Xcel Energy First Quarter 2025 Earnings Report

• First quarter GAAP and ongoing earnings per share were $0.84 in 2025 compared with $0.88 in 2024.
• Xcel Energy reaffirms its 2025 ongoing EPS guidance of $3.75 to $3.85.

MINNEAPOLIS–(BUSINESS WIRE)–Xcel Energy Inc. (NASDAQ: XEL) today reported 2025 first quarter GAAP earnings of $483 million, or $0.84 per share, compared with $488 million, or $0.88 per share in the same period in 2024.

First quarter ongoing earnings reflect higher O&M expenses, depreciation and interest charges, partially offset by increased recovery of infrastructure investments.

“As we continue to advance our mission to make energy work better for our customers, we are building new generation, investing in system resilience and leading the energy transition to meet the goals and aspirations of the communities we serve,” said Bob Frenzel, chairman, president and CEO of Xcel Energy. “We reached a milestone in February, when Minnesota regulators approved a resource plan that includes nearly 5,000 megawatts of new wind, solar, battery storage and gas by 2030. Meanwhile, we continue to mitigate the risk of wildfires in our service areas through ongoing operating investments and regulatory support, including reaching settlements for our Texas System Resiliency and Colorado Wildfire Mitigation Plans.”

At 9:00 a.m. CDT today, Xcel Energy will host a conference call to review financial results. To participate in the call, please dial in 5 to 10 minutes prior to the start and follow the operator’s instructions.

US Dial-In:		1 (866) 580-3963
International Dial-In:		(400) 120-0558
Conference ID:		2629857

The conference call also will be simultaneously broadcast and archived on Xcel Energy’s website at www.xcelenergy.com. To access the presentation, click on Investors under Company. If you are unable to participate in the live event, the call will be available for replay from April 24th through April 29th.

Replay Numbers
US Dial-In:		1 (866) 583-1035
Access Code:		2629857#

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to 2025 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases or refunds to customers, expectations and intentions regarding regulatory proceedings, expected pension contributions, and expected impact on our results of operations, financial condition and cash flows of interest rate changes, increased credit exposure, and legal proceeding outcomes, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2024 and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our nuclear generation facilities and other utility operations; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs and our subsidiaries’ ability to recover costs from customers; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; uncertainty regarding epidemics; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.

This information is not given in connection with any sale, offer for sale or offer to buy any security.

XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (amounts in millions, except per share data)
		Three Months Ended March 31
			2025				2024
Operating revenues
Electric		$	2,835			$	2,685
Natural gas			1,055				941
Other			16				23
Total operating revenues			3,906				3,649
Operating expenses
Electric fuel and purchased power			1,020				948
Cost of natural gas sold and transported			513				483
Cost of sales — other			2				8
Operating and maintenance expenses			686				605
Conservation and demand side management expenses			110				97
Depreciation and amortization			728				658
Taxes (other than income taxes)			170				171
Total operating expenses			3,229				2,970
Operating income			677				679
Other income, net			7				14
(Loss) earnings from equity method investments			(1	)			8
Allowance for funds used during construction — equity			48				37
Interest charges and financing costs
Interest charges — includes other financing costs			332				291
Allowance for funds used during construction — debt			(23	)			(14	)
Total interest charges and financing costs			309				277
Income before income taxes			422				461
Income tax benefit			(61	)			(27	)
Net income		$	483			$	488
Weighted average common shares outstanding:
Basic			575				556
Diluted			577				556
Earnings per average common share:
Basic		$	0.84			$	0.88
Diluted			0.84				0.88

XCEL ENERGY INC. AND SUBSIDIARIES

Notes to Investor Relations Earnings Release (Unaudited)

Due to the seasonality of Xcel Energy’s operating results, quarterly financial results are not an appropriate base from which to project annual results.

Non-GAAP Financial Measures

The following discussion includes financial information prepared in accordance with generally accepted accounting principles (GAAP), as well as certain non-GAAP financial measures such as ongoing return on equity (ROE), ongoing earnings and ongoing diluted EPS. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that adjusts measures calculated and presented in accordance with GAAP. Xcel Energy’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures.

Ongoing ROE

Ongoing ROE is calculated by dividing the net income or loss of Xcel Energy or each subsidiary, adjusted for certain nonrecurring items, by each entity’s average stockholder’s equity. We use these non-GAAP financial measures to evaluate and provide details of earnings results.

