XCEL ENERGY INC Q4 FY2025 earnings call

• Xcel Energy continues to meet customer demands with electrification and grid modernization, investing over $60B in the next five years.
• In 2025, ongoing earnings were $3.80 per share, marking the 21st consecutive year of meeting or exceeding initial ongoing earnings.
• Key operational highlights include $12B invested in 2025, completion of Sherco solar phase 2, conversion of Harrington coal plant to natural gas, 370 MW wind repowerings, and placement of Rocky Mountain solar project.
• 2026-2030 capital plan includes 7,000 MW of company-owned renewables, etc.
• Awarded over 760 miles of 765 kV transmission lines, with $1.5B additional investment expected.
• Strategic alliances with GE Vernova and NextEra for generation, storage, and data centers.
• Community engagement: 15 economic development projects, over $14M in volunteer hours, etc.

In 2025, Xcel Energy reported ongoing earnings of $3.80 per share, compared to $3.50 per share in 2024. Higher electric and natural gas revenues due to rate case outcomes, nonfuel riders, and sales growth were key drivers, partially offset by higher fuel and purchased power expenses. Weather-adjusted electric sales increased by 2.2% in 2025, driven by C&I load in SPS and PSCO. For 2026, weather-adjusted electric sales are expected to increase 3%. O&M expenses in 2025 increased $190 million due to accelerated wildfire mitigation costs, excess liability insurance costs, and higher benefit costs.

• Reaffirming 2026 EPS guidance range of $4.04 to $4.16.
• Expect 6 to 8 plus percent long-term earnings growth and 9% EPS growth on average through 2030.

• Marshall Wildfire settlement: $300M charge in 2025, with only 3 remaining plaintiffs out of 4,000+.
• Wildfire and extreme weather risks: need for ongoing wildfire mitigation, infrastructure investments, and operational measures to protect communities.

Q: What's the regulatory process for ESAs in the Upper Midwest?

A: Brian Van Abel said there'll be regulatory filings and approvals, aligning with large load tariff filings in various states.

Q: Bring your own generation for data centers and reliability?

A: Bob Frenzel said data centers generally don't want their own generation, preferring regulated utilities to own and operate, with shared benefit for customers.

Q: Upside to six-gigawatt target in Colorado?

A: Brian Van Abel said there's significant interest across service territories, with the six-gigawatt target through 2027 and beyond.

Q: PSPS communication and issues?

A: Bob Frenzel said they're committed to protecting communities, working on mitigation, operational intelligence, and communication, with ongoing efforts to minimize impact on vulnerable customers.