Pinnacle West Capital Corporation

PNW
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$1.1B
Q1 2026 · +1% YoY

Financial Snapshot


ticker: PNW step: 04 generated: 2026-05-13 source: quick-research

Pinnacle West Capital Corporation (PNW) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $4.32B $4.70B $5.13B +9.1%
Operating Margin ~16% ~16% ~18% +2pp
Net Income $484M $502M $609M +21.3%
EPS (diluted) $4.26 $4.41 $5.24 +18.8%

FY2025: TTM revenue ~$5.31B; guidance raised to $4.90–$5.10 adj. EPS (note: lower than FY2024 GAAP due to non-recurring items)

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$1.1B
Free Cash Flow -$575M (heavy capex cycle)
Capital Expenditures ~$1.7B
Cash & Equivalents ~$200M
Total Debt ~$7.5B

Note: Negative FCF is standard during high-capex rate base build; funded via debt and equity issuances.

Key Ratios (approximate)

  • P/E: ~17x (adj.) | EV/EBITDA: ~11x | Dividend Yield: ~4.0%
  • Revenue Growth (FY2024): +9.1% | Customer Growth: ~2.4% annually

Growth Profile

Revenue has grown ~9% annually from 2022–2024, driven by Arizona customer growth, rate base expansion, and favorable rate case outcomes. FY2024 EPS of $5.24 significantly beat the prior year on higher revenue and improved operational efficiency. The 2025 APS rate case filing (seeking $694M in additional revenue) is the key near-term earnings catalyst. Long-term load growth guidance raised to 5–7% annually through 2030 on AI/data center demand.

Forward Estimates

  • FY2025 adj. EPS guidance: $4.90–$5.10 (raised from initial range after strong Q3 2025)
  • FY2026 sales growth: 4–6% weather-normalized
  • Long-term sales growth: 5–7% through 2030 (data center + population)
  • Capital program 2025–2028: $10.35B (APS); $6B+ transmission through 2035
  • 2025 rate case revenue ask: $694M total / $611M net increase
  • Interconnection backlog: ~20 GW uncommitted load requests

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $PNW.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/pnw/financials/md · → thesis · → memo