Earnings Adjusted for Certain Items (Ongoing Earnings and Ongoing Diluted EPS)

GAAP diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock (i.e., common stock equivalents) were settled. The weighted average number of potentially dilutive shares outstanding used to calculate Xcel Energy Inc.’s diluted EPS is calculated using the treasury stock method. Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items. Ongoing diluted EPS for Xcel Energy is calculated by dividing net income or loss, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period. Ongoing diluted EPS for each subsidiary is calculated by dividing the net income or loss for such subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period.

We use these non-GAAP financial measures to evaluate and provide details of Xcel Energy’s core earnings and underlying performance. For instance, to present ongoing earnings and ongoing diluted earnings per share, we may adjust the related GAAP amounts for certain items that are non-recurring in nature. We believe these measurements are useful to investors to evaluate the actual and projected financial performance and contribution of our subsidiaries. These non-GAAP financial measures should not be considered as an alternative to measures calculated and reported in accordance with GAAP. For the three months ended March 31, 2025 and 2024, there were no such adjustments to GAAP earnings and therefore GAAP earnings equal ongoing earnings for these periods.

Note 1. Earnings Per Share Summary

Xcel Energy’s first quarter GAAP and ongoing diluted earnings were $0.84 per share compared with $0.88 per share in the same period in 2024. The change in earnings per share was primarily driven by higher O&M expenses, depreciation and interest charges, partially offset by increased recovery of infrastructure investments. Fluctuations in electric and natural gas revenues associated with changes in fuel and purchased power and/or natural gas sold and transported generally do not significantly impact earnings (changes in costs are offset by the related variation in revenues).

Summarized diluted EPS for Xcel Energy:

		Three Months Ended March 31
Diluted Earnings (Loss) Per Share			2025				2024
PSCo		$	0.45			$	0.39
NSP-Minnesota			0.32				0.38
SPS			0.10				0.10
NSP-Wisconsin			0.07				0.08
Earnings from equity method investments — WYCO			0.01				0.01
Regulated utility			0.95				0.96
Xcel Energy Inc. and Other			(0.11	)			(0.08	)
GAAP and ongoing diluted EPS		$	0.84			$	0.88

PSCo — GAAP and ongoing earnings increased $0.06 per share for the first quarter of 2025. The change was driven by higher recovery of electric and natural gas infrastructure investments, which was partially offset by increased depreciation and interest charges.

NSP-Minnesota — GAAP and ongoing earnings decreased $0.06 per share for the first quarter of 2025. The change was driven by increased O&M expenses and depreciation, partially offset by higher recovery of electric and natural gas infrastructure investments.

SPS — GAAP and ongoing earnings were flat for the first quarter of 2025 largely due to higher recovery of electric infrastructure investments and sales growth, offset by increased depreciation and O&M expenses.

NSP-Wisconsin — GAAP and ongoing earnings decreased $0.01 per share for the first quarter of 2025. The change was driven by higher O&M expenses, depreciation and interest charges.

Xcel Energy Inc. and Other — Primarily includes financing costs and interest income at the holding company and earnings from investment funds, which are accounted for as equity method investments. The decline in earnings was largely due to higher debt levels and the performance of the equity method investments, which primarily invest in energy technology companies.

Components significantly contributing to changes in 2025 EPS compared to 2024:

Diluted Earnings (Loss) Per Share		Three Months Ended March 31
GAAP and ongoing EPS — 2024		$	0.88
Components of change – 2025 vs. 2024
Higher electric revenues			0.20
Higher natural gas revenues			0.15
Higher O&M expenses			(0.11	)
Higher electric fuel and purchased power (a)			(0.10	)
Higher depreciation and amortization			(0.09	)
Higher interest charges			(0.06	)
Higher costs of natural gas sold and transported (a)			(0.04	)
Other, net			0.01
GAAP and ongoing EPS — 2025		$	0.84

(a)	Cost of electric fuel and purchased power and natural gas sold and transported are generally recovered through regulatory recovery mechanisms and offset in revenue.

Note 2. Regulated Utility Results

Estimated Impact of Temperature Changes on Regulated Earnings — Unusually hot summers or cold winters increase electric and natural gas sales, while mild weather reduces electric and natural gas sales. The estimated impact of weather on earnings is based on the number of customers, temperature variances, the amount of natural gas or electricity historically used per degree of temperature and excludes any incremental related operating expenses that could result due to storm activity or vegetation management requirements. As a result, weather deviations from normal levels can affect Xcel Energy’s financial performance. However, electric sales true-up and gas decoupling mechanisms in Minnesota predominately mitigate the positive and adverse impacts of weather in that jurisdiction.

