Avista Corp. Reports 2024 Results and Initiates 2025 Earnings Guidance

Financial Performance - Avista Corp. reported a total net income of $67 million for Q4 2024, down from $84 million in Q4 2023, and a total net income of $180 million for the full year 2024, compared to $171 million in 2023 [1][2] - Earnings per diluted share for Q4 2024 were $0.84, a decrease from $1.08 in Q4 2023, while the full year earnings per diluted share were $2.29, up from $2.24 in 2023 [1][2] Segment Performance - Avista Utilities generated a net income of $68 million in Q4 2024, down from $83 million in Q4 2023, and $179 million for the full year 2024, compared to $167 million in 2023 [1][2] - AEL&P maintained a consistent net income of $3 million for both Q4 2024 and Q4 2023, but saw a decrease in full year income from $9 million in 2023 to $8 million in 2024 [1][2] Revenue and Costs - The electric utility margin increased by $9 million in Q4 2024 and $56 million year-to-date, attributed to general rate cases and customer growth [2][4] - Other operating expenses rose by $8 million in Q4 2024 and $21 million year-to-date, primarily due to increased thermal generation costs and legal expenses [2][4] Tax and Interest - The effective tax rate for 2024 was 1.5%, a significant improvement from -24.4% in 2023, mainly due to a decrease in tax customer credits [5][4] - Interest expenses increased by $1 million in Q4 2024 and $5 million year-to-date, driven by higher borrowings and interest rates compared to 2023 [4][7] Capital Expenditures - Avista Utilities' capital expenditures for 2024 were $510 million, with expectations of $525 million in 2025 and nearly $3 billion over the next five years [9][10] - AEL&P's capital expenditures were $23 million in 2024, projected to decrease to $12 million in 2025 [10] Future Guidance - The company initiated its 2025 earnings guidance with a range of $2.52 to $2.72 per diluted share, with Avista Utilities expected to contribute between $2.43 and $2.61 per share [12][13] - Long-term earnings growth is anticipated in the range of 4-6% from the 2025 base year [13]