Dominion’s Offshore Wind Progress Might Change the Case for Investing in Dominion Energy (D)

• Earlier this week, Dominion Energy announced that its Coastal Virginia Offshore Wind project is now 66% complete, aiming to supply clean energy to hundreds of thousands of homes by the end of 2026 and expanding generation capacity for local data centers.
• This milestone highlights Dominion’s progress in grid modernization and renewable infrastructure, drawing attention to management’s expectation for a significant rate base increase and stronger future earnings.
• We'll explore how advancing the Coastal Virginia Offshore Wind project could influence Dominion Energy’s long-term earnings outlook and regulated returns.

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Dominion Energy Investment Narrative Recap

To own shares of Dominion Energy, investors typically need confidence in the company’s ability to deliver steady, regulated returns while managing ambitious clean energy investments and ongoing capital requirements. The latest milestone at the Coastal Virginia Offshore Wind project supports progress toward key catalysts like expanding the rate base and earnings, but it does not materially reduce the most significant near-term risks, primarily the potential for project cost overruns and regulatory uncertainties, which remain the main pressures on margins and returns.

Among recent developments, Dominion’s updated operating earnings guidance of US$3.33 to US$3.48 per share for 2025, along with reaffirmed long-term growth targets, is especially relevant given the continued advancement of major renewable projects. These announcements together reflect management’s outlook for stable earnings growth, yet this strategy’s success remains closely linked to how effectively Dominion can control costs and secure regulatory support for its clean energy investments.

However, it is vital to recognize that unrealized risks around future cost increases from tariffs and supply chain issues...

Read the full narrative on Dominion Energy (it's free!)

Dominion Energy's narrative projects $17.8 billion in revenue and $3.6 billion in earnings by 2028. This requires 5.3% yearly revenue growth and a $1.1 billion increase in earnings from the current level of $2.5 billion.

Uncover how Dominion Energy's forecasts yield a $64.00 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members’ fair value estimates for Dominion Energy range from US$36.73 to US$64 across three analyses, emphasizing just how much opinions can differ. Paired with ongoing risks around project cost escalations and regulatory recovery, these views show why you may want to compare a broader set of expectations before forming your own outlook.

Explore 3 other fair value estimates on Dominion Energy - why the stock might be worth as much as $64.00!

Build Your Own Dominion Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Dominion Energy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Dominion Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Dominion Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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