Utility Xcel Energy beat Wall Street expectations for second-quarter profit on Thursday, as higher recovery of electric infrastructure investments helped offset rising financing costs.
On an adjusted basis, the Minneapolis, Minnesota-based company reported a profit of 93 cents per share for the three months ended June 30, above analysts' average estimate of 78 cents per share, according to data compiled by LSEG.
The utility's net income came in at $586 million, or 93 cents per share, a 32% rise from $444 million, or 75 cents per share, a year ago.
Shares of the company were up 2.1% in premarket trading.
Recovery of infrastructure investments offsets higher costs
Xcel recovered much of its electric infrastructure investments through regulator-approved rates and riders during the quarter, helping offset costs tied to grid upgrades and power infrastructure expansion.
However, revenue in its electric segment fell 4.7% to $2.74 billion, while revenue at its natural gas division dropped to $365 million from a year earlier.
Xcel provides electric services to about 3.9 million customers and natural gas services to about 2.2 million customers across eight Western and Midwestern states.
Utility companies have benefited from a surge in electricity demand amid the AI-driven data center boom even as they grapple with elevated interest rates that raise costs to fund and maintain infrastructure.
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