Core Insights - IDACORP, Inc. reported a net income of $124.4 million for Q3 2025, an increase from $113.6 million in Q3 2024, translating to earnings of $2.26 per diluted share compared to $2.12 per diluted share in the previous year [1][6][4] Financial Performance - The increase in net income for Q3 2025 was primarily driven by higher retail revenues and customer growth, which contributed $17.6 million and $7.8 million to operating income, respectively [7][8] - The total net income for the first nine months of 2025 was $279.9 million, up from $251.3 million in the same period of 2024 [4][14] - IDACORP has increased its full-year 2025 earnings guidance to a range of $5.80 to $5.90 per diluted share, reflecting the utilization of additional tax credits [3][22] Operational Highlights - Customer growth was noted at approximately 15,000 new customers, representing a 2.3% increase year-over-year [8] - The company reached a settlement regarding its Idaho general rate case, pending approval from the Idaho Public Utilities Commission [2] Expense Analysis - Other operations and maintenance expenses rose by $4.2 million in Q3 2025, primarily due to inflationary pressures and increased wildfire mitigation costs [9] - Depreciation and amortization expenses increased by $8.1 million, attributed to a rise in plant-in-service and the operation of a new battery storage facility [10] Revenue Drivers - The increase in retail revenues per megawatt-hour (MWh) was a significant factor in the improved financial results, driven by an overall increase in Idaho base rates effective January 1, 2025 [7][15] - Other changes in operating revenues and expenses contributed an additional $4.3 million to operating income due to a decrease in net power supply expenses [11] Future Outlook - The earnings guidance for 2025 incorporates expectations of normal weather conditions and power supply expenses for the remainder of the year [3][22] - The company anticipates utilizing between $50 million and $60 million in additional tax credits under Idaho's regulatory mechanism in 2025 [3][22]

Core Points - IDACORP, Inc. declared a common stock dividend of $0.88 per share, payable on December 1, 2025, to shareholders of record as of November 5, 2025 [1] - The board of directors approved an increase in the quarterly cash dividend, resulting in an annual indicated dividend of $3.52 per share [3] - Since 2011, IDACORP has increased its dividend every year, leading to a cumulative increase of 193% and a compound annual growth rate of 7.4% [4] Financial Performance - For the second quarter of 2025, IDACORP reported a net income of $95.8 million, or $1.76 per diluted share, compared to $89.5 million, or $1.71 per diluted share, in the same quarter of 2024 [5] - The strong performance was attributed to higher customer usage, continued customer growth, rate changes, and the expected use of tax credits under Idaho's regulatory mechanism [5] Upcoming Events - IDACORP is scheduled to report its third quarter results on October 30, 2025, with a conference call at 2:30 p.m. Mountain Time to discuss the earnings [2]

Core Viewpoint - IDACORP, Inc. is set to report its third quarter results on October 30, before the stock markets open, indicating a significant upcoming event for investors and analysts [1] Company Information - The earnings report will be followed by an analyst conference call scheduled for 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time) on the same day [1] - Interested parties can access the conference call via a live Webcast or by calling 855-761-5600 for listen-only mode, with a passcode of 9290150 required for the call [1]

Core Insights - IDACORP, Inc. has approved a 2.3% increase in its quarterly dividend rate to 88 cents per share, up from 86 cents [1] - The annualized dividend now stands at $3.52 per share, compared to the previous $3.44 [2] - The company aims for a target payout ratio of 50-60% of earnings, with a current dividend yield of 2.74%, significantly higher than the S&P 500 average of 1.1% [2] Dividend Growth - Since 2011, IDACORP has authorized an annual dividend increase, resulting in a total dividend increase of 193% and a compound annual growth rate of 7.4% [3] - The company’s regulated electric operations in Idaho provide a stable income stream, with a 2.5% year-over-year increase in its customer base as of June 30, 2025 [4] Capital Expenditure Plans - Idaho Power anticipates capital expenditures of $1-$1.1 billion in 2025, $1.25-$1.35 billion in 2026, and $3.1-$3.6 billion from 2027 to 2029, aimed at strengthening infrastructure and expanding operations [5] - IDACORP is strategically reinvesting in growth while managing earnings per share dilution, indicating potential for continued shareholder-friendly initiatives [6] Industry Context - Utility companies typically exhibit stable operations and earnings, allowing for regular dividend payments [7] - Recent dividend increases from other utility companies include New Jersey Resources (5.6%), MDU Resources (7.7%), and The Southern Company (2.8%) [7] Stock Performance - IDACORP shares have increased by 9.8% over the past six months, outperforming the industry growth of 7% [11][12]

Core Viewpoint - IDACORP, Inc. has announced an increase in its quarterly cash dividend to $0.88 per share, reflecting a commitment to returning value to shareholders [1] Dividend Announcement - The new quarterly dividend rate translates to an annual dividend of $3.52 per share [1] - IDACORP's Board of Directors has consistently approved dividend increases annually since 2011 [1] Historical Dividend Growth - Since 2011, IDACORP has achieved a cumulative dividend increase of 193% [1] - The compound annual dividend growth rate (CAGR) since 2011 stands at 7.4% [1]

