PNWMEDIUM SIGNALFINANCIAL10-K

PNW delivered exceptional earnings recovery with net income surging 412% to $350.1M, though rising interest costs and expanding balance sheet reflect ongoing capital intensity.

The dramatic earnings turnaround from $68.3M to $350.1M suggests either a recovery from prior year losses or successful completion of major operational improvements. However, the 30% increase in interest expense to $331.3M indicates PNW is taking on significantly more debt to fund operations or expansion, which investors should monitor for sustainability.

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

PNW shows strong financial momentum with net income exploding 412% to $350.1M while operating cash flow grew a solid 12.1% to $1.8B, indicating genuine operational improvements rather than just accounting gains. The company expanded its asset base 15.1% to $30B and increased share buybacks 54% to $4.1M, demonstrating confidence in its recovery, though the 30% spike in interest expense to $331.3M reflects increased leverage that could pressure future margins. Overall, the financial picture signals a utility in expansion mode with improving profitability but rising financial risk from increased debt loads.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+412.3%
$68.3M$350.1M

Net income grew 412.3% — bottom-line growth signals improving overall business health.

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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