10-K: Dominion Energy Reports Strong 2025 Earnings, Boosts Clean Energy Investment

Sentiment:

Annual Report 23 February 2026 12:00 PM

Dominion Energy reports a 47% increase in net income for 2025, driven by higher rider equity returns and customer growth, while advancing a $65 billion capital plan for clean energy.

Delay expectedThe CVOW Commercial Project experienced a temporary suspension of work due to a BOEM Directors Order issued in December 2025, impacting the estimated total project cost and installation timeline. A preliminary injunction granted by the U.S District Court for the Eastern District of Virginia in January 2026 allowed work to resume.

Capital raiseDominion Energy anticipates issuing between approximately $6.0 billion and $9.5 billion of long-term debt during 2026.Dominion Energy expects to issue equity, excluding potential opportunistic offerings, through at-the-market programs of approximately $1.6 billion to $1.8 billion in 2026, inclusive of $1.0 billion from the settlement of forward-sale agreements.Dominion Energy expects to issue equity through programs such as Dominion Energy Direct and employee savings plans of approximately $150 million in 2026.Dominion Energy entered into an approximately $1.3 billion 364-day term loan facility in February 2026, borrowing an initial $500 million and providing notice to borrow an additional $300 million.Virginia Power issued 49,636 shares of its common stock to Dominion Energy for $3.5 billion in 2025.

Better than expectedNet income attributable to Dominion Energy increased 47% in 2025 compared to 2024.Diluted EPS increased to $3.45 in 2025 from $2.33 in 2024.Operating revenue increased 14% in 2025.Virginia Commission approved a base rate increase and an authorized ROE of 9.80% for Virginia Power.

Summary

Net income attributable to Dominion Energy increased 47% to $2,998 million in 2025 from $2,034 million in 2024.
Diluted EPS increased to $3.45 in 2025 from $2.33 in 2024.
Operating revenue increased 14% to $16,506 million in 2025, primarily due to higher non-fuel rider recoveries, increased commodity costs, and electric utility sales growth.
Virginia Power's net income attributable to Virginia Power increased 11% to $2,101 million in 2025 from $1,897 million in 2024.
The company is executing a $64.7 billion capital expenditure plan for 2026-2030, with approximately $55.8 billion allocated to Dominion Energy Virginia, focusing on zero-carbon generation, grid transformation, and reliability.
The CVOW Commercial Project, a 2.6 GW offshore wind facility, is estimated to cost approximately $11.5 billion (excluding financing costs), with the majority of turbines expected in service by the end of 2026 and the remainder in early 2027.
Virginia Power sold a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak in October 2024, receiving $2.6 billion.
Dominion Energy aims for net-zero carbon and methane Scope 1 and Scope 2 emissions and material Scope 3 emissions by 2050.
The company experienced an OSHA Recordable Rate of 0.26 in 2025, significantly better than the BLS Industry Average of 1.9 in 2024.
Dominion Energy completed the sale of its regulated gas distribution operations (East Ohio, Questar Gas, PSNC) to Enbridge in 2024 for a total of $9.3 billion in cash and assumption of $4.9 billion in debt.
A net $258 million ($192 million after-tax) charge was recorded in 2025 for Virginia Power's share of costs not expected to be recovered from customers on the CVOW Commercial Project due to revised cost estimates and tariffs.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong report, reflecting significant earnings growth, successful portfolio optimization through divestitures, and a clear, substantial commitment to regulated clean energy investments, despite some project cost challenges.

