Xcel Energy (XEL) Q1 2025 Earnings
How Did XEL Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +8.16%.
Did XEL Beat Earnings? Q1 2025 Results
No. Xcel Energy reported Q1 2025 earnings of $0.84 a share on Apr 23, 2025, missing the $0.92 consensus estimate by 8.6%. Revenue was $3.9B against a $3.9B estimate.
Xcel Energy delivered a disappointing first quarter, posting diluted EPS of $0.84 against a consensus estimate of $0.92, an 8.64% miss that marked a step back from the $0.88 earned in the same period a year ago. Revenue rose 7.0% year-over-year to $3.91 billion, a solid top-line gain that nonetheless fell just short of the $3.93 billion analysts had expected. The culprit behind the earnings shortfall was a surge in costs, with operating and maintenance expenses climbing $81.00 million, depreciation rising $70.00 million, and interest charges adding another $41.00 million, collectively overwhelming the benefit of higher infrastructure investment recoveries. Wildfire liability adds another layer of uncertainty, as the estimated cost tied to the Smokehouse Creek Fire Complex climbed to $290.00 million before insurance proceeds. Despite the soft quarter, management reaffirmed full-year 2025 ongoing EPS guidance of $3.75 to $3.85 per share, underpinned by a long-term EPS growth target of 6%-8%, suggesting <a href="https://247wallst.com/investing/2025/03/31/exelon-exc-american-electric-power-aep-and-xcel-energy-xel-are-nasdaq-winners-today-as-the-market-tanks/">confidence in the outlook</a> even as near-term headwinds persist.
- Higher recovery of electric and natural gas infrastructure investments
- Increased O&M expenses including nuclear generation costs and wildfire mitigation
- Higher depreciation and amortization from system investments and rate updates
- Higher interest charges from increased debt levels and higher interest rates
- Favorable weather impact of $0.036 per share vs prior year
- Weather-normalized retail electric sales growth of 1.9% (leap-year adjusted)
- Customer growth across all jurisdictions
“As we continue to advance our mission to make energy work better for our customers, we are building new generation, investing in system resilience and leading the energy transition to meet the goals and aspirations of the communities we serve.”
Xcel Energy CEO, on the earnings call
What Was Xcel Energy's Outlook in Q1 2025?
Xcel Energy reaffirmed its 2025 ongoing EPS guidance of $3.75 to $3.85 per share. Key assumptions include constructive regulatory outcomes, normal weather patterns, weather-normalized retail electric sales growth of ~3%, weather-normalized retail firm natural gas sales growth of ~1%, capital rider revenue increase of $200-$210 million (net of PTCs), O&M expense growth of ~3%, depreciation expense increase of $210-$220 million, property tax increase of $45-$55 million, and net interest expense increase of $165-$175 million. Long-term objectives include annual EPS growth of 6%-8% off a $3.55 per share base, annual dividend increases of 4%-6%, and a target dividend payout ratio of 50%-60%.
XEL YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $3.9B | $3.6B | +7.0% |
| Operating Income | $677.0M | $679.0M | −0.3% |
| Net Income | $483.0M | $488.0M | −1.0% |
XEL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.