tad higher than the midpoint of the company’s guided range.

PNW’s Zacks Rank

Pinnacle West currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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