Normal weather conditions are defined as either the 10, 20 or 30-year average of actual historical weather conditions. The historical period of time used in the calculation of normal weather differs by jurisdiction, based on regulatory practice. To calculate the impact of weather on demand, a demand factor is applied to the weather impact on sales. Extreme weather variations, windchill and cloud cover may not be reflected in weather-normalized estimates.

Weather — Estimated impact of temperature variations on EPS compared with normal weather conditions:

	Three Months Ended March 31
	2025 vs. Normal				2024 vs. Normal				2025 vs. 2024
Retail electric	$	0.006			$	(0.029	)		$	0.035
Sales true-up		—				0.016				(0.016	)
Electric total	$	0.006			$	(0.013	)		$	0.019
Firm natural gas		0.005				(0.027	)			0.032
Decoupling		0.002				0.017				(0.015	)
Natural gas total	$	0.007			$	(0.010	)		$	0.017
Total	$	0.013			$	(0.023	)		$	0.036

Sales — Sales growth (decline) for actual and weather-normalized sales in 2025 compared to 2024:

		Three Months Ended March 31
		PSCo			NSP-Minnesota			SPS			NSP-Wisconsin			Xcel Energy
Actual
Electric residential		1.3	%		5.5	%		6.2	%		9.3	%		4.3	%
Electric C&I		(1.0	)		1.1			3.9			0.2			1.3
Total retail electric sales		(0.3	)		2.5			4.1			2.9			2.1
Firm natural gas sales		3.2			17.4			N/A			26.0			8.8

		Three Months Ended March 31
		PSCo			NSP-Minnesota			SPS			NSP-Wisconsin			Xcel Energy
Weather-Normalized
Electric residential		(0.1	)%		0.2	%		3.3	%		1.9	%		0.7	%
Electric C&I		(1.3	)		0.2			3.9			(0.4	)		0.8
Total retail electric sales		(1.0	)		0.2			3.7			0.3			0.7
Firm natural gas sales		(1.7	)		(0.3	)		N/A			5.1			(0.8	)

		Three Months Ended March 31 (Leap Year Adjusted)
		PSCo			NSP-Minnesota			SPS			NSP-Wisconsin			Xcel Energy
Weather-Normalized
Electric residential		1.1	%		1.3	%		4.5	%		3.1	%		1.8	%
Electric C&I		(0.2	)		1.3			5.0			0.7			1.9
Total retail electric sales		0.1			1.3			4.8			1.4			1.9
Firm natural gas sales		(0.4	)		1.0			N/A			6.4			0.5

Weather-normalized and leap-year adjusted electric sales growth (decline) — year-to-date

• PSCo — Residential sales increased due to customer growth of 1.4%, partially offset by a 0.3% decrease in use per customer. The C&I sales decline was related to lower use per customer, primarily in the wholesale trade and transportation sectors.
• NSP-Minnesota — Residential sales increased due to customer growth of 1.2% and a 0.1% increase in use per customer. C&I sales increased due to customer growth and higher use per customer, largely in the manufacturing sector.
• SPS — Residential sales increased as a result of a 3.7% increase in use per customer and customer growth of 0.8%. C&I sales increased due to higher use per customer, primarily driven by the energy sector.
• NSP-Wisconsin — Residential sales increased due to a 2.0% increase in use per customer and customer growth of 1.0%. C&I sales increased due to customer growth, experienced largely in the professional services and manufacturing sectors.

Weather-normalized and leap-year adjusted natural gas sales growth (decline) — year-to-date

• Increase in natural gas sales was driven primarily by residential and C&I customer growth in all jurisdictions and higher residential use per customer in NSP-Minnesota and NSP-Wisconsin. This was offset by decreased use per customer in PSCo residential and NSP-Minnesota C&I.

Electric Revenues — Electric revenues are impacted by fluctuations in the price of natural gas, coal and uranium, regulatory outcomes, market prices and seasonality. In addition, electric customers receive a credit for PTCs generated, which reduce electric revenue and income taxes.

(Millions of Dollars)		Three Months Ended March 31, 2025 vs. 2024
Recovery of higher cost of electric fuel and purchased power		$	61
Non-fuel riders			58
Regulatory rate outcomes (MN, TX and ND)			29
Estimated impact of weather			14
PTCs flowed back to customers (offset by lower ETR)			(16	)
Conservation and demand side management (offset in expense)			(7	)
Other, net			11
Total increase		$	150

Natural Gas Revenues — Natural gas revenues vary with changing sales, the cost of natural gas and regulatory outcomes.

