Pinnacle West profit falls as higher interest, depreciation offset demand gains

Pinnacle West Capital

04/08/2026 14:18

Aug 4 (Reuters) - Pinnacle West Capital PNW.N said on Tuesday its second-quarter profit fell 7.3%, as higher interest costs and depreciation offset gains from strong demand and customer growth.
Higher-for-longer interest rates are pressuring utility companies by raising the borrowing costs needed to build and maintain power grids, even as surging energy demand forces them to expand infrastructure.
 
Here are some details:
The Phoenix, Arizona-based utility said net income attributable to common shareholders declined to $178.6 million, or $1.43 per share, for the quarter ended June 30, from last year's $192.6 million, or $1.58 per share.
Shares of the company down 1.9% premarket. 
The company's total operating expense rose to $1.15 billion during the quarter, from $1.05 billion during the same period a year ago.
Its total interest costs rose to $122.2 million, from $102 million a year ago.
Pinnacle West reaffirmed its earnings forecast of $4.55 to $4.75 per share.
Its main subsidiary, Arizona Public Service, which serves about 1.5 million homes and businesses in the state, saw a 2.1% increase in customers in the quarter.
APS said it plans to convert two retired coal units at Cholla into natural gas, adding about 380 MW of capacity.
The project is expected to start construction in 2028 and come online in 2029, subject to regulatory approval.


 (Reporting by Varun Sahay in Bengaluru; Editing by Maju Samuel and Tasim Zahid)
 ((Varun.Sahay@thomsonreuters.com;))