Dominion Energy Reports Higher Operating Earnings in Second Quarter 2026, Reaffirms Full-Year Guidance

Dominion Energy, Inc. (NYSE: D) reported its financial results for the second quarter of 2026, delivering improved operating earnings while reaffirming its full-year financial outlook despite lower reported earnings under Generally Accepted Accounting Principles (GAAP). The utility company highlighted continued operational strength, stable business fundamentals, and confidence in achieving its long-term growth objectives.

The company posted unaudited GAAP net income of $340 million, or $0.37 per diluted share, for the three months ended June 30, 2026. This compares with $760 million, or $0.88 per diluted share, reported during the same quarter in 2025. Although reported earnings declined significantly on a year-over-year basis, Dominion Energy emphasized that the reduction primarily reflects accounting adjustments and non-operating items rather than deterioration in its core business performance.

On an operating basis, which excludes certain non-recurring and market-related items, Dominion Energy generated stronger results than a year earlier. Operating earnings reached $712 million, or $0.79 per share, compared with $649 million, or $0.75 per share, during the second quarter of 2025. The increase in operating earnings demonstrates continued execution across the company’s regulated utility operations and reflects the stability of its long-term investment strategy.

Operating Performance Remains Strong

Dominion Energy continues to use operating earnings as its primary measure of financial performance when communicating with investors and analysts because management believes it provides a clearer picture of the company’s ongoing earnings potential.

Unlike GAAP earnings, operating earnings exclude a variety of items that can create significant volatility from one reporting period to another but do not necessarily reflect the performance of the company’s regulated utility operations.

For the second quarter of 2026, several factors contributed to the difference between reported and operating earnings. These included:

Gains and losses associated with nuclear decommissioning trust funds.
Mark-to-market adjustments related to economic hedging activities.
Regulated asset retirement costs.
Nonregulated asset impairment charges.
Additional one-time accounting adjustments.

By excluding these items, Dominion Energy believes investors gain a better understanding of the underlying financial performance generated by its electric and natural gas utility businesses.

The company’s detailed reconciliation between GAAP earnings and operating earnings, along with segment-level financial performance and descriptions of excluded items, has been provided in accompanying financial schedules included with the earnings release.

Reported Earnings Influenced by Accounting Adjustments

Although reported net income declined compared to the prior-year period, Dominion Energy indicated that much of the decrease was attributable to accounting-related items rather than operational challenges.

GAAP results often fluctuate because they include unrealized investment gains and losses, fair-value changes related to hedging programs, and other items that may not affect the company’s ongoing cash generation or regulated utility earnings.

Management stressed that these accounting impacts should not be viewed as indicators of weakening business fundamentals.

Instead, Dominion Energy pointed to the year-over-year improvement in operating earnings as evidence that its regulated operations continue to produce stable financial results while supporting ongoing investments in energy infrastructure and customer service.

Full-Year 2026 Guidance Reaffirmed

One of the most significant announcements accompanying the earnings report was Dominion Energy’s decision to reaffirm all previously issued financial guidance for 2026.

The company continues to expect full-year operating earnings to fall within a range of $3.45 to $3.69 per share, with a midpoint estimate of $3.57 per share.

In addition to reaffirming earnings guidance, Dominion Energy maintained every element of the financial outlook originally presented during its fourth-quarter 2025 earnings conference call.

This includes guidance related to:

Operating earnings expectations.
Credit quality objectives.
Dividend policy.
Long-term earnings growth.
Overall financial strategy.

Maintaining guidance signals management’s confidence in the company’s ability to execute its business plan despite market volatility and broader economic uncertainty.

Continued Focus on Long-Term Value Creation

Dominion Energy continues to prioritize investments designed to strengthen its regulated electric and natural gas infrastructure while supporting customer reliability and long-term shareholder returns.

The company has consistently emphasized disciplined capital allocation, regulatory collaboration, and operational efficiency as key drivers of future growth.

Management believes these priorities position Dominion Energy to benefit from increasing electricity demand, modernization of utility infrastructure, and the ongoing transition toward cleaner energy resources.

The company’s regulated utility model provides relatively predictable earnings supported by approved investments and long-term regulatory frameworks.

These characteristics continue to underpin Dominion Energy’s confidence in delivering sustainable financial performance over the coming years.

Investor Conference Call

Dominion Energy scheduled its second-quarter 2026 earnings conference call for 11:00 a.m. Eastern Time on Friday, July 31, 2026.

During the webcast, members of the executive leadership team planned to discuss quarterly financial performance, business developments, operational priorities, and topics of interest to investors, analysts, and other stakeholders.

The presentation also includes accompanying financial slides and supplemental information designed to provide additional insight into the company’s quarterly results and long-term strategy.

Following the live event, both webcast and telephone replay options are available for investors who are unable to participate in real time.

Why Dominion Uses Operating Earnings

Dominion Energy continues to emphasize operating earnings as the company’s primary financial performance metric because management believes it better reflects the economic results generated by ongoing business operations.

Operating earnings remove the effects of items that can introduce considerable quarter-to-quarter volatility but may have limited impact on the company’s underlying utility performance.

Examples include fluctuations in nuclear decommissioning investment portfolios, changes in the market value of economic hedging positions, pension-related market adjustments, asset impairments, acquisitions, divestitures, and the financial impacts of severe weather events or natural disasters.

According to management, excluding these items allows investors to evaluate the company’s operational progress more consistently and compare performance across reporting periods.

Operating earnings also serve as the foundation for several internal management processes.

These include:

Annual budgeting and financial planning.
Performance reporting to the Board of Directors.
Executive incentive compensation programs.
Dividend payout targets.
Long-term financial planning.

Because many excluded items cannot be accurately forecast, Dominion Energy noted that it is unable to provide a direct reconciliation between future GAAP earnings guidance and projected operating earnings.

Certain variables—such as market fluctuations affecting hedging positions, investment portfolio performance, acquisitions, divestitures, pension valuation changes, or significant weather events—remain difficult to estimate with sufficient accuracy before they occur.

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