On April 24, 2025, Xcel Energy Inc (XEL, Financial) released its 8-K filing for the first quarter of 2025. The company reported GAAP earnings of $483 million, or $0.84 per share, which is below the analyst estimate of $0.92 per share. This compares to $488 million, or $0.88 per share, in the same period of 2024. Xcel Energy manages utilities serving 3.8 million electric customers and 2.2 million natural gas customers across eight states, and is a leading renewable energy supplier in the US.
Performance and Challenges
Xcel Energy's first quarter earnings reflect increased operational and maintenance (O&M) expenses, depreciation, and interest charges, which were partially offset by higher recovery of infrastructure investments. The company's ongoing earnings per share also stood at $0.84, reaffirming its 2025 ongoing EPS guidance of $3.75 to $3.85. The performance is crucial as it highlights the company's ability to manage costs while investing in infrastructure, which is vital for maintaining service reliability and supporting the energy transition.
Financial Achievements and Industry Importance
Despite the challenges, Xcel Energy continues to make significant strides in infrastructure development and regulatory approvals. The approval of a resource plan by Minnesota regulators, which includes nearly 5,000 megawatts of new wind, solar, battery storage, and gas by 2030, marks a significant milestone. These achievements are critical in the regulated utilities industry, where infrastructure investments are essential for long-term growth and sustainability.
Key Financial Metrics
The company's total operating revenues for the first quarter of 2025 were $3,906 million, which is above the analyst estimate of $3,932.44 million, up from $3,649 million in the same period of 2024. Operating expenses increased to $3,229 million from $2,970 million, driven by higher costs in electric fuel, purchased power, and natural gas sold and transported. The increase in O&M expenses by $81 million was primarily due to higher nuclear generation costs and distribution system maintenance.
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Operating Revenues | $3,906 million | $3,649 million |
| Operating Expenses | $3,229 million | $2,970 million |
| Net Income | $483 million | $488 million |
| EPS | $0.84 | $0.88 |
Analysis and Commentary
The decrease in earnings per share from the previous year is primarily attributed to increased O&M expenses, depreciation, and interest charges. However, the company's strategic investments in renewable energy and infrastructure resilience are expected to drive future growth. As Bob Frenzel, chairman, president, and CEO of Xcel Energy, stated,
“As we continue to advance our mission to make energy work better for our customers, we are building new generation, investing in system resilience and leading the energy transition to meet the goals and aspirations of the communities we serve.”
Overall, while Xcel Energy's first quarter earnings fell short of analyst expectations, the company's ongoing investments and regulatory achievements position it well for future growth in the evolving energy landscape. Value investors may find the company's commitment to infrastructure and renewable energy development appealing, as these are critical components for long-term sustainability and profitability in the utilities sector.
Explore the complete 8-K earnings release (here) from Xcel Energy Inc for further details.
