Avangrid (AGR) Q3 2024 earnings summary

Executive summary

• Operating revenues rose to $2,083 million for Q3 2024, up $109 million year-over-year, driven by rate increases in New York and higher merchant prices in Renewables.

• Net income attributable to Avangrid increased to $205 million from $59 million in Q3 2023, primarily due to rate increases and lower Renewables operating expenses.

• Adjusted net income (non-GAAP) was $211 million ($0.55 per share), up $106 million year-over-year, reflecting strong Networks performance and favorable Renewables hedging.

• Year-to-date 2024 earnings reached $1.87 per share, up 87% year-over-year; adjusted earnings were $1.91 per share, up 71%.

• Avangrid entered into a merger agreement with Iberdrola; the transaction awaits final regulatory approval.

Financial highlights

• Q3 2024 operating revenues: $2,083 million (Q3 2023: $1,974 million); nine months: $6,423 million (2023: $6,027 million).

• Q3 2024 net income attributable to Avangrid: $205 million (Q3 2023: $59 million); nine months: $725 million (2023: $389 million).

• Q3 2024 EPS (basic/diluted): $0.53 (Q3 2023: $0.15); nine months: $1.87 (2023: $1.00).

• Adjusted EBITDA for Q3 2024: $585 million; nine months: $1,814 million.

• Cash flow from operations for nine months ended September 30, 2024: $940 million (2023: $757 million).

Outlook and guidance

• Management expects sufficient liquidity and financial flexibility to meet business requirements, with $2.2 billion in available liquidity as of September 30, 2024.

• Capital expenditures of approximately $1.3 billion are expected for the remainder of 2024.

• Management highlights ongoing execution of multi-year rate plans in New York and Maine.

• Plans to participate in the Maine transmission RFP, leveraging the $425 million federal capacity award.

• The company continues to monitor regulatory, supply chain, and market risks but has not experienced material operational impacts from recent global events.