DOMINION ENERGY INC (D) Q1 2026 Earnings Call Transcript
Bullish Regulated Electric 56.32B USA
Next Earnings
2026-04-29
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Dominion Energy delivered 2025 earnings above guidance, raised its five-year capex to $65B, and advanced CVOW with first power slated for March, while maintaining a bullish long-term growth trajectory despite regulatory and financing headwinds.
⭐ Key Highlights
2025 earnings and 2026 guidance exceeded initial expectations
2025 operating earnings per share (EPS) of $3.42 and RNG 45Z-adjusted EPS of $3.33 both came in above the guidance midpoint.
Big increase in capital plan to fund growth
Updated five-year capital investment forecast rose to about $65 billion (from $50 billion), with the majority in Virginia and ~60% expected to be recovered through regulatory mechanisms.
CVOW offshore wind project progressing, first power on track for March
Coastal Virginia Offshore Wind is over 70% complete with installation milestones advancing; first power expected by March, marking a major project milestone.
Data center demand remains a key growth driver with broad visibility
Dominion surfaced a 48 GW in contracted data center pipeline as of December 2025, supported by long-term ESAs and CLOAs that cover demand through 2045.
Strong credit metrics and safety performance
Moody's CFO pre-working capital to debt near the downgrade threshold at multi-year highs; OSHA rate and LDRD safety metrics set records.
✔Positive Signals
- 2025 operating EPS and RNG 45Z-adjusted EPS above guidance
- Five-year capex plan increased to ~$65B with substantial rate-base recovery
- CVOW progress: 70% complete and first power on track for March
- Data center demand pipeline expanded to ~48 GW with long-term contracted visibility
- Record safety metrics and strong credit metrics support 2026-2030 plan
✖Negative Signals
- RNG 45Z credits face updated assumptions and lower production outlook
- Millstone nuclear timeline and pricing uncertainty remain for 2029+
- Higher financing costs and equity dilution impact long-term growth path
- Regulatory lag in Virginia and South Carolina rate cases could temper near-term earnings
- Operational risk and potential inflationary pressures on capex spending
📊Financial Results
- 2025 operating EPS $3.42 vs midpoint of guidance
- RNG 45Z-adjusted EPS $3.33 vs guidance assumptions (updated credit scoring and lower production expectations)
- GAAP EPS $3.45, higher than operating EPS
- Five-year capex raised to ~ $65B; approximately 60% funded by internal cash flow
- Moody's CFO pre-working capital to debt near downgrade threshold, highest since 2012
🔮Future Guidance
- 2026 operating EPS excluding RNG 45Z: $3.40 to $3.60 (midpoint $3.50), with total operating EPS guidance including RNG 45Z at $3.57
- Long-term operating EPS growth guidance reaffirmed at 5%–7% per year, bias to upper half from 2028–2030
- Expect variability within the range due to Millstone refueling outages; no change to core growth trajectory
- Dividend policy under review; no final decision on growth timing, considering peers’ payout trends
💡Interesting Insights
- Data center demand forecast is fully covered by signed ESAs and CLOAs through 2045, reducing project risk and underscoring the importance of Virginia's data center strategy.
Detailed Analysis
AI-generated summary of DOMINION ENERGY INC earnings call transcript.
In 2025, Dominion Energy achieved operating earnings per share of $3.42 (with RNG 45Z adjustments at $3.33), both above the guidance midpoint, and posted robust credit results. The company expanded its capital program to roughly $65 billion over the next five years, with most spending in Virginia and substantial portions recoverable through riders. The Coastal Virginia Offshore Wind project progressed to over 70% completion, with first power expected by March, signaling a major step in renewable investment. Dominion also highlighted a large and diversified data center demand pipeline (over 48 GW contracted) that is largely backed by ESAs and CLOAs, providing visibility through 2045. The company reaffirmed long-term EPS growth at 5–7% annually, though it noted volatility from Millstone outages and RNG 45Z credit adjustments. Financing remains balanced with ~60% internally funded cash flows, and the company emphasized ongoing regulatory engagement to manage customer affordability while delivering growth.
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