Dominion Energy, Inc. (D) Earnings

Management highlights

### Core Strategic Priorities - Three core priorities guide the company: consistent delivery on financial commitments, progress on the Coastal Virginia Offshore Wind (CVOW) Project, and constructive regulatory outcomes that benefit both customers and shareholders. - Management reports continued strong execution and progress against all three priorities through the first half of 2026. ### Safety Performance - The employee OSHA recordable injury rate for the first half of 2026 is 0.36, which remains well below the industry average. - Safety is the company's first core value, and management emphasizes a continued relentless focus on improving safety performance. ### NextEra Energy Combination - The proposed transformational merger with NextEra Energy will combine two experienced utilities to serve 4 million regulated customers across four states. - The transaction includes $2.25 billion in shareholder-funded customer bill credits, and the combined company will have greater scale to operate energy infrastructure more efficiently, supporting reliability, affordability, and economic growth. - All required joint proxy and regulatory filings have been submitted to state and federal agencies; procedural schedules have been set with evidentiary hearings starting November 17, 2026 in Virginia and December 8, 2026 in South Carolina, with a final South Carolina order expected by January 29, 2027. ### Coastal Virginia Offshore Wind (CVOW) Project - The CVOW project is 81% complete, with substantial de-risking already achieved. 100% of turbine cells, 99% of turbine towers, and 85% of turbine blades have been fabricated, with towers set to be completed shortly and final blades completed in October 2026. - 31 turbines are already installed and operational, delivering over 450 megawatts of power to the grid; the third and final offshore substation is expected to be energized by the end of 2026, at which point ~50% of adjusted project investment will be in-service. - The final turbine installation timeline is adjusted 6 months later than prior guidance, to the end of 2027, to add weather/vessel maintenance contingency, accommodate observed slower loadout times at Portsmouth Marine Terminal, and account for longer jacking operations at geotechnically challenging turbine locations. - The total project cost estimate is increased by ~2% to $11.65 billion, which retains $123 million in unused contingency. One-third of the recent cost increase will be absorbed by the project's financing partner, and CVOW remains one of the most affordable energy sources for customers, projected to deliver $5 billion in fuel savings over the first 10 years of operation. ### Data Center Business - Dominion Energy now has over 53 gigawatts of data center capacity in various stages of contracting, with ~12 gigawatts already contracted under electric service agreements, an increase of 5 gigawatts (11%) since the end of 2025. - Robust durable demand comes from high-quality low-risk customers, who prioritize locating high-value workloads in Virginia for its unique network density, connectivity, and ecosystem advantages. - The company uses a large load framework that requires new data center customers to pay their fair share of required infrastructure investments, protecting existing customers from cost shifts and mitigating stranded asset risk. ### New Generation Development - The company recently filed air permits for two new natural gas-fired combined cycle plants (at Kennedy Station in South Carolina and Mount Storm in West Virginia), totaling nearly 5 gigawatts of new capacity to meet growing demand. - These projects will deliver thousands of new jobs, billions of dollars in economic investment, and meaningful local tax revenue for the host states. ### Regulatory and Other Updates - A final order in the 2025 rider filing proceeding approved 100% of the company's requested revenue. - In South Carolina, the Comprehensive Settlement Agreement and DESC electric rate case were unanimously approved by regulators, with rates effective July 2026; this marks four consecutive successful settled rate cases for the company's electric and gas businesses in the state. - For the Millstone facility in Connecticut, a decision on the facility's zero-carbon RFP bid is expected shortly from state regulators, followed by negotiations with local utilities and regulatory approval. The existing PPA has already delivered hundreds of millions in customer savings and is projected to save Connecticut customers over $900 million over its 10-year life.

Guidance

- Management reaffirms all previously provided financial guidance from the Q4 2025 earnings call, including 2026 operating earnings, credit metrics, dividend, and long-term growth guidance. - The 2026 common equity program has been completed in full, consistent with prior ATM guidance. - The adjusted final turbine installation date for the CVOW project is set to the end of 2027, with a total updated project cost estimate of $11.65 billion.

Segment performance

The transcript does not provide disaggregated financial performance data for separate product segments. Aggregated company-wide results for Q2 2026 are: operating earnings of 79 cents per share (including 3 cents of RNG 45Z credits), and GAAP earnings of $0.37 per share. Sales are strong across the company's service territory, with nine of the company's top 10 all-time peak demand days occurring in 2026 to date, driven by general economic growth and data center expansion.

Risks & headwinds

- Further delays to CVOW turbine installation are possible due to unexpected weather events, unforeseen geotechnical issues at remaining turbine locations, and vessel maintenance requirements; management has added contingency to the updated timeline to account for these known risks. - The proposed merger with NextEra Energy faces regulatory review processes across multiple state and federal jurisdictions, with some external parties requesting extended review timelines that could delay completion. - High sustained peak demand and extreme weather create operational stress for the transmission and distribution grid, requiring consistent maintenance and reliability investment. - Accelerated battery storage deployment mandated by Virginia legislature requires building new development expertise, securing supply chain capacity, and expanding the project pipeline, which creates execution risk.

Analyst Q&A

• Q: What is the risk of further timeline slippage for the CVOW project, and why is the updated end-of-2027 completion date reasonable? /

  A: Management is confident in the updated timeline, which is based on actual on-the-ground experience rather than theoretical assumptions. Half of the adjusted project investment will be in-service by the end of 2026, and the project is already producing power for customers with 31 operational turbines. The updated timeline adds appropriate contingency for weather, vessel maintenance, and slower jacking operations at challenging sites, and installation efficiency continues to improve with experience. The project is already substantially de-risked, and value is being delivered to customers well before final completion.

• Q: Will the current regulatory procedural schedule for the NextEra merger hold in Virginia, despite calls for an extended review? /

  A: Management expects the approved schedule to remain in place. Virginia regulators and staff have previously handled complex merger and rate cases within similar statutory timelines, and the commission staff did not request additional time or resources when asked. Management believes changing the schedule mid-process is unnecessary and inappropriate.

• Q: Following a recent transmission fault that caused data center backup activation, will Dominion need to make incremental major grid investments to support growing data center loads? /

  A: While the event was rare, the company will continue to collaborate with data center customers to identify and implement small-scale mitigation measures based on lessons learned. Dominion has already invested heavily in transmission upgrades in high-demand data center regions for years, so no major incremental new investments are required at this time. The company has more experience operating large loads for data centers than any other peer, and grid planning has already accounted for growth.

• Q: What are the main opportunities for efficiency gains that could speed up remaining CVOW turbine installation beyond the current target? /

  A: The largest opportunities for improved efficiency are faster turnarounds for reloading equipment at Portsmouth Marine Terminal, where the most recent turnaround was already the fastest to date, and faster jack-up and jack-down operations at the remaining turbine sites. As with all prior phases of the project, installation speed and efficiency have consistently improved as the team gains more hands-on experience.

• Q: Is the proposed Mount Storm combined cycle plant incremental to the existing base capital plan, and what is the strategic opportunity for West Virginia? /

  A: The plant is not incremental to the base capital plan; natural gas generation capacity additions to meet growing demand were already included in the back end of the approved capital plan and integrated resource plan. Dominion has operated the existing Mount Storm Power Station for decades, and the site offers available land and accessible gas infrastructure to build new capacity needed to serve the company's growing regulated customer footprint, aligned with the company's core focus on meeting customer demand.