Overview

* Pinnacle West Q3 net income rises to $413.2 mln, driven by customer growth and usage

* Adjusted EPS for Q3 beats analyst expectations

* Company plans new natural gas plant to support future energy needs

Outlook

* Company raises 2025 earnings guidance to $4.90-$5.10 per share

* Company estimates 2026 earnings at $4.55-$4.75 per share

Result Drivers

* CUSTOMER GROWTH - Increased customer usage and growth drove Q3 results, supported by Arizona's rapid population growth and record summer heat

* LOWER COSTS - Lower operations and maintenance expenses contributed positively to Q3 results

* WEATHER IMPACT - Despite lower temperatures compared to last year, energy consumption rose due to higher-than-average temperatures

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $1.82

Operatin bln

g

Revenue

Q3 EPS Beat $3.39 $3.11

(10

Analysts

)

Q3 Net $417.51

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electric utilities peer group is "buy"

* Wall Street's median 12-month price target for Pinnacle West Capital Corp ( PNW ) is $97.00, about 8.7% above its October 31 closing price of $88.52

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)