Pinnacle West Capital Corp (PNW)

In the past six months, Pinnacle West Capital Corp. reported a consolidated net loss attributable to common shareholders of $4.6 million, or a loss of $0.04 per diluted share, for the quarter ended March 31, 2025, missing estimates. Earlier, on February 25, 2025, Pinnacle West reported consolidated net income of $608.8 million, or $5.24 per diluted share, for full-year 2024, an increase from $501.6 million, or $4.41 per diluted share, in 2023. The stock price as of June 13, 2025, was $89.97 per share, representing an 18.62% increase from $75.85 per share on June 17, 2024. On May 13, 2025, BMO Capital initiated coverage of Pinnacle West Capital with a "Market Perform" recommendation. The company has also consistently declared quarterly dividends, with the latest being $0.895 per share, maintaining a forward yield of 4.04%.

Demand for Pinnacle West Capital Corp.'s electricity products and services is significantly impacted by seasonality, particularly due to weather variations, including large increases in ambient temperatures. Arizona's hot summers lead to increased energy consumption for cooling homes and businesses, resulting in peak demand during these months. The company proactively prepares for the summer season to ensure reliable power delivery. Customer and sales growth, the general economy, social conditions, energy conservation measures, distributed generation, and technological advancements also influence demand.

Pinnacle West Capital Corp. operates in the Utilities sector, specifically within the Regulated Electric industry. As Arizona's largest and longest-serving electric utility, APS provides retail and wholesale electricity services to approximately 1.4 million customers across 11 of Arizona's 15 counties. The company's core business segments revolve around energy generation, transmission, and distribution. Pinnacle West generates electricity using a diverse mix of energy sources, including natural gas, nuclear, coal, and renewable energy such as solar and wind. A cornerstone of its energy generation portfolio is the Palo Verde Generating Station, the largest nuclear power plant in the United States, in which Pinnacle West holds a 29% ownership stake and also operates. The company is committed to a clean energy future, aiming to deliver 100% clean, carbon-free energy by 2050, with a near-term target of 65% clean energy by 2030. Beyond electricity generation and distribution, Pinnacle West also offers renewable energy solutions, including utility-scale solar farms and rooftop solar programs, and is developing battery storage solutions. Additionally, it provides energy efficiency programs, rebates, incentives, and educational programs to help customers reduce energy consumption.

Pinnacle West Capital Corp. primarily serves central Arizona, including the Phoenix metropolitan area, providing electricity to approximately 1.4 million homes and businesses across a 35,000-square-mile territory. The company also has consolidated assets and employees in New Mexico. Through its subsidiary PNW Power, Pinnacle West is involved in strategic transmission projects, such as the Cross-Tie project, which aims to connect Utah and Nevada, potentially expanding its geographic footprint and revenue sources.

Pinnacle West Capital Corp. focuses on reliability, sustainability, and community engagement to build its brand reputation. The company emphasizes its commitment to providing clean, reliable, and affordable energy. In the past year, the company has continued to focus on summer preparedness to ensure reliable power delivery during peak demand, especially with Arizona's quickly heating temperatures. They have also highlighted their efforts in grid modernization and community engagement. Customer satisfaction has shown continued improvement, reaching new highs in 2024. The company's commitment to achieving 100% clean, carbon-free electricity by 2050 and its significant investments in renewable energy and nuclear power contribute positively to its reputation.

Pinnacle West Capital Corp. has a significant institutional ownership, with 93.83% of its stock held by institutional shareholders. There are 1,162 institutional owners and shareholders who have filed 13D/G or 13F forms with the SEC, holding a total of 144,557,104 shares. Major institutional owners include Vanguard Group Inc., Capital Research Global Investors, BlackRock, Inc., Barrow Hanley Mewhinney & Strauss Llc, and State Street Corp. Vanguard Group Inc. is the largest individual institutional shareholder, owning 14.46 million shares, representing 12.11% of the company. Individual investors hold 5.01% of the stock, while Pinnacle West Capital insiders hold 1.16%. Insider trading activity in the past six months shows 3 sales and no purchases by insiders.