Dominion Energy Inc Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
Dominion Energy's Q3 2025 earnings call focused on consistent financial performance, Coastal Virginia Offshore Wind (CVOW) project milestones, constructive regulatory outcomes, and data center demand.
Key financial results:
Third quarter operating earnings were $1.06 per share, including $0.03 from RNG 45Z credits and $0.06 from worse-than-normal weather.
Compared to Q3 2024, positive factors included $0.06 from regulated investment growth, $0.08 from increased sales, $0.05 from the DESC rate case settlement in 2024, and $0.03 from higher margins at contracted energy.
Third quarter results were impacted by worse weather, higher DD&A, and higher financing costs.
Third quarter GAAP results were $1.16 per share.
Business segment results:
Not explicitly discussed, but the earnings call focused on Dominion Energy's regulated operations and growth projects.
Capital allocation:
Completed the 2025 financing plan and de-risked future ATM equity.
Focused on balance sheet conservatism with no changes to previously communicated credit-related targets.
Comprehensive capital investment forecast update through 2030 will be provided on the fourth quarter earnings call.
Expects incremental opportunities to deploy regulated capital on behalf of customers, with a timing bias towards the back end of the plan.
Incremental capital will be evaluated through the lenses of customer affordability, system reliability, balance sheet conservatism, and low-risk profile.
Industry trends and dynamics:
Robust demand from data centers, with approximately 47 gigawatts in various stages of contracting as of September 2025.
Transmission: Submitted project proposals in the latest PJM open window process.
Generation: Filed the 2025 Virginia Integrated Resource Plan, presenting possible generation-build portfolios with additional resource capacity across both renewable and dispatchable generation technologies.
Competitive landscape:
Not explicitly discussed, but the company highlighted its advantages in serving data center demand due to reliable and affordable electricity.
Macroeconomic environment:
Discussion around steel tariffs impacting the CVOW project.
Growth opportunities and strategies:
Coastal Virginia Offshore Wind (CVOW) project: Now two-thirds complete and expected to deliver first power in late first quarter of next year.
Data centers: Developing resources across distribution, transmission, and generation to meet data center needs.
Transmission: Submitted project proposals in the latest PJM open window process.
Generation: Filed the 2025 Virginia Integrated Resource Plan, which presented several possible generation-build portfolios with additional resource capacity across both renewable and dispatchable generation technologies in response to continued robust load growth in our service territory.
Financial Guidance and Outlook:
Narrowing full-year guidance range to $3.33 to $3.48 per share, inclusive of RNG 45Z earnings, while preserving the original guidance midpoint of $3.40.
Reaffirming all other existing financial guidance.
Confidence in ability to deliver full-year results at or above the midpoint of guidance, assuming normal weather for the last two months of the year.
Coastal Virginia Offshore Wind (CVOW) Project Update:
Project costs now stand at $11.2 billion, which includes unused contingency of $206 million.
First turbine installation is expected in late next month, with first power to customers in late first quarter of next year.
Project completion expected by the end of 2026, but delays with Charybdis could push a few final turbines into early 2027.
The project's LCOE has been updated to $84, driven primarily by lower forecasted REC prices.
The project is now forecasted to represent an average residential customer monthly bill credit of $0.63 over the life of the project.
Charybdis Vessel Update:
The vessel successfully completed sea trials and arrived in Portsmouth, Virginia, in September.
Punch list items were identified that require remediation prior to the vessel being cleared to begin turbine load out and installation.
The vessel is expected to be cleared to load and install turbines in November.
Project costs continue to be approximately $715 Million.
Customer Affordability:
Current residential electric rates at DEV and DESC are 9% and 11% below the US average, respectively.
Based on build plans proposed in both states' latest IRPs, both will maintain customer build growth rates through the forecast periods below current electricity inflation levels.