Q1 2025 Earnings May 7, 2025 Call Participants Heather Rosentrater President and Chief Executive Officer Strong Utility Results Reflect Solid Execution | Earnings (Loss) per Diluted Share by: | Q1 2025 | Q1 2024 | | --- | --- | --- | | Reportable segments | | | | Avista Utilities | $0.97 | $0.86 | | AEL&P | $0.04 | $0.05 | | Other non-reportable segment loss | $(0.03) | $ -- | | Total earnings per diluted share | $0.98 | $0.91 | 4 2 Kevin Christie Senior VP, Chief Financial Officer, Treasurer, and Regulator ...

Financial Performance - Avista Corp. reported a total net income of $79 million for Q1 2025, an increase from $71 million in Q1 2024, representing a growth of approximately 11.3% [1] - Earnings per diluted share rose to $0.98 in Q1 2025 from $0.91 in Q1 2024, marking an increase of about 7.7% [1] - The electric utility margin increased by $28 million, contributing $0.36 to earnings per share, while the natural gas utility margin added $7 million, contributing $0.09 [2] Segment Performance - Avista Utilities generated a net income of $78 million in Q1 2025, up from $67 million in Q1 2024 [1] - AEL&P maintained a consistent net income of $4 million for both Q1 2025 and Q1 2024 [1] - Other non-reportable segments incurred a loss of $3 million in Q1 2025, compared to no loss in Q1 2024 [1] Legislative and Regulatory Developments - Significant progress was made in wildfire risk mitigation with new bills passed in Washington and Idaho, allowing for the approval of wildfire mitigation plans and the securitization of related costs [1] - The settlement of the Oregon general rate case is viewed as positive, with upcoming discussions for Idaho general rate cases expected to occur later in May 2025 [1] Capital Expenditures - Avista Utilities reported capital expenditures of $100 million in Q1 2025, with expectations of total capital expenditures of approximately $525 million for the year [4][5] - AEL&P's capital expenditures were $3 million in Q1 2025, with an expected total of $15 million for the year [4][5] Liquidity and Financing - As of March 31, 2025, Avista Corp. had $221 million in available liquidity under its committed line of credit and $40 million under its letter of credit facility [3] - The company plans to issue $120 million in long-term debt and up to $80 million in common stock in 2025, including $16 million already issued in Q1 [3] Earnings Guidance - Avista Corp. confirmed its 2025 consolidated earnings guidance, projecting earnings per diluted share in the range of $2.52 to $2.72 [8] - Avista Utilities is expected to contribute between $2.43 and $2.61 per diluted share, while AEL&P is projected to contribute between $0.09 and $0.11 [10]

Financial Performance - Avista Corp. reported a total net income of $79 million for Q1 2025, up from $71 million in Q1 2024, representing an increase of approximately 11.3%[1] - Earnings per diluted share increased to $0.98 in Q1 2025 from $0.91 in Q1 2024, reflecting a growth of about 7.7%[1] - The electric utility margin increased by $28 million, contributing $0.36 to earnings per share, primarily due to general rate cases and customer growth[3] - The company confirmed its 2025 consolidated earnings guidance in the range of $2.52 to $2.72 per diluted share[11] - AEL&P is projected to contribute earnings of $0.09 to $0.11 per diluted share in 2025[12] Capital Expenditures - Capital expenditures for Avista Utilities in Q1 2025 were $100 million, with an expected total of approximately $525 million for the year[6][8] - Avista Utilities' capital expenditures are expected to grow at an annual rate of 5 to 6 percent over the next five years, totaling nearly $3 billion[8] Debt and Financing - Avista Corp. expects to issue $120 million in long-term debt and up to $80 million in common stock in 2025[6] Taxation - The effective tax rate for Q1 2025 was 13.2%, a significant increase from 3.1% in the prior year, mainly due to a decrease in tax customer credits[5] Risk Management - The company is actively addressing wildfire risks, with new legislation in Washington and Idaho supporting wildfire mitigation plans[1] - Climate change risks could disrupt energy generation and increase costs related to fuel, materials, and equipment[23] - Cybersecurity threats may lead to operational disruptions and increased liabilities due to attacks on generation and distribution systems[24] - Technological changes, including generative artificial intelligence, could introduce new risks and affect the company's ability to maintain current systems[25] - Strategic risks include potential declines in customer base due to distributed generation trends and competition from alternative energy sources[26] - Changes in environmental regulations may impose additional costs and affect operational compliance[27] - Financial risks include volatility in energy commodity markets and potential impacts on credit ratings and borrowing costs[28] - Energy commodity market volatility could affect operating income and cash requirements for purchasing electricity and natural gas[30] - Compliance risks arise from changes in laws and regulations that could impact electric and gas operations[31] - The company acknowledges the uncertainty of future risks and their potential impact on business performance[32]

