Pinnacle West Lowers 2026 EPS Guidance to $4.55-$4.75, Below 2025 Actuals
PNW sits 17% above its 52-week low of $85.323.
Summary
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.
Key Events · Earnings and Guidance · PNW
-
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.
Analysis · PNW · Energy & Transportation
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.
At the time of this filing, PNW was trading at $100.05 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $12B. The 52-week trading range was $85.32 to $100.65. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.