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.