Pinnacle West Capital Corporation

pinnaclewest.com

What Do They Do?

Generates, transmits and distributes electricity to residential, business and wholesale customers in Arizona.

How Do They Make Money?

APS earns most of its revenue by selling electricity to regulated retail customers. Bills are based on metered use, generally go out within a month of service, and are payable after billing; APS also sells excess power and transmission services to wholesale customers.

revenue

Segment	Share	Revenue	How money arrives
Regulated Electricity Segment Usage-based	100% FY2022: 100%		Usage-based
Other	0.0% FY2022: 0.0%

Who Are Their Customers?

Residential and business customers are billed directly for regulated electricity in APS's Arizona service territory. APS also sells power and transmission services to wholesale customers.

Do Revenues Turn Into Profits?

Yes. It kept 12 cents of every revenue dollar as net income in FY2025, but spent more cash than it brought in: free cash flow was −$819.5M.

Operating income, FY2025

20% of revenue

▲ +5% vs FY2024 ($1B, 20%)

Net income, FY2025

12% of revenue

▲ +1% vs FY2024 ($626M, 12%)

Free cash flow, FY2025

−15% of revenue

▲ +28% (Loss) vs FY2024 (−$639.4M, −12%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +7%; vs $1.4B in Q2 FY2025
Net income: ▼ −8%; vs $196.9M in Q2 FY2025

Regulated Electricity Segment share of revenue vs 100.0% in Q2 FY2025

Aug 4, 2026 Set earnings-per-share guidance The company forecast 2026 earnings per share of $4.55-$4.75.

Growing. Revenue grew 40% in 4 years, from $3.8B in FY2021 to $5.3B in FY2025, about 9% a year.

Large-load customer offering The latest report adds a subscription model for serving large-load customers such as data centers and large manufacturers; the older report describes APS's retail and wholesale electricity service.

Revenue over time

Regulated Electricity Segment Other

$10B$5B$0

FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Southwest Gas

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