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IDACORP INC (IDA)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 diluted EPS was $1.76, up 3% YoY, as higher customer usage, rate changes, and ADITC amortization outweighed higher depreciation, O&M, and interest expense .
  • Guidance raised: lower-end of FY25 EPS increased to $5.70–$5.85; hydropower guidance trimmed to 7.0–8.0 million MWh due to dry June; O&M ($465–$475M) and capex ($1.0–$1.1B) unchanged .
  • Consensus context: EPS slightly missed ($1.76 vs $1.78 est), revenue materially below thin consensus ($449.7M vs $531.1M est; two estimates) — low estimate count and utility revenue definitions may limit comparability (values retrieved from S&P Global)*.
  • Strategic catalysts: broke ground on Boardman-to-Hemingway (500kV) in June; equity forward sales position to fund growth into 2027; general rate case filed seeking ~$199M increase, 10.4% ROE, 51% equity ratio, and a depreciation/interest tracking mechanism .

What Went Well and What Went Wrong

What Went Well

  • Strong usage and customer growth: ~16,000 (2.5%) customer increase YoY; irrigation usage higher due to low precipitation; rate changes lifted retail revenue per MWh; net income rose to $95.8M .
  • Strategic execution: broke ground on Boardman-to-Hemingway; brought 80 MW company-owned battery online and commenced lease-related storage operations; progressed 2028/2029 RFPs with owned/contracted resources .
  • Financing optionality: forward equity agreements (~$575M follow-on plus ~$145M ATM forwards) in place; operating cash flows up $45M YoY in 1H25; CWIP ~$1.4B supports AFUDC benefits .

Quote: “We broke ground on our Boardman-to-Hemingway 500kV transmission line project… We are excited for the benefits this project will bring to our customers” — Lisa Grow .

What Went Wrong

  • Cost pressure: O&M up $11.1M YoY (labor inflation, wildfire mitigation/insurance); depreciation and amortization up $6.4M with growing plant-in-service and battery lease ROU amortization .
  • Higher interest expense: from larger long-term debt, transmission customer deposits, and new finance lease, partially offset by higher AFUDC and interest income .
  • Hydropower outlook trimmed: 2025 hydropower generation range reduced to 7.0–8.0 million MWh due to dry June (down from 7.0–8.5) .

Financial Results

Quarterly Performance vs Prior Periods and Estimates

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)*449.8*432.0*449.7*
Diluted EPS ($)$1.71 $1.10 $1.76
EBITDA Margin %*34.86%*26.42%*35.89%*
Net Income ($USD Millions)*89.5*59.6*95.8*
Net Income Margin %*19.85%*13.79%*21.24%*

Values retrieved from S&P Global.*

Notes and drivers: Retail revenue per MWh increased; customer growth and usage gains (especially irrigation) supported results; additional ADITC amortization ($17.2M in Q2; $36.5M YTD) reduced tax expense; offsets included higher O&M, D&A, and interest .

Q2 2025 Actual vs Wall Street Consensus (S&P Global)

Metric (Q2 2025)ActualConsensus Mean# of Estimates
EPS ($)1.761.786
Revenue ($USD Millions)449.7531.12

Values retrieved from S&P Global.*

  • EPS: slight miss (~$0.02) as higher interest and lease accounting impacts offset operational strength; tax credits aided but did not fully offset cost growth (bold indicates notable miss/beat).
  • Revenue: large miss vs thin consensus — utility revenue comparability and low estimate count may limit signal; operational narrative emphasizes rate increase and usage strength despite PCA and FCA dynamics (values retrieved from S&P Global)* .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
IDACORP Diluted EPSFY 2025$5.65–$5.85 $5.70–$5.85 Raised lower-end
Additional ADITC Use (Idaho Power)FY 2025$60–$77M $60–$77M Maintained
O&M Expense (Idaho Power)FY 2025$465–$475M $465–$475M Maintained
Capital Expenditures (ex-AFUDC)FY 2025$1,000–$1,100M $1,000–$1,100M Maintained
Hydropower GenerationFY 20257.0–8.5 million MWh 7.0–8.0 million MWh Lowered high-end

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Load growth / large customer pipeline2.6% customer growth; major industrial projects (e.g., Chobani expansion); IRP growth of 8.3% 5-year forecast Pipeline of prospective customers around peak load (~3,800 MW); Micron announced second fab; data centers expanding; EV fast charging stations added Accelerating interest; upside risk to IRP load assumptions
Resource mix and RFPs2028 shortlist acknowledged; Jackalope wind (build/transfer) pending; battery projects progressing Potential pivot to more gas due to tariffs/executive orders; 2029 shortlist includes 167 MW self-build gas; owned and contracted renewables/battery continue More dispatchable capacity emphasis
Transmission projectsPreparing to start B2H; Swift North partial ownership; Gateway West coordination Broke ground on B2H; continued permitting and coordination (major energy highways) Execution milestone achieved
Regulatory / rate casePreparing full general rate case; wildfire standard of care law (SB 1183) passed Idaho general rate case filed (May 30): ~$199.1M increase, 10.4% ROE, 51% equity; proposed depreciation/interest tracker; ADITC inclusion expansion Constructive proposals to reduce regulatory lag
Cost inflation / wildfire mitigationHigher wildfire mitigation costs; pension and O&M increases O&M up YoY; wildfire mitigation and insurance costs remain headwinds Persistent cost pressure
Tax credits (ADITC)$29.8M additional ADITC in 2024; mechanism use in 2025 guidance $17.2M additional ADITC in Q2; $36.5M YTD; expected $60–$77M for FY25 Ongoing earnings support within regulatory framework
Financing / liquidityDebt issuance; ATM forward shares; operating cash flow trends Forward equity agreements in May; plan funds equity into 2027; operating cash flow +$45M YoY; CWIP ~$1.4B Adequate funding path; optionality preserved

