Skip to content
    D
    Earnings call· Sep 2025(Q3 FY25)

    DOMINION ENERGY, INC D

    Oct 31, 2025 Source

    Executive summary

    Dominion Energy Q3 FY25 — CVOW Progress and Data Center Demand Drive Performance

    Dominion Energy delivered solid Q3 FY25 results, driven by strong data center demand and significant progress on the Coastal Virginia Offshore Wind project, despite weather headwinds and ongoing challenges with the Charybdis installation vessel. The company reaffirmed its full-year guidance midpoint, confident in its ability to meet financial commitments and deploy regulated capital for customer benefit, with a comprehensive capital plan update expected in early 2026.

    Highlights

    5

    • Q3 operating EPS was $1.06, including $0.03 from RNG 45Z credits and $0.08 from increased sales.

    • The Coastal Virginia Offshore Wind (CVOW) project is 2/3 complete, with 100% of monopile installation finished one month early.

    • Data center demand pipeline grew by 7 GW (17%) to 47 GW in various stages of contracting since December 2024.

    • 9 GW of data center demand is now under executed construction letters of authorization, a 73% increase since December 2024.

    • Residential electric rates are 9% (DEV) and 11% (DESC) below the U.S. average.

    Concerns

    3

    • The Charybdis vessel experienced delays due to punch list items, potentially pushing some final turbine installations into early 2027.

    • CVOW project costs increased to $11.2 billion, including a $50 million after-tax charge for costs not expected to be recovered.

    • Weather impact resulted in a $0.02 per share headwind year-to-date.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year Operating EPS
    $3.33 to $3.48 per share
    high materiality
    High
    All other existing financial guidance
    Reaffirmed
    medium materiality
    High
    Regulated capital deployment
    Incremental opportunities, timing bias towards back end of plan
    high materiality
    Medium
    FFO to debt ratio
    15%
    high materiality
    High

    Operational metrics

    18
    Operating EPS contribution from RNG 45Z credits
    $0.03
    Q3 FY25

    Positive factor for the quarter.

    Operating EPS impact from weather
    -$0.06worse than normal
    Q3 FY25

    Negative factor for the quarter.

    Operating EPS contribution from regulated investment growth
    $0.06vs Q3 FY24
    Q3 FY25

    Positive factor for the quarter.

    Operating EPS contribution from increased sales
    $0.08vs Q3 FY24
    Q3 FY25

    Positive factor for the quarter.

    Operating EPS contribution from DESC rate case settlement
    $0.05vs Q3 FY24
    Q3 FY25

    Positive factor for the quarter from 2024 settlement.

    Operating EPS contribution from Contracted Energy margins
    $0.03vs Q3 FY24
    Q3 FY25

    Positive factor for the quarter.

    Operating EPS impact from weather
    -$0.02small headwind
    YTD Oct FY25

    Weather reversed over the last 4 months, resulting in a year-to-date headwind.

    OSHA recordable rate
    0.28%continuing positive trend
    YTD Sep FY25

    Safety performance metric.

    Electric transmission capital run rate
    $2.5Bup significantly from 4-5 years ago
    Annual

    Run rate in forward projection for capital plan.

    Residential electric rates vs. US average
    9% belowvs US average
    Current

    Customer affordability metric.

    Residential electric rates vs. US average
    11% belowvs US average
    Current

    Customer affordability metric.

    Data centers connected
    450
    Current

    Historical achievement.

    Sales to data centers
    25%
    Current

    More than 25% of sales in Virginia go to data centers.

    Data center delivery point requests
    370
    Since 2020

    Represents over 58 GW of capacity across service territory and co-ops.

    Data center delivery point requests (capacity)
    17 GW
    FY25 YTD

    Capacity requested in the current year.

    Data center delivery point requests with firm dates
    100+
    Current

    Firm dates for over 100 delivery point requests, representing over 25 GW of capacity, with energization dates stretching through 2031.

