XCEL ENERGY INC Quarterly Report for Q3 Ended Sep 30, 2025

Summary

Xcel Energy Inc. reported its third-quarter and year-to-date financial results for the period ending September 30, 2025. The company experienced a decrease in GAAP diluted earnings per share for both the quarter and year-to-date periods compared to the prior year, primarily due to higher operating expenses and interest charges. However, ongoing earnings per share remained relatively stable, indicating resilience in core operations. A significant factor impacting the quarter was the $287 million charge related to the settlement of the Marshall Wildfire litigation. Despite this, the company's balance sheet remains solid, with substantial investments in property, plant, and equipment, reflecting ongoing capital expenditure programs focused on infrastructure and renewable energy projects. Cash flows from operations were robust, though investing activities showed a significant outflow due to these capital investments, balanced by strong financing activities, including substantial debt and equity issuances. Management's outlook for 2025 and 2026 ongoing earnings per share remains positive, with projections indicating continued growth. The company also reiterated its long-term EPS and dividend growth rate objectives. Investors should monitor regulatory proceedings and the company's wildfire litigation liabilities, which represent key risks and potential impacts on future financial performance.

Key Highlights

• 1GAAP diluted EPS decreased to $0.88 for Q3 2025 from $1.21 in Q3 2024, and year-to-date EPS fell to $2.47 from $2.63.
• 2The company recorded a significant $287 million charge in Q3 2025 related to the settlement of the Marshall Wildfire litigation.
• 3Capital expenditures increased substantially year-over-year, reaching $7.47 billion for the nine months ended September 30, 2025, up from $5.15 billion in the prior year, driven by investments in renewables and transmission projects.
• 4Total operating revenues increased to $3.915 billion for Q3 2025 from $3.644 billion in Q3 2024, and $11.108 billion year-to-date from $10.321 billion.
• 5Xcel Energy's financing activities provided substantial cash, with net cash provided by financing activities increasing to $4.491 billion for the nine months ended Sept. 30, 2025, from $2.636 billion in the prior year, driven by debt issuances.
• 6The company reaffirmed its 2025 ongoing EPS guidance of $3.75 to $3.85 per share and provided 2026 ongoing EPS guidance of $4.04 to $4.16 per share.
• 7Long-term objectives include an annual EPS growth rate of 6%-8+% and annual dividend increases of 4%-6%.

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