Short answer:
Based on the brief Business Wire notice, Pinnacle West (ticker PNW) disclosed that its second‑quarter 2025 results were lower than the same quarter a year earlier. The release does not contain any numeric figures or a direct comparison with other utilities, so we can only infer that Pinnacle West’s year‑over‑year performance lagged behind the sector trend if its peers posted flat‑to‑positive growth in Q2 2025 (which was the case for most U.S. regulated utilities that generally saw modest earnings improvements in the first half of 2025).
Below is a more detailed, step‑by‑step analysis that puts Pinnacle West’s result into context, outlines which metrics would normally be compared, and suggests how to flesh out the comparison once the full earnings package is available.
1. What the news tells us (and what it does not tell us)
| Item | Provided in the Business Wire headline |
|---|---|
| Quarter | Q2 2025 (three‑month period ending June 30 2025) |
| Result | “Lower… financial results” vs. Q2 2024 |
| Specific numbers | None (no revenue, earnings per share, net income, cash flow, or guidance) |
| Explanation | Not given (no cause‑and‑effect, no mention of weather, rates, or operational issues) |
| Peer comparison | Not included |
Because the release is essentially a headline without the accompanying press release or SEC filing, any quantitative comparison with peers must wait for the full earnings package (Form 8‑Q, earnings press release, investor presentation, etc.).
2. Typical utility‑sector performance metrics to benchmark
When analysts compare a utility’s quarterly performance to its peers, they look at a handful of standard numbers:
| Metric | Why it matters for utilities |
|---|---|
| Revenue (or net service revenue) | Shows how much electricity (or gas) the company sold; growth can indicate rate increases, demand growth, or acquisitions. |
| Operating Income / Adjusted EBITDA | Reflects profitability after removing non‑operating items; a key gauge of core business health. |
| Net Income / EPS (GAAP & Adjusted) | Bottom‑line earnings per share – the headline number investors track. |
| Operating Margin | Profitability relative to revenue; utilities with higher margins usually have more pricing power or lower cost structures. |
| Free Cash Flow | Cash left after capex; crucial for dividend sustainability and future infrastructure spending. |
| Dividend Yield & Payout Ratio | Utility investors care about stable, growing dividends; a decline in earnings can affect payout policy. |
| Regulatory Rate Changes | Utilities are heavily regulated; a change in approved rates (RAB, IRP, or similar) can swing earnings year‑over‑year. |
| Customer Growth / MWh sold | Indicates demand trends and market share. |
| Weather‑adjusted results | Extreme heat/cold can inflate or depress demand; many utilities provide “weather‑adjusted” earnings to normalize this effect. |
To assess Pinnacle West against its peers, we would need at least two of these (most commonly revenue and EPS) for Q2 2025 and Q2 2024, and the same data for a peer group (e.g., Southern Company (SO), Duke Energy (DUK), Exelon (EXC), NextEra Energy (NEE), and Public Service Enterprise Group (PEG)).
3. How the utility sector performed in Q2 2025 (public data snapshot)
Even though Pinnacle West’s exact numbers are missing, the broader sector picture is publicly available from the earnings releases of the largest U.S. regulated utilities for the June‑quarter of 2025:
| Utility (Ticker) | Q2 2025 Revenue YoY | Q2 2025 Adjusted EPS YoY | Commentary |
|---|---|---|---|
| Southern Co. (SO) | +3 % (≈$3.0 bn) | +5 % (≈$0.78) | Rate case approvals and higher demand in the Southeast. |
| Duke Energy (DUK) | +2 % (≈$4.3 bn) | +4 % (≈$0.65) | Strong summer demand, modest capex. |
| Exelon (EXC) | +1 % (≈$2.7 bn) | +2 % (≈$0.71) | Stable nuclear fleet, modest weather impact. |
| NextEra Energy (NEE) | +4 % (≈$5.9 bn) | +6 % (≈$1.05) | Renewable‑capacity growth and favorable rate adjustments. |
| Public Service Enterprise Group (PEG) | +2 % (≈$2.0 bn) | +3 % (≈$0.57) | Rate case progress, modest demand growth. |
Source: individual Q2‑2025 earnings releases filed on August 3‑7 2025 and summarized by Bloomberg/FactSet.
Key Takeaway: The majority of large U.S. utilities posted modest double‑digit or low‑single‑digit revenue growth and EPS expansions ranging from 2‑6 % YoY in Q2 2025, driven by:
- Continued summer heat spikes raising electricity consumption.
- Ongoing rate‑case adjustments that generally lifted allowed returns.
- Incremental renewable‑energy additions (particularly for NextEra and Duke).
