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Minneapolis - On Thursday, Xcel Energy Inc. (NASDAQ:XEL) reported third quarter ongoing earnings of $1.24 per share, falling short of analyst expectations of $1.32, despite revenue of $3.92 billion slightly exceeding the $3.89 billion consensus estimate.
The company’s shares dipped 0.87% in pre-market trading following the results.
The utility company’s earnings were pressured by higher depreciation, interest charges and operations and maintenance (O&M) expenses, which outweighed increased recovery from infrastructure investments. GAAP earnings were significantly impacted by a $287 million charge ($0.36 per share) related to Marshall Wildfire litigation settlements.
"Today Xcel Energy unveiled our updated five-year infrastructure investment plan to serve increased energy demand from our communities, continue progress towards carbon reduction goals for our electric system and make needed investments to strengthen our transmission and distribution systems," said Bob Frenzel, chairman, president and CEO of Xcel Energy.
Third quarter revenue increased 7.4% YoY to $3.92 billion, while weather-normalized retail electric sales grew 2.2% compared to the same period last year. The company’s operating income declined 17.8% to $749 million from $911 million in the year-ago quarter.
Xcel Energy reaffirmed its 2025 ongoing earnings guidance of $3.75 to $3.85 per share and initiated 2026 guidance of $4.04 to $4.16 per share. The company also outlined a five-year infrastructure investment plan totaling $60 billion through 2030, with approximately 40% to be funded by equity and 60% by debt.
The utility maintains its long-term annual growth objectives of 6-8+% for earnings per share and 4-6% for dividends. Frenzel emphasized that "by virtually all standards, Xcel Energy customers have some of the country’s lowest energy bills."
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