Emera’s Earnings Call: Strong Growth and Strategic Investments

Emera Incorporated ((TSE:EMA)) has held its Q3 earnings call. Read on for the main highlights of the call.

Emera Incorporated’s latest earnings call revealed a positive sentiment, driven by strong financial performance and strategic investments. The company reported significant earnings growth and capital investment, with regulatory successes and market expansion in Florida contributing to the optimistic outlook. Despite facing some challenges in Canadian Electric Utilities and gas utility contributions, the overall sentiment remained upbeat, supported by robust growth indicators and promising future prospects.

Strong Adjusted Earnings Growth

Emera reported a notable 9% increase in third-quarter adjusted earnings per share, reaching $0.88, and a 14% increase year-to-date to $2.94 compared to the same period in 2024. This growth underscores the company’s effective financial strategies and operational efficiencies.

Significant Capital Investment

The company achieved a record $3.6 billion in capital investments for 2025, with a comprehensive $20 billion capital plan extending through 2030. This investment strategy is set to maintain a 7% to 8% rate base growth trajectory, highlighting Emera’s commitment to long-term growth.

Dividend Increase

Emera’s Board of Directors approved a 1% dividend increase, marking the 19th consecutive year of annual increases. This consistent dividend growth reflects the company’s strong financial health and shareholder value commitment.

Regulatory Success

Emera achieved significant regulatory milestones, with the Florida Public Service Commission approving the Peoples Gas settlement, introducing $67 million in new rates, and Tampa Electric’s 2026 base rate increase of $88 million. These approvals are pivotal for future revenue growth.

Florida Market Growth

Robust population and economic expansion in Florida have led to increased demand for electricity and natural gas, driving an 8% to 9% rate base growth through 2030. This growth is a key driver of Emera’s positive performance outlook.

Improvement in Credit Metrics

Emera reported a 23% increase in operating cash flow and a 150 basis point improvement in key credit metrics, elevating Moody’s metric to 11.9%. These improvements enhance the company’s financial stability and creditworthiness.

Challenges in Canadian Electric Utilities

The company faced challenges with Canadian Electric Utilities, where contributions decreased by $0.04 per share compared to the third quarter of 2024 due to higher operating costs and depreciation. Addressing these challenges remains a priority for Emera.

Lower Contributions from Gas Utilities

Lower contributions from New Mexico Gas and Peoples Gas resulted in a $0.02 per share decrease in earnings compared to the third quarter of last year. This highlights the need for strategic adjustments in the gas utility sector.

Bear Swamp Outage

An outage at Bear Swamp led to lower earnings, offsetting gains from increased natural gas prices. This incident underscores the importance of maintaining operational reliability.

Forward-Looking Guidance

Emera’s forward-looking guidance reflects strong financial performance and strategic investments. The company reaffirmed its commitment to a 5% to 7% adjusted EPS growth through 2027, supported by strategic investments in solar and reliability projects in Florida and energy storage in Nova Scotia. Additionally, plans to maintain investment pace and strategic initiatives like the planned sale of New Mexico Gas aim to optimize funding and support continued financial health.

In summary, Emera Incorporated’s earnings call highlighted a positive sentiment driven by strong financial performance, strategic investments, and regulatory successes. While challenges in Canadian Electric Utilities and gas utility contributions were noted, the overall outlook remains optimistic, with robust growth indicators and strategic plans paving the way for continued success.