Pinnacle West Lowers 2026 EPS Guidance to $4.55-$4.75, Below 2025 Actuals

summarizeSummary

Pinnacle West Capital Corp. reported mixed Q4 and full-year 2025 results, but issued 2026 EPS guidance of $4.55-$4.75, which is notably lower than its 2025 actual diluted EPS of $5.05.

check_boxKey Events

• 2026 EPS Guidance Lowered

  The company projects 2026 diluted EPS in the range of $4.55 to $4.75, with a midpoint of $4.65. This is approximately 7.9% lower than the $5.05 diluted EPS reported for full-year 2025.

• Mixed 2025 Financial Results

  Full-year 2025 diluted EPS decreased to $5.05 from $5.24 in 2024, despite an increase in net income, primarily due to higher outstanding shares. Q4 2025 saw a net income of $15.4 million ($0.13 diluted EPS) compared to a net loss of $6.8 million ($-0.06 diluted EPS) in Q4 2024.

• Strong Customer and Sales Growth

  APS, the principal subsidiary, experienced 2.4% customer growth and 5.0% weather-normalized retail electricity sales growth in 2025, with projections for continued robust growth through 2030.

• Significant Capital Investment Plans

  Pinnacle West plans $10.35 billion in capital investments from 2025-2028 to support growth and reliability, including new gas generation and strategic transmission projects.

auto_awesomeAnalysis

The company's 2026 earnings per share guidance, with a midpoint of $4.65, represents a significant decrease from the $5.05 diluted EPS reported for full-year 2025. This downward revision in outlook, despite strong customer and sales growth, suggests increased operational costs, higher interest expenses, and potential dilution from financing plans are impacting profitability. Investors may react negatively to the lowered guidance, especially as the stock is currently trading near its 52-week high. The company's substantial capital investment plans and ongoing rate case application will be key factors to monitor for future performance.