Is Dominion’s Data Center Expansion and $50B Infrastructure Plan Shaping the Investment Case for D?

• Dominion Energy recently reported third quarter financial results, highlighting sales of US$4.53 billion and net income of US$1.01 billion, along with a narrowed 2025 earnings guidance and a US$50 billion infrastructure investment plan through 2029.
• An interesting insight is that Dominion's data center pipeline grew by 17% since last year, reinforcing its role as a key utility provider to the expanding data center industry.
• Now, we'll explore how Dominion’s raised earnings guidance and infrastructure investment plans influence its long-term investment story.

Find companies with promising cash flow potential yet trading below their fair value.

Dominion Energy Investment Narrative Recap

To be a Dominion Energy shareholder today, you'd need to believe in the company's ability to capture regulated growth through data center-driven electricity demand and execute a substantial long-term infrastructure plan. The recent reaffirmation of 2025 earnings guidance and strong third quarter results support the main short-term catalyst of robust regional demand, but do not materially change the biggest risk, which remains potential cost overruns and regulatory uncertainties on mega-projects like the Coastal Virginia Offshore Wind (CVOW) development.

Among recent announcements, the narrowed 2025 earnings guidance range and confidence in meeting or exceeding the midpoint stand out, signaling management's alignment with analyst estimates for stable earnings growth. This supports the ongoing narrative that near-term revenue visibility remains high, even as capital spending and project execution risks continue to loom over long-term returns. Contrasting this stability, investors should be aware of the impact that unexpected changes in transmission cost allocations could have on Dominion’s...

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

Dominion Energy is forecast to achieve $17.8 billion in revenue and $3.6 billion in earnings by 2028. This outlook is based on an expected annual revenue growth rate of 5.3% and an increase in earnings of $1.1 billion from the current $2.5 billion.

Uncover how Dominion Energy's forecasts yield a $63.60 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided three fair value estimates for Dominion Energy, ranging from US$36.73 to US$63.60 per share. While views vary, the company’s large-scale investments and exposure to regulatory changes highlight why a range of opinions exists, explore different approaches to see what other market participants are watching.

Explore 3 other fair value estimates on Dominion Energy - why the stock might be worth 40% less than the current price!

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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