IDACORP(IDA) - 2025 Q2 - Quarterly Results

Financial Performance and 2025 Guidance The company reported strong Q2 and year-to-date 2025 results and raised its full-year earnings guidance Second Quarter and Year-to-Date 2025 Results IDACORP's Q2 and YTD 2025 net income increased due to higher customer usage, growth, and favorable rate changes Q2 & YTD 2025 Financial Highlights (vs. 2024) | | Three months ended June 30, | | Six months ended June 30, | | | :--- | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net income attributable to IDACORP, Inc. (in thousands) | $ 95,781 | $ 89,520 | $ 155,428 | $ 137,693 | | IDACORP, Inc. earnings per diluted share | $ 1.76 | $ 1.71 | $ 2.87 | $ 2.67 | - Strong Q2 results were driven by higher customer usage, continued customer growth, rate changes, and the use of tax credits, partially offset by higher depreciation and financing costs[2] - The company broke ground on its Boardman-to-Hemingway 500kV transmission line project after nearly 19 years of permitting efforts[3] 2025 Earnings Guidance Update IDACORP raised its full-year 2025 earnings guidance to $5.70-$5.85 per share, supported by tax credit utilization - The full-year 2025 earnings guidance has been increased to a range of $5.70 to $5.85 per diluted share[4] - The guidance anticipates that Idaho Power will use between $60 million and $77 million of additional tax credits available under its Idaho regulatory mechanism in 2025[4] Detailed Financial Analysis This section details the key drivers behind the year-over-year changes in net income for Q2 and YTD 2025 Reconciliation of Net Income A detailed reconciliation shows the financial drivers impacting net income for Q2 and YTD 2025 versus 2024 Reconciliation of Net Income (in millions) | | Three months ended | Six months ended | | :--- | :--- | :--- | | Net income - June 30, 2024 | $ 89.5 | $ 137.7 | | Retail revenues per MWh | $ 8.8 | $ 20.3 | | Customer growth | $ 6.0 | $ 11.8 | | Usage per retail customer | $ 5.5 | $ 4.6 | | Other O&M expenses | $ (11.1) | $ (18.2) | | Depreciation and amortization | $ (6.4) | $ (12.2) | | Non-operating expense, net | $ (7.0) | $ (9.1) | | Additional ADITC amortization | $ 9.8 | $ 16.5 | | Total increase in Idaho Power net income | $ 5.5 | $ 16.3 | | Net income - June 30, 2025 | $ 95.8 | $ 155.4 | Analysis of Second Quarter 2025 Performance Q2 2025 net income rose by $6.3 million, driven by revenue growth and tax credits, which offset higher expenses - Customer growth added approximately 16,000 customers (2.5%) in the twelve months ended June 30, 2025, increasing operating income by $6.0 million in Q2[9] - O&M expenses rose by $11.1 million due to higher variable employee costs, inflation, and increased wildfire mitigation program expenses[10] - Depreciation and amortization increased by $6.4 million, primarily from a larger plant-in-service balance and a new leased battery storage facility[11] - Income tax expense decreased, largely due to recording $17.2 million of additional ADITC amortization in Q2 2025, compared to $7.5 million in Q2 2024[15] Analysis of Year-to-Date 2025 Performance Year-to-date net income grew by $17.7 million, led by increased retail revenue and significant tax credit amortization - Year-to-date net income increased by $17.7 million, primarily due to higher net income at Idaho Power[16] - Higher retail revenues per MWh increased operating income by $20.3 million YTD, mainly from the 2024 Idaho Limited-Issue Rate Case[17] - O&M expenses were $18.2 million higher YTD, driven by increased employee costs, inflation, wildfire mitigation expenses, and lower grant funding[19] - The company recorded $36.5 million of additional ADITC amortization in the first six months of 2025, compared to $20.0 million in the same period of 2024[23] Corporate Information and Outlook This section provides updated 2025 guidance, company background, and important forward-looking statements Annual Earnings Guidance and Key Operating and Financial Metrics IDACORP updated its 2025 EPS guidance to $5.70–$5.85 and narrowed its hydropower generation forecast 2025 Guidance and Key Metrics (in millions, except per share) | | Current Guidance | Previous Guidance | | :--- | :--- | :--- | | IDACORP Earnings Guidance (per diluted share) | $ 5.70 – $ 5.85 | $ 5.65 – $ 5.85 | | Idaho Power Additional ADITCs | $ 60 – $ 77 | No Change | | Idaho Power O&M Expense | $ 465 – $ 475 | No Change | | Idaho Power Capital Expenditures, Excluding AFUDC | $ 1,000 – $ 1,100 | No Change | | Idaho Power Hydropower Generation (MWh) | 7.0 – 8.0 | 7.0 – 8.5 | Conference Call Information The company scheduled a conference call and webcast to discuss its Q2 2025 financial results - An analyst conference call was scheduled for 2:30 p.m. Mountain Time to discuss results, with access via live webcast or a listen-only phone line[25] Company Background IDACORP is a holding company for Idaho Power, a low-cost electric utility serving Idaho and Oregon - IDACORP, Inc. is a holding company whose main subsidiary is Idaho Power, a regulated electric utility serving over 650,000 customers in Idaho and Oregon[26] - Idaho Power's energy mix is centered around 17 low-cost hydropower projects, contributing to some of the nation's lowest electricity prices for its customers[26] Forward-Looking Statements The report contains forward-looking statements subject to significant risks and uncertainties - The report contains forward-looking statements concerning future events and expectations, which are subject to risks and uncertainties and are not guarantees of future performance[27] - Key factors that could cause actual results to differ include regulatory decisions, risks from capital expenditures, economic conditions, severe weather, and the ability to obtain financing[27] - IDACORP disclaims any obligation to publicly update forward-looking statements unless required by applicable law[28]