Pinnacle West Reports Strong 2024 Full-Year Results Amid Rising Retail Revenue

Pinnacle West Capital Corp. (NYSE: PNW) announced robust full-year 2024 performance with net income attributable to common shareholders climbing to $608.8 million, or $5.24 per diluted share, compared with $501.6 million, or $4.41 per diluted share, in 2023. The improved profitability was driven by factors such as the implementation of new customer rates, increased customer usage, enhanced energy consumption during an exceptionally hot summer, and favorable outcomes from regulatory mechanisms.

For the quarter ended December 31, 2024, however, the utility reported a consolidated net loss attributable to common shareholders of $6.8 million, or $0.06 per diluted share, compared with a slight loss of $23,000 reported in the same quarter in 2023. The full-year earnings increase of approximately $107 million primarily reflected higher revenue growth, but was partly offset by increased expenses in operations and maintenance, depreciation and amortization, interest charges, and income taxes.

Pinnacle West emphasized that improved operational performance across its service territory contributed significantly to these results. “Our employees once again did an excellent job running and maintaining the electric grid and ensuring that our 1.4 million customers received the reliable electrical service they expect from us,” said Chairman, President and CEO Jeff Guldner. He added that the strong year-end earnings supported the company’s ongoing substantial investments in infrastructure to accommodate the growing energy needs of its customers.

Arizona Public Service (APS), the company’s principal subsidiary, also reported positive trends with annual retail customer growth reaching 2.1% and weather-normalized retail electricity sales expanding by 5.7% for the year. This growth reflects an evolving customer mix that is increasingly diversified, with a notable rise in commercial and industrial demand from new semiconductor manufacturing facilities and expanding data center operations. APS anticipates an average annual customer growth ranging from 1.5% to 2.5% through 2027.

The utility is preparing to meet the surging demand by adding 9,805 megawatts (MW) of renewable power, battery storage, and natural gas between 2025 and 2028. Over 90% of these additions are expected to be carbon-free. Key projects include power purchase agreements for more than 3,300 MW of solar and significant battery storage developments, as well as expanded wind power and increased capacity at existing natural gas-fired plants. APS highlighted that the continued strong performance of its core generating facilities, including the Palo Verde Generating Station, reinforces its commitment to a clean and reliable energy future.

Customer satisfaction efforts remained a key priority throughout 2024. APS recently introduced a redesigned customer bill aimed at enhancing personalization and helping customers better understand and manage their energy usage. These initiatives, coupled with expanded energy support programs and enhanced crisis assistance, contributed to improved J.D. Power ratings for both business and residential customer segments—the highest residential ranking since 2016.

Looking ahead, the company provided a financial outlook for 2025, estimating consolidated earnings in the range of $4.40 to $4.60 per diluted share on a weather-normalized basis. APS and Pinnacle West plan to continue delivering reliable service while investing in infrastructure and renewable energy projects to support the long-term growth and sustainability of its expanding service territory.

A live webcast conference call discussing these results and providing an outlook for the future was held on February 25, 2025, offering further insight into the company’s strategic priorities and operational performance.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Pinnacle West Capital’s 8K filing here.

Pinnacle West Capital Company Profile

Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables.