IDA — IDACORP, Inc.

IDACORP, Inc. Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Earnings Per Share (EPS): Diluted EPS increased to $1.21 from $1.10 year-over-year.
• Net Income: Increased by over $8 million compared to Q1 2025, driven by higher retail revenues from a January rate increase and customer growth.
• Operating Metrics: Retail revenues benefited by $23 million from customer growth; however, usage per customer declined due to mild weather, reducing operating income by $10.7 million.
• O&M Expenses: Increased by $13.1 million, primarily due to wildfire mitigation and amortization of deferred costs, but much of this was offset by increased revenues.
• Hydropower Generation Forecast: Adjusted to a range of 5.5 million to 7 million megawatt-hours for the year, reflecting lower snowpack conditions.

2. Strategic Updates and Business Highlights

• Customer Growth: Overall customer base grew by 2.3%, with industrial energy sales increasing by 5.7%. Significant contributions from large industrial customers like Micron and Meta.
• Infrastructure Projects: Progress on major transmission projects, including the B2H transmission project expected to be operational by late 2027, and plans for new natural gas plants to meet growing demand.
• Wildfire Mitigation Plan: Approved by the Idaho Commission, establishing standards for wildfire management.
• Legislative Changes: New legislation in Idaho has streamlined the contract approval process for large load contracts.

3. Forward Guidance and Outlook

• Earnings Guidance: Reaffirmed full-year 2026 EPS guidance in the range of $6.25 to $6.45, assuming normal weather and power supply expenses.
• CapEx Expectations: Anticipated spending between $1.3 billion and $1.5 billion in 2026, with a focus on infrastructure to support growth.
• Operational Cash Flow: Expected to fund over half of CapEx needs, with plans for equity financing to maintain a balanced capital structure.

4. Bad News, Challenges, or Points of Concern

• Weather Impact: Mild weather has negatively affected residential and commercial usage, raising concerns about revenue stability.
• Credit Outlook: Moody's downgraded IDACORP to Baa3, citing a heavier CapEx cycle and weaker near-term credit metrics, although a stable outlook was noted.
• Increased Costs: Higher depreciation and interest expenses associated with infrastructure growth and wildfire mitigation efforts could pressure margins.
• Hydropower Generation Risks: Low snowpack conditions may affect hydropower generation, impacting revenue.

5. Notable Q&A Insights

• Rate Case Timing: Management indicated that the timing for the next general rate case is uncertain and will depend on financial performance and large load revenues.
• Large Load Demand: Strong interest in new large load contracts, particularly from data centers and industrial sectors, with a robust pipeline extending into the 2030s.
• Micron Fab Updates: The ESA for Micron's first fab is under review, while negotiations for the second fab are ongoing, with initial output expected in mid-2027.
• Weather and Sales Correlation: Management noted that low water years historically do not correlate with reduced sales, suggesting potential for higher demand despite lower water availability.

This summary encapsulates IDACORP's financial performance, strategic initiatives, future outlook, and challenges faced during Q1 2026, providing a comprehensive view of the company's current standing and future direction.