Executive Summary

Q1 2024 EPS strongly exceeded prior-year: GAAP EPS $0.91 (+43% YoY) and adjusted EPS $0.88 (+38% YoY), driven by execution of multi‑year rate plans in New York and Maine and stronger Renewables balancing/asset management; revenues were $2.42B vs $2.47B in Q1 2023 .
Segments: Networks net income rose to $268M (from $195M), while Renewables net income rose to $95M (from $49M), with Renewables boosted by balancing resource performance and pricing, partially offset by lower production .
2024 EPS outlook maintained at $2.17–$2.32 (GAAP and adjusted); no equity issuance planned for 2024; NECEC construction earns AFUDC, with >$600M 2024 capex planned .
Relative to third‑party pre‑report consensus (Seeking Alpha preview), AGR beat EPS ($0.91 vs $0.69) and came in below on revenue ($2.42B vs $2.54B); S&P Global consensus data were unavailable via our tool at query time .

What Went Well and What Went Wrong

What Went Well
- Execution on rate plans supported Networks earnings: “Results for the first quarter of 2024 were primarily impacted by the execution of existing rate plans” (Networks net income $268M; +$73M YoY) .
- Renewables uplift from balancing/asset management and pricing: Renewables earnings $95M vs $49M YoY “primarily impacted by strong balancing resource performance and increased pricing” .
- Strategic progress: Vineyard Wind 1 powered up; multiple shovel‑ready offshore proposals submitted; 251 MW onshore wind PPAs executed YTD and a 300 MW PPA signed for an existing wind farm; management affirmed 2024 EPS outlook .
What Went Wrong
- Revenue down modestly YoY: Operating revenues fell to $2.417B from $2.466B (–2.0% YoY), reflecting lower purchased power/gas fuel costs and lower production in Renewables despite pricing tailwinds .
- Higher interest expense sequentially vs Q1 2023 backdrop remains a headwind: Interest expense (net of capitalization) was $(125)M vs $(95)M in Q1 2023; though regulated constructs mitigate, financing costs remain a sensitivity .
- Renewables production was lower YoY (offset by balancing/pricing); management cautions wind production/price variability and storms/weather remain 2024 risks .

Financial Results

Metric	Q1 2023	Q4 2023	Q1 2024
Operating Revenues ($M)	$2,466	$2,282	$2,417
Total Operating Expenses ($M)	$2,201	$1,941	$2,010
Operating Income ($M)	$265	$450	$407
Net Income Attributable to Avangrid ($M)	$245	$397	$351
Diluted EPS ($)	$0.63	$1.03	$0.91
Adjusted EPS ($)	$0.64	$0.97	$0.88
Interest Expense, net ($M)	$(95)	$(108)	$(125)
Weighted‑avg Diluted Shares (M)	387.1	387.2	387.2

Segment Net Income ($M) | Segment Net Income | Q1 2023 | Q1 2024 | |---|---|---| | Networks (GAAP) | $195 | $268 | | Renewables (GAAP) | $49 | $95 | | Corporate (GAAP) | $1 | $(11) | | Adjusted Networks | $195 | $268 | | Adjusted Renewables | $51 | $84 | | Adjusted Corporate | $0 | $(11) |
KPIs and Cost Drivers ($M) | KPI | Q1 2023 | Q4 2023 | Q1 2024 | |---|---|---|---| | Purchased Power, Natural Gas & Fuel | 977 | 585 | 724 | | O&M | 761 | 790 | 792 | | Depreciation & Amortization | 280 | 290 | 298 | | Taxes Other Than Income Taxes | 183 | 167 | 196 |

Notes: Adjusted figures exclude mark‑to‑market and repowering impacts; see non‑GAAP reconciliations in filings .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
EPS (GAAP)	FY 2024	$2.17–$2.32 (set Feb 21, 2024)	$2.17–$2.32 (affirmed Apr 23, 2024)	Maintained
Adjusted EPS	FY 2024	$2.17–$2.32 (set Feb 21, 2024)	$2.17–$2.32 (affirmed Apr 23, 2024)	Maintained
Dividend	2024	Quarterly $0.44; annual $1.76 run‑rate	Same posture maintained	Maintained
NECEC AFUDC rate	2024	N/A	8.5% AFUDC assumption disclosed	New disclosure
NECEC Capex	2024	N/A	>$600M 2024 spend expected	New disclosure
Equity Issuance	2024	No equity issuance planned	No equity issuance planned	Maintained
O&M Efficiency	2024+	Target O&M growth below inflation	Reiterated	Maintained
Renewables Assumptions	2024	Normal wind capacity factor; thermal/asset management at historical averages	Reiterated	Maintained
NY Uncollectibles	2024	Deferral mechanism in place (mitigates earnings exposure)	Reiterated	Maintained

Earnings Call Themes & Trends

Note: A Q1 2024 earnings call transcript was not available in our document set; themes reference Q3 2023 and Q4 2023 calls, with current‑period updates from the Q1 2024 press release.

