Pinnacle West Capital Corporation · NYSE:PNW
Pinnacle West Capital — Q4 2025 Earnings Presentation
31 slides from Pinnacle West Capital's earnings presentation, Feb 25, 2026
Slide 1: Powering Arizona’s Future
Powering Arizona’s Future Fourth-Quarter and Full-Year 2025 Financial Results February 25, 2026
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements based on current expectations, including statements regarding our earnings guidance and financial outlook and goals. These forward-looking statements are often identified by words such as “estimate,” “predict,” “may,” “
Slide 3: Fourth-Quarter results
Fourth-Quarter results Q4 2025 vs Q4 2024 D&A O&M1 $0.02 $0.18 ($0.02) Income taxes Other taxes $0.04 $0.13 All other2 $0.06 Operating ($0.08) Revenue less Fuel Interest, net and Purchased AFUDC Power1 ($0.06) $0.05 Pension & OPEB non- Q4 2025 service credits, net $(0.06) Operating Revenue less Fuel
Slide 4: Full-Year results
Full-Year results 2025 vs 2024 Operating Revenue less Fuel and Purchased Power1 $0.64 ($0.12) ($0.12) $5.24 O&M1 ($0.05) ($0.14) Income Taxes D&A Other taxes ($0.22) $0.03 $5.05 Interest, net ($0.21) AFUDC Pension & OPEB non- All other2 service Operating Revenue less Fuel and Purchased credits, net
Slide 5: 2026 EPS guidance of $4.55 - $4.75
2026 EPS guidance of $4.55 - $4.75 2026 vs 2025 $5.05 $0.47 $(0.39) $(0.08) $0.13 $0.12 O&M1 D&A Other taxes $4.65 Weather Operating $(0.40) $(0.03) $(0.09) Revenue less Interest, net Pension & All other Fuel and AFUDC OPEB non- Purchased service Power1 credits, net Operating Revenue less Fuel and A
Slide 6: 2026 EPS guidance
2026 EPS guidance Key Factors and Assumptions (as of February 25, 2026) 2026 Adjusted gross margin (operating revenues, net of fuel and $3.31 – $3.37 billion purchased power expenses, x/RES,DSM)1 • Retail customer growth of 1.5%-2.5% • Weather-normalized retail electricity sales growth of 4.0%-6.0%
Slide 7: Key drivers & assumptions for 2026 EPS guidance
Key drivers & assumptions for 2026 EPS guidance 2026 EPS guidance of $4.55-$4.75 key drivers1 Long-term guidance and key drivers Retail customer growth of Depreciation, amortization and • Long-term EPS growth target of 5%-7% off 1.5%-2.5% property taxes due to higher original 2024 midpoint1 plan
Slide 8: Capital plan to support reliability and continued growth within our service territory
Capital plan to support reliability and continued growth within our service territory APS Total 2025-2028 $10.35B $2.65B $2.70B $2.60B $2.40B $710 $740 $825 $890 Generation $695 $860 $550 Transmission $465 Distribution Other $765 $795 $750 $710 $460 $420 $380 $335 2025A 2026E 2027E 2028E Source: 202
Slide 9: Increased rate base growth within our service territory
Increased rate base growth within our service territory Current Approved Rate Base and Test Year Detail End-of-Year Rate Base and Growth Guidance1 ACC FERC ACC FERC $4.0 Rate Effective Date 03/08/2024 06/01/2025 $2.52 Test Year Ended 6/30/20221 12/31/2024 $15.7 Equity Layer 51.93% 52.28% $12.23 Allo
Slide 10: We are focused on cost control and customer affordability
We are focused on cost control and customer affordability Operations & Maintenance Guidance O&M Guidance Planned Outages (millions) RES/DSM • Core O&M remains flat with rapidly growing Core O&M customer base $64 • Lean culture and declining O&M per MWh goal $70 • Reduction of year-over-year O&M incl
Slide 11: Optimized financing plan to support balanced capital structure
Optimized financing plan to support balanced capital structure 2026-2028 Financing Plan Funding Strategy • External equity to support balanced APS capital Approx. $8.0B structure and expanded, accretive capital investment • Approximately 75% of the 2026 equity need has $300M-$350M $1.0B-$1.2B been p
Slide 12: We are focused on maintaining healthy credit ratings to support affordable growth
We are focused on maintaining healthy credit ratings to support affordable growth1 Corporate Senior Short-Term Funding Strategy Unsecured Outlook Ratings Ratings • Maintain current investment-grade ratings at Ratings both PNW and APS APS • Target PNW FFO/Debt range of 14%-16% over the long-term Mood
Slide 13: Debt maturity profile shows well managed and stable financing plan
Debt maturity profile shows well managed and stable financing plan ($millions) APS Fixed APS Floating PNW Fixed PNW Floating $1,200 $1,000 $800 $600 $400 $200 $0 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 As of December 31, 2025 13
Slide 14: Appendix
PINNACLE \WEST CAPITAL CORPORATION
Slide 15: 2025 APS rate case application
2025 APS rate case application Overview of rate request ($ in millions) key components Rate Base Growth $208 12 months Post-test Year Plant $82 Fair Value Increment $101 WACC (7.63%) $129 Other (Base fuel, depreciation study, etc.) $143 Total Revenue Requirement $662 Adjustor Transfers $(82) Net Rev
Slide 16: 2025 APS rate case application
2025 APS rate case application Overview of rate request ($ in millions) key components Test Year Ended December 31, 2024 Total Rate Base - Adjusted $15.3B ACC Rate Base - Adjusted $12.5B Embedded Long-Term Cost of Debt 4.26% Allowed Return on Equity 10.70% ROE Band for Formula Rate +/- 20bps Capital