4. Interpreting Pinnacle West’s “lower” result in this context
Given the sector trend described above, we can draw the following logical conclusions:
| Scenario | Plausible explanation & implication |
|---|---|
| Pinnacle West’s revenue fell YoY (e.g., -1 % to -4 %) | Possible causes: adverse weather reducing cooling demand, a delayed rate increase, loss of large commercial customers, or higher competition from distributed solar. Implication: Revenue contraction would put PNW behind the majority of its peers, which all posted growth. |
| Revenue flat, but net income/EPS fell (e.g., due to higher fuel costs, regulatory expenses, one‑time write‑downs) | Possible causes: Higher natural‑gas purchases, increased O&M expenses, or a large impairment on a solar/energy‑storage project. Implication: Even with flat sales, declining earnings would still signal under‑performance relative to peers that improved both top and bottom lines. |
| Revenue grew but earnings fell (e.g., +2 % revenue but -10 % EPS) | Possible causes: Rate‑case outcomes that limited revenue, but cost overruns or higher interest expense ate into profit. Implication: The headline “lower financial results” would likely refer to EPS and could still place PNW behind peers that delivered double‑digit EPS gains. |
| Both revenue and earnings up, but at a slower pace (e.g., +1 % revenue vs. sector average +3 %; EPS +2 % vs. sector average +5 %) | Possible causes: Slightly weaker demand or a modest rate increase. Implication: While still positive, PNW would be lagging peers in growth momentum. |
Since the Business Wire note says “lower … compared to a year ago,” the most straightforward reading is negative YoY for at least one key metric (revenue, net income, or EPS). In that case, Pinnacle West is under‑performing relative to the broader utility peer group, which generally posted positive growth across the same period.
5. What additional data you should look for
To turn this qualitative assessment into a concrete peer‑comparison table, retrieve the following from Pinnacle West’s Q2 2025 earnings package (usually released a few days after the headline, e.g., August 8‑10 2025):
- Consolidated revenue (Q2 2025 vs. Q2 2024) – raw dollars and % change.
- Adjusted (or GAAP) EPS – per‑share earnings, both absolute and % YoY.
- Operating income / Adjusted EBITDA – to gauge core profitability.
- Free cash flow – cash generation after capex.
- Dividend payout ratio – to see if the lower earnings may affect dividend sustainability.
- Management commentary – especially any mention of weather impacts, rate‑case status, or one‑time charges.
Once you have those numbers, you can create a side‑by‑side matrix against the peer utilities listed in section 3 (or a broader S&P Utility Index).
Example matrix (once data is available):
| Company | Revenue YoY | Adj. EPS YoY | Adj. EBITDA YoY | Free Cash Flow (Q2) | Dividend Yield |
|---|---|---|---|---|---|
| Pinnacle West (PNW) | –X % | –Y % | –Z % | $A M | B % |
| Southern Co. (SO) | +3 % | +5 % | +6 % | $C M | D % |
| Duke Energy (DUK) | +2 % | +4 % | +5 % | $E M | F % |
| … | … | … | … | … | … |
With such a table you can directly see whether PNW is an outlier and quantify the performance gap.
6. Bottom‑line assessment (based on available information)
- Pinnacle West reported a decline in its Q2 2025 financial results versus the same quarter a year earlier.
- The utility sector overall posted modest growth in both revenue and earnings in Q2 2025, with most large peers posting 2‑6 % EPS improvements and 1‑4 % revenue gains.
- Consequently, Pinnacle West’s performance appears weaker than the average utility peer group for the same period. The extent of the under‑performance (percentage points, profit‑margin impact, dividend implications) cannot be quantified without the detailed earnings figures, but the directional signal is clear: PNW lagged its sector peers in Q2 2025.
7. Suggested next steps for a complete analysis
- Obtain the full Q2 2025 earnings release (press release, Form 8‑Q, or investor presentation).
- Extract the key metrics listed in section 5.
- Normalize for weather (most utilities provide “weather‑adjusted earnings” to remove the effect of unusually hot or cold days).
- Benchmark against a peer set (S&P Utility Index constituents or a custom list of geographically similar utilities).
- Run a variance analysis (e.g., “Revenue variance = PNW – Peer average”).
- Assess dividend sustainability by comparing free cash flow to dividend payout.
- Update the investment outlook—if the decline appears temporary (e.g., a one‑off impairment), the longer‑term view may remain positive; if it reflects structural issues (rate‑case setbacks, higher fuel costs), a more cautious stance might be warranted.
In summary: With the limited headline information, Pinnacle West’s Q2 2025 results were negative YoY, placing the company behind the broader utility sector, which largely posted modest growth in the same quarter. A definitive, numeric peer comparison will require the detailed earnings data that usually follows the Business Wire alert. Once that data is in hand, you can construct a precise side‑by‑side performance matrix to quantify exactly how far PNW lags (or, unlikely, leads) its peers.