IDA — IDACORP, Inc.

Summary of IDACORP Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Earnings Per Share (EPS): Q3 diluted EPS was $2.26, up from $2.12 in Q3 2024. Year-to-date EPS for the first three quarters rose to $5.13 from $4.82 in the prior year.
• Tax Credit Amortization: Idaho Power recorded $2.5 million in tax credit amortization for Q3, consistent with the previous year. Total amortization for the first three quarters was $39 million, compared to $22.5 million in the same period last year.
• Net Income: Increased by $10.8 million year-over-year, primarily due to higher retail revenues from a January rate change and customer growth.
• Operating Cash Flow: Increased to $464 million, up $6 million from the previous year.
• Capital Expenditures (CapEx): Expected to be between $1 billion and $1.1 billion for 2025.

2. Strategic Updates and Business Highlights

• Customer Growth: Customer base grew by 2.3% year-over-year, with a notable 2.5% increase in residential customers. Significant industrial projects, particularly from Micron, are driving growth.
• Transmission Projects: Progress on the Boardman-to-Hemingway transmission line is underway, with several towers completed. Regulatory processes for Gateway West and Swift North transmission lines are ongoing.
• New Projects: The Bennett Mountain gas-fired power plant is planned for a 167-megawatt expansion, with construction expected to begin in spring 2026.
• Rate Case Settlement: A recent settlement aims to increase annual revenues by $110 million (7.48%) effective January 1, 2026, with a 9.6% return on equity (ROE).

3. Forward Guidance and Outlook

• Earnings Guidance: Full-year diluted EPS guidance raised to $5.80 to $5.90, reflecting strong operational performance despite a reduction in expected tax credit amortization.
• O&M Expenses: Expected to be between $470 million and $480 million due to inflationary pressures and increased wildfire mitigation efforts.
• Hydropower Generation: Forecasted to be between 6.5 million and 7.0 million megawatt hours for 2025.

4. Bad News, Challenges, or Points of Concern

• Wind Project Cancellation: The termination of the Jackalope Wind project, which was planned for 600 megawatts, poses a challenge in meeting future load growth. Alternatives are being explored, but a gap remains until new resources are secured.
• Interest Expense: Increased interest expenses due to financing growth and higher costs associated with a new finance lease for an energy storage agreement.
• Customer Growth Trends: A slight decline in residential customer growth was noted, raising concerns about potential economic softening and its impact on future growth.

5. Notable Q&A Insights

• Jackalope Wind Project: The project was a significant part of the capital plan, and its cancellation necessitates finding alternative solutions for capacity. The Bennett project is not sufficient to cover the load growth.
• Customer Growth: The slight decrease in growth metrics was attributed to economic factors and seasonal trends, with expectations for substantial growth in manufacturing loads.
• Regulatory Support: The company is assessing the timing and elements of its next rate case, with potential tracking mechanisms under consideration.
• Equity Needs: The cancellation of the Jackalope project may reduce near-term equity needs due to changes in capital payment timing.

Overall, IDACORP reported a strong quarter with positive earnings growth, but faces challenges in meeting future capacity needs and managing rising costs amidst economic uncertainties.