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Introduction & Market Context
Dominion Energy (NYSE:D) reported first quarter 2025 earnings of $0.93 per share on May 1, representing a solid start to the year despite previous challenges. The utility giant, currently trading at $54.92 in premarket (up 0.99%), delivered results that included $0.03 of favorable weather impact and $0.02 of RNG 45Z income.
The Q1 performance marks a recovery from the company’s fourth quarter 2024 results, which missed analyst expectations with EPS of $0.58 against a forecasted $0.62. Dominion’s shares have traded between $47.99 and $61.97 over the past 52 weeks, with the company maintaining its position as a significant dividend payer with a yield near 4.8%.
Quarterly Performance Highlights
Dominion Energy’s first quarter results benefited from favorable weather conditions, which contributed $28 million in positive impact compared to normal conditions and $74 million versus the prior year. The company reported weather-normalized electric sales growth of 1.6% year-over-year for the last twelve months ending Q1 2025, with commercial sales showing particularly strong performance at 4.1% growth.
As shown in the following financial results summary:
The company reaffirmed its 2025 operating earnings guidance of $3.28-$3.52 per share, with a midpoint of $3.40. This guidance includes approximately 10 cents per share of RNG 45Z income. Dominion also maintained its long-term operating EPS growth rate projection of 5-7% based on 2025 operating EPS excluding RNG 45Z income ($3.30).
Customer growth remains steady with Dominion Energy Virginia reporting 1.0% year-to-date growth and Dominion Energy South Carolina at 1.2%. Data centers continue to be a significant driver of commercial sales growth, extending the trend highlighted in the company’s Q4 2024 earnings call.
CVOW Project Progress
The Coastal Virginia Offshore Wind (CVOW) project, a cornerstone of Dominion’s clean energy strategy, has reached approximately 55% completion, advancing from the 50% reported in Q4 2024. The project remains on schedule for first electricity delivery in early 2026 and full completion by the end of that year.
The following breakdown illustrates the current status of various project components:
The $10.8 billion project (which includes $123 million of estimated tariffs) has seen approximately $6.8 billion invested to date, with around $4.0 billion in remaining costs. Notably, 50% of the remaining costs will be funded by Stonepeak through equity financing, with Dominion Energy funding the other half. The project maintains $222 million in unused contingency.
Progress on the specialized Charybdis vessel, critical for turbine installation, has reached 98% completion:
The vessel is expected to be delivered within four to eight weeks, following the completion of initial sea trials. Total (EPA:TTEF) project costs for the vessel, including financing, remain at $715 million.
Financial Outlook & Capital Strategy
Dominion Energy’s capital raising activities for 2025 are progressing according to plan. The company has issued $3.2 billion of its planned $5.5-$8.0 billion in consolidated fixed income activities year-to-date, with $2.3-$4.8 billion remaining. Additionally, the company has completed its $1.0 billion at-the-market equity program for the year.
The company’s credit profile remains solid, as evidenced by its current ratings:
These ratings support Dominion’s ambitious $50 billion capital investment plan for 2025-2029, which underpins the company’s projected 5-7% long-term earnings growth. The 2025 dividend is set at $2.67 per share, maintaining the company’s commitment to shareholder returns.
Regulatory & Business Updates
Dominion Energy Virginia filed its biennial review on March 31, 2025, marking its first base rate increase request since 1992. The company emphasized that residential rates have increased slower than inflation and highlighted the introduction of a new rate class for high energy users along with enhanced consumer protections. Rate effectiveness is expected for January 1, 2026/2027.
The company also provided updates on key assets, including the Millstone nuclear plant, which it described as "highly valuable" and responsible for providing 90% of Connecticut’s carbon-free power. This positioning aligns with broader industry trends toward valuing reliable, zero-emission generation sources.
Dominion continues to outperform industry safety standards, reporting an OSHA recordable incident rate of 0.27 year-to-date in 2025, compared to the industry average of 1.70:
Forward-Looking Statements
Looking ahead, Dominion Energy identified several key drivers for 2025 operating earnings, including regulated investment growth, electric rate cases, and sales increases as positive factors. These are partially offset by financing costs, share dilution, and the normalization of weather conditions.
The company remains focused on executing its strategic priorities, including the CVOW project, which it positions as "the fastest and most economical way to deliver nearly 3GW to Virginia’s grid." Management highlighted the project’s bipartisan support and economic benefits, including the creation of approximately 2,000 direct and indirect American jobs and generating about $2 billion in economic activity.
Despite tariff challenges affecting the project, Dominion has incorporated these costs into its projections. Current tariff rates include 25% on steel (including from Mexico and Canada) and 10% on non-steel components from the European Union, with an illustrative impact of $31 million borne by Dominion Energy within the total project cost.
As Dominion navigates regulatory proceedings and major project execution in 2025, investors will be watching closely to see if the company can maintain its momentum and deliver on its reaffirmed guidance following the disappointing Q4 2024 results.
Full presentation:
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