Emera (C61) Q2 2026 Earnings Report

The call highlighted meaningful strategic progress: approval and near-term close of the New Mexico Gas sale (USD 650M–700M expected), completed divestiture of Grand Bahama Power, an improving credit story with Moody's outlook moved to stable, solid YTD adjusted earnings ($627M) and an 8% increase in operating cash flow (ex working capital). Management emphasized active deployment of capital (>$1.7B in H1, ~$4B plan for 2026) and attractive growth opportunities (Florida population/economic growth, data-center prospects, Atlantic Canada transmission projects). Offsetting items included a Q2 EPS decline of $0.10 year-over-year, higher depreciation/O&M/interest costs across several segments, regulatory timing impacts in Canada and share-count and FX headwinds that reduced EPS modestly. On balance, the positives around balance sheet strengthening, strong capital execution, and stable-to-improving credit metrics modestly outweigh near-term cost and timing pressures.

Management reiterated that Emera remains on track to deliver compound annual adjusted EPS growth above its 5%–7% target through 2026 and to remain in that range through 2030, reporting Q2 adjusted EPS of $0.69 (Q2 adjusted earnings $212M) and YTD adjusted EPS of $2.06 (YTD adjusted earnings $627M). They expect after‑tax proceeds from the New Mexico Gas sale of approximately US$650–700M to be reflected in Q3, to be used to reduce holding company debt and to contribute roughly 50 basis points to Moody’s CFO‑to‑debt metric, helping achieve the 12% CFO/debt target in 2026 (management aims for a mid‑ to high‑12s cushion). Capital deployment remains on plan with >$1.7B invested in H1 and a largest‑ever ~$4B 2026 capital program, aligned with targeted 7%–8% annual rate‑base growth through 2030; an updated capital plan will be provided on the Q3 call. Other quantifiable guidance and impacts noted include an ~8% increase in operating cash flow (ex‑working capital) YTD, Tampa Electric’s ~11%–12% residential rate reduction effective Aug 1 (storm surcharge removal), expected completion of the Nova Scotia–New Brunswick intertie in late 2028, securitization of retiring thermal assets targeted by year‑end, a US$300M upsized hybrid issuance, and that ~2.7M shares issued under the ATM reduced YTD EPS by about $0.05.