IdaCorp ((IDA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for IDACORP painted a picture of robust financial health and strategic growth. The sentiment was overwhelmingly positive, driven by increased earnings, customer growth, and successful infrastructure developments. Despite facing challenges such as the termination of the Jackalope Wind project and inflationary pressures, the company remains optimistic about its future prospects, buoyed by a constructive rate case settlement.
Increased Earnings Per Share
IDACORP reported an increase in its diluted earnings per share, which rose to $2.26 compared to $2.12 in the previous year’s third quarter. For the first three quarters of 2025, earnings per share reached $5.13, up from $4.82 for the same period in 2024. This growth underscores the company’s strong financial performance.
Revised Earnings Guidance
The company has revised its full-year diluted earnings per share guidance for the second time, now projecting a range of $5.80 to $5.90 per share. This adjustment reflects IDACORP’s confidence in its operational performance and financial outlook.
Customer Growth and Economic Expansion
IDACORP’s customer base expanded by 2.3% since last year’s third quarter, with residential customers growing by 2.5%. This growth is largely driven by the manufacturing and technology sectors, signaling a healthy economic expansion.
Infrastructure and Project Developments
Significant progress has been made on the Boardman-to-Hemingway transmission line and the Bennett Mountain gas-fired power plant expansion. Construction for these projects is slated to begin in 2026, positioning IDACORP to meet future demand and enhance service reliability.
Constructive Rate Case Settlement
A constructive rate case settlement has been reached, designed to increase annual revenues by $110 million, effective January 1. This settlement includes a 9.6% return on equity and ensures no capital disallowances, further strengthening the company’s financial position.
Termination of Jackalope Wind Project
Policy changes have led to the termination of the 600-megawatt Jackalope Wind project. This decision reflects the challenges in navigating regulatory landscapes but allows IDACORP to refocus its resources on other strategic initiatives.
Inflationary Pressures
The company is experiencing higher operating and maintenance expenses due to inflationary pressures on labor and professional services, as well as costs associated with wildfire mitigation efforts.
Interest Expense Increases
Nonoperating expenses rose by $9.8 million, primarily due to increased interest expenses needed to finance growth and interest on transmission customer deposits.
Forward-Looking Guidance
IDACORP’s updated guidance reflects a strong operational performance with a revised full-year EPS guidance range of $5.80 to $5.90. The company anticipates continued customer growth and economic expansion, particularly in the manufacturing and technology sectors. Infrastructure projects, such as the Bennett Mountain expansion, are expected to support future demand while maintaining affordability.
In conclusion, IDACORP’s earnings call highlighted a positive sentiment, driven by increased earnings, strategic growth initiatives, and a constructive rate case settlement. Despite challenges like inflationary pressures and project terminations, the company remains well-positioned for future growth, with a focus on maintaining affordability and reliability for its customers.