Dominion Energy Inc. (D) Earnings & Analysis

Latest quarter

Dominion Energy reported Q3 FY2026 revenue of $5.6 billion, above the $4.8 billion consensus. Adjusted earnings of $1.28 per share also exceeded the $1.20 consensus.

Revenue rose from $4.5 billion a year earlier. Dominion’s filing attributed the increase partly to fuel-related revenue as commodity costs rose, as well as charges to recover Virginia Power investment costs and the effects of its biennial rate review. The filing also cited increased retail sales associated with warmer weather and higher South Carolina base rates.

Dominion’s filing said net income attributable to the company increased, primarily because of higher returns on Virginia Power investments and the biennial review’s effects, partly offset by lower investment earnings on nuclear decommissioning trust funds. The company reported an operating margin of 32.8%, up from 29.6% a year earlier, while gross margin was 68.9%, compared with 69.0%.

Dominion reported free cash flow of −$546.0 million, compared with −$1.1 billion in the prior-year quarter.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CFO Steven Ridge said weather-normalized electric sales grew across Dominion’s Virginia and South Carolina utilities. He said the company continues to see data-center demand across Virginia, with capacity in various stages of contracting. Ridge said a Virginia-approved framework requires large customers to contribute to the investments needed to serve them, helping protect existing customers from cost shifts and stranded costs.

CEO Robert Blue said Dominion’s updated Virginia resource plan added and accelerated solar and battery storage relative to its previous preferred plan. Blue said the company is evaluating both short-duration batteries and emerging long-duration storage technologies for reliability, affordability and customer needs.

On Coastal Virginia Offshore Wind, Blue said the project had installed turbines and completed fabrication of its major turbine components. He said installation fell below expectations in September and October because of weather and vessel maintenance, using some schedule contingency. Dominion’s project completion outlook remained unchanged, he said.

Asked about installation timing, Ridge described the time available for the remaining turbines, port trips, weather and maintenance. Blue also pointed to the company’s construction experience, contractor relationships, supply-chain familiarity and permitting work when discussing project risks. On renewable energy credit pricing, Ridge said the price was hard to predict and that Virginia sourcing requirements constrain supply; he said credit revenue from the wind project offsets its calculated energy cost.

Blue said the proposed combination with NextEra Energy remains under regulatory review and that Dominion expects it to close in the second half of 2027. He described a Virginia benefits proposal that includes expanded bill assistance and workforce development funding.

For the remainder of the year, Ridge said the company’s earnings outlook includes conservative weather assumptions and potential steps to reduce risks to future financial performance. In response to a question about equity financing, he said Dominion still viewed the following years as relatively lighter issuance years.

Guidance

Dominion reaffirmed its original 2026 operating earnings range of $3.45 to $3.69 per share but now expects results in the top half of that range. CFO Steven Ridge said the expectation includes conservatism for remaining-year weather and potential opportunities to reduce risks to future financial performance.