Positives

Net income attributable to Dominion Energy increased 47% to $2,998 million in 2025.
Diluted EPS grew to $3.45 in 2025, up from $2.33 in 2024.
Operating revenue increased 14% to $16,506 million in 2025, driven by non-fuel riders, commodity costs, and electric utility sales growth.
Achieved an OSHA Recordable Rate of 0.26 in 2025, significantly outperforming the BLS Industry Average of 1.9 in 2024.
Successfully divested regulated gas distribution operations to Enbridge, generating $9.3 billion in cash and reducing debt.
Advancing a substantial $64.7 billion capital expenditure plan for 2026-2030, primarily focused on clean energy and grid modernization.
Received 20-year license extensions for Surry (2021) and North Anna (2024) nuclear units, with plans to seek extensions for Millstone.
Virginia Commission approved a base rate increase of $566 million effective January 2026, with an incremental $210 million effective January 2027, and an authorized ROE of 9.80% for Virginia Power.
Completed the sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak, generating $2.6 billion.
Pension and other postretirement plan assets experienced aggregate actual returns of $1.2 billion in 2025, exceeding expected returns of $835 million.
Received $184 million from the transfer of tax credits to third parties in 2025.

Negatives

Recorded a net $258 million ($192 million after-tax) charge in 2025 for Virginia Power's share of costs not expected to be recovered from customers on the CVOW Commercial Project.
The estimated total project cost for the CVOW Commercial Project increased to approximately $11.5 billion (excluding financing costs), reflecting a temporary work suspension, estimated impact of tariffs ($0.6 billion), and increased contingency ($0.3 billion).
Increased storm activity contributed to a slight increase in SAIDI performance results for Dominion Energy Virginia (133 minutes for the three-year average ending 2025, up from 130 minutes).
Net income from discontinued operations decreased $211 million in 2025, primarily due to the absence of earnings from the sold gas distribution operations.
Interest and related charges increased 7% in 2025, primarily due to net issuances of long-term debt.
The U.S. Supreme Court ruling on February 20, 2026, regarding tariffs on equipment for the CVOW Commercial Project, has an uncertain impact on financial position, results of operations, and/or cash flows.
Virginia Commission did not approve Virginia Power's proposal to include purchased electric capacity expenses as a component of fuel expenses instead of base rates.

Risks

Regulatory, legislative, and legal risks, including potential rate decreases, changes in FERC/state commission policies, and challenges from advocacy groups, could adversely affect financial results.
Construction of large-scale, complex projects like the CVOW Commercial Project involves significant risks, including delays, cost increases (e.g., tariffs, fuel, supply chain, marine wildlife), inability to recover costs, and reliance on key suppliers/contractors.
The cost-sharing mechanism for the CVOW Commercial Project limits Virginia Power's ability to recover unforeseen cost increases (50% recovery between $10.3B and $11.3B, no recovery between $11.3B and $13.7B, and future determination for costs >$13.7B).
Operational hazards, equipment failures, supply chain disruptions, and personnel issues could negatively affect operations, increasing expenses and reducing revenues.
Hostile cyber intrusions could severely impair operations, lead to disclosure of confidential information, and damage the company's reputation.
Changes in weather, including extreme events and global climate change, can affect demand, disrupt operations, and cause property damage.
Increased energy demand from data centers and artificial intelligence requires significant infrastructure investments, which are subject to regulatory approvals and potential challenges.
The company's ability to meet its net-zero emissions commitment by 2050 depends on supportive legislative/regulatory policies, technological advancements not currently in commercial development, and actions of third parties for Scope 2 and 3 emissions.
Nuclear generation facilities are subject to operational, environmental, health, and financial risks, including spent nuclear fuel storage, decommissioning costs, insurance limitations, and potential operational liabilities.
Changes in rating agency requirements or credit ratings could increase borrowing costs or restrict access to financial markets.
Market performance, interest rates, and other changes may decrease the value of decommissioning trust funds and benefit plan assets, potentially requiring significant additional funding.
The use of derivative instruments exposes the company to financial losses and liquidity constraints, particularly if counterparties fail to perform or if derivative activities become subject to mandatory clearing/margin requirements under the Dodd-Frank Act.
Future impairments of goodwill or other intangible assets or long-lived assets could materially adversely affect results of operations.
Exposure to counterparty performance risk in energy marketing and price risk management activities could adversely affect financial results.
Public health crises and epidemics/pandemics could adversely affect business, including reduced energy demand, supply chain disruptions, and labor availability.
Uncertainty regarding future EPA rules (e.g., methane emissions, air quality, wastewater discharges, PFAS) and the ultimate impact of the IRA and OBBBA tax laws could have a material financial impact.
Litigation concerning coal ash facilities and other property damage/personal injury claims could result in significant remediation costs or penalties.

