Customer growth was 2.4% in Q2, supported by strong population growth and economic conditions in Arizona.
O&M costs were higher due to timing of a major planned outage at the Four Corners plant, but cost-saving measures remain in place.
PNW reported Q2 2025 earnings of $1.58 per share, down $0.18 from Q2 2024, primarily due to weather, O&M costs, share issuance, pension and OPEB nonservice credits, income taxes, and depreciation & amortization.
The company issued $800 million in bonds in Q2 to refinance 2025 maturities and support its financing strategy.
Transmission revenue and a gain from an El Dorado equity investment partially offset negative drivers.
Weather-normalized sales grew 5.2% year-over-year, driven by strong residential and commercial & industrial (C&I) customer growth, with C&I sales up 8%.
Adjusted EBITDA was $201 million, up from $181 million in the prior quarter, exceeding guidance of $140 million to $160 million, partly due to a favorable $24 million arbitration outcome.
Adjusted free cash flow was $63 million, supported by $120 million cash flow from operations and $10 million proceeds from sale for recycling of semisubmersibles.
CapEx totaled $67 million in Q2, below guidance due to timing shifts, with Q3 expected at $100 million to $110 million including maintenance and survey costs.
Cash and cash equivalents stood at $516 million with nearly $900 million total liquidity including revolving credit facility.
Contract drilling expense was $396 million in Q2, with an expected increase in Q3 due to the arbitration benefit not recurring.
Revenue efficiency was strong at 96%, contributing to meaningful EBITDA and free cash flow.
Valaris reported total revenues of $615 million in Q2 2025, slightly down from $621 million in Q1 2025, primarily due to VALARIS DS-12 completing a contract without follow-on work.
Dafinchi