Avangrid (AGR) Q2 2024 earnings summary

Executive summary

• Operating revenues rose to $1,923 million for Q2 2024, up $336 million year-over-year, driven by rate increases in New York and higher trading revenues in Renewables.

• Net income attributable to Avangrid was $169 million for Q2 2024, up from $85 million in Q2 2023, primarily due to Networks rate increases and Renewables trading gains.

• Adjusted net income (non-GAAP) increased to $189 million in Q2 2024 from $80 million in Q2 2023, reflecting strong performance in both Networks and Renewables.

• First half 2024 earnings per share reached $1.34, with adjusted EPS at $1.37, up 58% and 61% year-over-year, respectively.

• Avangrid entered into a merger agreement with Iberdrola to become a wholly owned subsidiary, with shareholders to receive $35.75 per share in cash upon closing, subject to regulatory and shareholder approvals.

Financial highlights

• Q2 2024 operating revenues: $1,923 million (Q2 2023: $1,587 million); six months ended June 30, 2024: $4,340 million (2023: $4,053 million).

• Q2 2024 net income attributable to Avangrid: $169 million (Q2 2023: $85 million); six months: $520 million (2023: $330 million).

• Q2 2024 basic and diluted EPS: $0.44 (Q2 2023: $0.22); six months: $1.34 (2023: $0.85).

• Adjusted EBITDA for Q2 2024: $538 million (Q2 2023: $405 million); six months: $1,229 million (2023: $954 million).

• Capital expenditures totaled $1.9 billion in the first half of 2024.

Outlook and guidance

• Management expects sufficient liquidity and financial flexibility to meet business requirements, with $2,526 million in available liquidity as of June 30, 2024.

• Capital expenditures of approximately $2.4 billion are planned for the remainder of 2024.

• The merger with Iberdrola is expected to close by June 30, 2025, subject to regulatory and shareholder approvals.

• Management states first half results are in line with plan and highlights continued execution on multi-year rate plans and project approvals.

• Forward-looking statements note risks from regulatory, market, and geopolitical factors, as well as ongoing project execution.