Dominion Energy Q1 Earnings Call Highlights

Key Points

• Dominion reported Q1 operating EPS of $0.95 and GAAP EPS of $0.69, and reaffirmed prior guidance including long‑term earnings growth targeted at the midpoint of 5%–7% with a bias toward the upper half starting in 2028.
• The Coastal Virginia Offshore Wind project is now over 75% complete with a revised budget of $11.4 billion, the majority of turbines expected in service by end‑2026, and each quarter of delay past July 2027 could add roughly $150–200 million in costs.
• Virginia’s new laws raise grid‑scale storage targets to 20 GW by 2045 (from 3 GW by 2035), creating a multiyear regulated capital opportunity that Dominion estimates at about $2.5–3 billion per GW and will accelerate inclusion of storage in its capital plan.

Dominion Energy NYSE: D reported first-quarter 2026 operating earnings of $0.95 per share and GAAP earnings of $0.69 per share, with management pointing to progress across its financial plan, execution on the Coastal Virginia Offshore Wind (CVOW) buildout, and ongoing regulatory proceedings.

Executive Vice President and CFO Steven Ridge said the company remains focused on three priorities that were established following a business review more than two years ago: “consistent achievement of our financial commitments,” “continued achievement of major construction milestones” for CVOW, and “constructive achievement of regulatory outcomes.” Ridge said the company is “off to a strong start to the year” and affirmed all financial guidance previously provided on its fourth-quarter earnings call, including operating earnings, credit, dividend, and long-term growth guidance.

Guidance reaffirmed; long-term growth outlook unchanged

Ridge said Dominion continues to guide to annual earnings growth “at the midpoint of our 5%-7% range with a bias starting in 2028 toward the upper half of the range.” He added that the outlook reflects “disciplined financial management,” “attractive business fundamentals,” and the “strength of our growing regulated investment profile.”

Ridge also noted management is “monitoring catalysts that could enhance and/or extend our long-term growth rate,” and said the company continues to see incremental opportunities to deploy regulated capital for customers. In response to analyst questions, Ridge indicated that those opportunities span “generation, transmission, and distribution,” with battery storage legislation in Virginia and potential recontracting at Millstone among the items investors are watching.

Virginia battery storage legislation expands long-term opportunity

On Virginia’s expanded grid-scale energy storage targets, Ridge highlighted newly enacted House Bill 895 and Senate Bill 448. The laws require Dominion to petition for 20 gigawatts of short- and long-term storage projects by 2045, compared with a prior requirement of 3 gigawatts by 2035. Ridge said the company will reflect the multiyear opportunity and other regulated investment opportunities in a capital update “early next year.”

On the call’s Q&A, Ridge told Barclays analyst Nick Campanella that the company’s $65 billion five-year capital plan already includes about $2 billion related to battery storage, “subject to regulatory approval.” Ridge said the legislation means Dominion will need to “accelerate the ramp of that capital,” pointing to an expected State Corporation Commission technical conference this year and an update to the integrated resource plan (IRP) in the fall.

Ridge offered a “general rule of thumb” that “a gigawatt overnight installed, including transmission, network upgrades, et cetera,” is roughly $2.5 billion to $3 billion per gigawatt, adding that the move to 20 gigawatts represents “a meaningful opportunity over a long period of time.” He also said Dominion recovers battery storage spending in Virginia through a “rider mechanism,” and suggested modeling should wait for the IRP to show how installations are selected over time.

CVOW project milestones, installation cadence, and updated budget

CEO Bob Blue said the Coastal Virginia Offshore Wind project is now over 75% complete, and management highlighted March’s first delivery of power to customers as a major milestone. Blue said fabrication and installation are progressing well, including completion of all 176 transition pieces and installation of all three substations, with commissioning “proceeding as planned.” Deep-water export cables are installed, inter-array cable installation is “on track,” and remaining cabling has been fabricated with the majority “landed in Virginia,” he said.

Dominion also provided updated turbine component fabrication metrics: Blue said the company has fabricated over 86% of towers, about 69% of nacelles, and about 45% of blades. As of the morning of the call, Dominion had installed nine turbines.

Blue said the company is seeing “materially positive improvements” in installation cadence, noting that after calibrating procedures and equipment during winter weather, the project has averaged “approximately two days per installation for our last four turbines.” The company affirmed its previously communicated schedule, with the “majority of turbines expected to be placed in service by the end of 2026,” and the remainder in early 2027 “prior to the end of June.”

Blue also reiterated that the project budget includes contingency for weather delays through July 2027 as needed, including Charybdis charter costs. If the project extends beyond July 2027, Dominion estimates each additional quarter to complete turbine installation would add $150 million to $200 million to project cost, “a portion of which would be allocated to our financing partner,” he said.