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
Regulatory outcomes (NY, ME)	NY/ME multi‑year plans approved; strong cash/ROE framework	NY make‑whole and uncollectibles deferral highlighted; ME plan execution	“Executing on multi‑year rate plans” driving Networks results	Improving/stable
Connecticut regulatory risk	PURA decision appealed; challenging environment	Continued litigation; CT becoming smaller part of business	No new update in Q1 PR	Stable/being managed
Offshore wind	Commonwealth/Park City PPAs terminated to avoid write‑offs	Vineyard 1 progressing; 30% ITC secured; finishing remains priority	Vineyard Wind 1 powered up; multiple proposals submitted to tri‑state solicitation	Improving execution
Renewables operations	Diversified fleet; West power/asset management tailwinds	Thermal/asset management natural hedge reiterated	Strong balancing resource performance; pricing; lower production	Mixed: ops solid; production lower
Capex/financing	Liquidity strong; diversify financing; tax equity/transferability	No 2024 equity; >$600M NECEC spend; O&M optimization	2024 EPS range affirmed; execution focus	Stable discipline
Technology/data centers	~700 MW to support data centers via onshore PPAs	Reiterated selective growth with PPAs	Additional PPAs executed YTD	Growing pipeline

Management Commentary

“The first quarter financial results were in-line with our plan… we powered up the first‑in‑the‑nation Vineyard Wind 1 project and… submitted multiple proposals… offering shovel‑ready New England Wind offshore projects into the tri‑state solicitation.” — CEO Pedro Azagra .
Outlook discipline: “We are introducing our 2024 outlook ranges for EPS and adjusted EPS of $2.17 to $2.32… includes incremental revenues from our rate plans… additional production from 311 MW placed in service in 2023… assuming normal wind capacity factor… no assumed equity issuance in 2024.” — CFO Justin Lagasse (Q4 call) .
Renewables repowering rationale: “Repowering allows… increase in production ~30% and reduced O&M… PTCs for 100% of production… a no‑brainer.” — CEO, Q&A (Q4 call) .

Q&A Highlights

Vineyard Wind 1 ITCs: 30% ITC secured; working on opportunities for additional IRA‑linked ITCs; finishing the project is priority over exact COD month (Nov vs Feb) .
NECEC returns: AFUDC rate disclosed at 8.5%; >$600M 2024 spend expected; construction progressing (foundations/poles/stringing underway) .
O&M approach: Target O&M growth below inflation; leverage AMI and tech; renewables O&M prioritized to uplift production/earnings .
Capital plan/financing: No equity issuance in 2024; maintain dividend; use tax equity/transferability selectively; manage interest rate exposure largely via pass‑through/reconciliations at utilities .
Regulatory positioning: NY/ME constructive and predictable; CT decision being appealed; company focused on legal remedies while executing elsewhere .

Estimates Context

S&P Global consensus estimates were unavailable via our tool at query time.
Third‑party preview ahead of results (Seeking Alpha) indicated consensus EPS $0.69 and revenue $2.54B. Actuals were EPS $0.91 and revenue $2.42B — implying an EPS beat and revenue below previewed consensus .

Metric	Q1 2024 Consensus (3rd‑party)	Q1 2024 Actual
EPS ($)	$0.69	$0.91
Revenue ($B)	$2.54	$2.417

Note: We attempted to retrieve S&P Global consensus but could not due to missing mapping at query time.

Key Takeaways for Investors

EPS quality: YoY EPS strength is grounded in regulated rate plan execution and Renewables balancing/asset management — not one‑offs — with adjusted EPS up 38% YoY to $0.88 .
Regulatory catalysts: NY/ME multi‑year frameworks continue to flow through, with NY make‑whole/uncollectibles protections supporting earnings predictability; CT remains a litigated tail risk but a shrinking exposure .
Offshore progression: Vineyard 1 energized and advancing; AGR is re‑engaging in regional offshore solicitations from a stronger footing, having avoided legacy write‑offs last year .
2024 outlook intact with balance sheet discipline: EPS range reaffirmed; no 2024 equity; NECEC AFUDC and >$600M spend provide additional earnings and rate base growth drivers .
Watch Renewables production vs pricing: Q1 benefited from balancing/pricing but saw lower production; management assumes normal wind going forward and points to thermal/asset management as a natural hedge .
Trading setup: Against third‑party pre‑report expectations, EPS beat and revenue shortfall suggest a margin‑mix narrative; near‑term stock drivers are likely to be Vineyard/NECEC execution updates and any incremental New England offshore awards .

Additional notes

Documents read: Q1 2024 8‑K press release (full), Q4 2023 8‑K press release (for trend), Q3 2023 and Q4 2023 earnings call transcripts (for themes and detailed guidance) .
No Q1 2024 earnings call transcript was available in our corpus; no other AGR operating press releases dated in Q1 2024 were found beyond the earnings release .

Avangrid, Inc. (AGR)·Q1 2024 Earnings Summary