Future Outlook

Dominion Energy expects 2026 net income per share to increase, driven by growth projects in electric utility operations, the positive impacts of the 2025 Biennial Review, the absence of charges for CVOW Commercial Project costs, and continued customer growth. These positive factors are anticipated to be partially offset by increases in depreciation and amortization expense, higher interest expense, more planned outage days at Millstone, increased operations and maintenance expense, and share dilution.

Management Comments

Dominion Energy's mission is to provide the reliable, affordable and increasingly clean energy that powers its customers every day.
Safety is the highest priority of Dominion Energy's five core values with the fundamental goal to send every employee home safe and sound every day.
Dominion Energy continues to focus on expanding and improving its regulated electric utilities and long-term contracted businesses while transitioning to a cleaner energy future.
Dominion Energy currently expects approximately 95% of earnings to come from state-regulated utility operations in Virginia, North Carolina and South Carolina.
Dominion Energy believes that its operations provide a stable source of cash flow to contribute to planned levels of capital expenditures and maintain or grow the dividend on common shares.

Industry Context

StockSavvy.ai notes that Dominion Energy's strategic shift towards regulated electric utilities and long-term contracted clean energy aligns with broader industry trends of decarbonization and grid modernization, particularly in response to legislative mandates like the VCEA. The significant investment in offshore wind (CVOW Commercial Project) and solar, alongside nuclear license extensions, positions the company to capitalize on the growing demand for clean energy, especially from high-load customers like data centers in Virginia. The divestiture of gas distribution assets further streamlines its portfolio towards these electric utility and clean energy focuses, a trend seen across some integrated utilities.

Comparison to Industry Standards

Dominion Energy's OSHA Recordable Rate of 0.26 in 2025 is significantly better than the BLS Industry Average of 1.9 in 2024 and 2.0 in 2023 for electric power generation, transmission, and distribution and natural gas distribution.
Virginia Power's authorized ROE of 9.80% for the 2025 Biennial Review was benchmarked against the average authorized ROE of vertically integrated electric utilities in peer group jurisdictions including Florida, Georgia, Texas, Tennessee, West Virginia, Kentucky, and North Carolina.
The CVOW Commercial Project's projected levelized cost of energy of approximately $84/MWh (including renewable energy credits) is within the initial filing submission range of $80-90/MWh, indicating consistency with initial expectations for a large-scale offshore wind project.

Management Changes

Role	Previous Person	New Person	Effective Date	Reason
Executive Vice President-Utility Operations and President-Dominion Energy Virginia	President-Utility Operations and Dominion Energy Virginia	Edward H. Baine	July 2025	Promotion
Executive Vice President, Chief Administrative and Projects Officer, and Corporate Secretary and President-DES	President-DES and Executive Vice President, Chief Legal Officer and Corporate Secretary	Carlos M. Brown	June 2025	Role change
Chief Nuclear Officer and President-Nuclear Operations and Contracted Energy	President-Nuclear Operations and Chief Nuclear Officer	Eric S. Carr	January 2025	Role change
Senior Vice President and Chief Legal and Human Resources Officer	Senior Vice President and Chief Human Resources Officer	Regina J. Elbert	June 2025	Role change
Vice President, Controller and CAO	Vice President-Accounting	Gary G. Ratliff	October 2025	Promotion

