--  Full-year financial results positively impacted by robust customer and 
      sales growth 
 
   --  Operating performance, customer reliability remain strong 
 
   --  Company continues prioritizing keeping bills as low as possible for 
      customers 
PHOENIX--(BUSINESS WIRE)--February 25, 2026-- 

Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income attributable to common shareholders of $616.5 million, or $5.05 per diluted share, for full-year 2025. This result compares with net income of $608.8 million, or $5.24 per diluted share, in 2024.

For the quarter ended Dec. 31, 2025, Pinnacle West reported consolidated net income attributable to common shareholders of $15.4 million, or $0.13 per diluted share, compared with a net loss of $6.8 million, or a loss of $0.06 per diluted share, for the same period in 2024.

The higher 2025 full-year results reflect an increase of about $8 million, primarily as a result of increased customer usage, customer growth and related pricing; higher transmission revenues; and impacts of the 2022 rate case, offset by the effects of weather; and higher net interest, pension and other post-retirement, operations and maintenance and amortization expenses.

"APS, our principal subsidiary, continues to experience significant customer and sales growth as more people move to Arizona, and businesses and commercial operations choose our service territory to locate and expand," said Pinnacle West Chairman, President and CEO Ted Geisler. "As a result, our 2025 earnings reflect this positive growth pattern and the significant investments being made to expand and reinforce the infrastructure needed to support the collective demand for electricity across our service territory."

APS experienced robust customer growth of 2.4% in 2025 and anticipates projected average annual growth in the range of 1.5% to 2.5% through 2030. Not surprisingly, these changes are driving a significant increase in energy consumption. APS also experienced weather-normalized, year-over-year retail electricity sales growth of 5.0% in 2025 (at the midpoint of projections). Over the next five years, future sales are expected to increase between 5% and 7% annually due in large part to the expected additions of several large commercial and manufacturing facilities.

Geisler highlighted how, even amid this remarkable growth, employees worked tirelessly to keep the lights on and air conditioners running throughout the year -- especially during Arizona's exceptionally intense 2025 summer, the third--hottest ever recorded.

"Our diverse generation fleet delivered high-level performance when our customers absolutely needed it most," he said. "APS customers set three all-time peak demand records -- each higher than the last -- and peak demand in 2025 rose more than 5% over the prior year. Even with the intense demand, our system continued to perform at a high level, placing APS among the top quartile of utilities nationwide for reliability."

Despite these strengths, Geisler said APS continues to earn well below its allowed return, underscoring the importance of constructive regulatory outcomes and timely investment recovery needed to serve one of the nation's fastest-growing regions, while at the same time working to ensure affordability remains a top priority for the company and its employees.

Keeping Bills as Low as Possible and Delivering Superior Customer Experience

"Amid national inflationary pressures, we are committed to keeping bills as low as possible for our customers. In 2025 alone, we expanded customer assistance programs, connecting Arizonans to about $70 million in annual support (most in the state) and reinforcing our commitment to protect households most in need," he said.

Additionally, since 2021, the company has provided more than $6 million for statewide heat-relief initiatives and helped sustain "211 Arizona," a service that helps residents access critical health, housing and human-services support.

These and other company-wide efforts helped provide a more seamless customer experience that was recognized by APS customers, as measured by two prominent market research firms, J.D. Power and Escalent. In 2025, APS earned first-quartile national rankings in the J.D. Power Business Customer Satisfaction Study and in its Utility Digital Experience Study for residential customers, respectively -- evidence of our work to elevate service, simplify customer interactions and modernize our systems. In a similar survey by market research firm Escalent, we ended the year in the first quartile among large IOUs for overall customer satisfaction among residential customers and second quartile among business customers.

Geisler emphasized that employees remain focused on delivering value by keeping costs in check, strengthening reliability, and raising customer satisfaction, positioning the company for a solid year in 2026.

Financial Outlook

For 2026, the Company continues to estimate its consolidated earnings will be within a range of $4.55 to $4.75 per diluted share on a weather-normalized basis. Key factors and assumptions underlying this outlook can be found in the year-end/fourth-quarter 2025 earnings presentation slides at pinnaclewest.com/investors.

Conference Call and Webcast

Pinnacle West invites interested parties to listen to the live webcast of management's conference call to discuss the Company's financial results and recent developments, and to provide an update on the company's longer-term financial outlook, at 11 a.m. ET (9 a.m. Arizona time) today, Feb. 25. The webcast can be accessed at pinnaclewest.com/presentations and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 131060. A replay of the call also will be available at pinnaclewest.com/presentations or by telephone until 11:59 p.m. ET, Wednesday, March 4, 2026, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 53534.

General Information

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of about $30 billion, about 6,200 megawatts of generating capacity and approximately 6,600 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to about 1.4 million Arizona homes and businesses. For more information about Pinnacle West, visit the company's website at pinnaclewest.com.

Dollar amounts in this news release are after income taxes. Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West's operating statistics and earnings, please visit pinnaclewest.com/investors.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to:

   --  our ability to achieve timely and adequate rate recovery of our costs 
      through our regulated rates and adjustor recovery mechanisms, including 
      returns on and of debt and equity capital investment; 
 
   --  the impacts of federal, state, and local laws, judicial decisions, 
      statutes, regulations, and FERC, NRC, EPA, ACC, and other agency 
      requirements, including as they are changed by legislative and regulatory 
      action as well as executive orders, such as those relating to tax, 
      environment, energy, nuclear plants, and deregulation of the retail 
      electric market; 
 
   --  our operation of Palo Verde is subject to substantial regulatory 
      oversight and potentially significant liabilities and capital 
      expenditures; 
 
   --  we are subject to numerous environmental laws and changes to existing 
      laws, or new laws, may increase our costs and impact our business; 
 
   --  the potential effects of climate change on our electric system, 
      including as a result of weather extremes, such as prolonged drought and 
      high temperature variations in the area where APS conducts its business, 
      as well as the impacts of policy and regulatory changes introduced to 
      address climate change; 
 
   --  co-owners of our jointly owned generation and transmission facilities 
      may have unaligned goals; 
 
   --  the willingness or ability of counterparties, participants, and 
      landowners to meet contractual or other obligations or extend the rights 
      for continued generation and transmission operations; 
 
   --  deregulation of the electric industry and other factors, such as large 
      customers developing large, utility scale generation to serve their 
      energy needs, may result in increased competition; 
 
   --  variations in demand for electricity, including those due to weather, 
      seasonality (including large increases in ambient temperatures), the 
      general economy or social conditions, customer and sales growth (or 
      decline), data center growth (or lack thereof), including to support the 
      AI industry, the effects of energy conservation measures and DG, and 
      technological advancements; 
 
   --  wildfires, including those arising as a result of climate change, 
      extreme weather events, or the expansion of the wildland urban 
      interface; 
 

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