Shares declined 5.6% as investors reacted negatively to signs of demand deceleration in key segments and weather-related volatility weighing on usage, which contributed to cautious near-term visibility despite management’s reiterated full-year guidance.

• GAAP net income was $45 million ($0.38 per diluted share), while non-GAAP net income stood at $68 million ($0.58 per diluted share), excluding storm restoration and other one-time expenses.
• Mild winter weather and lower seasonal usage from residential and small commercial customers negatively impacted results.
• Industrial customer demand grew 10% year-over-year, but overall residential/small commercial demand decelerated due to weather and usage softness.
• Management is engaging regulators to develop frameworks aimed at mitigating revenue and cost volatility caused by weather, recognizing this as a multiyear effort.
• The company reiterated full-year earnings guidance of $3.33 to $3.53 per diluted share, but market reaction suggests skepticism about near-term growth and margin stability.