(Millions of Dollars)		Three Months Ended March 31, 2025 vs. 2024
Regulatory rate outcomes (CO and ND)		$	57
Recovery of higher cost of natural gas			30
Conservation revenue (offset in expense)			20
Estimated impact of weather (net of decoupling)			13
Retail sales growth (net of decoupling)			(4	)
Other, net			(2	)
Total increase		$	114

Electric Fuel and Purchased Power — Expenses incurred for electric fuel and purchased power are impacted by fluctuations in market prices of electricity, natural gas, coal and uranium, as well as seasonality. These incurred expenses are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are largely offset in operating revenues and have minimal earnings impact.

Electric fuel and purchased power expenses increased $72 million for the first quarter of 2025. The increase was primarily due to increased volumes and commodity prices partially offset by timing of fuel recovery mechanisms.

Cost of Natural Gas Sold and Transported — Expenses incurred for the cost of natural gas sold are impacted by market prices and seasonality. These costs are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are largely offset in operating revenues and have minimal earnings impact.

Natural gas sold and transported increased $30 million for the first quarter of 2025. The increase was primarily due to higher volumes and commodity prices, partially offset by timing of fuel recovery mechanisms.

O&M Expenses — O&M expenses increased $81 million for the first quarter of 2025. The increase was primarily due to operational activities, including higher nuclear generation costs and distribution system maintenance (vegetation management, storm response and wildfire mitigation), the impact of a 2024 gain on land sale and increased insurance and benefits costs.

Depreciation and Amortization — Depreciation and amortization increased $70 million for the first quarter of 2025. The increase was largely the result of system investment as well as depreciation rate updates through regulatory proceedings.

Interest Charges — Interest charges increased $41 million for the first quarter of 2025, largely due to increased debt levels and higher interest rates.

Income Taxes — Effective income tax rate:

		Three Months Ended March 31
		2025			2024			2025 vs. 2024
Federal statutory rate		21.0	%		21.0	%		—	%
State income tax on pretax income, net of federal tax effect		4.7			4.8			(0.1	)
(Decreases) increases in tax from:
PTCs (a)		(33.1	)		(25.9	)		(7.2	)
Plant regulatory differences (b)		(6.7	)		(5.6	)		(1.1	)
Other tax credits, net NOL & tax credit allowances		(1.2	)		(0.6	)		(0.6	)
Other, net		0.8			0.4			0.4
Effective income tax rate		(14.5	)%		(5.9	)%		(8.6	)%

(a)	Wind and solar PTCs (net of estimated transfer discounts) are generally credited to customers (reduction to revenue) and do not materially impact earnings.
(b)	Plant regulatory differences primarily relate to the credit of excess deferred taxes to customers. Income tax benefits associated with the credit are offset by corresponding revenue reductions.

Note 3. Capital Structure, Liquidity, Financing and Credit Ratings

Xcel Energy’s capital structure:

(Millions of Dollars)		March 31, 2025			Percentage of Total Capitalization			Dec. 31, 2024			Percentage of Total Capitalization
Current portion of long-term debt		$	1,103		2	%		$	1,103		2	%
Short-term debt			719		1				695		2
Long-term debt			29,396		58				27,316		56
Total debt			31,218		61				29,114		60
Common equity			19,804		39				19,522		40
Total capitalization		$	51,022		100	%		$	48,636		100	%

Liquidity — As of April 21, 2025, Xcel Energy Inc. and its utility subsidiaries had the following committed credit facilities available to meet liquidity needs:

(Millions of Dollars)		Credit Facility (a)			Drawn (b)			Available			Cash			Liquidity
Xcel Energy Inc.		$	1,500		$	200		$	1,300		$	115		$	1,415
PSCo			700			30			670			377			1,047
NSP-Minnesota			700			72			628			19			647
SPS			500			255			245			10			255
NSP-Wisconsin			150			—			150			23			173
Total		$	3,550		$	557		$	2,993		$	544		$	3,537

(a)	Expires September 2027.
(b)	Includes outstanding commercial paper and letters of credit.

Credit Ratings — Access to the capital markets at reasonable terms is partially dependent on credit ratings. The following ratings reflect the views of Moody’s, S&P Global Ratings and Fitch. The highest credit rating for debt is Aaa/AAA and the lowest investment grade rating is Baa3/BBB-. The highest rating for commercial paper is P-1/A-1/F-1 and the lowest rating is P-3/A-3/F-3. A security rating is not a recommendation to buy, sell or hold securities.

Contacts

For more information, contact:

Roopesh Aggarwal, Vice President – Investor Relations, (303) 571-2855

Xcel Energy website address: www.xcelenergy.com, (612) 215-5300

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