PINNACLE WEST REPORTS 2026 THIRD-QUARTER FINANCIAL RESULTS (Form 8-K)

PINNACLE WEST REPORTS 2026 THIRD-QUARTER FINANCIAL RESULTS

•Continued sales growth and summer weather increase energy demand

•Reliable service and strong operating performance support customers

•APS reinforces its Pledge for Responsible Energy Growth

PHOENIX - Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income attributable to common shareholders for the 2026 third quarter of $434.2 million, or $3.49 per diluted share of common stock. This result compares with consolidated net income of $413.2 million, or $3.39 per diluted share of common stock, for the same period a year ago.

The 2026 third-quarter results reflect an increase of about $21 million compared to the 2025 third quarter, primarily as a result of increased customer sales and usage; the positive impacts of weather effects versus the same period a year ago; and customer growth. These positive factors were partially offset by higher depreciation and amortization expenses; and interest charges.

"Arizona continues to grow at an extraordinary pace, and our responsibility is clear: deliver safe, reliable and affordable energy for the customers who count on us every day," said Pinnacle West Chairman, President and Chief Executive Officer Ted Geisler. "Years of planning and the dedication of our employees enabled us to once again meet strong summer demand while maintaining reliability, returning savings to customers and investing in the infrastructure needed to support Arizona's future. We are committed to ensuring that growth helps strengthen the grid without shifting costs to Arizona families and businesses."

Providing Reliable Power Amid Record Growth and Demand

Geisler said APS employees delivered strong operational performance throughout the 2026 third quarter, supporting Arizona's continued economic expansion while maintaining reliable service during another summer of record demand. Reflecting the strength of the state's economy, commercial and industrial sales increased 14.5%, while residential sales grew 4.5%, contributing to overall weather-normalized sales growth of 9.5%.

APS customers set an all-time peak demand record of 9,166 megawatts (MW) on Aug. 2, with demand exceeding 9,000 MW on three occasions during the quarter. APS surpassed last year's previous peak of 8,648 MW a dozen times, marking the fourth consecutive year of record-setting summer demand and highlighting the value of the company's long-term resource planning, proactive maintenance programs and customer-focused demand-side initiatives.

Summer weather also contributed to increased energy use. The quarter was substantially warmer than normal - with residential cooling degree days up 3% from the same period in 2025 - and featured one of the more active monsoon seasons in recent years.

Additionally, overall customer growth increased 1.8%, including 1.9% residential customer growth.

Supporting Arizona's Growth Responsibly

Geisler said that planning for growth has always been central to the company's mission. Customers' annual electricity needs are projected to more than double by 2041, while peak demand is expected to rise more than 5,000 MW above today's peak demand.

To address this growth, APS recently filed its Integrated Resource Plan with the Arizona Corporation Commission (ACC), outlining the resources needed to serve customers over the next 15 years. The plan identifies a diverse portfolio of resources and transmission investments designed to maintain reliability and support customer affordability, while also maintaining the flexibility needed to serve one of the fastest-growing regions in the country.

The company remains equally focused on ensuring that growth strengthens the electric system while protecting existing customers. Toward that end, Geisler reiterated the company's Pledge for Responsible Energy Growth.

The pledge is built on three principles: safeguarding reliability, protecting customer rates and preserving capacity for Arizona's homes, businesses and communities.

"Growth should pay for growth. It's that simple," Geisler said. "When a data center or manufacturer comes to Arizona, they pay the cost of the infrastructure needed to serve them, and those investments help to cover shared grid costs that existing customers would otherwise carry. Done right, new growth doesn't threaten affordability for Arizona families and businesses. It helps protect it.

"Arizonans should be able to welcome the jobs, investment and opportunity coming to our state with confidence that their energy needs come first and their rates are protected."

Under the pledge, APS will not connect new extra-large customers faster than the grid can reliably support, will require those customers to fund the costs of serving their growth, and will preserve sufficient capacity to meet the needs of existing and future Arizona customers. Geisler emphasized that these principles are embedded in agreements with extra-large energy users to ensure reliability remains strong, existing customers' rates are protected, and Arizona can continue to benefit from economic growth.

Focus on Customer Affordability and Financial Support

APS's focus on protecting customers extends beyond long-term growth. Effective this month, APS is providing more than $33 million in bill credits following approval by the ACC. Applied automatically through the Environmental Benefits Surcharge, the credit is expected to reduce a typical residential customer's November bill by about $14, with business customers also benefiting based on their energy use.

Funded in part by revenue from APS's Green Power Partners program, the credit returns benefits directly to customers while supporting APS's commitment to affordability, renewable energy investment and Arizona's continued growth. APS also is making an additional $5 million available to support customers experiencing financial hardship. The assistance is funded by Pinnacle West and not through customer rates.

"Delivering safe, reliable and affordable energy remains our top priority," Geisler said. "This credit is one example of how we're creating value for customers by returning benefits directly to them while continuing to support Arizona's growth."

Financial Outlook

Given the positive customer and sales growth and impact of weather through the first three quarters of the year, the company is adjusting its 2026 consolidated earnings guidance upward to a range of $5.05 to $5.25 per diluted share.

Key factors and assumptions underlying the 2026 outlook can be found in the third-quarter 2026 earnings presentation slides at pinnaclewest.com/investors.

Conference Call and Webcast

Pinnacle West invites interested parties to listen to the live webcast of management's conference call to discuss the Company's financial results and recent developments, and to provide an update on the company's long-term financial outlook, at 11 a.m. ET (9 a.m. Arizona time) today, Nov. 3. The webcast can be accessed at pinnaclewest.com/presentations and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 904565. A replay of the call also will be available at pinnaclewest.com/presentations or by telephone until 11:59 p.m. ET, Tuesday, Nov. 10, 2026, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 54576.

General Information

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of about $33.5 billion, almost 6,300 megawatts of generating capacity and approximately 6,600 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to about 1.5 million Arizona homes and businesses. For more information about Pinnacle West, visit the company's website at pinnaclewest.com.

Dollar amounts in this news release are after income taxes. Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West's operating statistics and earnings, please visit pinnaclewest.com/investors.