Xcel Energy (XEL) Q4 2025 earnings summary

Executive summary

• Ongoing 2025 EPS was $3.80, up from $3.50 in 2024, while GAAP EPS was $3.42, reflecting a $300M Marshall Wildfire settlement charge; 21st consecutive year meeting or exceeding ongoing earnings guidance.

• 2026 ongoing EPS guidance is $4.04–$4.16, with long-term EPS growth targeted at 6–8%+.

• Nearly $12B invested in 2025, with a five-year capital plan updated to $60B and expanded data center capacity target to 6 GW by 2027.

• Strategic partnerships with NextEra and GE Vernova to accelerate data center and renewable generation growth and supply chain resilience.

• Major infrastructure projects completed, including Sherco Solar Phase 2, Harrington coal plant conversion, and Colorado Power Pathway segments.

Financial highlights

• 2025 ongoing EPS increased to $3.80 from $3.50 in 2024; GAAP EPS was $3.42 due to wildfire settlement charges.

• Total 2025 operating revenues were $14.67B, up from $13.44B in 2024; operating income was $2.58B, up from $2.39B.

• O&M expenses rose by $190M–$192M, mainly from wildfire mitigation, insurance, benefits, and generation maintenance.

• Interest charges increased by $213M due to higher debt levels and rates.

• Ongoing ROE for 2025 was 10.38%.

Outlook and guidance

• 2026 ongoing EPS guidance set at $4.04–$4.16, assuming constructive regulatory outcomes and normal weather.

• Long-term EPS growth expected at 6–8%+, with 9% average through 2030.

• Five-year capital plan of $60B, with $10B+ in incremental pipeline opportunities and upside from data center and transmission projects.

• Data center-driven sales growth expected to ramp post-2029, extending capital investment opportunities into the 2030s.

• Dividend payout ratio targeted at 45–55%.