Avangrid, Inc. (AGR)·Q3 2024 Earnings Summary

Executive Summary

• Q3 2024 GAAP EPS was $0.53 and adjusted EPS $0.55; operating revenues were $2.083B, with net income attributable to Avangrid of $205M, reflecting strong year-over-year improvement driven by execution of multi‑year rate plans and renewable pricing/balancing performance .
• Versus estimates, publicly reported consensus pegged EPS at ~$0.33 and revenue at ~$2.04B; AGR delivered an EPS beat and modest revenue beat as actual EPS $0.55 (adjusted) and revenue $2.083B exceeded expectations; S&P Global consensus was unavailable due to mapping constraints .
• Strategic catalysts: New England Wind 1 awarded 791 MW; DOE selected AGR for a $425M capacity contract to be included in a Maine transmission bid; construction milestones on onshore solar/wind projects; closure of the Kitty Hawk North lease sale for ~$160M .
• Guidance: AGR affirmed FY 2024 GAAP and adjusted EPS outlook of $2.17–$2.32 per share in Q1; no explicit update in Q3 press materials; quarterly dividend of $0.44 per share declared Sept 26, 2024 (payable Jan 2, 2025) .

What Went Well and What Went Wrong

What Went Well

• Execution of multi‑year rate plans in New York and Maine drove Networks earnings to $161M in Q3; CEO emphasized performance “in‑line with expectations” and continued rate plan execution .
• Renewables benefited from “strong balancing resource performance and increased pricing,” lifting segment earnings to $93M in Q3 and supporting adjusted EPS of $0.55 .
• Strategic wins: 791 MW award for New England Wind 1; DOE $425M capacity contract selection; onshore construction progress (Camino 57 MW in CA; module installation at True North 238 MW in TX) .

Quote: “We are successfully executing on our multi-year rate plans in New York and Maine and continue to construct onshore wind and solar clean energy projects… New England Wind 1… was awarded 791 MW… and we were awarded a $425M Federal capacity contract…” — Pedro Azagra, CEO .

What Went Wrong

• Renewables noted headwinds from “increased depreciation expense and lower production,” partially offset by pricing and balancing resource performance .
• Interest expense rose to $132M in Q3 (vs. $107M YoY), reflecting higher investment and financing costs .
• Operations and maintenance expense increased versus Q2 and Q3 last year ($866M vs. $819M in Q2 and $924M YoY), indicating cost pressure despite rate plan execution .

Financial Results

Estimates comparison (Q3 2024):

Note: S&P Global consensus estimates were unavailable due to a CIQ mapping constraint.

Segment breakdown (GAAP, Q3):

KPIs and Operating Metrics (Q3 context):

Guidance Changes

Earnings Call Themes & Trends

Note: A Q3 2024 earnings call transcript was not available in our document system; themes below reflect quarter-to-quarter narrative from press releases.

Management Commentary

• “Our financial performance for the first nine months of the year was in-line with our expectations… New England Wind 1… was awarded 791 MW… and we were awarded a $425M Federal capacity contract… We intend to participate in the transmission RFP process and will include this award as part of our proposal.” — Pedro Azagra, CEO .
• Q2: “Our first half financial results remained in-line with our plan… execution on our multi-year rate plans in New York and Maine… full Federal approval for construction of the New England Wind offshore wind projects…” — Pedro Azagra .
• Q1: “The first quarter financial results were in-line with our plan… we powered up the first-in-the-nation Vineyard Wind 1 project… submitted multiple proposals… New England Wind offshore projects…” — Pedro Azagra .

Q&A Highlights

• A full Q3 2024 earnings call transcript was not available via our documents tools; as such, Q&A themes, clarifications, and tone shifts cannot be assessed from primary call materials in this recap [functions.ListDocuments returned none for earnings-call-transcript].
• Company indicated results and detailed financials were posted to the investor website and distributed via Business Wire; absence of transcript access limits Q&A insights .

Estimates Context

• Publicly referenced consensus for Q3 2024 EPS was ~$0.33; AGR reported $0.53 GAAP and $0.55 adjusted EPS — a material beat; S&P Global consensus data was unavailable due to CIQ mapping constraints .
• Publicly referenced revenue consensus was ~$2.04B; AGR reported $2.083B — a modest beat .
• Adjustments: Non‑GAAP excludes MtM derivative impacts, repowering accelerated depreciation, merger/transaction costs, and 2023 offshore contract provision; consider higher depreciation/interest headwinds in forward models .

Key Takeaways for Investors

• Networks momentum from multi‑year rate plans underpinned earnings quality; expect continued stability from regulated returns, with O&M discipline a focus area .
• Renewables profitability benefited from pricing/balancing but faced lower production and higher depreciation; portfolio mix and repowering cadence will be key to sustaining adjusted EPS trajectory .
• Offshore wind optionality improved: NEW 1 award (791 MW) plus DOE $425M capacity selection create visible catalysts in Northeast transmission/wind strategy .
• Balance sheet costs rising: interest expense increased vs. prior year; funding needs aligned to capex ramp ($2.9B YTD) and project execution; watch financing conditions .
• Portfolio optimization: Kitty Hawk North monetization (~$160M) completed; retains Kitty Hawk South, supporting optionality without overhang .
• Near-term trading: EPS/revenue beats versus public consensus and multiple project milestones are positive; lack of updated FY guidance in Q3 press materials tempers visibility; dividend continuity ($0.44/share) supports yield appeal .
• Medium-term thesis: Execution on regulated rate plans, disciplined renewables buildout, and offshore transmission participation are central; monitor depreciation/production trends and regulatory outcomes in NY/Maine as key drivers .