Dominion Holds 2026 Guidance as Impairments Cut GAAP Profit
Dominion Energy (D) reported operating earnings of $0.79 a share for the second quarter, even as $704 million in nonregulated asset impairments pulled GAAP net income to $0.37 a share.
Dominion Energy (D), the Richmond-based utility holding company, reported second-quarter operating earnings of $0.79 a share, or $712 million, up from $0.75 a share a year earlier, while GAAP net income fell to $0.37 a share, or $340 million, from $0.88 a share in the same period last year.
The gap between the two measures widened sharply in the quarter. Dominion recorded $704 million in nonregulated asset impairments, including an $820 million charge tied to its renewable natural gas facilities and a $78 million charge on solar assets, partially offset by a $195 million benefit related to the Millstone nuclear plant's asset retirement obligation. Those items pushed pre-tax adjustments to reported earnings up to $372 million in the quarter, compared with a $217 million pre-tax benefit a year earlier.
Operating earnings also slowed from the first quarter, when Dominion posted $0.95 a share. The 17% sequential decline, along with a drop in GAAP earnings from $0.69 a share in the first quarter, reflected the concentration of impairment charges in the second quarter rather than a change in the company's full-year trajectory.
Operating revenue rose 18% year over year to $4.48 billion, but total operating expenses climbed 53% to $4.15 billion, driving income from operations down to $329 million from $1.10 billion a year earlier. The expense growth outpaced the revenue gain across the quarter, a pattern distinct from the segment-level performance that otherwise supported operating earnings.
Dominion Energy Virginia, the company's largest segment, posted operating earnings of $670 million, up 22% from $549 million a year earlier. The increase came from rate impacts tied to the 2025 Biennial Review, which added $105 million, and rider equity returns worth $79 million, partially offset by $34 million in higher electric capacity expense. That segment's growth contrasted with weaker results elsewhere in the portfolio: the Corporate and Other segment's loss widened to $94 million from $56 million, Contracted Energy earnings fell 34% to $31 million, and Dominion Energy South Carolina slipped slightly to $105 million from $109 million.
Dominion disclosed a new $95 million net charge tied to the Coastal Virginia Offshore Wind project, covering costs not expected to be recovered from customers on the Commercial project. The disclosure marks a shift from the fourth-quarter 2024 release, which had described the project as on track for first power delivery in early 2026 and full completion in early 2027.
The company reaffirmed its full-year 2025 operating earnings guidance range of $3.45 to $3.69 a share, unchanged for a third consecutive quarter since it was first set alongside 2024 results in February. The steady guidance came even as the quarter's storm-related costs eased: Dominion recorded a $4 million pre-tax benefit from milder severe weather impacts, compared with a $120 million charge in the first quarter.
The anchor release made no mention of Dominion's pending all-stock merger with NextEra Energy, announced in May under a fixed 0.8138 exchange ratio for Dominion shareholders. The only related disclosure in the quarter was $13 million in merger-related costs embedded within pre-tax adjustments.