Dominion Energy delivered the company’s strongest second-quarter earnings growth in 2026, as regulatory benefits, higher customer usage, and rider equity returns more than offset rising electric capacity, outage, labor, and depreciation expenses.
The Virginia segment generated operating earnings of $670 million, compared with $549 million during the second quarter of 2025. Its contribution increased by $121 million, or approximately 22%.
Operating earnings per share from Dominion Energy Virginia increased to $0.76 from $0.64.
The $0.12 per-share improvement accounted for more than the entire increase in Dominion Energy’s consolidated operating earnings per share, which rose by $0.04 to $0.79.
The largest benefit came from the company’s 2025 Biennial Review, which added $105 million to quarterly operating earnings and approximately $0.12 per share.
Rider equity returns contributed another $79 million, or approximately $0.09 per share.
Together, those two regulatory-related items added $184 million to Dominion Energy Virginia’s quarterly earnings before offsetting expenses.
Customer usage and other factors added another $23 million, while net interest expense provided an $8 million benefit compared with the prior-year quarter.
Those gains were partly reduced by a $34 million increase in electric capacity expense.
Higher capacity costs lowered quarterly earnings by approximately $0.04 per share and reduced first-half earnings by $76 million, or $0.09 per share.
Nuclear production tax credits created another $15 million headwind during the quarter.
Depreciation and amortization reduced the year-over-year comparison by $11 million, while salaries, wages, benefits, and administrative expenses lowered earnings by $14 million.
Storm damage and service restoration expenses created a $9 million headwind, and planned outage costs reduced earnings by $5 million. Weather lowered the quarterly comparison by $3 million.
Share dilution reduced Dominion Energy Virginia’s quarterly earnings per share by approximately $0.02.
Dominion Energy’s average diluted share count increased to 882.1 million from 853.2 million, an increase of approximately 3.4%.
For the first six months of 2026, Dominion Energy Virginia’s operating earnings increased by $230 million to $1.34 billion from $1.11 billion.
Its first-half contribution increased by $0.23 per share to $1.53.
The Virginia segment supplied all of Dominion Energy’s consolidated operating earnings growth and more.
Companywide operating earnings increased by $63 million to $712 million from $649 million. Dominion Energy Virginia added $121 million, while the company’s remaining segments collectively reduced the comparison by $58 million.
Dominion Energy South Carolina generated operating earnings of $105 million, declining $4 million from the prior-year quarter.
Higher customer usage and rate-case benefits were offset by weather, depreciation, interest expense, and other factors.
Contracted Energy operating earnings declined by $16 million to $31 million.
Higher energy margins added $28 million, but depreciation, interest expenses, administrative costs, outages, and other factors more than offset the benefit.
Corporate and Other recorded a $94 million operating loss, compared with a $56 million loss a year earlier.
Higher interest expense was the largest contributor to the $38 million deterioration.
Dominion Energy’s consolidated second-quarter operating earnings increased 10% to $712 million.
Operating earnings per share rose approximately 5% to $0.79 from $0.75, with the slower per-share growth reflecting the higher diluted share count.
Reported earnings presented a substantially weaker picture.
GAAP net income attributable to Dominion Energy fell to $340 million from $760 million. Reported diluted earnings per share declined to $0.37 from $0.88.
The $372 million difference between reported and operating earnings reflected impairments, asset retirements, economic hedging, nuclear decommissioning trust activity, and other adjustments.
Dominion recorded $626 million of nonregulated asset impairments and other charges during the second quarter.
The company’s first-half adjustments included an $820 million impairment associated with nonregulated renewable natural gas facilities and a $78 million impairment involving certain nonregulated solar generation assets.
Those charges were partly offset by a $195 million benefit related to revised asset-retirement obligations at the Millstone nuclear power station.
Dominion also recorded $153 million of regulated asset retirements and other charges during the second quarter.
The first-half amount included costs associated with Virginia Power’s share of Coastal Virginia Offshore Wind spending that the company does not expect to recover from customers.
Nuclear decommissioning trust investments provided a substantial offset.
Dominion recorded a $495 million gain from its nuclear decommissioning trust funds during the quarter, while economic hedging activities produced a $69 million loss.
The company also incurred $13 million of merger-related expenses during the quarter.
The release’s disclosures refer to Dominion Energy’s proposed merger with NextEra Energy and the shareholder and regulatory approvals required to complete the transaction.
Operating revenue increased approximately 18% to $4.48 billion from $3.81 billion.
However, total operating expenses increased to $4.15 billion from $2.71 billion, driven partly by higher energy purchases and the charges recorded within other operations and maintenance expense.
Electric fuel and other energy-related purchases increased to $1.32 billion from $946 million.
Purchased electric capacity expense rose to $80 million from $18 million, consistent with the capacity-cost pressure reported in the Virginia segment.
Other operations and maintenance expense more than doubled to approximately $1.88 billion from $933 million.
As a result, reported operating income declined to $329 million from approximately $1.10 billion despite the higher revenue.
Dominion reaffirmed its full-year 2026 operating earnings guidance of between $3.45 and $3.69 per share, with a midpoint of $3.57.
The company also maintained the credit, dividend, and long-term growth guidance presented during its fourth-quarter 2025 earnings call.
Dominion Energy Virginia’s performance shows the importance of regulatory outcomes to the company’s earnings profile.
Benefits from the Biennial Review and rider equity returns provided enough growth to absorb higher capacity, outage, labor, depreciation, and tax-credit-related costs while supporting an increase in consolidated operating earnings.
KEY QUOTES:
“The company reaffirms its full-year 2026 operating earnings guidance range of $3.45 to $3.69 per share, midpoint of $3.57 per share, and all financial guidance provided on its fourth quarter 2025 earnings call.”
Dominion Energy statement