Management Commentary

  • “Strong second quarter results were driven by higher than anticipated customer usage, continued customer growth, rate changes, and the expected use of tax credits… Partially offsetting… higher depreciation and financing costs” — Lisa Grow .
  • “We broke ground on our Boardman-to-Hemingway 500kV transmission line… benefits this project will bring to our customers” — Lisa Grow .
  • “Cooling degree days were 49% higher than normal… precipitation particularly low… irrigation load is very sensitive to precipitation” — Brian Buckham .
  • “Finance lease accounting… resulted in higher interest expense and amortization of the right-of-use asset… pass-through in our PCA” — Brian Buckham .
  • “We expect to be able to fund our equity needs into 2027… we haven’t taken down any of the ATM shares or follow-on shares to date” — Brian Buckham .

Q&A Highlights

  • Pipeline and IRP conservatism: Prospective large-load customers total around peak load (~3,800 MW), primarily data centers; potential further step-up in IRP load growth in future cycles .
  • Resource mix flexibility: Tariffs/executive orders complicating renewables (e.g., Jackalope wind); company analyzing scenarios and may shift toward gas to ensure dispatchable capacity .
  • Rate case timing/mechanisms: Procedural schedule expected soon; depreciation/interest tracker proposed to reduce regulatory lag; expanding ADITC mechanism usage with annual cap .
  • Irrigation impact: ~15% YoY increase in irrigation sales year-to-date (actual), driven by low precipitation; weather-adjusted relatively flat; no FCA-like mechanism for irrigation .
  • Capacity needs: IRP indicates ~200 MW per year of “perfect capacity” over next five years; 2029 shortlist includes 167 MW self-built gas .

Estimates Context

  • EPS: Q2 2025 actual $1.76 vs $1.78 consensus (6 estimates); slight miss amid higher interest and lease effects despite ADITC support (values retrieved from S&P Global).*
  • Revenue: Q2 2025 actual ~$449.7M vs ~$531.1M consensus (2 estimates); note limited sample and definitional differences common in utilities (values retrieved from S&P Global).*
  • Trajectory: Q1 2025 EPS $1.10 vs $1.05 est (beat); Q2 2024 EPS $1.71 vs $1.38 est (beat) (values retrieved from S&P Global).*

Financial and Operating KPIs

KPIQ2 2025Context
Net income ($M)$95.8 Up from $89.5 in Q2 2024
Diluted shares (000s)54,380 Up YoY (equity programs, growth)
Customer growth YoY~2.5% (~16,000 customers) Continued regional expansion
Additional ADITC amortization$17.2M (Q2); $36.5M (1H25) Mechanism supports earnings
Hydropower guidance7.0–8.0 million MWh (FY25) Dry June trimmed high end
Liquidity (RCFs)Holdco $100M; Idaho Power $400M (net available) No CP outstanding as of 6/30
Dividend$0.86/share declared (payable 9/2/25) Ongoing capital returns

Guidance Changes — Detail and Rationale

  • EPS raised lower end (to $5.70–$5.85) on strong Q2 operations; assumes normal weather/power supply and ADITC use of $60–$77M .
  • Hydropower guidance narrowed to 7.0–8.0 million MWh due to dry June; O&M and capex maintained .
  • Regulatory: Idaho general rate case requests ~$199.1M increase, 10.4% ROE, 51% equity, plus a depreciation/interest tracker to mitigate lag; proposal to include additional ADITCs (up to $75M per year usage cap) .

Key Takeaways for Investors

  • Near-term: Guidance raise and B2H groundbreaking are positive signals; watch for rate case milestones and hydropower/precipitation trends impacting quarterly variability .
  • Cost dynamics: Elevated O&M (wildfire/insurance) and D&A from accelerated investment will be persistent; tracker approval would be a meaningful earnings/language catalyst .
  • Load optionality: Data center/Micron pipeline increases probability of incremental dispatchable resources; 2029 shortlist points to self-build gas; narrative tilting toward reliability and capacity .
  • Financing: Forward equity provides runway into 2027 without immediate dilution; AFUDC and CWIP support interim metrics; monitor timing of share settlement .
  • Revenue estimates caution: Thin revenue consensus and utility revenue accounting may skew “misses”; focus on EPS, cash flow, regulatory outcomes and ADITC utilization (values retrieved from S&P Global).*
  • Dividend continuity and balance sheet: Dividend declared ($0.86); targeting ~50/50 debt-equity at utility — regulatory outcomes and trackers support credit metrics .
  • Strategic execution: Transmission “energy highways” (B2H, Swift North, Gateway West) and RFPs are core to meeting forecast demand; permitting/tariff uncertainties necessitate flexible resource plans .

All non-S&P Global data points and quotations are cited to company documents:

  • Q2 press release and 8-K: .
  • Q2 earnings call transcript: .
  • Q1 2025 8-K and call: .
  • Q4 2024 press release: .
  • Dividend and IRP press releases: .

Values retrieved from S&P Global.*