Xcel Energy 2025 Q2 Earnings Strong Performance as Net Income Jumps 47%

Xcel Energy reported its fiscal 2025 Q2 earnings on July 31st, 2025. The company's results exceeded expectations, with a notable 47% increase in net income, reaching $444 million compared to $302 million in 2024 Q2. Earnings guidance for 2025 remains in line with previous projections, reaffirming the ongoing earnings per share range of $3.75 to $3.85. This consistent performance reflects Xcel Energy's strategic investments and operational resilience amid industry challenges, positioning it for steady growth.

Revenue
Xcel Energy's total revenue for the second quarter of 2025 increased by 8.6% compared to the same period in 2024. The regulated electric segment was the primary driver, generating $2.88 billion. Regulated natural gas contributed $396 million, while other segments added $13 million, bringing the overall revenue to $3.29 billion.

Earnings/Net Income
The earnings per share (EPS) for Xcel Energy rose by 40.7%, reaching $0.76 in 2025 Q2, up from $0.54 in 2024 Q2. The company demonstrated strong profitability with net income of $444 million, marking a significant 47% growth from the previous year. The EPS growth indicates robust financial performance.

Price Action
The stock price of Xcel Energy saw a slight increase of 0.74% during the latest trading day, a modest rise of 0.91% over the past week, and a substantial climb of 7.84% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Xcel Energy shares when earnings exceed expectations and holding them for 30 days yielded moderate returns, though it underperformed compared to the benchmark. The strategy generated a 16.74% return, which is notably lower than the benchmark's 85.57% return. Despite this, it maintains a low-risk profile with a maximum drawdown of 0% and a volatility of 21.51%, making it appealing to investors seeking stability. The strategy's Sharpe ratio of 0.15 reflects modest risk-adjusted returns.

CEO Commentary
Bob Frenzel, Chairman, President, and CEO of Xcel Energy, emphasized the company's dedicated service to its customers, communities, and investors. He noted significant advancements in infrastructure investments to meet growing electric demand, particularly in Texas and New Mexico. Frenzel also highlighted regulatory approvals for wildfire mitigation and system resiliency plans, signaling optimism for continued growth despite rising interest and operational expenses.

Guidance
Xcel Energy reaffirmed its 2025 earnings per share guidance, projecting a range of $3.75 to $3.85. The company anticipates a 3% increase in weather-normalized retail electric sales and a 1% rise in firm natural gas sales. Capital rider revenue is expected to grow by $255 million to $265 million. Operating expenses are projected to increase by 4%, and depreciation and interest costs are estimated to rise by $210 million to $220 million and $160 million to $170 million, respectively.

Additional News
Xcel Energy has been actively engaging with community initiatives, awarding $10,000 grants to Amarillo Children’s Home and Food Bank of Eastern New Mexico as part of its Employee Choice Grant awards. Additionally, the company has announced plans to restore power to customers affected by recent severe storms, with crews having restored electric service to 99% of impacted customers as of July 30, 2025. These efforts underscore Xcel Energy's commitment to community support and operational resilience.