IDACORP, Inc. (NYSE: IDA) Q2 2025 Earnings | 08/01/2025

18 days ago

30:40

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Earnings Calls

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Summary of IDACORP, Inc. Q2 2025 Earnings Call

Key Financial Highlights

Earnings Growth: Q2 diluted EPS of $1.76 (vs. $1.71 in Q2 2024), driven by:
- Higher retail revenues (rate adjustments, customer growth).
- Increased customer usage (warm/dry weather boosted irrigation demand).
- Tax credit amortization ($17.2M vs. $7.5M in Q2 2024).
2025 Guidance Raised: EPS range tightened to $5.70–$5.85 (from $5.65–$5.85), assuming $60–77M in tax credit amortization.
Operational Metrics:
- Customer growth: +2.5% YoY (residential +2.7%).
- Hydropower generation: Revised to 7–8M MWh (dry June reduced upper bound).
- O&M/CapEx: On track at $465–475M and $1.0–1.1B, respectively.

Growth & Infrastructure Updates

Historic Load Growth:
- Pipeline of prospective customers exceeds 3,800MW (beyond current peak load), led by data centers, tech (Micron’s 2nd fab in Boise), and EV charging (Tesla).
- 2025 IRP forecasts 8.3% growth (likely conservative; Micron’s expansion not included).
Key Projects:
- Transmission: Boardman-Hemingway line construction started; Gateway West/Swift North advancing.
- Storage: 80MW battery operational; 150MW storage agreement active.
- Resource Plans:
  - 2029 RFP shortlist includes 167MW gas plant (dispatchable capacity).
  - Jackalope Wind Project (Wyoming) under review due to federal permitting hurdles.
Regulatory & Rate Case:
- Idaho General Rate Case Filed (May 2025): Seeks $199M revenue increase, 10.4% ROE, and new depreciation/interest tracker to reduce regulatory lag.
- Oregon RFPs: 2028/2029 shortlists feature renewables + gas; final negotiations pending.

Financial & Liquidity

Equity Financing: $575M follow-on offering (May 2025) + $145M ATM extends funding into 2027.
Debt Management: $60M convertible debt due May 2026; refinancing efforts underway.
Cash Flow: H1 operating cash flow up $45M YoY to $301M.

Q&A Highlights

Load Growth: Pipeline dominated by data centers; future IRPs may further revise growth upward.
Resource Mix: Potential gas plant expansion if renewable projects face delays (tax/permitting risks).
Irrigation Impact: Q2 sales surged 15% YoY due to low precipitation (no rate adjustment mechanism).
Micron Expansion: Phase 2 fab (~500MW) in early planning; timelines undisclosed.

About this video

IDACORP, Inc. posted a solid second quarter for 2025 with net income rising to $95.8 million, or $1.76 per diluted share, surpassing both last year’s $89.5 million ($1.71 per share) and market expectations. Revenue climbed to $531.1 million, an 11% beat over forecasts, driven by higher customer usage, continued customer growth (+2.5% year-over-year), and new base rates implemented at the beginning of the year. Customer growth and increased usage, particularly among irrigation customers during low-precipitation months, provided a strong boost to operating income. The company raised the lower end of its full-year 2025 earnings guidance, expecting now $5.70 to $5.85 per diluted share, as structural earnings drivers remain intact. However, IDACORP also encountered cost pressures: operating expenses rose due to higher labor and wildfire mitigation costs, increased depreciation from infrastructure build-out—including a leased battery storage facility—and higher interest expense from funding capital projects. The company used $17.2 million in additional tax credit amortization to help offset these rising costs and maintain earnings consistency. Management highlighted the successful groundbreaking of the Boardman-to-Hemingway 500kV transmission project after nearly two decades of permitting—a transformative infrastructure investment for the company’s future, customer reliability, and regional growth prospects. Dividend track record was maintained, reflecting 55 years of uninterrupted payouts. Looking forward, IDACORP continues to invest in customer and infrastructure growth while effectively navigating industry headwinds through regulatory, tax, and cost management mechanisms. The company remains focused on delivering sustainable returns and positive operational performance through prudent, long-term capital deployment. About Inside Ticker: For more expert analysis and real-time updates on IDACORP, Inc. (NYSE: IDA) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #IDACORP #IDA #Q22025 #Earnings #FinancialResults #NetIncome #EPS #Revenue #CustomerGrowth #Dividend #Infrastructure #Transmission #BoardmanToHemingway #CapitalInvestment #TaxCredits #Utilities #Regulation #OperatingExpenses #WildfireMitigation #InsideTicker #2025Outlook

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