Dominion Energy (D) Q3 2025: Regulated Growth and Clean Energy Profits

Dominion Energy, a major power and energy company in the U.S., recently released its financial results for the third quarter of 2025. By examining their latest 10-Q filing, we can get a clear picture of the company's performance and the key factors driving its financial health. The quarter reveals a story of solid growth, fueled by strategic investments in its regulated utilities and a significant boost from clean energy initiatives.

A Strong Financial Performance

Dominion Energy reported a strong third quarter, with total revenue reaching $4.53 billion, a notable increase from $3.94 billion in the same period last year. This top-line growth translated to a healthier bottom line as well. Net income attributable to the company rose to $1.0 billion, or $1.16 per diluted share, up from $934 million, or $1.09 per diluted share, in Q3 2024.

This flow diagram provides a visual breakdown of how Dominion's revenue for the quarter was converted into net income.

Digging into the Segments

Dominion's performance is best understood by looking at its distinct business segments, each contributing differently to the overall results.

• Dominion Energy Virginia: As the company's largest segment, Virginia Power generated $3.31 billion in revenue and contributed $679 million to net income. A key driver for this segment's performance was higher returns from "riders"—regulatory mechanisms that allow the utility to recover costs for specific capital investments, like grid modernization, through customer rates. This indicates that the company's significant investments are successfully earning their approved returns. However, the results also reflect the sale of a 50% non-controlling interest in the major Coastal Virginia Offshore Wind (CVOW) project, meaning Dominion now shares the earnings from this asset.

• Dominion Energy South Carolina: This segment also showed healthy growth, contributing $168 million to net income on revenues of $942 million. A significant factor here was an increase in non-fuel base rates following a recent rate case settlement, showcasing a positive regulatory outcome for the company.

• Contracted Energy: This segment, which includes Dominion's nonregulated power generation fleet, was a standout performer. Its net income contribution more than doubled to $165 million from $83 million last year. This surge was primarily driven by renewable energy tax credits, likely stemming from incentives in the Inflation Reduction Act (IRA), which are significantly enhancing the profitability of clean energy assets like nuclear and renewables.

The Bigger Picture

While revenues grew, operating expenses also climbed to $3.19 billion from $2.72 billion, largely due to higher fuel and energy-related purchase costs. As is typical for utilities, these costs are generally passed through to customers and are offset in revenue, having little direct impact on net income. The company maintained a strong operating margin of 29.6%.

In summary, Dominion Energy's third-quarter results paint a picture of a company executing its strategy effectively. Its core regulated utility businesses in Virginia and South Carolina are delivering stable, predictable growth through continued capital investment and favorable regulatory treatment. Simultaneously, the Contracted Energy segment is capitalizing on the national push toward cleaner energy, turning tax incentives into substantial profits. The sale of a stake in the massive CVOW project highlights a strategic move to de-risk and fund its ambitious capital plan, positioning the company for the future energy landscape.