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Bylaws Amendment	Dominion Energy, Inc. Bylaws were amended and restated.	June 26, 2025	Updates corporate governance framework, including shareholder proposal and director nomination procedures.
Shareholder Meeting Call Threshold	Special meetings of shareholders can be called by shareholders owning continuously for at least one year prior to the date of such request more than 15% of all outstanding shares of common stock.	N/A (existing provision)	Provides a mechanism for significant minority shareholders to influence corporate agenda, but the threshold is relatively high.
Action by Written Consent	Action by less than unanimous written consent is not available at any public corporation whose articles of incorporation or bylaws allow a special meeting to be called by shareholders (or a group of shareholders) holding 30% or fewer of all votes entitled to be cast. The board currently does not intend to approve amendments to allow this.	N/A (existing provision and board intent)	Could delay shareholder consideration of actions favored by holders of up to 15% of outstanding shares, as they would need to wait for a duly called meeting.
Director Liability Limitation	Articles of incorporation provide that directors and officers will not be personally liable for monetary damages for breaches of fiduciary duty unless specific conditions (e.g., duty of loyalty violation, bad faith, intentional law violation, illegal dividends, improper personal benefit) are met.	N/A (existing provision)	Limits personal financial exposure for directors and officers, potentially encouraging risk-taking but also attracting qualified individuals. Does not apply to federal securities laws violations.
Forum Selection	Bylaws establish Virginia federal or state courts as the exclusive forum for certain internal corporate claims and federal district courts for Securities Act of 1933 claims.	N/A (existing provision)	Centralizes litigation in specific jurisdictions, potentially reducing legal costs and increasing predictability for the company, but may limit forum choice for plaintiffs.

Legal Proceedings

Dominion Energy is associated with former manufactured gas plant sites, including certain sites associated with Virginia Power. Remediation work has been substantially completed at four sites, and Virginia Power has proposed remediation plans for one site, with activities expected to commence in 2026.
Dominion Energy is associated with three additional sites (two associated with Virginia Power) that are not currently under investigation or subject to remediation plans, with potential financial statement impacts currently unestimable.
The Companies are defendants in a number of lawsuits and claims involving unrelated incidents of property damage and personal injury, with potential financial statement impacts currently unestimable but could be material.
In 2024, Dominion Energy resolved a claim associated with operations included in the East Ohio Transaction, with a $30 million offsetting reserve and insurance receivable.
The SCDOR sales and use tax assessment for the NND Project was resolved in 2023 for $165 million, funded by cash, stock, and real estate transfers.

Related Party Transactions

Virginia Power transacts with affiliates (other Dominion Energy subsidiaries) for natural gas, other commodities, and commodity derivative contracts.
Virginia Power participates in Dominion Energy's pension and other postretirement benefit plans, with amounts due to Dominion Energy for the Pension Plan totaling $594 million in 2025 and amounts due from Dominion Energy for the Retiree Health and Welfare Plan totaling $729 million in 2025.
DES (Dominion Energy Services, Inc.) and other affiliates provide accounting, legal, finance, and administrative services to Virginia Power, with Virginia Power's payables to DES totaling $46 million in 2025.
Virginia Power borrowed $1.2 billion in 2025 from Dominion Energy under a short-term intercompany credit facility.
Virginia Power declared and paid a dividend of $550 million in 2025 to Dominion Energy.
Virginia Power issued common stock to Dominion Energy for $3.5 billion in 2025 and $3.25 billion in 2023.
Virginia Power has an operating lease with an affiliated entity for a Jones Act compliant offshore wind installation vessel, with a right-of-use asset of $185 million and affiliated lease payables of $188 million at December 31, 2025.

Stakeholder Impact

Shareholders: Benefited from increased net income and EPS, and a stable dividend rate. Potential for future share dilution from planned equity issuances.
Customers: Face approved base rate increases for Virginia Power ($566 million in 2026, $210 million in 2027) and fuel factor rate increases. Expected to benefit from investments in grid modernization, renewable generation, and reliability, particularly for high-load customers like data centers.
Employees: Benefited from strong safety performance (OSHA rate of 0.26) and competitive compensation/benefits. Management changes reflect career development and strategic alignment.
Creditors: Impacted by significant long-term debt issuances and repayments, as well as the company's credit ratings and adherence to financial covenants. Divestitures of gas assets reduced overall debt.
Suppliers: Affected by the introduction of a voluntary supply chain finance program and the critical role of key suppliers in large-scale projects like the CVOW Commercial Project.

