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    D
    Earnings call· Jun 2026(Q2 FY26)

    DOMINION ENERGY Q2 FY26 earnings call D

    Jul 31, 2026 Source

    Executive summary

    Dominion Energy Q2 FY26 — CVOW Project Progress and Data Center Demand Drive Performance

    Dominion Energy delivered strong Q2 FY26 operating earnings, driven by robust data center demand and effective grid management. The Coastal Virginia Offshore Wind project is 81% complete and already generating over 450 MW, though its final completion timeline and cost estimate have been adjusted. The company is also progressing with its proposed merger with NextEra Energy and advancing new generation capacity to meet growing demand.

    Highlights

    5

    • Q2 operating earnings of $0.79 per share, including $0.03 of RNG 45Z credits, positioning for strong full-year results.

    • Completed common equity program for 2026, consistent with ATM guidance.

    • FFO to debt metrics above 15% for full-year 2025 and Q2 LTM, demonstrating commitment to credit targets.

    • CVOW project 81% complete, with 31 turbines (over 450 MW) installed and generating power, significantly derisking the project.

    • Strong sales in service areas driven by economic growth and data center expansion, with 9 of top 10 peak days occurring this year.

    Concerns

    3

    • CVOW project cost estimate increased by approximately 2% to $11.65 billion due to schedule adjustments and miscellaneous costs.

    • Final CVOW turbine installation timeline adjusted by 6 months to year-end 2027 due to weather, vessel maintenance, loadout times, and challenging jacking operations.

    • A transmission line fault caused data centers to shift to backup power, indicating potential grid disruption issues.

    Guidance & targets

    4
    CategoryTargetConfidence
    Operating earnings guidance
    reaffirmed
    high materiality
    High
    Credit targets guidance
    reaffirmed
    high materiality
    High
    Dividend guidance
    reaffirmed
    high materiality
    High
    Long-term growth guidance
    reaffirmed
    high materiality
    High

    Operational metrics

    35
    Operating EPS
    $0.79
    Q2 FY26

    Includes $0.03 of RNG 45Z credits.

    RNG 45Z credits
    $0.03
    Q2 FY26

    Included in Q2 operating EPS.

    GAAP EPS
    $0.37
    Q2 FY26
    FFO to debt
    above 15%
    FY25 and Q2 LTM

    Demonstrates commitment to previously communicated credit-related targets.

    Data center capacity in contracting
    53 GW
    current

    Includes capacity in various stages of contracting.

    Data center capacity contracted (ESA)
    12 GWadded over 5 GW since end of last year
    current

    Represents capacity contracted under electric service agreements.

    Contracted data center capacity increase
    over 5 GWroughly 11%
    since end of last year

    Increase in capacity contracted under electric service agreements.

    CVOW project completion
    81%
    current

    Overall completion status of the Coastal Virginia Offshore Wind project.

    CVOW nacelles fabricated
    100%
    current

    Percentage of nacelles fabricated for the CVOW project.

    CVOW towers fabricated
    99%
    current

    Percentage of towers fabricated for the CVOW project.

    CVOW blades fabricated
    85%
    current

    Percentage of blades fabricated for the CVOW project.

    CVOW turbines installed
    31
    current

    Installation of the 32nd turbine is in progress.

    CVOW installed capacity
    over 450 MW
    current

    Capacity from the 31 installed turbines.

    CVOW average installation time per turbine
    approximately 2 daysin line with prior assumptions
    current

    Average operations per installation from jackup to jack down.

    CVOW project investment in-service
    approximately 1/2
    by year-end

    Adjusted for network upgrade costs, signifying a meaningful derisking milestone.

    CVOW project cost estimate (prior)
    $11.4 billion
    current

    Most recent budget, inclusive of $123 million of unused contingency.

    CVOW unused contingency (prior)
    $123 million
    current

    Included in the $11.4 billion prior budget.

    CVOW additional tariff costs
    $228 million
    current

    Associated with revisions to prior steel and aluminum guidance.

    CVOW network upgrade costs reallocation
    $502 million
    current

    Subtracted from project costs for reallocation of certain PJM-assigned network upgrade costs.

    CVOW miscellaneous costs
    $234 million
    current

    Primarily reflects additional cable protection, fuel costs, mitigation for difficult jacking locations, and final onshore construction costs.

    CVOW net project cost adjustment
    around $40 millionnet reduction
    current

    Total of tariff costs, network upgrade reallocation, and miscellaneous costs.

