Exchange: LSE | Sector: Utilities | Industry: General Utilities
Q4 2024
Published: Feb 27, 2025
Earnings Highlights
Revenue of $3.40B down 3.8% year-over-year
EPS of $0.15 decreased by 34.6% from previous year
Gross margin of 44.2%
Net income of -76.00M
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Dominion Energy Inc (0IC9.L) QQ4 2024 Results – Regulated asset base anchors long-term cash flows amid a near-term earnings dip and heavy capex
Executive Summary
Dominion Energy's QQ4 2024 results present a mixed near-term picture. Reported revenue of $3.40 billion declined year over year and quarter over quarter, while EBITDA stood at $1.621 billion and operating income was $391 million, reflecting a stable regulated framework offset by non-operating charges and substantial capital deployment. The quarter produced a net loss of $76 million, driven primarily by a sizable non-operating expense line (-$639 million) that bridged into a negative income before tax (-$248 million) and a tax benefit that partially offset the loss (-$104 million). Free cash flow was materially negative at -$2.87 billion, as capex totaled $3.51 billion and acquisitions, net, weighed on investing cash flows, even as operating cash flow remained positive at $641 million. The balance sheet shows a sizable asset base ($102.4 billion) with debt of $41.8 billion and a capitalization structure skewed toward debt (debt-to-capitalization ~60.9%). Liquidity remains tight on a current ratio of 0.71 and cash on hand of $365 million, underscoring the ongoing financing needs to support a heavy capex cycle and contracted asset development. Management commentary (as far as captured in the dataset) is not available in the transcript, limiting a view into qualitative guidance; however, the earnings profile suggests a transition phase where regulatory-driven cash flows, asset growth, and contract-based revenues should support earnings stability over the medium term once the current capex wave and one-time charges wind down.
Key Performance Indicators
Revenue
3.40B
QoQ: -13.73% | YoY:-3.79%
Gross Profit
1.50B
44.18% margin
QoQ: -27.54% | YoY:-13.08%
Operating Income
391.00M
QoQ: -67.90% | YoY:-43.98%
Net Income
-76.00M
QoQ: -107.97% | YoY:-132.34%
EPS
0.17
QoQ: -84.82% | YoY:-34.62%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $3.40B; YoY change: -3.8%; QoQ change: -13.7%
- Indicates a softer demand/generation mix and timing effects in regulated and nonregulated segments in Q4 2024.
Gross Profit: $1.502B; Gross Margin: 44.18%; YoY: -13.08%; QoQ: -27.54%
- Margin contraction driven by mix shifts and higher cost of revenue relative to price/mix; supports EBITDA decline.
EBITDA: $1.621B; EBITDA Margin (EBITDA / Revenue): 47.68%; no YoY/QoQ given in data
- Indicates substantial operating scale, but capital deployment and cost structure influence cash flow.
Operating Income: $391M; Operating Margin: 11.5%; YoY: not provided; QoQ: -67.90%
- Reflects elevated operating expenses and non-operating items intrating; still a positive operating base.
Net Income: -$76M; Net Margin: -2.24%; YoY: -132.34%; QoQ: -107.97%
- Net loss primarily driven by non-operating charges; the dividend relevance depends on FCF trend and regulated earnings.
Financial Highlights
Key Metrics and Commentary (QoQ vs YoY where available):
- Revenue: $3.40B; YoY change: -3.8%; QoQ change: -13.7%
- Indicates a softer demand/generation mix and timing effects in regulated and nonregulated segments in Q4 2024.
- Gross Profit: $1.502B; Gross Margin: 44.18%; YoY: -13.08%; QoQ: -27.54%
- Margin contraction driven by mix shifts and higher cost of revenue relative to price/mix; supports EBITDA decline.
- EBITDA: $1.621B; EBITDA Margin (EBITDA / Revenue): 47.68%; no YoY/QoQ given in data
- Indicates substantial operating scale, but capital deployment and cost structure influence cash flow.
- Operating Income: $391M; Operating Margin: 11.5%; YoY: not provided; QoQ: -67.90%
- Reflects elevated operating expenses and non-operating items intrating; still a positive operating base.
- Net Income: -$76M; Net Margin: -2.24%; YoY: -132.34%; QoQ: -107.97%
- Net loss primarily driven by non-operating charges; the dividend relevance depends on FCF trend and regulated earnings.
- Earnings Per Share (EPS): $0.17 (basic); Diluted $0.15; YoY: -34.6%; QoQ: -84.8%
- Cash Flow from Operations (CFO): $0.641B; Capex: $3.506B; Free Cash Flow: -$2.865B
- Cash from operations remains positive but capital expenditure and acquisitions overwhelm near-term free cash flow.
- Balance Sheet and Leverage: Total Assets $102.415B; Total Debt $41.75B; Net Debt $41.44B; Debt-to-Capitalization 60.9%; Interest Coverage 2.07x; Current Ratio 0.71; Quick Ratio 0.52
- Leverage remains elevated for a utility with a large capex program; liquidity metrics indicate funding needs amid capital discipline.
- Cash Position and Returns: Cash & Equivalents $0.31B; Dividend Yield ~1.2%; Payout/Capital Allocation metrics indicate ongoing reliance on debt and equity financing for capex and acquisitions.
- Liquidity and Working Capital: Current assets $6.61B vs current liabilities $9.29B; working capital strain, consistent with a heavy investment phase and upcoming rate-case-driven revenue adjustments.
