Pinnacle West beat on Q2 earnings ($1.43) and reported strong load growth of 9.6%, supported by a robust tech and semiconductor ecosystem. Guidance was maintained for the full year, with expectations to hit the top end of the EPS range. Q2 EPS of $1.43, compared to $1.58 previously.
Pinnacle West beat on Q2 earnings ($1.43) and reported strong load growth of 9.6%, supported by a robust tech and semiconductor ecosystem. Guidance was maintained for the full year, with expectations to hit the top end of the EPS range. Q2 EPS of $1.43, compared to $1.58 previously.
Management expressed strong confidence in growth prospects, highlighted record demand, robust sales growth, and constructive regulatory progress, while maintaining guidance at the top end of the range.
TSMC's additional $100B investment brings total to $265B, driving significant load growth. Management expressed strong confidence in growth prospects, highlighted record demand, robust sales growth, and constructive regulatory progress, while maintaining guidance at the top end…
TSMC's additional $100B investment brings total to $265B, driving significant load growth. Management expressed strong confidence in growth prospects, highlighted record demand, robust sales growth, and constructive regulatory progress, while maintaining guidance at the top end…
Management is increasing capital investment to support growth, including a $440 million incremental investment for the Cholla conversion project and significant transmission investments, with capital expenditure guidance expected to be updated in the future.
Management discussed AI-driven demand from data centers in their service territory, noting robust sales growth and continued expansion of data center customers, though they acknowledged uncertainty in ramp rates as AI is still nascent.
TSMC's additional $100B investment brings total to $265B, driving significant load growth. Management expressed strong confidence in growth prospects, highlighted record demand, robust sales growth, and constructive regulatory progress, while maintaining guidance at the top end of the range.
Management is increasing capital investment to support growth, including a $440 million incremental investment for the Cholla conversion project and significant transmission investments, with capital expenditure guidance expected to be updated in the future.
Management expressed strong confidence in growth prospects, highlighted record demand, robust sales growth, and constructive regulatory progress, while maintaining guidance at the top end of the range.
“notwithstanding the robust year-over-year weather normalized sales growth we've seen, the TSMC FAB contribution is relatively flat year-over-year.”
“Nearly 20,000 acres of surrounding land are now in various stages of planning and development, giving rise to an entirely new economic corridor in the region.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Capex | FY2028 | $0.44B | $0.44B | INITIATED |
| EPS | FY2026 | $4.55–$4.75 | $4.65 | MAINTAINED |
Pinnacle West's 20,000-acre economic corridor and an additional 30 million sq ft mixed-use development (Halo Vista) surrounding TSMC implies a significant, long-term increase in demand for a wider set of infrastructure and utility services beyond just Pinnacle's core growth. — The ripple effect of TSMC's investment will drive sustained, robust demand for power and construction, underpinning a multi-year capex cycle.
“Taiwan Semiconductor Manufacturing Company's announcement of an additional $100 billion investment in Arizona, bringing its total commitment to $265 billion.”
… quarter supported by disciplined execution across the business. Before Andrew walks through the results and our updated outlook, I'd like to share a few updates on recent operational and regulatory developments. Arizona's economy remains on a strong and sustainable growth trajectory, further cementing the state standing as a national leader in semiconductor manufacturing and advanced technology. A major highlight this quarter was Taiwan Semiconductor Manufacturing Company's announcement of an additional $100 billion investment in Arizona, bringing its total commitment to $265 billion. TSMC now plans to develop up to 12 leading-edge fabrication and advanced packaging facilities in North Phoenix, along with a dedicated research and development campus. and the ripple effect goes well beyond TSMC's own facilities. Nearly 20,000 acres of surrounding land are now in various stages of planning and development, giving rise to an entirely new economic corridor in the region. Halo Vista is a great example. Development is already underway with the first tenant expected to arrive in the first half of next year. Over the next decade, the project is expected to grow to approximately 30 …
TSMC's contribution to Pinnacle West's load is currently flat year-over-year, meaning even the current robust 9.6% sales growth is driven by diversification (residential and smaller C&I) and not the big fab lines yet; the main TSMC ramp is pending.
Hey, guys. Good afternoon. Good morning. Thanks for the time. I appreciate it. Hey, I just want to follow up from the earlier sales growth question. I mean, how are you thinking about that transposing itself into the IRP? And then what drove the IRP move from August to the end of October? And did the scope change at all? I mean, just given all the different moving parts on load and large loads here? just can you elaborate a little bit? Should we expect the annual ramp and the resource portfolios in that filing specifically? Again, what should we be looking for in that? And as much as this could be something of a clue into a more formalized update next year.
Yeah, Julian, I could speak to the IRP aspect and then invite Andrew to speak to any other aspects regarding long-term low growth trends. But as we continue to finalize the analysis of the IRP and work with stakeholders, There's a lot of variables that we thought were important to try to capture accurately within this IRP. Obviously, the IRP is a snapshot in time and it seems like immediately when you file that, things continue to update. And given the volume of activity that continues to progress, we thought it was more prudent to be able to capture some of the things that were being updated this year and finalize that in the IRP, one of those being the Thank you. Thank you. Thank you. are able to take time and engage with stakeholders in a constructive manner before the filing. We felt it was better to wait until October so that we could file the most up-to-date analysis in the IRP as possible. And I think that's going to pay off because back to one of your questions, what you should expect from this IRP is really our latest thinking on the committed load growth and the ramp of that load growth. You know, an example of that is notwithstanding the robust year-over-year weather normalized sales growth we've seen, the TSMC FAB contribution is relatively flat year-over-year. Now we expect the majority of their ramp to be coming here soon and progressing in a strong manner each year from this point out, but we want to be able to detail out in the IRP the details of what that growth timing is coming from chip manufacturing versus data centers versus the traditional residential and CNI growth. And I think the four and a half plus gigawatts of our committed queue, this will be the first line of sight that we're able to offer in terms of the timing of that ramp and the resources needed to be able to serve it. So that'll probably be the best insight that'll come from the IRP. Outside of that, it'll show the big buckets of resources needed to be able to serve it. and we'll fill in those buckets as we get in the action window of each time period.