Avista (AVA) investor relations material

Executive summary

• Q2 2025 net income was $14 million ($0.17 per share), down from $23 million ($0.29 per share) in Q2 2024; year-to-date net income was $93 million ($1.15 per share), compared to $94 million ($1.20 per share) last year.

• Utility operations remained strong, supported by strategic execution, regulatory outcomes, and cost management, offsetting investment portfolio losses, particularly in clean technology.

• Clean technology investment valuations declined due to shifts in public policy and market sentiment, negatively impacting consolidated earnings.

• Multiyear rate plans and regulatory settlements in Washington, Oregon, and Idaho support confidence in utility earnings.

• Colstrip coal plant exit scheduled for December 31, 2025, with ownership transfer to NorthWestern; not expected to materially impact financial results.

Financial highlights

• Q2 2025 operating revenues were $411 million, up from $402 million in Q2 2024; six-month revenues were $1,028 million, up from $1,011 million year-over-year.

• Capital expenditures for H1 2025 were $236 million; full-year 2025 capex expected at $525 million, rising to $600 million by 2027.

• Available liquidity as of June 30, 2025: $106 million under the committed line of credit and $42 million under the letter of credit facility.

• Operating cash flow for H1 2025 was $224 million, down from $317 million in the prior year, mainly due to changes in regulatory deferrals and insurance proceeds.

• Shareholders' equity increased to $2,645 million as of June 30, 2025, from $2,591 million at year-end 2024.

Outlook and guidance

• 2025 consolidated earnings guidance affirmed at $2.52–$2.72 per diluted share, expected at the low end due to $0.15 per share losses at other businesses.

• Avista Utilities expected to contribute toward the upper end of $2.43–$2.61 per share, with AEL&P contributing $0.09–$0.11 per share.

• Long-term earnings growth projected at 4–6% from the 2025 base year.

• No material impact expected from recent U.S. reconciliation bill or current tariffs; ongoing monitoring of regulatory and legislative changes.

• Pension contributions expected to total $10 million in 2025 and $40 million from 2026–2029.