Short answer
Pinnacle West Capital (PNW) filed its fiscal 2025 10-K annual report with the SEC on Feb 25, 2026. It reported revenue of $5.3B (+4.2% year over year) and net income of $617M.
- Top risk flagged: ACC/FERC dual regulatory exposure: ACC can reopen and modify final orders; FERC penalties up to ~$1.2M per day per violation under Energy Policy Act of 2005
FY2025 key financial metrics · XBRL
- Revenue
- $5.3B
- +4.2% YoY
- Net income
- $617M
- +1.3% YoY
- Operating margin
- 20.0%
- +0.2 pp YoY
- EPS (diluted)
- $5.05
- −3.6% YoY
- ROE
- 8.7%
- −0.3 pp YoY
- Operating cash flow
- $1.8B
- +12.1% YoY
Source: XBRL data from the Pinnacle West Capital (PNW) FY2025 10-K on SEC EDGAR. USD.
Pinnacle West Capital FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Arizona regulated electric utility holding company; ~$30B assets; APS serves ~1.4M customers across 11 of 15 Arizona counties
- Cholla coal plant ceased operations March 2025, formally retired April 30, 2025; 2025 Rate Case filed seeking recovery of ongoing Cholla environmental remediation costs
- APS committed to SPP Markets+ day-ahead market participation (FERC-approved Jan 2025), expected live October 2027; major western market expansion vs prior WEIM-only posture
- 2025 peak demand hit 8,648 MW (Aug 7), up from 8,210 MW in 2024; plans to add up to 2,000 MW of new flexible natural gas generation
- EPA finalized repeal of 2009 GHG "Endangerment Finding" Feb 18, 2026: directly undercuts regulatory foundation for carbon emission rules affecting APS's gas fleet buildout plans
Management Discussion & Analysis
- Revenue $5,340M in 2025 vs $5,125M in 2024, up $215M YoY; retail revenues 95% of total
- Net income $617M vs $609M, up $8M; operating margin data not explicitly stated in text
- Operating cash flow $1,805M vs $1,610M (+$195M); capex $2,378M investing outflows, rising ~$444M YoY
- Dividends $423M paid in 2025 at $3.60/share; no share buybacks; equity infusions to APS of $375M total
- 2025 Rate Case seeks $579.5M net base rate increase (~13.99%); capex guided $2,600M–$2,700M annually 2026–2028; tariff and wildfire risks flagged
Risk Factors
- ACC/FERC dual regulatory exposure: ACC can reopen and modify final orders; FERC penalties up to ~$1.2M per day per violation under Energy Policy Act of 2005
- Trump administration tariffs and 2025 U.S. Supreme Court ruling on IEEPA tariff validity creating cost uncertainty; supply chain delays compounding equipment procurement risks
- Palo Verde nuclear plant = ~18% of APS's owned/leased generation capacity; potential retrospective insurance premium of ~$24.2M and federal liability exposure up to $144.9M per nuclear incident
- AI/data center load growth highly uncertain; slower-than-projected ramp-up risk where 1% variation in residential/small commercial kWh sales shifts net income ~$25M annually
- Holding company structural subordination: Pinnacle West debt junior to all APS subsidiary obligations; APS must maintain minimum 40% common equity ratio per ACC financing order before paying dividends upstream
Generated from the filing text; verify against the original. How to read a 10-K
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