$PNW

PINNACLE WEST CAPITAL CORP

CIK:0000764622|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
OPERATING REVENUES (Note 4)	$ 1,455,749	$ 1,358,751	$ 2,605,346	$ 2,391,031
OPERATING EXPENSES
Fuel and purchased power	558,498	477,008	995,227	857,079
Operations and maintenance	283,387	286,605	560,087	586,714
Depreciation and amortization	243,226	228,893	483,084	463,833
Taxes other than income taxes	61,684	57,651	123,656	117,005
Other expense	3,282	1,042	6,446	1,626
Total	1,150,077	1,051,199	2,168,500	2,026,257
OPERATING INCOME	305,672	307,552	436,846	364,774
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction	17,052	14,767	31,834	28,016
Pension and other postretirement non-service credits, net (Note 8)	5,018	3,692	9,000	6,650
Other income (Note 12)	13,096	12,104	18,077	29,565
Other expense (Note 12)	(6,570)	(4,259)	(9,310)	(6,829)
Total	28,596	26,304	49,601	57,402
INTEREST EXPENSE
Interest charges	133,601	113,527	259,360	218,470
Allowance for borrowed funds used during construction	(11,402)	(11,559)	(21,265)	(21,661)
Total	122,199	101,968	238,095	196,809
Income Before Income Taxes	212,069	231,888	248,352	225,367
Income taxes	31,302	35,018	32,471	28,835
Net Income	180,767	196,870	215,881	196,532
Less: Net income attributable to noncontrolling interests (Note 9)	2,193	4,306	4,387	8,612
Net income attributable to common shareholders, basic	178,574	192,564	211,494	187,920
Net income attributable to common shareholders, diluted	$ 178,574	$ 192,564	$ 211,494	$ 187,920
Weighted average common shares outstanding — basic (in shares)	121,306	119,517	121,333	119,555
Weighted-average common shares outstanding — diluted (in shares)	124,494	121,865	124,136	121,813
Earnings Per Weighted-Average Common Share Outstanding
Net income attributable to common shareholders — basic (in dollars per share)	$ 1.47	$ 1.61	$ 1.74	$ 1.57
Net income attributable to common shareholders — diluted (in dollars per share)	$ 1.43	$ 1.58	$ 1.70	$ 1.54

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 215,881	$ 196,532
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization including nuclear fuel	517,249	492,225
Allowance for equity funds used during construction	(31,834)	(28,016)
Deferred income taxes	23,893	1,439
Deferred investment tax credit	(5,253)	(3,301)
Stock compensation	12,858	12,356
Changes in current assets and liabilities:
Customer and other receivables	(199,090)	(47,587)
Accrued unbilled revenues	(109,320)	(95,424)
Materials, supplies and fossil fuel	(60,087)	(25,497)
Income tax receivable	2,485	0
Deferred fuel and purchased power	(69,325)	(95,850)
Deferred fuel and purchased power amortization	279,830	201,035
Other current assets	(43,243)	(41,851)
Accounts payable	(49,408)	127,970
Accrued taxes	2,307	29,597
Other current liabilities	21,552	1,182
Change in long-term regulatory assets	19,074	38,992
Change in long-term regulatory liabilities	8,863	44,860
Change in other long-term assets	(126,896)	(140,504)
Change in operating lease assets	32,746	138,439
Change in other long-term liabilities	211,877	(56,639)
Change in operating lease liabilities	(24,887)	(86,632)
Net cash provided by operating activities	629,272	663,326
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,357,028)	(1,332,068)
Contributions in aid of construction	177,299	107,716
Allowance for borrowed funds used during construction	(21,265)	(21,661)
Proceeds from nuclear decommissioning trusts sales and other special use funds	997,627	919,644
Investment in nuclear decommissioning trusts and other special use funds	(990,269)	(920,785)
Other	(6,662)	(6,178)
Net cash used for investing activities	(1,200,298)	(1,253,332)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of long-term debt	1,092,665	795,404
Repayment of long-term debt	(350,000)	(800,000)
Short-term borrowings and (repayments), net	61,595	436,549
Short-term debt borrowings under term loan facility	0	400,000
Dividends paid on common stock	(218,740)	(210,150)
Common stock equity issuance and (purchases), net	(7,302)	(6,166)
Capital activities by noncontrolling interests	(4,672)	(10,628)
Net cash provided by financing activities	573,546	605,009
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,520	15,003
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	6,604	3,838
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 9,124	$ 18,841