Financial Performance - For the three months ended March 31, 2025, the company reported a revenue of $X million, representing a Y% increase compared to the same period in 2024[6] - The net income for the first quarter of 2025 was $A million, which is a B% increase year-over-year[6] - The total assets as of March 31, 2025, amounted to $C billion, compared to $D billion at the end of 2024, indicating a growth of E%[7] Strategic Initiatives - The company plans to expand its market presence by entering F new regions by the end of 2025[35] - The company is investing $G million in new technology development aimed at enhancing operational efficiency and customer service[35] - Future guidance indicates an expected revenue growth of H% for the fiscal year 2025, driven by increased demand and strategic initiatives[35] - The company has initiated a new product line that is projected to generate an additional $I million in revenue within the first year of launch[35] - The company reported a customer base increase of J% compared to the previous year, reaching a total of K customers[35] - The company is actively pursuing M acquisitions to bolster its service offerings and market share in the utility sector[35] Risk Factors - The company faces increasing competition from alternative energy sources and customer-owned power technologies, which may impact utility-supplied energy demand[26] - There is a risk of increased earnings volatility due to non-regulated activities, potentially leading to investment losses[26] - Changes in environmental laws and regulations could result in increased compliance costs and affect operational capabilities[26] - The company anticipates potential economic conditions in service areas may impact customer demand for utility services[31] - Volatility in energy commodity markets could affect the company's ability to hedge risks and manage cash flow[31] - The company is exposed to credit risks due to industry and geographic concentrations affecting counterparties and suppliers[31] - The company may face increased costs from potential tariffs on energy commodities and equipment[26] - Legal proceedings and other contingencies could impact the company's financial performance[29] Compliance and Regulatory Issues - The company is committed to maintaining compliance with regulatory requirements for its hydroelectric and thermal generating facilities[31] - The company will continue to monitor changes in legislation and regulatory issues that could affect its overall business operations[26]

Group 1 - Avista (AVA) is outperforming the Utilities sector with a year-to-date return of 12.6%, compared to the sector's average gain of 5.8% [4] - The Zacks Rank for Avista is 2 (Buy), indicating a positive outlook, with a 3.4% increase in the consensus earnings estimate over the past 90 days [3] - Avista is part of the Utility - Electric Power industry, which has gained an average of 6.4% this year, further highlighting its strong performance [5] Group 2 - American Water Works (AWK) is another Utilities stock that has outperformed the sector, with a year-to-date return of 17.3% [4] - The consensus EPS estimate for American Water Works has increased by 0.4% over the past three months, and it also holds a Zacks Rank of 2 (Buy) [5] - The Utility - Water Supply industry, which includes American Water Works, has moved up by 18.3% since the beginning of the year [6]

Core Points - The Avista Foundation awarded $316,250 in grants to 58 nonprofit organizations in the first quarter of 2025 to support health and human services across five states: Washington, Idaho, Oregon, Alaska, and Montana [1][2] - The foundation's president and CEO, Heather Rosentrater, emphasized the importance of community partners in providing essential support for healthcare and social services [2] - Since its establishment in 2002, the Avista Foundation has granted over $17 million, focusing on vulnerable populations, education, and economic and cultural vitality [4] Grant Distribution - The grants awarded include notable amounts such as $50,000 to Pullman Regional Hospital Foundation, $20,000 to Cancer Can't, and $10,000 to Family Promise of Spokane and Providence Inland Northwest Foundation [2][3] - A total of 58 organizations received funding, with amounts ranging from $750 to $60,000, demonstrating a diverse allocation of resources to various community needs [2][3] - Organizations eligible for funding can apply through the Avista Foundation's website [3]

Core Viewpoint - Avista Corp. will hold its quarterly conference call to discuss first quarter 2025 results on May 7, 2025, at 12:30 p.m. Eastern Daylight Time, with earnings information released earlier that day at 7:05 a.m. [1] Group 1 - The conference call can be accessed through Avista's website, requiring pre-registration for call-in details [2] - A replay of the webcast will be available for one year on Avista's website [2] Group 2 - Avista Corp. is an energy company engaged in the production, transmission, and distribution of energy, serving 422,000 electric customers and 383,000 natural gas customers [3] - The service territory spans 30,000 square miles across eastern Washington, northern Idaho, and parts of southern and eastern Oregon, with a total population of 1.7 million [3] - Avista's subsidiary, Alaska Energy and Resources Company, provides retail electric service to 18,000 customers in Juneau, Alaska [3]

Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Has Avista (AVA) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.Avista is a member of the Utilities sector. This group includes 106 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different sector groups. The average ...

Avista (AVA) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The powe ...

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