PNW · 8-K · 20260804PR000040

Interest Expense Trends

PINNACLE WEST CAPITAL CORP · 2026-08-04 · Importance 48 · Surprise 40

Second-quarter 2026 interest charges increased 17.7% to $133.6 million from $113.5 million in the second quarter of 2025. Total interest expense, after the allowance for borrowed funds used during construction, increased $20.2 million to $122.2 million. For the six months ended June 30, 2026, interest charges rose $40.9 million to $259.4 million, while total interest expense increased to $238.1 million from $196.8 million. Management identified higher interest charges as a primary factor in the approximately $14 million year-over-year quarterly earnings decline.

Key facts

• Depreciation and amortization expense for the three months ended June 30, 2026: $243,226 (thousands). source
• Interest charges for the six months ended June 30, 2026: $259,360 (thousands). source
• Total interest expense for the six months ended June 30, 2026: $238,095 (thousands). source
• Interest charges for the three months ended June 30, 2026: $133,601 (thousands). source
• Total interest expense for the three months ended June 30, 2026: $122,199 (thousands). source
• Allowance for borrowed funds used during construction for the three months ended June 30, 2026: $(11,402) (thousands). source