    Data center connection timeline
    4 to 7 years
    Typical

    Typical time from delivery point request until customer is hooked with meters.

    Gas fleet uprates
    500 MW
    Future

    Uprates on existing gas fleet in Virginia.

    Industry KPIs

    5
    MetricValueDetails
    Adjusted operating EPS$1.06per share
    Multi year capital plan—
    Regulatory rate base growth$0.06per share
    Allowed ROE equity layer rate cases—
    Major regulated project construction progress2/3 complete%

    Orderbook & backlog

    4
    Data center demand (total)47 GWSeptember 2025

    up 7 GW or 17% vs Dec 2024

    various stages of contracting

    Data center demand (substation engineering LOA)28 GW+September 2025

    up 7% vs Dec 2024

    customer requested engineering review for new infrastructure

    Data center demand (construction LOA)9 GWSeptember 2025

    up 73% vs Dec 2024

    contracts enable construction of required distribution and substation electric infrastructure; customer obligated to reimburse company if project discontinued

    Data center demand (ESA)10 GWSeptember 2025

    up 1 GW or 12% vs Dec 2024

    contracts for electric service; customer committing to consume certain level of electricity annually, often with ramp schedules

    Deals & partnerships

    1
    AmazonPotential financing for Small Modular Reactor (SMR) at North Anna 3.

    Amazon expressed interest in helping finance an SMR at North Anna 3 to address cost overrun risk and first-of-a-kind costs for new nuclear.

    Capital programs

    4
    Coastal Virginia Offshore Wind (CVOW) projectunderway$11.2 billion
    Spent to date: $8.2 billion
    Funding: Dominion and Stonepeak (50% cost sharing partnership)

    Benefit: 2.6 gigawatts

    Project costs now stands at $11.2 billion, which includes unused contingency of $206 million, down about $15 million from last quarter. Excluding tariff impacts, costs for project components have remained in line with the prior update. The updated cost this quarter reflect the accelerated recognition of steel tariffs through the end of 2026. Through September, the project has invested approximately $8.2 billion. The remaining project costs attributable to Dominion are expected to be approximately $1.5 billion. Some final turbines may slip into early 2027.

    Charybdis wind turbine installation vesselunderway$715 million

    Benefit: enhanced schedule certainty for turbine installation

    First Jones Act-compliant wind turbine installation vessel. Experiencing delays due to a punch list of approximately 200 quality assurance items, primarily related to electrical systems and documentation. 120 items closed. Expected to be cleared to load and install turbines in November.

    Chesterfield Energy Reliability Centerpending regulatory approval

    Benefit: 1 gigawatt natural gas-fired electric generating facility

    SCC hearings concluded in September, post-hearing briefs filed. Order expected in December.

    New utility scale solar and storage projectsfiled with SEC$2.9 billion

    Benefit: 845 megawatts of utility scale solar and 155 megawatts of storage

    Filed on October 15, will further derisk growth program.

    Risks & headwinds

    5
    Delays in Charybdis vessel readiness for turbine installationNovember (expected clearance), early 2027 (potential turbine slip)

    200 punch list items (120 closed); modest delay beyond November could push a few of the final turbines into early 2027.

    Mitigation: Crews working around the clock to address punch list items; modest delay won't impact first power timing in late Q1 2026.

    Increase in CVOW project costs and unrecoverable portionsThrough end of 2026

    Project costs now $11.2 billion. Recorded a $50 million after-tax charge for costs not expected to be recovered. Costs between $11.3 billion and $11.8 billion are shared 2/3 Dominion, 1/3 Stonepeak. The current overage is less than $400 million through 12/31/26.

    Mitigation: Cost and risk-sharing arrangements with Virginia regulators and Stonepeak (50% partnership) are working as intended.

    Worse than normal weather impacting earningsQ3 FY25, YTD Oct FY25

    $0.06 of worse than normal weather in Q3 FY25; $0.02 headwind through 10 months of FY25.

    Mitigation: Strong commercial and residential sales, and other initiatives, are expected to offset this, allowing the company to deliver at or above the midpoint of guidance.

