Pinnacle West Capital (PNW) FY2025 results: revenue $5.3 billion, up 4.2% on the year

Pinnacle West is an investor-owned electric utility holding company based in Phoenix, Arizona. Its principal subsidiary is APS, which the filing says has provided energy and energy-related products throughout Arizona since 1886, is Arizona's largest and longest-serving electric company, and generates electricity in 11 of Arizona's 15 counties. Its other active subsidiaries are El Dorado and PNW Power. It has one reportable business segment, regulated electricity, covering the regulated retail and wholesale electricity businesses and the generation, transmission and distribution behind them.

APS provides electric service to approximately 1.4 million customers. It owns or leases 6,257 MW of regulated generation capacity and holds a mix of long-term and short-term power purchase agreements for more.

The plants

Nuclear comes from the Palo Verde Generating Station, a three-unit plant approximately 50 miles west of Phoenix. APS operates it and owns 29.1 percent of Units 1 and 3 and approximately 23.9 percent of Unit 2, leasing a further 5.2 percent of that unit to reach a combined 29.1 percent interest in it. Its total entitlement from Palo Verde is 1,146 MW. The renewed operating licences run to June 2045 for Unit 1, April 2046 for Unit 2 and November 2047 for Unit 3. The remaining Unit 2 lease expires in 2033, after APS bought two of the three leased interests during 2025.

APS has six natural gas power plants across Arizona at Redhawk, Ocotillo, Sundance, West Phoenix, Saguaro and Yucca, several units at Yucca running on either gas or oil, plus two oil-only plants at Douglas and Yucca GT-4. Its total entitlement from these plants is 3,722 MW. It owns and operates all of them except two units at Yucca that it operates for the Imperial Irrigation District. Some of the gas is financially hedged up to three years ahead and converted to a physical purchase a month before delivery, under long-term transportation agreements with three companies, some running through 2052. Fuel oil is bought on short-term purchases delivered by truck to the plants.

Four Corners, in the northwestern corner of New Mexico, was originally a five-unit plant; Units 1, 2 and 3 were retired in December 2013, and APS operates the plant and owns 63 percent of Units 4 and 5, for a total entitlement of 970 MW. Its coal comes from a mine owned by a company formed by the Navajo Nation, under a long-term agreement running from July 2016 through 2031, amended and restated in July 2024, and the plant's leasehold interest on Navajo Nation land was extended to 2041. Since June 2021 the owners have had the option to run Four Corners seasonally, shutting one unit in the winter and spring, and APS has elected not to begin seasonal operation because of market conditions. At Cholla in northeastern Arizona, APS ceased coal-burning operations in March 2025 and formally retired Units 1 and 3 on 30 April 2025. The Navajo Plant, in which APS held a 14 percent interest, ceased operations in November 2019.

Planning what comes next

Every three years APS performs an integrated resource plan, a study identifying the resources needed to meet customer demand over the next 15 years. The latest was released in 2023 and the next is due to be filed with the Arizona utility regulator in August 2026. To help ensure competitive costs for resources it regularly issues competitive bid solicitations, the most recent in 2025, open to bids for all resource types, both customer-scale behind the meter and utility-scale in front of it.

From the June 2023 round APS procured 3,606 MW of battery storage, 2,649 MW of solar, 517 MW of natural gas and 500 MW of wind, expected in service from 2026 to 2028. From the November 2024 round it signed an amendment extending an existing gas tolling agreement to 600 MW from 2027, with the term running to 2038.

The portfolio spans biomass, biogas, coal, energy storage, geothermal, natural gas, solar and wind. In 2025 approximately 58 percent of the energy supply came from clean resources, counting nuclear, renewables, demand-side management and power purchase agreements with clean resources. APS has an aspirational goal to be carbon-neutral by 2050, which it defines as aiming to offset elsewhere any emissions its generation still produces in that year.

The filing says wildfire safety remains a critical focus, and that APS has increased investment in fire mitigation to clear defensible space around its infrastructure, continue system upgrades, build partnerships with government entities and first responders, and educate customers and communities. The filing says APS intends to harden its infrastructure in order to improve resiliency against extreme weather events and other disruptions, and that it anticipates increasing investments in a modern and more flexible electricity grid with advanced distribution technologies.

From Pinnacle West Capital's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 25 February 2026: read the full 10-K.