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    Can Dominion Energy’s (D) Offshore Wind Bet Quietly Rewire Its Long‑Term Earnings Stability?

    Simply Wall St·12/07/2025 04:27:30
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    • Dominion Energy recently reported better-than-expected Q3 2025 adjusted earnings and revenue, narrowed its full‑year operating guidance, and continued advancing its large capital program, including the Coastal Virginia Offshore Wind project, while receiving regulatory approvals for new infrastructure and rate changes benefiting high‑load customers like data centers.
    • This combination of cleaner energy build‑out, AI‑driven data center demand, and new rate structures is reshaping Dominion’s long‑term earnings profile and revenue stability, even as analysts remain cautious about risks such as project cost inflation and regulatory uncertainty.
    • We’ll now examine how Dominion’s progress on the Coastal Virginia Offshore Wind project could influence its existing investment narrative and long‑term outlook.

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    Dominion Energy Investment Narrative Recap

    To own Dominion Energy, you really need to believe in regulated, utility-style growth backed by rising electricity demand and a massive clean energy buildout. The latest Q3 beat and narrowed guidance mostly confirm a steady, rather than explosive, near term outlook, while the key short term catalyst remains execution on its capital plan and the biggest current risk is still cost and regulatory outcomes around Coastal Virginia Offshore Wind (CVOW), which this update does not meaningfully change.

    The most relevant update here is the progress report that CVOW is about two thirds complete and targeted to enter service by the end of 2026. That milestone sits right at the heart of Dominion’s investment case, because the project is expected to expand the regulated rate base that underpins long term earnings, but also concentrates risk if costs continue to rise or regulators push back on full recovery.

    Yet investors should also keep in mind the possibility that future tariff or regulatory shifts could materially affect CVOW’s economics and overall project returns...

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

    Dominion Energy's narrative projects $17.8 billion revenue and $3.6 billion earnings by 2028. This requires 5.3% yearly revenue growth and about a $1.1 billion earnings increase from $2.5 billion today.

    Uncover how Dominion Energy's forecasts yield a $64.00 fair value, a 9% upside to its current price.

    Exploring Other Perspectives

    D Community Fair Values as at Dec 2025
    D Community Fair Values as at Dec 2025

    Three Simply Wall St Community fair value estimates for Dominion span roughly US$36.73 to US$64 per share, underscoring how far apart individual views can be. When you set that against the company’s multi decade CVOW buildout and the regulatory and cost risks tied to such a large offshore project, it becomes even more important to compare several perspectives before forming your own view.

    Explore 3 other fair value estimates on Dominion Energy - why the stock might be worth 37% less than the current price!

    Build Your Own Dominion Energy Narrative

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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.