PNWMEDIUM SIGNALFINANCIAL10-K

Pinnacle West shows balanced growth with expanding assets and operations alongside rising capital costs, while updating business descriptions to emphasize its scale and Arizona market position.

The company demonstrates healthy operational expansion with total assets growing 15% to $30 billion and operating cash flow increasing 12%, indicating solid underlying business performance. However, interest expense rose nearly 30%, reflecting higher financing costs that investors should monitor as the utility continues to invest in infrastructure and growth initiatives.

Comparing 2026-02-25 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

PNW's financial profile reflects a utility in expansion mode, with total assets growing meaningfully to $30 billion while operating cash flow increased modestly to $1.8 billion. Cash position substantially improved, though interest expense rose notably as the company funds growth investments. The overall picture suggests healthy operational momentum tempered by higher capital costs typical of utilities during infrastructure investment cycles.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+72.1%
$3.8M$6.6M

Cash position surged 72.1% — strong cash generation or capital raise providing significant financial cushion.

Share Buybacks
Cash Flow
+54.3%
$2.7M$4.1M

Share repurchases increased 54.3% — management returning capital, signals confidence in intrinsic value.

Interest Expense
P&L
+29.7%
$255.5M$331.3M

Interest costs rose 29.7% — monitor debt levels and coverage ratio in rising rate environment.

Total Assets
Balance Sheet
+15.1%
$26.1B$30.0B

Asset base grew 15.1% — expansion through organic growth, acquisitions, or capital deployment.

Operating Cash Flow
Cash Flow
+12.1%
$1.6B$1.8B

Operating cash flow grew 12.1% — strong conversion of earnings to cash, healthy business fundamentals.

Current Liabilities
Balance Sheet
+11.2%
$2.8B$3.2B

Current liabilities rose 11.2% — increased short-term obligations, watch current ratio.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-25
ADDED
See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act.
Changes in and Disagreements W ith Accountants on Accounting and Financial Disclosure 200 Item 9A.
Part II, Item 8 also includes Combined Notes to Consolidated Financial Statements.
BUSINESS Pinnacle West Pinnacle West is an investor-owned electric utility holding company based in Phoenix, Arizona with consolidated assets of approximately $30 billion.
Since 1886, APS and its affiliates have provided energy and energy-related products to people and businesses throughout Arizona.
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REMOVED
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 202 Item 9A.
BUSINESS Pinnacle West Pinnacle West is a holding company incorporated in Arizona that conducts business through its subsidiaries.
APS is incorporated in Arizona and is a vertically-integrated electric utility that provides either retail or wholesale electric service to most of Arizona, with the major exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona.
Pinnacle West s other active subsidiaries are El Dorado, an Arizona corporation, and PNW Power, a Delaware limited liability company.
BCE was a subsidiary of Pinnacle West, but was sold in January 2024.
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