    CVOW cost for schedule extension
    $288 million
    current

    Added to account for the incremental 2 quarters to complete final turbine installation.

    CVOW average cost per additional quarter
    about $144 millionbelow low end of prior rule of thumb guidance ($150M-$200M)
    current

    Derived from the $288 million for 2 incremental quarters.

    CVOW prior cost per quarter guidance
    $150 million to $200 million
    prior

    Prior rule of thumb guidance for cost per additional quarter.

    CVOW project cost estimate (updated)
    $11.65 billionincreased by approximately 2%
    current

    Includes $123 million of unused contingency.

    CVOW unused contingency (updated)
    $123 million
    current

    Included in the updated $11.65 billion project cost estimate.

    CVOW cost increase shared with partner
    approximately 1/3
    current

    Portion of the most recent cost increase shared with financing partner.

    CVOW expected fuel savings
    approximately $5 billion
    first 10 years of operation

    Expected fuel savings for customers during the project's first 10 years.

    New natural gas combined cycle plants capacity
    nearly 5 GW
    future

    Represents capacity from Kennady station (SC) and Mount Storm (WV).

    Millstone PPA expected savings (this year)
    over $300 million
    this year

    Expected savings for customers in Connecticut.

    Millstone PPA year-to-date savings
    $190 million
    year-to-date

    Savings for customers in Connecticut.

    Millstone PPA savings (prior year)
    $200 million
    last year

    Savings for customers in Connecticut.

    Millstone PPA expected savings (10-year)
    over $900 million
    10-year life

    Expected savings for customers in Connecticut based on current forward curves.

    Employee OSHA injury recordable rate
    0.36well below industry average
    first half of the year
    Battery investment in 5-year forecast
    $2 billion3% of total 5-year capital plan
    current 5-year forecast

    Allocated for battery investments.

    Industry KPIs

    5
    MetricValueDetails
    Adjusted operating EPS$0.79per share
    Dividend per share growthreaffirmed
    Allowed ROE equity layer rate cases—
    Combined electric gas framework mandates—
    Major regulated project construction progress81%%

    Orderbook & backlog

    1
    Data Center Capacity Pipeline53 GWcurrent

    In various stages of contracting, including approximately 12 GW contracted under electric service agreements (ESAs). Added over 5 GW of contracts since end of last year.

    Deals & partnerships

    1
    NextEra EnergyCombination of two world-class utilities.

    Joint proxy statement on Form S-4 filed. State and federal regulatory applications filed with Virginia SCC, North Carolina Utilities Commission, Public Service Commission of South Carolina, FERC, and NRC. Virginia SCC procedural schedule set for evidentiary hearings beginning November 17. South Carolina PSC proposed schedule for hearing December 8, final order by January 29, 2027.

    Capital programs

    3
    Coastal Virginia Offshore Wind (CVOW) Projectunderway$11.65 billion
    Spent to date: 81% complete
    Funding: financing partner

    Benefit: over 450 MW currently generating power

    Updated project cost estimate from $11.4 billion (inclusive of $123 million unused contingency) to $11.65 billion, an increase of approximately 2%. This includes $228 million for tariff costs, a $502 million reduction for network upgrade reallocation, $234 million for miscellaneous costs, and $288 million for a 6-month schedule extension. The $11.65 billion still includes $123 million of unused contingency.

    New Natural Gas Combined Cycle Plantsannounced, air permits filed

    Benefit: nearly 5 GW

    Air permits filed for Kennady station in South Carolina and Mount Storm in West Virginia. These are incremental projects to the current capital plan, part of an acceleration of capital towards the back end of the plan.

    Battery Investment Programunderway$2 billion

    Part of the current 5-year forecast, representing about 3% of the total 5-year capital plan, driven by Virginia legislative mandates for accelerated deployment.

    Risks & headwinds

    4
    CVOW Project Timeline ExtensionUntil year-end 2027

    6 months extension, resulting in year-end 2027 completion.

    Mitigation: Schedule adjustments based on observed performance, additional contingency for weather/vessel maintenance, and accounting for longer jacking operations at challenging locations. Project is already 81% complete and generating power.

    CVOW Project Cost IncreaseCurrent

    Approximately 2% increase to $11.65 billion (from $11.4 billion).

    Mitigation: Approximately 1/3 of the cost increase will be shared with the financing partner. Project remains one of the most affordable energy sources and is expected to generate $5 billion in fuel savings for customers over 10 years.