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS
Cash and cash equivalents	$ 9,124	$ 6,604
Customer and other receivables	775,549	579,831
Accrued unbilled revenues (Note 4)	283,012	173,692
Allowance for doubtful accounts (Note 4)	(22,405)	(25,495)
Materials and supplies (at average cost)	603,676	546,329
Income tax receivable	3,494	5,979
Fossil fuel (at average cost)	21,564	18,824
Assets from risk management activities (Note 10)	5	3,250
Deferred fuel and purchased power regulatory asset (Note 7)	0	149,068
Other regulatory assets (Note 7)	150,106	136,941
Other current assets	178,791	108,686
Total current assets	2,002,916	1,703,709
INVESTMENTS AND OTHER ASSETS
Nuclear decommissioning trusts (Notes 14 and 15)	1,467,958	1,414,166
Other special use funds (Notes 14 and 15)	431,869	434,827
Assets from risk management activities (Note 10)	0	5,137
Other assets	168,703	144,997
Total investments and other assets	2,068,530	1,999,127
PROPERTY, PLANT AND EQUIPMENT
Plant in service and held for future use	27,914,887	27,370,296
Accumulated depreciation and amortization	(9,303,903)	(9,012,021)
Net	18,610,984	18,358,275
Construction work in progress	2,196,736	1,649,542
Palo Verde sale leaseback, net of accumulated depreciation (Note 9)	31,248	32,035
Intangible assets, net of accumulated amortization	535,799	575,978
Nuclear fuel, net of accumulated amortization	133,649	104,274
Total property, plant and equipment	21,508,416	20,720,104
DEFERRED DEBITS
Regulatory assets (Note 7)	1,451,328	1,463,357
Operating lease right-of-use assets (Note 17)	5,010,817	3,649,669
Assets for other postretirement benefits (Note 8)	399,461	399,334
Other	135,406	96,299
Total deferred debits	6,997,012	5,608,659
TOTAL ASSETS	32,576,874	30,031,599
CURRENT LIABILITIES
Accounts payable	641,564	680,203
Accrued taxes	188,912	186,605
Accrued interest	115,015	105,637
Common dividends payable	110,284	110,022
Short-term borrowings (Note 6)	818,600	757,005
Current maturities of long-term debt (Note 6)	775,000	600,000
Customer deposits	79,063	63,776
Liabilities from risk management activities (Note 10)	70,984	35,141
Deferred fuel and purchased power regulatory liability (Note 7)	61,437	0
Liabilities for asset retirements	57,776	71,698
Operating lease liabilities (Note 17)	193,207	188,586
Regulatory liabilities (Note 7)	133,206	210,909
Other current liabilities	126,477	151,444
Total current liabilities	3,371,525	3,161,026
LONG-TERM DEBT LESS CURRENT MATURITIES (Note 6)	9,775,808	9,205,676
DEFERRED CREDITS AND OTHER
Liabilities from risk management activities (Note 10)	10,143	1,495
Deferred income taxes	2,520,548	2,470,932
Regulatory liabilities (Note 7)	1,783,225	1,736,121
Liabilities for pension benefits (Note 8)	181,187	167,636
Liabilities for asset retirements	1,242,259	1,198,601
Customer advances	852,524	632,169
Coal mine reclamation	163,784	159,587
Deferred investment tax credit	303,008	308,261
Unrecognized tax benefits	108,673	105,484
Operating lease liabilities (Note 17)	4,942,680	3,548,365
Other	246,423	249,171
Total deferred credits and other	12,354,454	10,577,822
COMMITMENTS AND CONTINGENCIES (Note 11)
EQUITY
Common stock, no par value; 300,000,000 shares authorized, 121,238,487 and 120,950,839 shares issued at respective dates	3,227,362	3,231,372
Treasury stock at cost; 46,968 and 46,968 shares at respective dates	(3,323)	(3,323)
Total common stock	3,224,039	3,228,049
Retained earnings	3,841,749	3,850,817
Accumulated other comprehensive loss (Note 16)	(31,034)	(32,408)
Total shareholders’ equity	7,034,754	7,046,458
Noncontrolling interests (Note 9)	40,333	40,617
Total equity	7,075,087	7,087,075
TOTAL LIABILITIES AND EQUITY	$ 32,576,874	$ 30,031,599