Dominion Energy, Inc. Revenue & Financials

Dominion Energy, Inc. reported total revenue of $26.8 billion for the fiscal year 2024, representing a 3 percent year-over-year increase at constant currency, driven primarily by the 5 percent growth in the regulated electric segment and the 4 percent expansion of the regulated gas segment, which partially offset the 18 percent decline in the unregulated segment due to the sale of the renewable portfolio to Blackstone. The regulated electric division, the company's primary cash flow engine, generated $18.2 billion in revenue, a 5 percent increase year-over-year, fueled by a 3 percent increase in retail sales volumes to 105,000 gigawatt-hours and the recovery of $1.2 billion in VCEA-mandated capital investments through Rider R, which benefited from the continued growth of data center load in Northern Virginia. The regulated gas division contributed $6.4 billion in revenue, a 4 percent increase year-over-year, reflecting the 2 percent growth in customer counts and the recovery of $450 million in gas infrastructure investments through base rates and riders, which benefited from the rising demand for natural gas from residential and commercial customers. The unregulated segment generated $2.2 billion in revenue, an 18 percent decline year-over-year, reflecting the sale of 13,000 megawatts of renewable assets to Blackstone in September 2022 and the 22 percent decline in average LMPs in the PJM Dominion zone. Despite the top-line growth, Dominion achieved a gross profit of $11.2 billion, representing a gross margin of 41.8 percent, an improvement of 120 basis points year-over-year, driven by the favorable product mix shift toward higher-margin regulated utilities and the realization of $150 million in operational synergies following the consolidation of the corporate center. Operating income reached $4.8 billion, resulting in an operating margin of 17.9 percent, while net income attributable to shareholders was $2.1 billion, or $2.55 per share, a 6 percent increase compared to FY2023, reflecting the company's disciplined cost management and the $85 million gain on the sale of its remaining stake in the Discovery Pipeline. Adjusted EBITDA, a critical metric for the company's capital allocation strategy, totaled $8.4 billion, a 8 percent increase year-over-year, providing the financial flexibility to pay down $1.8 billion of net debt, fund the $4.5 billion capital expenditure program, and allocate $1.2 billion to dividend payments. The company's balance sheet remains robust, with net debt standing at $26.3 billion at year-end 2024, representing a net debt-to-EBITDA ratio of 3.1x, well within the company's target range of 3.0x to 3.5x. The effective tax rate for FY2024 was 4.2 percent, significantly below the statutory US rate of 21 percent, reflecting the benefit of the company's accelerated depreciation and production tax credits from its renewable energy portfolio. Looking ahead to FY2025, management has issued guidance for constant currency revenue growth of 4 to 6 percent, driven by the anticipated recovery of CVOW capital costs through Rider S and the continued growth of data center load in Northern Virginia, with adjusted EBITDA margin expected to remain stable at 31 percent as the company realizes the full benefit of its $120 million cost optimization program, which includes the consolidation of its regional operating centers and the outsourcing of 30 percent of its IT infrastructure to third-party providers.