Dominion Energy Inc (D) Q3 2025 Earnings Call Highlights: Navigating Challenges and Reinforcing ...

This article first appeared on GuruFocus.

Operating Earnings: $1.06 per share, including $0.03 of RNG 45Z credits and $0.06 of worse than normal weather. GAAP Earnings: $1.16 per share. Full Year Guidance: Narrowed to $3.33 to $3.48 per share, maintaining the midpoint of $3.40. Project Costs for Coastal Virginia Offshore Wind (CVOW): $11.2 billion, with $8.2 billion invested through September. Remaining Project Costs for Dominion: Approximately $1.5 billion. Levelized Cost of Energy (LCOE) for CVOW: Updated to $84, up from last quarter. Revenue Requirement for 2026 Rate Year: Forecasted at $665 million. Data Center Demand: 28 gigawatts in substation engineering, 9 gigawatts in construction letters, and nearly 10 gigawatts in electric service agreements.

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Release Date: October 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Dominion Energy Inc (NYSE:D) reported third quarter operating earnings of $1.06 per share, with positive contributions from regulated investment growth and increased sales. The Coastal Virginia Offshore Wind (CVOW) project is 2/3 complete and is on track to deliver electricity by late first quarter of 2026. The company has successfully completed 100% of monopile installation for the CVOW project ahead of schedule. Dominion Energy Inc (NYSE:D) has reaffirmed its full-year financial guidance, maintaining a conservative balance sheet with no changes to credit-related targets. Data center demand continues to grow, with Dominion Energy Inc (NYSE:D) studying over 28 gigawatts of demand, indicating strong future sales potential.

Negative Points

The CVOW project costs have increased to $11.2 billion, with a modest charge recorded this quarter due to cost increases. The Charybdis wind turbine installation vessel has faced delays, requiring remediation of punch list items before it can begin operations. Weather conditions have reversed from being a tailwind to a small headwind, impacting financial performance by approximately $0.02. Higher depreciation, depletion, and amortization (DD&A) and financing costs have negatively impacted third quarter results. There is potential for some of the final turbines of the CVOW project to be delayed into early 2027, which could affect project timelines.

Q & A Highlights

Q: How does the political landscape affect the Coastal Virginia Offshore Wind (CVOW) project, especially with potential changes in party control? A: Robert Blue, Chairman and CEO, emphasized that CVOW has bipartisan support at all levels of government due to its importance for energy infrastructure and economic benefits. He expects this support to continue regardless of political changes.

Story Continues

Q: What is the status of the Charybdis vessel, and when will it be ready for turbine installation? A: Robert Blue explained that Charybdis, the first Jones Act-compliant wind turbine installation vessel, is undergoing quality assurance checks. The team is addressing a punch list of items, and the vessel is expected to be ready for turbine installation in November.

Q: What are Dominion Energy's plans for capital investment and funding, particularly regarding equity needs in 2026 and 2027? A: Steven Ridge, CFO, stated that Dominion plans to update its capital investment forecast in early 2026, with potential increases in regulated capital deployment. The company is focused on maintaining balance sheet conservatism and will explore various financing options, including ATM and hybrid equity.

Q: Are there any government or political issues affecting the timing of the Charybdis vessel's operations? A: Robert Blue confirmed that there are no government or political issues affecting the vessel's timing; the focus is solely on completing the punch list.

Q: How does Dominion Energy plan to manage potential delays in turbine installation for CVOW, and what is the financial impact? A: Robert Blue and Steven Ridge explained that any delay into early 2027 would involve a small number of turbines and have minimal financial impact. The project is structured to allow for revenue collection as turbines are energized throughout 2026.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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