On costs, Blue said the CVOW project budget now stands at $11.4 billion, about $100 million lower than the company’s last update, reflecting “changes in tariff assumptions as a result of recent judicial and administrative actions.” Unused contingency stands at $123 million, according to management.

Ridge told Barclays that the current cost mark “does not reflect” potential reductions from the reassessment of certain transmission upgrade costs allocated to CVOW via the PJM transition cycle. He also said the company is evaluating the potential impact of updated Section 232 steel and aluminum tariffs and is awaiting interpretive guidance, estimating the exposure could be “in the $200-ish million range,” which could potentially be offset by transmission cost reallocations.

Blue said the project’s cost sharing and risk sharing frameworks continue to operate “as intended,” with “no change” to either LCOE or customer bill impacts. He added that Dominion’s updated analysis indicates CVOW is expected to generate about $5 billion in fuel savings for customers during the project’s first 10 years of operations.

Regulatory updates and customer affordability focus

Blue emphasized customer affordability and said Dominion expects bills to “continue to grow at rates comparable to inflation over the long term,” even while executing one of the largest regulated investment programs in the sector. He pointed to customer programs including budget billing, energy savings programs, and financial assistance such as EnergyShare, as well as a recently launched online platform intended to centralize program information.

Blue also cited the commission’s approval of “large load provisions” in the 2025 biennial designed to ensure smaller customers are not subsidizing large customer classes or exposed to stranded costs. He said the company plans to pursue fuel securitization in Virginia for unrecovered fuel costs to reduce rate impacts on customers.

On specific regulatory matters, Blue said:

• In South Carolina, Dominion Energy South Carolina’s electric rate case is advancing, with hearings scheduled for mid-May and a decision expected in late June, with rates effective in July.
• In North Carolina, Dominion filed an electric rate case application and testimony to support about $400 million of investment placed in service since the 2024 rate case. Dominion expects a decision in February 2027, with interim rates effective Dec. 26, subject to true-up and finalization in March 2027. Blue noted DENC represents about 4% of the company’s investment base.

Millstone recontracting timeline and data center demand

Management said it expects “increasing clarity later this year” around the opportunity to recontract the Millstone nuclear facility. Blue referenced Connecticut Gov. Ned Lamont’s comments highlighting savings under the current contract that are contributing to a “material customer bill reduction” in the state. Blue said Millstone is currently contracted for “a little more than half” of output through August 2029.

Blue said the facility submitted a bid in the Connecticut Department of Energy and Environmental Protection’s zero-carbon energy request for proposals in March. Under DEEP’s published schedule, solicitation decisions are expected in the second quarter, with negotiations with the state’s utilities expected to begin in the third quarter; contracts would then be submitted to the Connecticut Public Utilities Regulatory Authority for approval, which can take up to 180 days, according to Blue.

In Q&A, Blue said there is not a stated limit in the Connecticut procurement “on how much could be potentially contracted with the state,” and noted that other New England states have expressed interest in Millstone as well. Ridge told RBC Capital Markets analyst Steve D’Ambrisi that Dominion would be willing to contract more than the roughly 55% level, adding that while other states do not have a formal process like Connecticut’s, Dominion has been in discussions and “they’ve expressed interest.”

Separately, Ridge said Dominion has “over 50 GW of data center capacity in various stages of contracting,” including about 10.4 GW contracted under electric service agreements. Blue told Goldman Sachs analyst Carly Davenport that the company continues to see “incredibly strong demand” for data centers in Virginia, with “no detectable change” in customer interest in recent months.

On financing and credit, Ridge said Dominion has issued about $1.2 billion of common equity year-to-date under its ATM program, leaving $400 million to $600 million for the remainder of the year, consistent with prior guidance. He added that the company’s full-year 2025 and first-quarter last-twelve-month FFO-to-debt metrics were both “above 15%,” and said the company’s financing plan is designed to maintain that cushion.

Blue closed by reiterating management’s focus on execution across financial commitments, CVOW milestones, and regulatory outcomes, saying the company remains committed to delivering “reliable, affordable, and increasingly clean power” for customers.

About Dominion Energy NYSE: D

Dominion Energy, Inc, headquartered in Richmond, Virginia, is a diversified energy company that primarily operates regulated electricity and natural gas utilities and develops energy infrastructure. The company's core activities include the generation, transmission and distribution of electricity to residential, commercial and industrial customers, as well as the purchase, storage and delivery of natural gas. Dominion combines traditional utility operations with energy infrastructure businesses to provide essential services across its service territories.

Dominion's electricity portfolio spans multiple technologies and fuel sources, including nuclear, natural gas-fired generation and renewable resources such as utility-scale solar and wind.

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