# Pinnacle West Capital (PNW) Forecast Calculator

Interactive five-year financial forecast and DCF for Pinnacle West Capital. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/pinnacle-west-capital/forecast
- Industry: Utilities
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 3471209000 | -234721000 | 1336100000 | 557813000 |
| 2022 | 3586982000 | -360219000 | 1474405000 | 570052000 |
| 2023 | 3803835000 | -613461000 | 1524451000 | 635944000 |
| 2024 | 4324385000 | -466049000 | 1549725000 | 500826000 |
| 2025 | 4695991000 | -638673000 | 1678776000 | 518781000 |

## Frequently asked questions

### What is Pinnacle West Capital Corporation's primary business model?

Pinnacle West Capital Corporation operates as an energy holding company, primarily through its subsidiary Arizona Public Service Company (APS). APS is a vertically integrated, regulated electric utility that serves approximately 1.4 million customers across Arizona. Its business model is characterized as an asset-heavy, regulated monopoly, with returns determined by regulatory bodies based on invested capital.

### How does Pinnacle West Capital Corporation generate its revenue?

Pinnacle West Capital Corporation generates revenue primarily from its Regulated Electricity segment. Approximately 85% of its revenue comes from retail customers, with wholesale power sales contributing about 5% and transmission/other services making up the remaining 10%. Revenue growth is driven by factors such as Arizona Public Service Company's rate base growth, allowed return on equity, and customer demand trends.

### What is a key capital expenditure assumption in the Pinnacle West Capital financial model?

A key assumption in the financial model for Pinnacle West Capital is that Capex as a percentage of revenue is approximately 37.77%. The company has a significant capital plan, totaling $10.35 billion from 2025 to 2028, with annual capital expenditures scaling from $2.40 billion to $2.70 billion. These investments are split roughly 40% for maintenance and 60% for growth initiatives.

### What is the projected revenue growth rate used in the Pinnacle West Capital financial model?

The financial model for Pinnacle West Capital assumes a revenue growth rate of approximately 7.85%. This growth is expected to be driven by factors such as rate base expansion and increasing customer demand within Arizona Public Service Company's service territory.

### What is the forecast horizon for the Pinnacle West Capital financial model and what is its main purpose?

The Pinnacle West Capital financial model has a forecast horizon from FY2026 to FY2030. Its main purpose is to provide a comprehensive equity valuation and regulatory scenario analysis, allowing analysts to forecast earnings and cash flows based on key drivers like rate base growth and customer demand.

### Can an equity research analyst download and use a financial model for Pinnacle West Capital?

Yes, an Excel-based financial model for Pinnacle West Capital is available for download. This model is designed to assist equity research analysts in forecasting the company's earnings and cash flows, as well as performing regulatory scenario analysis.