Note: The dataset shows a comprehensive quarterly and annual mix; however, the earnings transcript is empty, limiting qualitative interpretation from management commentary.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.40B
-3.79%
-13.73%
Gross Profit
1.50B
-13.08%
-27.54%
Operating Income
391.00M
-43.98%
-67.90%
Net Income
-76.00M
-132.34%
-107.97%
EPS
0.17
-34.62%
-84.82%
Key Financial Ratios
currentRatio
0.71
grossProfitMargin
59.4%
operatingProfitMargin
25.7%
netProfitMargin
4.18%
returnOnAssets
0.14%
returnOnEquity
0.53%
debtEquityRatio
1.56
operatingCashFlowPerShare
$0.75
freeCashFlowPerShare
$-3.36
dividendPayoutRatio
387%
priceToBookRatio
1.67
priceEarningsRatio
78.63
Net Income vs. Revenue
Expense Breakdown
Management Commentary
transcriptHighlights: "No earnings call transcript data provided in the dataset; therefore, no direct management quotes or themes can be extracted from a QQ4 2024 call. When available, typical themes would include regulated rate base growth, capital project execution status, regulatory timing and outcomes, weather-driven demand, and balance sheet optimization. Investors should seek management commentary on expected rate case outcomes, capex efficiency, and any one-time charges that impacted Q4 results."
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Forward Guidance
Forward-looking assessment (based on reported data and general utilities dynamics):
- Revenue and earnings trajectory will largely hinge on regulated rate-base growth and the ramp of contracted renewables and gas infrastructure. A stabilizing factor is Dominion’s diversified asset base across Virginia, North Carolina, and South Carolina, plus its contracted assets portfolio, which should provide predictable cash flows over the long term.
- Near-term headwinds include high capex intensity and elevated interest costs embedded in the debt stack. The company reported negative free cash flow in Q4 2024 despite positive operating cash flow, underscoring the challenge of funding a sizable capex program while maintaining a balanced capital allocation strategy.
- Management guidance (not captured in transcripts) would likely focus on: (1) progress on rate-case filings and achieving favorable allowed returns, (2) execution efficiency on major capital projects and renewables development, (3) maintaining credit metrics within target ranges (e.g., debt-to-capitalization, interest coverage), and (4) balancing dividends with FCF in the context of ongoing capital investments.
- Key factors to monitor: regulatory outcomes (rate base additions, ROE allowances), weather normalization effects on demand, commodity price volatility, capex execution milestones, and optionality in asset sales or non-core dispositions to improve liquidity.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0IC9.L Focus
44.18%
25.70%
0.53%
78.63%
0OAL.L
0.00%
17.60%
2.22%
11.97%
0HEC.L
31.50%
23.30%
2.46%
18.54%
0HS2.L
83.10%
33.70%
7.28%
60.29%
KOS.L
25.10%
-0.88%
-0.55%
-62.13%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Long-term investors may favor Dominion Energy for its regulated earnings base and growth through contracted assets and renewables. The QQ4 2024 results underscore a transition period: EBITDA remains solid and the operating base is positive, but near-term profitability is hurt by heavy capex and non-operating charges, resulting in negative free cash flow. The key determinant of future total returns will be the ability to successfully execute the capex program, secure favorable regulatory outcomes, and improve liquidity metrics. If capital allocation priorities favor strengthening the balance sheet without sacrificing rate-base growth, the stock could offer a stable risk-adjusted yield alongside growth in regulated earnings. Investors should monitor regulatory filings, capex milestones, and the trajectory of net debt versus cash generation.
Key Investment Factors
Growth Potential
Dominion benefits from a large, diversified regulated asset base and a growing contracted/renewable generation pipeline. Long-duration rate base investments in Virginia, North Carolina, and South Carolina support stable, regulated earnings. Expansion of contracted assets and green infrastructure (renewables and LNG-related assets) could raise base earnings visibility and reduce earnings sensitivity to commodity price swings over time.
Profitability Risk
Near-term earnings volatility due to non-operating charges and heavy capex; high leverage (debt-to-capital ~60.9%) and negative free cash flow risk liquidity and rating sensitivity. Regulatory timing and outcome risk (rate cases, allowed returns, and recovered costs) could materially impact near-term visibility. Weather, energy prices, and capital market conditions influence financing costs and ROE realizations. Concentration in regulated service territories may limit optionality but provides predictable cash flow; execution risk on large capex programs remains a key concern.
Financial Position
A sizable asset base of $102.4B with total debt of $41.75B and net debt of $41.44B. Leverage indicators (Debt/Capitalization 0.609, Debt/Equity 1.56) suggest significant financial leverage. Liquidity is modest (cash $0.365B; current ratio 0.712; cash flow from operations positive but free cash flow negative). The company’s heavy investment program is a core driver of both growth potential and near-term funding requirements.
SWOT Analysis
Strengths
Large, diversified regulated asset base providing stable long-term cash flows
Contracted assets and renewable development pipeline add earnings visibility
Scale in key utilities markets (Virginia, North Carolina, South Carolina) and geographic diversification
Weaknesses
Near-term profitability pressured by non-operating charges and elevated capex
High leverage and negative free cash flow in QQ4 2024
Liquidity pressure indicated by current ratio below 1.0
Opportunities
Regulatory approvals and rate-base growth could lift margins and cash flow
Expansion of contracted generation and renewables supports earnings resilience
Potential asset sales or dispositions to reduce debt and unlock value
Threats
Rising interest rates increasing financing costs and pressuring credit metrics
Regulatory risk from rate cases and ROE determinations