Dominion Energy (D) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating earnings per share were $0.65, with weather-normalized EPS at $0.62, and GAAP net income of $572 million, down from $583 million year-over-year; key drivers included improved weather, regulated investment growth, and Millstone performance.

• All 2024 and long-term financial guidance reaffirmed, including operating EPS guidance of $2.62–$2.87 for 2024 and $3.25–$3.54 for 2025, with 5%-7% annual growth targeted through 2029.

• Major debt reduction initiatives have achieved 72% of the $21 billion business review target, with key asset sales and financing transactions progressing as planned.

• Offshore wind project (CVOW) is on time and on budget, with 33% project completion, 42 monopiles installed, all federal permits received, and Charybdis vessel 89% complete.

• Strong demand growth driven by data center expansion and economic activity, with DEV sales growth expected at 4.5%-5.5% for 2024 and six new all-time peak demand records set in July.

Financial highlights

• Q2 2024 operating EPS was $0.65, including $0.03 from favorable weather; weather-normalized EPS was $0.62.

• Q2 2024 operating revenue increased 10% to $3.49 billion; operating income was $805 million, up from $594 million in Q2 2023.

• GAAP results matched operating EPS at $0.65; adjustments included discontinued operations and market-driven changes.

• Virginia Power Q2 net income rose 43% to $479 million, driven by higher sales and lower amortization.

• Contracted Energy segment saw a significant increase in net income due to improved margins and fewer outages at Millstone.

Outlook and guidance

• 2024 operating EPS guidance reaffirmed at $2.62–$2.87, midpoint $2.75; 2025 EPS guidance $3.25–$3.54, midpoint $3.40.

• 5%-7% annual operating EPS growth rate targeted through 2029, excluding RNG 45Z credits.

• Temporary $0.04 headwind expected in 2025 from higher capacity prices, but fully expected to be overcome.

• No changes to earnings, credit, or dividend guidance.

• FY 2024 sales growth in Virginia expected at 4.5–5.5% (weather-normal).