Pinnacle West Capital Corporation (PNW) Q1 2026 Financial Results Summary
· Stocks · QuoteReporter
Pinnacle West Capital Corp. (PNW) Q1 2026 Financial Results Summary
The financial results report for Pinnacle West Capital Corp. (NYSE: PNW) was released on May 4, 2025. Below is a summary of the company's performance for the first quarter of 2026.
Key Financial Highlights
- Net Income: Achieved a consolidated net income attributable to common shareholders of $32.9 million or $0.27 per diluted share.
- This marks a significant recovery compared to a net loss of $4.6 million, or $0.04 loss per diluted share, in Q1 2025.
- Operating Revenues: Increased to $1,149.6 million, a growth of 11.3% from $1,032.3 million in Q1 2025.
- Operating Income: Rose significantly to $131.2 million, with an increase of approximately 129% over $57.2 million in the same quarter last year.
- Total Operating Expenses: Reported at $1,018.4 million, up from $975.1 million in Q1 2025, marking an increase of 4.4%.
- Interest Expense: Increased to $115.9 million compared to $94.8 million a year prior, which is a rise of 22%.
Customer Metrics
- Customer Growth: Noted a 2.2% increase in customer growth, reflecting a strong economy in Arizona.
- Energy Usage: Weather-normalized sales grew by 9.4%, driven by increased energy requirements due to higher temperatures.
- Temperature Increase: Average daytime high and overnight low temperatures were 8.6% and 11.9% higher, respectively, compared to Q1 2025.
Weather Impact
The quarter experienced exceedingly high temperatures, making it Arizona’s hottest winter on record, influencing higher energy consumption among customers.
March 2026 featured 12.1 degrees above normal temperatures, leading to unprecedented air conditioner usage. March had nine days exceeding 100 degrees Fahrenheit, intensifying energy demand earlier than typical.
Planning and Reliability Measures
The company is focusing on summer preparedness towards peak demand periods, including wildfire mitigation strategies and infrastructure enhancements.
APS is actively securing additional energy resources and maintaining critical assets, such as the Palo Verde Generating Station, which is crucial for meeting summer demands.
Financial Projections
For the full year of 2026, the company estimates consolidated earnings will range between $4.55 and $4.75 per diluted share on a weather-normalized basis.
Dividend and Share Repurchase
The report did not mention any quarterly dividend or share repurchase.
Conclusion
In summary, Pinnacle West Capital Corp. experienced a turnaround in financial performance in Q1 2026, moving from a loss to a profitable quarter primarily driven by increased energy usage related to unusually warm weather conditions, robust customer growth, and successful operational management efforts. The company's future outlook remains positive with proactive measures for continued growth and reliability in service.
Note: All amounts in the following tables are in thousands.
| Three Months Ended | March 31, 2026 | March 31, 2025 |
|---|---|---|
| Operating Revenues | $1,149,597 | $1,032,280 |
| Fuel and purchased power | $436,729 | $380,071 |
| Operations and maintenance | $276,700 | $300,109 |
| Depreciation and amortization | $239,858 | $234,940 |
| Taxes other than income taxes | $61,972 | $59,354 |
| Other expense | $3,164 | $584 |
| Total | $1,018,423 | $975,058 |
| Operating Income | $131,174 | $57,222 |
| Allowance for equity funds used during construction | $14,782 | $13,249 |
| Pension and other postretirement non-service credits, net | $4,981 | $17,461 |
| Other income | -$2,740 | -$2,570 |
| Total | $21,005 | $31,098 |
| Interest charges | $125,759 | $104,943 |
| Allowance for borrowed funds used during construction | -$9,863 | -$10,102 |
| Total | $115,896 | $94,841 |
| Income (Loss) Before Income Taxes | $36,283 | -$6,521 |
| Income taxes (benefit) | $1,169 | -$6,183 |
| Net Income (Loss) | $35,114 | -$338 |
| Less: Net income attributable to noncontrolling interests | $2,194 | $4,306 |
| Net Income (Loss) Attributable To Common Shareholders | $32,920 | -$4,644 |
| Weighted-Average Common Shares Outstanding - Basic | 121,360 | 119,594 |
| Weighted-Average Common Shares Outstanding - Diluted | 123,778 | 119,594 |
| Earnings Per Weighted-Average Common Share Outstanding - Basic | $0.27 | -$0.04 |
| Earnings Per Weighted-Average Common Share Outstanding - Diluted | $0.27 | -$0.04 |
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| Cash and cash equivalents | $637,109 | $485,503 |
| Accounts receivable, net | $287,341 | $302,375 |
| Inventory | $66,082 | $58,076 |
| Other current assets | $81,907 | $70,111 |
| Total Current Assets | $1,072,439 | $916,065 |
| Property, plant and equipment, net | $5,272,782 | $5,295,801 |
| Regulatory assets | $55,878 | $55,878 |
| Investments in unconsolidated affiliates | $267,618 | $257,334 |
| Other long-term assets | $163,958 | $166,568 |
| Total Assets | $6,832,675 | $6,691,646 |
| Current portion of long-term debt | $204,867 | $630,916 |
| Accounts payable | $248,018 | $233,446 |
| Accrued liabilities | $198,312 | $178,225 |
| Other current liabilities | $90,177 | $124,835 |
| Total Current Liabilities | $741,374 | $1,167,422 |
| Long-term debt | $3,039,851 | $2,741,766 |
| Regulatory liabilities | $65,399 | $65,399 |
| Deferred income taxes | $258,991 | $260,081 |
| Other long-term liabilities | $45,712 | $50,234 |
| Total Liabilities | $4,130,327 | $4,276,812 |
| Common stock and additional paid-in capital | $2,159,683 | $2,161,393 |
| Retained earnings | $547,759 | $294,931 |
| Accumulated other comprehensive income | -$4,556 | -$5,578 |
| Total Equity | $2,702,348 | $2,414,834 |
| Total Liabilities and Equity | $6,832,675 | $6,691,646 |
Disclaimer
The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.