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MINNEAPOLIS - On Thursday, Xcel Energy Inc. (NASDAQ:XEL) reported second quarter earnings that exceeded analyst expectations, as the utility company benefited from increased infrastructure investments despite higher operating costs.
The company’s shares fell 1.92% in after hours trading following the announcement.
The company posted adjusted earnings of $0.75 per share for the second quarter, comfortably beating the analyst consensus of $0.66. Revenue came in at $3.29 billion, above the estimated $3.23 billion. Xcel Energy reaffirmed its full-year 2025 earnings guidance of $3.75 to $3.85 per share.
"During the second quarter, we made considerable progress on investments needed to serve unprecedented growth in electric demand and to improve resiliency and reliability of our systems," said Bob Frenzel, chairman, president and CEO of Xcel Energy.
The earnings increase was primarily driven by higher recovery of infrastructure investments, which helped offset rising interest charges, depreciation, and operations and maintenance expenses. Weather-normalized retail electric sales grew 3.5% in the quarter compared to the same period last year.
Xcel Energy continues to advance its growth strategy, filing plans in Texas and New Mexico for nearly 5,200 MW of new generation capacity, with 4,500 MW to be company-owned. The utility also reported progress on wildfire mitigation efforts, with regulatory commissions in Colorado and Texas approving settlements for its Wildfire Mitigation and System Resiliency Plans.
The company maintains its long-term objective of 6-8% annual EPS growth and 4-6% annual dividend increases, targeting a dividend payout ratio of 50-60%.
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