Xcel Energy Reports Q1 2025 Financial Results with 7% Revenue Increase

Xcel Energy Inc. reported its financial results for the first quarter of 2025, revealing total operating revenues of $3.906 billion, a 7% increase from $3.649 billion in the same period of 2024. The company's net income for the quarter was $483 million, down slightly from $488 million year-over-year. Earnings per share (EPS) also decreased to $0.84 from $0.88, reflecting higher operating and maintenance expenses, depreciation, and interest charges, which were partially offset by increased recovery of infrastructure investments.

The company experienced significant changes in its operational metrics compared to the previous fiscal period. Electric revenues rose to $2.835 billion, up from $2.685 billion, while natural gas revenues increased to $1.055 billion from $941 million. The increase in revenues was attributed to higher sales volumes and recovery of costs associated with electric fuel and purchased power. However, operating expenses also rose to $3.229 billion from $2.970 billion, driven by increased costs in electric fuel, purchased power, and operational activities.

In terms of strategic developments, Xcel Energy has been actively pursuing growth through capital investments and regulatory proceedings. The company reported capital expenditures of $1.988 billion for the quarter, up from $1.537 billion in the prior year, as it continues to invest in renewable energy and infrastructure projects. Additionally, Xcel Energy has initiated various regulatory proceedings, including rate cases in Minnesota and Colorado, to support its ongoing investments and recover costs associated with infrastructure improvements.

Operationally, Xcel Energy's customer base has shown growth, with an increase in residential and commercial customers across its service territories. The company reported a total of 576.8 million shares outstanding as of April 17, 2025. The demand for electric and natural gas services is influenced by seasonal weather patterns, which can significantly impact sales. The company noted that weather-normalized retail electric sales are projected to increase by approximately 3% for the year, while firm natural gas sales are expected to rise by about 1%.

Looking ahead, Xcel Energy has provided guidance for ongoing earnings in 2025, estimating a range of $3.75 to $3.85 per share. The company anticipates constructive outcomes in pending regulatory proceedings and normal weather patterns, which are critical for achieving its financial objectives. Xcel Energy aims for long-term annual EPS growth of 6% to 8% and plans to maintain a dividend payout ratio of 50% to 60%, reflecting its commitment to delivering value to shareholders while investing in sustainable energy solutions.