Xcel Energy (NASDAQ:XEL) closed a transformative fiscal 2025 on Thursday, delivering on its earnings guidance for the 21st consecutive year while simultaneously navigating a complex legal landscape in Texas and Colorado.
The Minneapolis-based utility giant reported 2025 ongoing earnings of $2.24 billion, or $3.80 per share—an 8.6% increase over the $3.50 reported in 2024.
This performance was largely propelled by the successful execution of its "Steel for Fuel" strategy, which included placing the second phase of the Sherco Solar facility into service and completing critical segments of the Colorado Power Pathway.
However, GAAP earnings were slightly lower at $3.42 per share, primarily due to non-recurring charges related to high-stakes wildfire litigation and settlement costs.
The company continues to face scrutiny over the 2024 Smokehouse Creek fire in Texas, where it faces a lawsuit from the Texas Attorney General alleging negligence.
In response, Xcel has aggressively ramped up its wildfire mitigation efforts, deploying 80 AI-driven cameras for plume detection and completing hundreds of property damage claims through an expedited process.
Despite these headwinds, weather-normalized electric sales grew 2% for the full year, bolstered by a surge in commercial demand from new large-scale data center customers.
"Our 2025 results demonstrate the resilience of our business model and our commitment to a clean energy transition that remains affordable for our customers," said CEO Bob Frenzel.
Highlighting its financial strength, Xcel reaffirmed its 2026 EPS guidance of $4.04 to $4.16 and maintained its long-term dividend growth target of 4% to 6%.