Pinnacle West Capital Corp (PNW)

Pinnacle West reported its full-year and fourth-quarter 2024 results on February 25, 2025, with increased net income for the full year but a net loss for the fourth quarter. On May 1, 2025, the company reported lower first-quarter 2025 financial results but affirmed its full-year earnings guidance. On August 6, 2025, Pinnacle West reported lower second-quarter 2025 financial results due to milder weather and higher costs, despite customer and sales growth. On August 13, 2025, an insider reportedly sold US$600k worth of stock. On September 9, 2025, Mizuho downgraded Pinnacle West Capital stock rating to Neutral and trimmed its price target due to regulatory lag concerns. On September 22, 2025, an article highlighted Pinnacle West Capital as a "buy-the-dip" opportunity for dividends and growth. On September 25, 2025, Morgan Stanley adjusted its price target on Pinnacle West Capital, maintaining an Equalweight rating. On October 3, 2025, Jefferies adjusted Pinnacle West Capital's price target, maintaining a Buy rating.

Demand for electricity for Pinnacle West Capital Corp. is generally seasonal, with a significant peak during the hot summer months in Arizona, primarily driven by air conditioning use. The company anticipates continued strong customer growth and increasing energy consumption, with projected annual increases in weather-normalized energy sales of 4% to 6% over the next three years, largely due to the addition of large data centers and manufacturing facilities.

Pinnacle West Capital Corp. (PNW) is an Arizona-based energy holding company that provides retail and wholesale electricity services through its subsidiary, Arizona Public Service Company (APS). The company operates in the Electric Utilities & IPPs industry, generating, transmitting, and distributing electricity using a diverse portfolio of facilities, including nuclear, coal, natural gas, oil, and solar. Pinnacle West also holds debt investments and minority interests in energy-related ventures and Arizona community-based projects, and develops electric transmission infrastructure.

Pinnacle West Capital Corp. is headquartered in Phoenix, Arizona, and its subsidiary, Arizona Public Service (APS), serves approximately 1.4 million homes and businesses across 11 of Arizona's 15 counties. The Palo Verde Nuclear Generating Station, operated and co-owned by APS, supplies clean electricity to over 4 million homes and businesses across four states. The company also develops and operates electric transmission infrastructure in the western United States.

Pinnacle West is recognized for strong customer growth, healthy finances, a principled focus on creating a sustainable energy future for Arizona, and innovative energy solutions. The company aims to provide reliable energy at the lowest possible cost while striving to lower emissions, with an aspirational goal of serving customers with carbon-neutral energy by 2050. APS's operational performance and reliability have remained strong, even amidst extreme summer temperatures and increased customer demand. The company's investment in renewable energy sources and energy efficiency programs also contributes positively to its image. However, financial results being lower than the previous year due to milder weather and higher operating costs, as reported in Q2 2025, could potentially have a minor impact on investor perception, though the company affirmed its full-year guidance. Analyst downgrades, such as Mizuho's due to regulatory lag concerns, could also affect investor sentiment.

Pinnacle West Capital Corp. is predominantly owned by institutional shareholders, who hold approximately 97.97% to 99.71% of the company's stock. Insiders own about 0.23% to 1.15%, and retail investors hold around 0.06% to 0.88%. Major institutional owners include Capital Research Global Investors, Vanguard Group Inc, and BlackRock, Inc.