Xcel Energy Inc. XEL reported fourth-quarter 2025 operating earnings of 96 cents per share, which lagged the Zacks Consensus Estimate of 97 cents by a penny. However, the bottom line surpassed the year-ago quarter’s figure by 18.5%.
It reported GAAP earnings of 95 cents per share compared with 81 cents in the year-ago quarter.
Adjusted earnings per share for 2025 were $3.80, up 8.6% year over year. Adjusted earnings per share came within the guided range of $3.75-$3.85.
Total Revenues of XEL
Revenues of $3.56 billion missed the Zacks Consensus Estimate of $3.72 billion by 4.4%. However, the figure increased 14.1% from the year-ago quarter’s $3.12 billion.
Xcel Energy Inc. Price, Consensus and EPS Surprise
Xcel Energy Inc. price-consensus-eps-surprise-chart | Xcel Energy Inc. Quote
XEL’s Segmental Results
Electric: This segment’s revenues totaled $2.8 billion, up 16.6% from $2.41 billion in the year-ago quarter.
Natural Gas: Revenues in this segment increased 6% to $737 million from $695 million in the year-ago quarter.
Other: Revenues amounted to $15 million, on par with the prior-year quarter.
Highlights of XEL’s Earnings Release
Total operating expenses in the fourth quarter increased 7.5% year over year to $2.98 billion. The increase in operating expenses was due to higher cost of natural gas sold and transported, higher operating and maintenance expenses and taxes other than income tax.
Operating income in the fourth quarter increased 67.1% year over year to $580 million.
Total interest charges and financing costs increased 26.3% from the prior-year quarter’s $319 million to $403 million.
In 2025, Xcel Energy registered 0.7% growth in electric customer volume and a 0.8% increase in natural gas customer volume. In 2025, natural gas sales volume dropped 1.2% year over year, while electric sales volume increased 2.2%.
Courtesy of efficient management of services, Xcel Energy electric and natural gas residential bills are 28% and 12%, respectively, lower than the national average.
XEL’s Guidance
Xcel Energy reaffirms its 2026 earnings per share in the range of $4.04-$4.16. The Zacks Consensus Estimate is pegged at $4.12 per share, a tad higher than the midpoint of the guided range.
XEL expects retail electric sales to increase 3% in 2026. Natural gas sales volumes are anticipated to increase 1% in 2026 from the year-ago level.
Xcel Energy expects long-term annual earnings per share growth of 6-8% and dividend growth of 4-6%.
The company plans to invest $60 billion in 2026-2030 to further strengthen its infrastructure. Xcel Energy plans to add 7,500 megawatts (MW) of renewable generation, 3,000 MW of natural gas generation and 1,900 MW of energy storage through the planned investment.
XEL’s Zacks Rank
XEL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
FirstEnergy Corp. FE is scheduled to announce fourth-quarter 2025 results on Feb. 17. The Zacks Consensus Estimate for earnings per share is pegged at 52 cents.
FE’s long-term (three to five years) earnings growth rate is 6.46%. The Zacks Consensus Estimate for FE’s fourth-quarter earnings per share indicates a decline of 22.4% from the prior-year actual.
Alliant Energy Corporation LNT is scheduled to announce fourth-quarter 2025 results on Feb. 19. The Zacks Consensus Estimate for earnings per share is pegged at 58 cents.
LNT’s long-term earnings growth rate is 7.15%. The Zacks Consensus Estimate for LNT’s fourth-quarter earnings per share indicates a decline of 17.1% from the prior-year actual.
Dominion Energy D is scheduled to announce fourth-quarter 2025 results on Feb. 23. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share.
Dominion’s long-term earnings growth rate is estimated at 10.26%. The Zacks Consensus Estimate for D’s third-quarter earnings per share indicates an increase of 12.07% from the year-earlier level.
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Xcel Energy Inc. (XEL): Free Stock Analysis Report FirstEnergy Corporation (FE): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis Report Alliant Energy Corporation (LNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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