Executive Summary
Dominion Energy’s QQ2 2025 results reflect a growth trajectory in revenue and earnings supported by its regulated rate base and contracted asset portfolio, alongside a heavy capital deployment program. Revenue reached $3.81 billion, up 9.3% year over year, with net income of $0.76 billion and earnings per share of $0.88, underscoring a resilient earnings base in a capital-intensive utility. However, the quarter also reveals material cash-flow pressure: operating cash flow was $1.25 billion, while capital expenditures totaled $3.01 billion, driving free cash flow to a negative $(1.77) billion and a net decrease in cash on the period. The company funded much of its capex via financing activity, with total debt outstanding at $46.361 billion and net debt near $46.0 billion, leaving the balance sheet leveraged with a total capitalization around 63%. The current liquidity position is modest, with a current ratio of 0.666 and a cash balance of $0.344 billion, highlighting near-term refinancing and debt-service considerations as capex proceeds and regulatory initiatives advance. Dominion’s dividend payout remains sizable at 74.9% of earnings, consistent with the dividend policy of many regulated utilities, but the sustainability of the payout will depend on continued FCF generation and regulatory approvals for rate-base investments.
Key Performance Indicators
QoQ: -10.38% | YoY:36.15%
Key Insights
Revenue: $3.810B (YoY +9.29%, QoQ -6.53%).
Gross Profit: $1.920B; Gross Margin 50.4% (YoY +15.5%, QoQ -6.8%).
Operating Income: $1.096B; Operating Margin ~28.8% (YoY +36.2%, QoQ -10.4%).
Net Income: $0.760B; Net Margin ~19.95% (YoY +32.9%, QoQ +17.7%).
EPS: $0.88 (YoY +35.4%, QoQ +17.3%).
EBITDA: $2.194B; EBITDARatio 0.576.
Free Cash Flow (FCF): $(1.767)B; Operating Cash Flow (OCF): $1.246B; Capital Expenditures (Capex): $(3.012)B.
Net Cash from Investing Activities: $(3.147)B; Net Cash from Fi...
Financial Highlights
Revenue: $3.810B (YoY +9.29%, QoQ -6.53%).
Gross Profit: $1.920B; Gross Margin 50.4% (YoY +15.5%, QoQ -6.8%).
Operating Income: $1.096B; Operating Margin ~28.8% (YoY +36.2%, QoQ -10.4%).
Net Income: $0.760B; Net Margin ~19.95% (YoY +32.9%, QoQ +17.7%).
EPS: $0.88 (YoY +35.4%, QoQ +17.3%).
EBITDA: $2.194B; EBITDARatio 0.576.
Free Cash Flow (FCF): $(1.767)B; Operating Cash Flow (OCF): $1.246B; Capital Expenditures (Capex): $(3.012)B.
Net Cash from Investing Activities: $(3.147)B; Net Cash from Financing Activities: $1.837B.
Cash at End of Period: $0.413B; Cash and Cash Equivalents: $0.344B.
Balance Sheet: Total Assets $107.441B; Total Liabilities $76.569B; Total Equity $27.215B.
Debt: Total Debt $46.361B; Net Debt $46.017B; Long-Term Debt to Capitalization ~0.597; Total Debt to Capitalization ~0.630.
Liquidity: Current Ratio 0.666; Quick Ratio 0.491; Cash Ratio 0.0329; Interest Coverage 2.17.
Dividends and Returns: Dividend Yield 1.18%; Payout Ratio 74.9%; ROE 2.79%; ROA 0.71%; P/E ~15.84; P/B ~1.77.
Valuation and Efficiency: Asset Turnover 0.036; Operating Cash Flow per Share $1.462; Free Cash Flow per Share $(2.07).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.81B |
9.29% |
-6.53% |
| Gross Profit |
1.92B |
15.52% |
-6.80% |
| Operating Income |
1.10B |
36.15% |
-10.38% |
| Net Income |
760.00M |
32.87% |
17.65% |
| EPS |
0.88 |
35.38% |
17.33% |
Key Financial Ratios
operatingProfitMargin
28.8%
operatingCashFlowPerShare
$1.46
freeCashFlowPerShare
$-2.07
dividendPayoutRatio
74.9%
Management Commentary
No earnings call transcript was provided in the materials for QQ2 2025. Consequently, no management quotes or theme-based highlights from a live Q&A session are available in this analysis. If a transcript becomes available, the highlights should be organized by themes such as strategy (rate-base growth, project execution), operations (regulatory approvals, outages, reliability), market conditions (regulatory environment, commodity exposure), and financial policy (capital allocation, debt management, dividends).
Forward Guidance
Explicit forward guidance for QQ3/Q3 2025 and beyond is not included in the provided data. The forward-looking assessment rests on typical utilities industry dynamics: continued rate-base expansion and contracted asset growth, ramping up renewables and gas infrastructure, and ongoing grid modernization. Key uncertainties include regulatory rate-case outcomes, changes in interest rates that affect financing costs, project execution risk, and the pace of load growth. Investors should monitor: (1) regulatory approvals and rate case timing, (2) progression and profitability of capital projects (capex cadence and project commissioning), (3) refinancing plans and debt management strategies, and (4) cash-flow trajectory to determine sustainability of the dividend. Management commentary typically emphasizes capital discipline and rate-base growth as primary levers for long-term earnings stability; confirmation of this stance would be a key watchpoint for the remainder of 2025.