Next Steps

The majority of CVOW Commercial Project turbines are expected to be placed in service by the end of 2026, with the remainder in early 2027.
Virginia Power plans to invest approximately $6.9 billion from 2026 through 2030 to acquire or construct several solar facilities.
Virginia Power plans to invest approximately $2.0 billion from 2026 to 2030 to develop battery-storage facilities.
The Chesterfield Energy Reliability Center is expected to be placed into service in 2029.
Virginia Power plans to invest approximately $8.3 billion from 2026 to 2030 to develop additional dispatchable natural gas generation facilities.
The Virginia LNG Storage Facility is expected to be placed into service by the end of 2027.
Virginia Power continues to consider the construction of a third nuclear unit at North Anna.
The ultimate development of the CVOW South project (800 MW offshore wind) is dependent upon the receipt of approvals from the Virginia Commission and other permitting entities.
Virginia Power expects to invest approximately $8.3 billion from 2026 through 2030 in transmission projects.
Dominion Energy expects to invest approximately $1.0 billion from 2026 through 2030 in Valley Link.
Virginia Power's underground distribution line program is expected to be completed by 2029.
Dominion Energy intends to apply for license extensions for Millstone nuclear units.
Dominion Energy expects environmental protection and monitoring expenses of approximately $345 million in 2026 and $340 million in 2027.
Dominion Energy expects environmental controls capital expenditures of approximately $140 million in 2026 and $85 million in 2027.
Dominion Energy expects to make $24 million of minimum required contributions to its qualified defined benefit pension plans in 2026.
Dominion Energy expects to receive an additional $108 million from tax credit transfers in 2026.
Virginia Power expects to receive an additional $18 million from tax credit transfers in 2026.
Dominion Energy anticipates issuing between approximately $6.0 billion and $9.5 billion of long-term debt during 2026.
Dominion Energy expects to issue equity of approximately $1.6 billion to $1.8 billion through at-the-market programs in 2026.
Dominion Energy does not plan to repurchase shares of common stock in 2026, except for shares tendered by employees to satisfy tax withholding obligations.
Virginia Power expects to commence remediation activities at one manufactured gas plant site in 2026.
The DOE intends to extend settlement agreements for spent nuclear fuel disposal through December 31, 2028.
DESC's retail electric base rate case is pending approval, with proposed rates effective on or after the first billing cycle of July 2026.
DESC's fuel cost component increase proposal is pending, with proposed rates effective with the first billing cycle of May 2026.
DESC's electric DSM program application is pending, with proposed rates effective with the first billing cycle of May 2026.
Canadys Station and related facilities are expected to be placed into service in 2033.
Virginia Power's petition for CPCNs for six solar and two energy storage projects is pending.
Virginia Power's VPP pilot program petition is pending.
An appeal filed with the Supreme Court of Virginia regarding the Chesterfield Energy Reliability Center is pending.