Group 1 - The company is characterized as having a low beta with high-growth potential and offers a 3% dividend yield, making it a favorite within the energy sector [1] - Although short-term appreciation may be limited due to a recent rally, the company is expected to perform well in the long term [1] - The analyst's investment research focuses on equities across the Americas, particularly in sectors such as utilities, consumer discretionary, consumer staples, REITs, and materials [1] Group 2 - The analyst employs a bottom-up approach to investment research, emphasizing discounted cash flow models, multiples, and dividends while considering broader market conditions [1] - The target investment horizon is primarily mid-term, ranging from 1 to 3 years [1]

Core Viewpoint - IDACORP Inc. (IDA) is positioned as a strong investment option in the utility sector due to its strategic investments, customer growth, effective cost management, and focus on clean energy production [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for IDA's 2025 earnings per share (EPS) has increased by 0.3% to $5.83 over the past 60 days [2] - The 2025 sales estimate stands at $1.85 billion, reflecting a year-over-year increase of 1.6% [2] - IDA's long-term earnings growth rate is projected at 8.13%, with an average earnings surprise of 3.9% over the last four quarters [2] Liquidity - IDACORP's current ratio is 1.45, surpassing the industry average of 0.85, indicating sufficient short-term assets to cover liabilities [3] Debt Position - The total debt to capital ratio for IDA is 50.29%, which is better than the industry average of 59.75% [4] - The time-to-interest earned ratio is 2.7, demonstrating the company's capability to meet future interest obligations [4] Dividend History - IDA has consistently increased shareholder value through regular dividends, currently paying 86 cents per share, leading to an annualized dividend of $3.44 and a dividend yield of 2.76% [5] Systematic Investments - The company invested $943 million in 2024 and anticipates capital expenditures of $1-$1.1 billion in 2025, $1.25-$1.35 billion in 2026, and $3.1-$3.6 billion from 2027 to 2029 [6] Rising Customer Base - IDA's customer base grew by 2.5% year-over-year as of June 30, 2025, driven by improving economic conditions in its service areas [7][8] Stock Price Performance - Over the past three months, IDA's shares have increased by 6.2%, contrasting with a 0.6% decline in the industry [9]

Core Insights - IDACORP reported Q2 2025 earnings per share (GAAP) of $1.76, missing Wall Street's expectation of $1.78, while net income increased to $95.8 million from $89.5 million in Q2 2024, reflecting a 7.0% year-over-year growth [1][2] - The company raised the lower end of its fiscal 2025 earnings guidance to $5.70 to $5.85 per diluted share, indicating confidence in customer growth despite ongoing cost pressures [1][10] Financial Performance - Q2 2025 EPS (GAAP) was $1.76, a 2.9% increase from $1.71 in Q2 2024 [2] - Net income for Q2 2025 was $95.8 million, up from $89.5 million in Q2 2024, marking a 7.0% increase [2] - Weighted average shares diluted increased by 4.1% to 54.38 million in Q2 2025 compared to 52.24 million in Q2 2024 [2] Customer Growth and Usage - IDACORP added approximately 16,000 new customers, a 2.5% increase year-over-year, contributing an additional $6.0 million in operating income [5] - Increased electricity usage per customer, particularly for irrigation due to low rainfall, added $5.5 million in operating income [5] - New base rates effective January 2025 contributed an additional $8.8 million in operating income for Q2 2025 [5] Cost and Expenses - Operating and maintenance expenses rose by $11.1 million in Q2 2025 due to higher performance-based pay, inflation, and wildfire mitigation spending [6] - Depreciation and amortization expenses increased by $6.4 million as new infrastructure was brought online [6] - Non-operating expenses rose by $7.0 million, primarily due to increased interest from a larger debt load [6] Regulatory and Tax Mechanisms - IDACORP utilized $17.2 million in additional accumulated deferred investment tax credits (ADITC) in Q2 2025, up from $7.5 million in Q2 2024 [7] - Regulatory tools like power cost adjustments and fixed cost recovery mechanisms were employed to manage expense volatility [7] Capital Projects and Clean Energy Initiatives - The company broke ground on the Boardman-to-Hemingway 500 kV transmission line, aimed at integrating renewables and meeting increased demand [8] - A new battery storage facility began operations, and the company continues to develop solar and wind power agreements [8] - IDACORP aims for a 100% clean energy supply by 2045 and an 88% reduction in carbon dioxide emissions by 2030 [9] Future Guidance and Considerations - Management raised the lower end of its 2025 earnings guidance, projecting full-year GAAP earnings per diluted share of $5.70 to $5.85 [10] - Operating and maintenance expenses are expected to remain between $465 million and $475 million for the full year [10] - Investors should monitor upcoming rate case filings and progress on transmission and renewable projects [11]