    Cost overrun risk and first-of-a-kind costs for new nuclear projectsLong-term (SMR delayed by 5 years in IRP)

    Not quantified, but stated as a significant concern.

    Mitigation: Seeking solutions to share risk, potentially through partnerships (e.g., MOU with Amazon for North Anna 3 SMR financing).

    Potential for material network upgrade costs assigned by PJM for CVOWExpect process to conclude by year-end, final step to First Power by March.

    Costs came down modestly in most recent decision point.

    Mitigation: Do not expect a material change to network upgrade costs.

    What to watch in Q4 FY25

    5

    Charybdis vessel operational clearance

    November
    CurrentPunch list of ~200 items, 120 closed
    TargetCleared to load and install turbines

    Why it matters

    Essential for turbine installation cadence and project schedule certainty for CVOW.

    highly confident that we'll work our way through all the punch list items and be ready to start operating in November.

    Q&A highlights

    5

    Inquiring about potential political risks to the CVOW project, especially if gubernatorial control flips, and whether the project could be blocked.

    Robert Blue stated that every statewide candidate, regardless of party, supports CVOW, citing bipartisan support at all levels of government due to its critical role in providing 2.6 GW of power for AI/tech companies and defense installations, and preventing energy inflation.

    “every statewide candidate running regardless of party supports CVOW and that's consistent with the bipartisan support that this project has gotten at every level, federal, state, local government, including congressional leadership.”

    asked by Shar Pourreza · answered by Robert Blue

    2 min read5 chapters

    Detailed Narrative

    01

    Coastal Virginia Offshore Wind (CVOW) Project Status

    The CVOW project is 2/3 complete, with 100% of monopile installation successfully finished one month ahead of schedule. 63 transition pieces have been installed, and all 176 are fabricated. The second offshore substation jacket is installed, with the topside to follow, and the third substation will be installed in Q1 2026. First turbine installation is expected late next month, with first power delivery in late Q1 2026. Project completion is still expected by end of 2026, though some final turbines may slip into early 2027 due to Charybdis delays.

    02

    Charybdis Vessel Issues

    The American-made Jones Act-compliant wind turbine installation vessel, Charybdis, has experienced further delays. While major systems are functional, a punch list of approximately 200 quality assurance items, primarily related to electrical systems and documentation, needs addressing. Crews are working around the clock, having closed out about 120 items. The vessel is expected to be cleared for turbine load-out and installation in November, with any modest delay beyond November not impacting first power timing.

    03

    Data Center Demand and Infrastructure

    Dominion Energy continues to experience robust data center demand, with 47 GW in various stages of contracting as of September 2025, up 17% from December 2024. This includes 28 GW in substation engineering letters of authorization, 9 GW in executed construction letters of authorization (up 73%), and nearly 10 GW in electric service agreements (up 12%). The company is developing resources across distribution, transmission, and generation to meet this need while safeguarding existing customers from disproportionate costs.

    04

    Regulatory and Generation Updates

    Post-hearing briefs for the biannual review and proposed large load tariff were filed, with a final order anticipated by end of November. Dominion submitted project proposals in the latest PJM open window process, expecting significant new transmission needs. SCC hearings for the 1 GW Chesterfield Energy Reliability Center concluded, with an order expected in December. The company also filed $2.9 billion of new utility-scale solar (845 MW) and storage (155 MW) projects, and its 2025 Virginia Integrated Resource Plan outlining build portfolios for continued load growth.

    05

    Customer Affordability and Nuclear Strategy

    Residential electric rates in DEV and DESC are 9% and 11% below the U.S. average, respectively, with bill growth rates projected below electricity inflation. The company's IRP delayed SMR new nuclear by 5 years due to financing and technology considerations, and fit within the overall construction plan. Management emphasized the need for solutions to cost overrun risk and first-of-a-kind costs for new nuclear, potentially through partnerships like the one with Amazon for North Anna 3 SMR financing.

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