Xcel Energy (XEL) Q2 2025 earnings summary

Executive summary

• Q2 2025 diluted EPS rose to $0.75 from $0.54 in Q2 2024, with YTD EPS at $1.59, driven by higher electric and natural gas revenues, infrastructure investment recovery, and AFUDC, partially offset by higher O&M, depreciation, and interest expenses.

• Net income for Q2 2025 was $444 million, up from $302 million in Q2 2024; six-month net income reached $927 million versus $790 million prior year.

• Invested $2.6 billion in energy infrastructure in Q2 2025, advancing wildfire risk reduction and resiliency initiatives with strong regulatory and legislative support.

• Identified an incremental $15 billion capital investment need, raising the five-year infrastructure plan to over $60 billion, driven by robust demand and reliability requirements.

• Major progress on regulatory approvals for wildfire mitigation, new generation portfolios, and system resiliency in Colorado, Texas, and North Dakota.

Financial highlights

• Q2 2025 operating revenues were $3.29 billion, up from $3.01 billion in Q2 2024; six-month revenues totaled $7.19 billion, up from $6.68 billion.

• Operating income for Q2 2025 was $577 million, up from $449 million year-over-year.

• Weather-normalized electric sales increased ~3% in Q2; full-year forecast remains at 3% growth.

• O&M expenses increased $13 million in Q2 and $94 million year-to-date, mainly due to higher insurance, benefit, and nuclear generation costs.

• Depreciation and amortization rose $19 million in Q2 and $89 million year-to-date, reflecting system investment.

Outlook and guidance

• 2025 ongoing EPS guidance reaffirmed at $3.75–$3.85, with long-term annual EPS growth targeted at 6% to 8% and annual dividend increases of 4% to 6%.

• 2025 guidance assumes constructive regulatory outcomes, normal weather, ~3% growth in weather-normalized retail electric sales, and ~1% growth in natural gas sales.

• O&M expenses projected to rise ~4%, depreciation by $210–$220 million, and interest expense by $160–$170 million.

• Will provide a comprehensive update to the five-year capital plan and guidance in Q3, reflecting incremental investment pipeline and sales growth.