Core Insights - IDACORP, Inc. (IDA) reported second-quarter 2025 earnings of $1.76 per share, matching the Zacks Consensus Estimate and reflecting a 2.9% increase from $1.71 in the same quarter last year, driven by higher customer usage, continued customer growth, and rate changes [1][9] IDA's Total Revenues - Total revenues for Q2 2025 were $450.9 million, a decrease of 0.9% from the Zacks Consensus Estimate of $455 million and a slight decline of 0.04% from $451 million in the prior year [2] Highlights of IDA's Q2 Release - Customer growth rate in IDA's service areas increased by 2.5% year over year for the 12 months ending June 30, 2025, contributing an additional $5.5 million to operating income compared to the previous year [3] - Total operating expenses rose to $350.3 million, up 0.7% from the year-ago quarter, attributed to higher fuel, operations and maintenance, as well as depreciation and amortization expenses [3] Financial Performance - IDACORP's net income for the quarter was $96.1 million, representing a 7% increase from the prior year [4] - As of June 30, 2025, cash and cash equivalents stood at $474.5 million, up from $368.9 million as of December 31, 2024 [5] - Long-term debt increased to $3.45 billion as of June 30, 2025, compared to $3.05 billion at the end of 2024 [5] - Net cash provided by operating activities in the first half of 2025 was $301.2 million, up from $256 million in the same period last year [5] Guidance - IDACORP raised the lower end of its full-year 2025 earnings guidance to a range of $5.70-$5.85 per share, compared to the previous range of $5.65-$5.85, with the Zacks Consensus Estimate currently at $5.83 [6][9] - The company anticipates capital expenditures between $1 billion and $1.1 billion in 2025 and expects O&M expenses to be in the range of $465-$475 million [6] Hydropower Expectations - Management now expects to add hydropower capacity in the range of 7-8 megawatt-hours (MWh) in 2025, a reduction from the previous estimate of 7-8.5 MWh [7]

Financial Data and Key Metrics Changes - IDACORP's diluted earnings per share for Q2 2025 were $1.76, an increase from $1.71 in Q2 2024 [3] - For the first half of 2025, diluted earnings per share were $2.87 compared to $2.67 in the same period of 2024 [4] - The company raised the lower end of its full-year diluted earnings per share guidance to a range of $5.70 to $5.85, driven by strong operational results [4][29] - Net income increased by $6.3 million in Q2 2025 compared to Q2 2024, primarily due to higher retail revenues and customer growth [16] Business Line Data and Key Metrics Changes - Idaho Power's customer base grew by 2.5% year-over-year, with significant investments from sectors like technology and food processing [5] - Retail revenues per megawatt hour increased operating income by $8.8 million, largely due to a rate change effective January 1 [16] - Customer growth contributed an additional $6 million to operating income, with usage per retail customer benefiting from warmer weather [18] Market Data and Key Metrics Changes - The pipeline of prospective customers exceeds the all-time peak load of approximately 3,800 megawatts, indicating robust demand [7] - The company is experiencing a 30% increase in large load inquiries compared to the previous year, reflecting strong interest in its service territory [40] Company Strategy and Development Direction - IDACORP is focusing on sustainable growth and responsible service to existing customers while planning for new large load customers [7] - The company is advancing several key infrastructure projects, including the Boardman to Hemingway transmission line and battery storage projects [9][10] - The 2025 Integrated Resource Plan (IRP) recommends more gas-fired resources to enhance system flexibility and capacity [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued customer growth and the potential for increased load forecasts in future IRPs [39] - The company is navigating regulatory challenges and uncertainties related to renewable project constructability due to recent legislation [10] - Management highlighted the importance of flexibility in planning to address dynamic market conditions [10] Other Important Information - IDACORP filed a general rate case in May 2025, requesting a rate increase of approximately $199 million for Idaho customers [15] - The company is committed to maintaining a 50/50 debt-to-equity ratio and has entered into forward sale agreements to support its equity needs [23][24] Q&A Session Summary Question: Can you talk about how many potential connections are in the pipeline? - Management noted that the pipeline includes mostly data centers, but the exact number of projects was not available [35] Question: Are you considering a potential step up in the 2027 IRP? - Management indicated that it is conceivable to have a higher forecast in the 2027 IRP based on ongoing economic activity [39] Question: What is the irrigation impact in the second quarter? - Management reported a significant impact due to low precipitation, with a 15% increase in irrigation sales year-to-date, but flat on a weather-adjusted basis [45] Question: What is the timeline for Micron's second phase? - Management is working through details with Micron and will share information as it becomes available [51] Question: Will you need to upsize gas expectations due to the tax bill? - Management confirmed that this is one of the scenarios being analyzed [41] Question: When will the procedural schedule for the rate case be available? - Management expects to finalize the procedural schedule in the coming weeks [43]