PNW PINNACLE WEST CAPITAL CORP

Overview and Growth

PINNACLE WEST CAPITAL CORP generated $5.34B of revenue in fiscal 2025, with net income of $616.53M and an operating cash inflow of $1.81B. At $5.34B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 4.2% from $5.12B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $5.05, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS decreased by 3.6% from $5.24 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 0.18x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $3.41B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 63.8% of revenue, quantifying the portion retained before operating expenses were recognized. Operating income was $1.07B, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 20.0% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $616.53M for the fiscal year. Net margin was 11.5%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $738.37M of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 13.8%, relating income before taxes directly to revenue. The company recognized $106.73M of income tax for the period, completing the transition from pretax income to net income. Relative to pretax income, the tax provision measured 14.5%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

At period end, the $30.03B asset base was financed through $22.94B of liabilities and $7.09B of equity. Current assets were $1.70B against $3.16B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered only 0.54x of current liabilities, so current liabilities exceeded current assets at period end. Cash and equivalents totaled $6.60M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 0.2% of current liabilities, showing how much near-term coverage came from cash alone. The company carried $9.81B of total debt at period end, which frames its leverage and debt-service burden. Debt equaled 1.38x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 32.7%, showing how much of the asset base was matched by borrowing. Liabilities represented 76.4% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 0.0%, a balance-sheet composition measure rather than a liquidity forecast.

Cash Flow and Earnings Quality

The company reported $1.81B of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 2.93x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $2.62B of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 145.4%, connecting investment intensity with the company’s cash-generation base. The company recorded a $819.52M cash deficit after capital spending for the period. Relative to revenue, the post-investment cash deficit represented 15.3%. The free-cash-flow deficit equaled 2.7% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.