Pinnacle West reported strong Q3 2025 results, driven by robust sales growth across all customer classes, and raised its full-year 2025 EPS guidance significantly. Management highlighted accelerating demand from advanced manufacturing (TSMC, Amcor) and data centers, leading to increased capital investment plans and a raised long-term sales growth outlook. Raised 2025 EPS guidance to $4.90-$5.10 from $4.40-$4.60.
Pinnacle West reported strong Q3 2025 results, driven by robust sales growth across all customer classes, and raised its full-year 2025 EPS guidance significantly. Management highlighted accelerating demand from advanced manufacturing (TSMC, Amcor) and data centers, leading to increased capital investment plans and a raised long-term sales growth outlook. Raised 2025 EPS guidance to $4.90-$5.10 from $4.40-$4.60.
Management expressed confidence in growth trajectory, raised guidance, highlighted strong economic momentum and proactive investments, while acknowledging regulatory lag.
Management raised the capital plan through 2028 to drive 7-9% rate base growth, an increase from prior guidance, to fund strategic investments in transmission and natural gas generation, including the new Desert Sun Power Plant (up to 2,000 MW) and transmission projects…
Management raised the capital plan through 2028 to drive 7-9% rate base growth, an increase from prior guidance, to fund strategic investments in transmission and natural gas generation, including the new Desert Sun Power Plant (up to 2,000 MW) and transmission projects…
Guidance tone
Long-term sales growth forecast raised to 5-7% through 2030. Management expressed confidence in growth trajectory, raised guidance, highlighted strong economic momentum and proactive investments, while acknowledging regulatory lag.
Management raised the capital plan through 2028 to drive 7-9% rate base growth, an increase from prior guidance, to fund strategic investments in transmission and natural gas generation, including the new Desert Sun Power Plant (up to 2,000 MW) and transmission projects supporting growth and reliability. They also updated financing strategy with $1-1.2 billion equity forecast through 2028.
Management expressed confidence in growth trajectory, raised guidance, highlighted strong economic momentum and proactive investments, while acknowledging regulatory lag.
“The first phase is expected to be completed by mid-2027, with production beginning in early 2028. To support this growth, we're executing our plan for long-term investments in both transmission and baseload generation”
“We've rolled out an opportunity to subscription customers for 1.2 gigawatts, and we're actively working with those counterparties on their desired timing and ramp rate to be able to take advantage of that second phase.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2025 | $4.90–$5.10 | $5.00 | RAISED |
| EPS | FY2026 | $4.55–$4.75 | $4.65 | INITIATED |
Pinnacle West's load growth is increasingly driven by advanced manufacturing players, notably TSMC and Amcor, who are committing to specific in-service dates (2027-2028) for their facilities, creating a tight, predictable timeline for grid infrastructure investment. — This creates a near-term, fixed deadline for significant load interconnection, favoring utilities and infrastructure builders with projects already in motion.
“Taiwan Semiconductor reaffirmed its commitment to Arizona, accelerating production of two-nanometer wafers and advanced technologies.”
… largest microelectronic exhibition and conference, was held outside California for the first time in more than 50 years, with Phoenix being selected as the host city. Our region's economic momentum continues to accelerate. Site Selection Magazine recently named Maricopa County the top county in the nation for economic development in 2025. citing its success in attracting high-growth industries like semiconductors, data centers, and logistics. Taiwan Semiconductor reaffirmed its commitment to Arizona, accelerating production of two-nanometer wafers and advanced technologies. They also announced plans to acquire a second location in Phoenix to support their vision for a standalone gigafab cluster. Meanwhile, Amcor Technology broke ground on a $7 billion advanced semiconductor packaging and testing facility. which is an increased investment of $5 billion over their original plans. The first phase is expected to be completed by mid-2027, with production beginning in early 2028. To support this growth, we're executing our plan for long-term investments in both transmission and baseload generation, which are essential to secure a reliable grid for the long term. In Q2, we announced our …
Pinnacle West's new subscription model for large loads (1.2 GW tranche) is a demand-side signal, indicating that counterparties (likely hyperscalers) are signing on to specific capacity tranches, providing visibility into the ramp rate of their demand. — Subscription agreements serve as a real-time proxy for the expansion plans of large-load customers, who are likely the major semiconductor and data center players in the region.
line is live hey good morning team uh thanks for the time appreciate it and nicely done i gotta say again um look let me if i can kick it off here obviously the gas build is uh front and center here for you guys um good good progress how are you thinking about just eventually giving visibility on 29 and 30 um especially is what you've seen up here can you speak a little bit to the extent possible what that trajectory as you rolled it forward here would potentially look like in that context and Maybe speak a little bit more to the sequencing of getting this pipeline built in time and in service to align with what seems like a fairly tight timeframe altogether to build out this generation.
Yeah, Julian, thanks very much. And it all starts, and then Andrew can talk about the capital plan. You know, the pipeline is expected to be in service in 2029. We're staying very close to that project and remain confident in the milestones between here and there. And so, as you know, that was the first key step. Second step then is starting to announce some of the generation capacity projects that we've been working on. Desert Sun being the first major announcement and project that we would expect. And so, as we've said, we think about this in really two phases. The first phase is going to be necessary to support committed customers. That's a part of the four and a half gigawatts that we've already committed to and are building out to serve. And we'd expect to be able to have that phase in service in 2030. So still a healthy margin passed when the pipeline's in service, but a schedule that we're comfortable with meeting. Importantly, we've got all the key equipment secured, land interconnection is in place. So I think we're in a good spot to be able to deliver on that timeline. And then the second phase of that project, We've identified the opportunity to be able to serve our subscription customers with. We've rolled out an opportunity to subscription customers for 1.2 gigawatts, and we're actively working with those counterparties on their desired timing and ramp rate to be able to take advantage of that second phase. And that's one of the benefits of the subscription model is we can ensure that the delivery timeline of that second phase corresponds with the counterparty's ramp rate, and we make sure that Tad Piper- reliability is protected by keeping those two in sync both will of course take service from the new pipeline but we're comfortable with the timing and how that coincides with. Tad Piper- With the pipelines in service and will continue to monitor pipeline progress along the way and be prepared to adjust if needed, but we're comfortable with the timeline we've laid out. Andrew, you want to speak to the capital plan?