Dominion (D) Q2 2026: $820M RNG Writedown Masks 22% Virginia Gain
Dominion Energy's second-quarter EPS fell 58% to $0.37, but almost none of that damage came from the business investors actually own the stock for. The regulated Dominion Energy Virginia segment — the utility serving Northern Virginia's data center corridor — grew operating earnings 22% to $670 million from $549 million (an increase of $121 million), equivalent to $0.76 of operating EPS versus $0.64. What broke the headline sat elsewhere: an $820 million impairment on non-regulated renewable natural gas assets and a $246 million cost-overrun charge on the Coastal Virginia Offshore Wind project, both parked in Corporate and Other, drove consolidated net income down to $340 million from $760 million.
Strip those items out and the picture is ordinary. On the company's own operating measure, diluted operating EPS rose 5.3% to $0.79 from $0.75 — roughly $697 million of operating earnings against about $640 million a year earlier, or a high-single-digit gain that a 3.4% higher share count trims to 5.3% per share. Management reaffirmed full-year 2026 operating EPS guidance of $3.45 to $3.69. The bulk of the gap between that and the headline damage is non-cash impairment, while a $205 million swing in nuclear decommissioning trust gains flatters the GAAP result. The write-downs are best understood as balance-sheet housekeeping ahead of the NextEra Energy merger signed on May 15, 2026, under which Dominion shareholders would receive 0.8138 NextEra shares plus a pro-rata slice of $360 million in cash, with closing expected in the second half of 2027.
