PNW · Pinnacle West Capital Corporation

Pinnacle West Capital Corporation delivered a strong Q1 2026 performance with consolidated net income attributable to common shareholders of $32.9 million, or $0.27 per diluted share, reversing a $4.6 million loss or $(0.04) per share from Q1 2025. Key drivers included operating revenues of $1.15 billion, up from $1.03 billion, primarily from higher transmission revenues, lower operations and maintenance expenses, favorable weather effects, and customer growth with 2.2% increase underscoring Arizona's robust economy. Weather played a pivotal role, with daytime highs 8.6% and overnight lows 11.9% higher than prior year, including Arizona's hottest February and record March heat prompting early air conditioning use. Positive factors were partially offset by higher interest charges, income taxes, and depreciation. CEO Ted Geisler highlighted exceeded expectations due to warmer-than-normal conditions and emphasized summer reliability preparations, including wildfire mitigation, Palo Verde maintenance, and infrastructure additions. The company reaffirmed its 2026 weather-normalized EPS guidance of $4.55 to $4.75, supported by 1.5%-2.5% retail customer growth, 4.0%-6.0% weather-normalized sales growth (including large manufacturing and data centers), flat core O&M, and transmission revenue growth, offset by higher depreciation, financing costs, and no repeat of 2025 El Dorado gain. Long-term EPS growth target remains 5%-7% from 2024 midpoint, with sales growth of 5%-7% through 2030. Capital plans project rate base expansion to $15.7B by 2028, backed by optimized financing maintaining investment-grade ratings.