Key Takeaways:
(Bloomberg) -- Xcel Energy Inc. (NASDAQ: XEL) reported first-quarter ongoing earnings of $0.91 per share, an 8.3% increase from the same period last year, meeting Wall Street expectations despite the negative impact of warm weather on sales.
"Our data center agreement in the Upper Midwest with Google in the quarter sets a high bar for ongoing community development and investment for data centers," Bob Frenzel, chairman, president and CEO of Xcel Energy, said. "Our partnership with Google took a strong step forward in the quarter, and we look forward to advancing more projects in the near future.”
The Minneapolis-based utility's GAAP earnings were $556 million, or $0.89 per share, up from $483 million, or $0.84 per share, in Q1 2025. Revenue for the quarter was $4.02 billion, falling short of the $4.2 billion average estimate from four analysts surveyed by Zacks Investment Research. The company attributed the revenue miss to unseasonably warm weather, which was offset by increased recovery of electric infrastructure investments and electric sales growth.
Shares of Xcel Energy were little changed in pre-market trading. The company reaffirmed its full-year 2026 ongoing earnings guidance in the range of $4.04 to $4.16 per share. The guidance assumes constructive outcomes in pending regulatory proceedings and normal weather patterns for the remainder of the year.
The company estimated that unseasonably warm weather had a negative impact of approximately 10 cents per share compared to the prior year. However, weather-normalized electric sales saw a 2.8% increase, driven by a 4.3% rise in commercial and industrial demand. This growth was partially attributed to increased activity in the energy sector and other various sectors across all jurisdictions.
Xcel Energy is also navigating several regulatory proceedings and legal matters. The company recorded a $37 million charge for customer refunds related to an outage at its Prairie Island nuclear facility. Additionally, the company is involved in litigation related to the Smokehouse Creek Fire in Texas, with total estimated losses and incurred costs of $500 million as of March 31, 2026. The company has settled claims totaling $397 million.
The positive earnings report shows the company's ability to manage costs and execute on its strategy despite headwinds from weather and legal issues. Investors will be closely watching the progress of the Google data center partnership and the resolution of pending regulatory cases for future growth catalysts.
This article is for informational purposes only and does not constitute investment advice.
