PNW reported strong Q1 2026 earnings of $0.27/sh, driven by record heat, solid rate-based transmission growth, and a growing customer base. Management emphasized robust demand from the semiconductor ecosystem and maintained its full-year sales growth guidance of 4-6%, with long-term guidance at 5-7%. Capex plans are on track, with subscription-model negotiations ongoing. Q1 EPS of $0.27 vs $0.04 loss a year ago, driven by weather, transmission, and lower O&M.
PNW reported strong Q1 2026 earnings of $0.27/sh, driven by record heat, solid rate-based transmission growth, and a growing customer base. Management emphasized robust demand from the semiconductor ecosystem and maintained its full-year sales growth guidance of 4-6%, with long-term guidance at 5-7%. Capex plans are on track, with subscription-model negotiations ongoing. Q1 EPS of $0.27 vs $0.04 loss a year ago, driven by weather, transmission, and lower O&M.
Management expressed confidence in growth and execution, citing strong customer and sales growth, positive rating agency conversations, and progress on key projects like TSMC and the rate case.
Q1 EPS of $0.27 vs $0.04 loss a year ago, driven by weather, transmission, and lower O&M.
Weather-normalized sales growth of 9.4% (adjusted 7.4%) significantly beats historical seasonality, underpinning load demand.
First quarter weather normalized sales growth was 7.4% after adjustment. Management expressed confidence in growth and execution, citing strong customer and sales growth, positive rating agency conversations, and progress on key projects like TSMC and the rate case.
First quarter weather normalized sales growth was 7.4% after adjustment. Management expressed confidence in growth and execution, citing strong customer and sales growth, positive rating agency conversations, and progress on key projects like TSMC and the rate case.
Management highlighted significant capital investment in grid expansion, generation (Red Hawk expansion adding 400 MW of gas capacity), and transmission to support Arizona's rapid growth, with a strong focus on reducing regulatory lag through the pending rate case. They also noted all 2026 equity funding needs are complete and they are pursuing future financing opportunistically.
Management expressed confidence in growth and execution, citing strong customer and sales growth, positive rating agency conversations, and progress on key projects like TSMC and the rate case.
“We had a one-time adjustment to sales growth during last year's first quarter. And if we take that into consideration, we would still have experienced strong weather normalized sales growth at 7.4% during Q1 of this year.”
“All of our equity funding needs for 2026 have been completed and we are opportunistically working towards future year needs.”
“Our overall queue size remains at an elevated level commensurate with what it was before... but these contracts are complex.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Units | FY2026 | 4%–6% | 5% | MAINTAINED |
| Units | FY2030 | 5%–7% | 6% | MAINTAINED |
Ancillary semiconductor suppliers are purchasing land in PNW's service territory, confirming broader supply chain momentum beyond TSMC.
“United Integrated Services Corp., Sunlit Chemicals, and Mornstar have all purchased land in North Phoenix.”
… the company's third fabrication facility, and TSMC has also begun construction on its fourth fab and first advanced packaging facility. with those facilities expected to come online by 2029. Importantly, the momentum extends well beyond TSMC. Activity across the semiconductor supply chain continues to intensify throughout the region, with key suppliers rapidly establishing and expanding their local footprints to support accelerated production timelines. United Integrated Services Corp., Sunlit Chemicals, and Mornstar have all purchased land in North Phoenix. At the same time, engineering firms, clean room specialists, electromechanical integrators, and equipment suppliers are increasing staffing levels and scaling operations across the valley. These investments demonstrate strong confidence in Arizona's economy and reinforce the sustained growth we are seeing across our service territory. Turning to operations, our focus remains on delivering top-tier reliability, strengthening grid resilience, and investing in the infrastructure and technology needed to serve our customers safely and efficiently. Across the company, we're using automation and advanced analytics to improve …
TSMC's accelerated fab buildout in Arizona (Fab 2 ramping, Fabs 3 & 4 underway) drives load growth for PNW and signals continued TSMC capex in the region.
“We are proud to support TSMC's accelerated expansion in Arizona and are working closely with the company on the infrastructure needed to power their growth.”
… first quarter earnings that support the financial guidance we provided in February. Before Andrew reviews the quarter in more detail, I'll highlight several operational, customer, and regulatory developments that underscore the momentum across our business. Arizona's diverse economy continues to expand at a strong and sustained pace, reinforcing the state's position as a national leader in semiconductor and advanced manufacturing. We are proud to support TSMC's accelerated expansion in Arizona and are working closely with the company on the infrastructure needed to power their growth. With its second fab complete, TSMC expects to begin volume production of three nanometer chips in the second half of next year. Construction is underway on the company's third fabrication facility, and TSMC has also begun construction on its fourth fab and first advanced packaging facility. with those facilities expected to come online by 2029. Importantly, the momentum extends well beyond TSMC. Activity across the semiconductor supply chain continues to intensify throughout the region, with key suppliers rapidly establishing and expanding their local footprints to support accelerated production …