On February 25, 2025, Pinnacle West Capital Corp (PNW, Financial) released its 8-K filing, detailing its financial performance for the full year and fourth quarter of 2024. Pinnacle West, a holding company with Arizona Public Service (APS) as its principal subsidiary, serves 1.4 million customers across central Arizona, including Phoenix. APS owns or leases over 6 gigawatts of power generation capacity, with a significant portion coming from clean energy sources, including a 29% stake in the Palo Verde nuclear plant.
Pinnacle West Capital Corp (PNW, Financial) reported a consolidated net income attributable to common shareholders of $608.8 million, or $5.24 per diluted share, for the full year 2024. This result exceeded the annual estimated earnings per share of $5.06. However, for the fourth quarter, the company reported a net loss of $6.8 million, or $0.06 per diluted share, which was better than the estimated loss of $0.16 per share.
The company's annual performance was bolstered by new customer rates, a 5.7% growth in retail sales, and an exceptionally hot summer, which increased retail revenue. The annual retail customer growth was a robust 2.1%. However, these gains were partially offset by higher operations and maintenance expenses, increased depreciation and amortization, higher interest charges, and lower transmission revenues.
Our strong year-end earnings not only reflect this outstanding operational performance, but the results are consistent with a fast-growing service territory and us making the substantial infrastructure investments needed to meet the energy requirements of all our customers, now and in the future," said Pinnacle West Chairman, President and CEO Jeff Guldner.
| Metric | 2024 | 2023 |
|---|---|---|
| Operating Revenues | $5,124.9 million | $4,696.0 million |
| Operating Expenses | $4,112.9 million | $3,871.4 million |
| Net Income Attributable to Common Shareholders | $608.8 million | $501.6 million |
| Earnings Per Share (Diluted) | $5.24 | $4.41 |
APS, the company's principal subsidiary, experienced a 2.1% customer growth in 2024 and anticipates an average annual growth of 1.5% to 2.5% through 2027. The company plans to add 9,805 megawatts of renewable power, battery storage, and natural gas to the grid between 2025 and 2028, with over 90% being carbon-free. This expansion is crucial to meet the increasing energy demand driven by economic growth and new industrial developments in Arizona.
Our customer base, which for decades leaned heavily residential, is now more diversified than ever before," APS President Ted Geisler said. "A dramatic increase in commercial and industrial customers in our service territory is leading to incredible economic growth and triggering a historic wave of demand for electricity in our state."
Pinnacle West Capital Corp (PNW, Financial) demonstrated strong annual financial performance, surpassing analyst estimates, driven by strategic rate adjustments and increased customer usage. However, the company faced challenges in the fourth quarter, resulting in a net loss. Looking forward, Pinnacle West's strategic investments in renewable energy and infrastructure are poised to support its growth trajectory and meet the rising energy demands of Arizona's expanding economy.
Explore the complete 8-K earnings release (here) from Pinnacle West Capital Corp for further details.
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