IDACORP (IDA) Q2 Net Income Rises 7%

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]