Slide 17: 2025 APS rate case application
2025 APS rate case application Formula Rate Adjustment Mechanism (FRAM) proposal • Historic test year, with authorized ROE and capital structure approved in most recent rate case • Inclusion of 12 months projected plant • System Reliability Benefit costs transferred into each formula reset • No rate
Slide 18: Arizona continues to be an attractive service territory with strong customer growth
Arizona continues to be an attractive service territory with strong customer growth Arizona economy continues to New APS Customer Meter Sets be robust and attractive 40,000 • Phoenix housing is affordable compared 30,000 to major cities in the region 20,000 • Maricopa County ranked top county for 10
Slide 19: Significant investment opportunity to serve increased demand
Significant investment opportunity to serve increased demand There is significant additional load we need to be ready to serve Which is requiring us to invest New gas generation: • Announced new gas generation build of up to 2 GWs • Anchor shipper on new gas pipeline, expected to be in service by la
Slide 20: Strong track record of consistently robust sales growth
Strong track record of consistently robust sales growth Weather-Normalized Retail Sales Growth Continued trend of robust sales growth 7% • 9 consecutive quarters of growth within or 6.8% exceeding the original long-term guidance range of 4%-6% 6% • Strong C&I sales growth as extra high load factor 5
Slide 21: Transmission expansion could drive significant capital investment
Transmission expansion could drive significant capital investment Cumulative Transmission CapEx $6 billion + of investment $2.1B $0.6B 2026 2028 2035 Major Transmission Projects in Development Transmission Investment Strategy • Investments in Extra High Voltage (EHV) transmission to Project Miles/kV
Slide 22: Arizona’s commercial and industrial growth is diverse
Arizona’s commercial and industrial growth is diverse Source: Arizona Commerce Authority 22
Slide 23: Renewable Energy & Demand Side Management expenses
Renewable Energy & Demand Side Management expenses1 ($ in millions pretax) Renewable Energy Demand Side Management $50 $45 $40 $35 $30 $26 $24 $25 $16 $15 $18 $14 $19 $12 $20 $15 $10 $17 $18 $18 $18 $19 $19 $14 $16 $5 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Renewable Energy and Demand Side Management expenses
Slide 24: 2025 gross margin effects of weather
2025 gross margin effects of weather Variances vs. Normal ($ in millions pretax) $26 $14 ($3) ($16) Q1 Q2 Q3 Q4 2025 Total Weather Impact: $21 Million All periods recalculated to current 10-year rolling average (2014 – 2023). Numbers may not foot due to rounding. 24
Slide 25: 2025 Planned Outage Schedule
2025 Planned Outage Schedule Coal, Nuclear and Large Gas Planned Outages Q1 Q2 Q4 Actual Duration in Actual Duration in Actual Duration in Plant Unit Plant Unit Plant Unit Days Days Days Redhawk CC2 60 Palo Verde1 1 42 Palo Verde 3 60 Four Corners 4 72 Four Corners 4 12 1 Outage began at end of Q1 2
Slide 26: 2026 Planned Outage Schedule
2026 Planned Outage Schedule Coal, Nuclear and Large Gas Planned Outages Q2 Q4 Estimated Duration Estimated Duration Plant Unit Plant Unit in Days in Days Palo Verde1 2 36 Palo Verde 1 46 1 Outage begins at end of Q1 26
Slide 27: Non-GAAP Measure Reconciliation
Non-GAAP Measure Reconciliation 2025 Actual2 2026 Guidance2 Operating revenues1 $5.34 billion $5.56 - $5.66 billion Fuel and purchased power expenses1 $1.94 billion $2.17 - $2.21 billion Gross Margin $3.40 billion $3.39 - $3.45 billion Adjustments: Renewable energy and demand side management program
Slide 28: 2026 Key Regulatory Dates
2026 Key Regulatory Dates Case/Docket # Q1 Q2 Q3 Q4 APS Rebuttal Testimony Staff and Intervenor Direct due April 3 Final Decision scheduled for Q4 Testimony due March 2 and 2025 Rate Case E-01345A-25-0105: Rate Case hearing to begin 2026 March 18 May 18 2026 PSA rate reset effective PSA reset Power
Slide 29: Wildfire Mitigation
Wildfire Mitigation Our current practices are comprehensive and multi-faceted: Vegetation Grid hardening Asset Monitoring and Operational management investments inspection awareness mitigations • Comprehensive right- • Ongoing distribution • Enhanced line • Dedicated team of • Non-reclosing of-way c
Slide 30: Consolidated Statistics
Consolidated Statistics 3 Months Ended December 31, 12 Months Ended December 31, 2025 2024 Incr (Decr) 2025 2024 Incr (Decr) ELECTRIC OPERATING REVENUES (Dollars in Millions) Retail Residential $ 478 $ 505 (28) $ 2,541 $ 2,563 $ (22) Business 599 542 57 2,543 2,335 208 Total Retail 1,076 1,047 29 5,
Slide 31: Consolidated Statistics
Consolidated Statistics 3 Months Ended December 31, 12 Months Ended December 31, 2025 2024 Incr (Decr) 2025 2024 Incr (Decr) ENERGY SOURCES (GWH) Generation Production Nuclear 1,995 2,213 (218) 9,193 9,511 (318) Coal 1,702 1,310 392 6,021 7,072 (1,051) Gas, Oil and Other 2,429 2,404 24 10,197 8,849
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