    Grid Disruption from Transmission FaultLast week (prior to call)

    A specific transmission line went out of service, causing data centers to use backups.

    Mitigation: Ongoing collaboration with data center customers to identify mitigation opportunities; continuous investment in transmission system upgrades; implementing lessons learned.

    Regulatory Review of NextEra MergerOngoing, with hearings scheduled for November/December

    Headlines in Virginia suggest some desire for extended review.

    Mitigation: Management believes the current time frame is sufficient given the expertise of the Virginia Commission and staff, who are used to statutory deadlines.

    What to watch in Q3 FY26

    4

    CVOW final turbine installation

    Next quarter / Year-end 2026
    Current31 turbines installed, 81% complete, final turbine expected year-end 2027
    TargetContinued progress on turbine installation, third offshore substation energized

    Why it matters

    Progress on CVOW installation and substation energization are key derisking milestones and indicators of project execution.

    We expect the third and final offshore substation to be energized by year-end, which is especially meaningful because it will signify that approximately half of project investment adjusted for network upgrade costs has achieved in-service status.

    Q&A highlights

    6

    Analyst asked about confidence in the updated year-end 2027 timeline for CVOW and any ongoing activities to monitor for further delays.

    Management expressed confidence in the updated timeline, emphasizing that the project is substantially derisked with over 450 MW already generating power and half of the investment expected to be in-service by year-end. The revised schedule incorporates lessons learned from actual loadout times, weather contingencies, and challenging jacking operations.

    “the final turbine date has moved but the project has been substantially derisked. CVAL is already producing power. It's already benefiting customers. It's already supporting regulatory recovery. We don't have to wait until the last turbine is installed at the end of 2027 to see the value of this project, we can see it now.”

    asked by Nicholas Campanella · answered by Robert Blue

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 Financial Performance and Outlook

    Dominion Energy reported Q2 operating earnings of $0.79 per share, including $0.03 from RNG 45Z credits, positioning the company for strong full-year results. The company reaffirmed all financial guidance for FY26, including operating EPS, credit targets, dividend, and long-term growth. The common equity program for 2026 has been completed, and FFO to debt metrics remain above 15% for FY25 and Q2 LTM, supporting credit-related targets.

    02

    Coastal Virginia Offshore Wind (CVOW) Project Update

    The CVOW project is 81% complete, with 31 turbines (over 450 MW) successfully installed and generating power. The third and final offshore substation is expected to be energized by year-end, signifying approximately half of the project investment achieving in-service status. The project cost estimate has been revised up by 2% to $11.65 billion, and the final turbine installation timeline extended by 6 months to year-end 2027 due to various operational adjustments.

    03

    NextEra Energy Combination Progress

    The proposed merger with NextEra Energy is progressing, with joint proxy statement and regulatory applications filed with state commissions (Virginia, North Carolina, South Carolina) and federal agencies (FERC, NRC). Procedural schedules have been set, with evidentiary hearings in Virginia starting November 17 and a final order in South Carolina expected by January 29, 2027. The transaction is expected to provide $2.25 billion in shareholder-funded bill credits to Dominion Energy customers.

    04

    Data Center Demand and Grid Reliability

    The company is experiencing strong sales growth driven by data center expansion, with over 53 GW of data center capacity in various stages of contracting, including 12 GW under electric service agreements. Recent record peak demand days highlight the need for continued grid investment. A recent transmission line fault caused some data centers to shift to backup power, prompting ongoing collaboration with customers and internal review of mitigation opportunities.

    05

    New Generation Capacity and Regulatory Outcomes

    Dominion Energy is advancing new generation capacity, including filing air permits for two new natural gas-fired combined cycle plants (Kennady station in SC and Mount Storm in WV) representing nearly 5 GW. The company achieved a successful settlement in its South Carolina electric rate case, unanimously approved by the Public Service Commission. Discussions are ongoing regarding the Millstone power station's bid in Connecticut's 0 carbon energy RFP, with the existing PPA expected to save customers over $900 million over its 10-year life.

    06

    Battery Storage Mandate

    Virginia legislation mandates an acceleration and increase in battery storage targets. The company has $2 billion allocated in its current 5-year forecast for battery investments, representing 3% of the total capital plan. A technical conference this fall will discuss deployment feasibility, and the upcoming IRP will incorporate updated perspectives on accelerating battery deployment.

    AI-generated summary of the company’s earnings call. Not investment advice.