IDA — IDACORP, Inc.

IDACORP, Inc. Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Diluted Earnings Per Share (EPS): Increased to $1.21 from $1.10 year-over-year.
• Net Income: Rose 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 benefitted by $23 million due to customer growth.
  • Industrial energy sales grew by 5.7%, while residential and commercial usage decreased due to mild weather.
• O&M Expenses: Increased by $13.1 million, primarily due to higher wildfire mitigation costs and amortization of deferred costs.
• Tax Credit Amortization: Amortized $6.3 million of additional tax credits, which was $13 million less than the previous year.

2. Strategic Updates and Business Highlights

• Customer Growth: Overall customer base grew by 2.3%, with residential growth at 2.4%. Strong interest from industrial sectors, particularly from customers like Micron and Meta.
• Infrastructure Projects: Major transmission projects are underway, including the B2H and SWIFT North transmission lines, expected to enhance system reliability and flexibility.
• Natural Gas Plants: Received approvals for new gas plants, with plans for additional capacity to meet growing demand.
• Wildfire Mitigation Plan: Approved by the Idaho Commission, establishing standards for safety and operational integrity.

3. Forward Guidance and Outlook

• 2026 EPS Guidance: Reaffirmed in the range of $6.25 to $6.45, assuming normal weather and power supply expenses.
• CapEx Forecast: Anticipated spending between $1.3 billion and $1.5 billion in 2026, with a focus on infrastructure and capacity expansion.
• Hydropower Generation: Adjusted forecast to a range of 5.5 million to 7 million megawatt-hours due to lower snowpack conditions, despite recent wet weather.

4. Bad News, Challenges, or Points of Concern

• Weather Impact: Mild weather resulted in decreased residential and commercial energy usage, impacting operating income.
• Higher Costs: Increased depreciation and interest expenses due to infrastructure investments and wildfire mitigation efforts.
• Credit Rating Concerns: Moody's downgraded IDACORP to Baa3, citing a heavier CapEx cycle and weaker near-term credit metrics, although a stable outlook was noted.
• Regulatory Environment: Changes in Idaho's approval process for large load contracts could affect timing and operational flexibility.

5. Notable Q&A Insights

• Rate Case Timing: Management indicated that the next general rate case could potentially be in June 2027, depending on financial performance and large load revenues.
• Customer Demand: The pipeline for new large industrial customers remains strong, with expectations for continued growth, although capacity to serve new loads is currently maxed out until infrastructure projects are completed.
• ITC Recognition: Management discussed the diminishing availability of investment tax credits (ITCs) in the future, emphasizing a focus on maintaining a strong balance sheet.
• Weather and Irrigation: There are mixed expectations regarding irrigation demand due to weather conditions, but historical trends suggest that low water years do not necessarily correlate with lower sales.

Overall, IDACORP demonstrated solid financial performance in Q1 2026, with strategic initiatives aimed at growth and infrastructure development, while facing challenges related to weather impacts, credit ratings, and regulatory changes.