Key Dates

Date	Description
July 27, 2017	Toshiba settlement agreement date.
January 1, 2019	Dominion Energy's acquisition of SCANA completed.
September 2019	Virginia Power filed applications with PJM for the CVOW Commercial Project.
April 2020	Virginia Clean Economy Act (VCEA) enacted in Virginia.
November 2021	Virginia Power filed for certain approvals and rider recovery from the Virginia Commission for the CVOW Commercial Project.
December 9, 2021	Dominion Energy issued 1,000,000 shares of 4.35% Series C Fixed-Rate Cumulative Redeemable Perpetual Preferred Stock.
August 2022	Virginia Commission provided approvals for CVOW Commercial Project.
December 2022	Virginia Commission revised certain provisions related to rider recovery for CVOW Commercial Project.
January 2023	Virginia Power entered into a lease contract for a Jones Act compliant offshore wind installation vessel.
April 2023	Legislation enacted resetting base rate reviews to biennial in Virginia.
September 2023	Dominion Energy completed the sale of its remaining 50% noncontrolling partnership interest in Cove Point to BHE.
October 2023	BOEM issued a record of decision for CVOW Commercial Project construction.
November 2023	Virginia Power commenced major onshore construction activities for the CVOW Commercial Project.
January 2024	U.S. Army Corps of Engineers issued necessary permits for offshore construction of CVOW Commercial Project.
March 2024	Dominion Energy completed the East Ohio Transaction with Enbridge.
May 2024	Dominion Energy completed the Questar Gas Transaction with Enbridge.
May 2024	EPA released a final rule to tighten Mercury and Air Toxics Standards and finalized rules to reduce CO2 emissions from fossil fuel-fired electric generating units.
May 2024	Community Energy Act signed into law in Virginia.
May 2024	Virginia Power commenced major offshore construction activities for the CVOW Commercial Project.
September 2024	Dominion Energy completed the PSNC Transaction with Enbridge.
October 2024	Virginia Power completed the sale of a 50% noncontrolling interest in the CVOW Commercial Project to Stonepeak.
October 2024	Virginia Power completed the acquisition of an approximately 40,000-acre area lease off the coast of North Carolina.
October 2024	Virginia Power completed the installation of all monopiles for CVOW Commercial Project.
April 2025	Virginia Commission approved Virginia Power's request to issue up to $3.5 billion of common stock to Dominion Energy.
April 2025	Virginia Commission approved Virginia Power's petition for CPCNs for two utility-scale solar projects.
June 2025	EPA released a proposed rule repealing majority of May 2024 final rule and all GHG emissions standards from fossil fuel-fired power plants.
July 2025	Last of nine deepwater cables completed for CVOW Commercial Project.
September 2025	Offshore wind installation vessel delivered and 20-month lease term commenced.
December 2025	Installation commenced on turbines for CVOW Commercial Project.
December 2025	BOEM Directors Order issued, temporarily suspending work on CVOW Commercial Project.
December 2025	Dominion Energy's Board of Directors established an annual dividend rate for 2026 of $2.67 per share.
December 31, 2025	Fiscal year end for the report.
January 2026	U.S District Court for the Eastern District of Virginia granted a preliminary injunction, allowing CVOW Commercial Project work to resume.
January 2026	North Carolina Commission approved a fuel component increase for Virginia Power.
February 20, 2026	U.S. Supreme Court ruling on tariffs on equipment for CVOW Commercial Project.
February 23, 2026	Date of the 10-K filing.
February 2026	Dominion Energy entered into an approximately $1.3 billion 364-day term loan facility.

Recommendation

hold

Dominion Energy demonstrates strong financial performance in 2025, driven by strategic divestitures and robust growth in its regulated electric utility segment. The substantial capital expenditure plan focused on clean energy and grid modernization positions the company for long-term growth in a decarbonizing economy. However, the significant cost overruns and regulatory challenges associated with the CVOW Commercial Project, coupled with the ongoing need for substantial capital raises, introduce execution and financial risks. While the company's regulated nature provides stability, these large-scale projects and the associated financing requirements warrant a cautious 'hold' recommendation, as the market will closely monitor the successful execution and cost recovery of these initiatives.

Keywords

Dominion Energy, Virginia Electric and Power Company, SEC Filing, 10-K, Financial Results, Utility, Electric Power, Natural Gas, Offshore Wind, Solar Energy, Renewable Energy, Grid Transformation, Capital Expenditures, Net Zero Emissions, ESG, Regulatory Approval, Risk Management, Corporate Governance, Dividends, Debt, Equity, CVOW Commercial Project, Nuclear Decommissioning, Data Centers, Virginia, North Carolina, South Carolina, Enbridge, Stonepeak

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