Avista (AVA) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income rose to $79 million from $71 million, with EPS increasing to $0.98 from $0.91, driven by strong utility performance, customer growth, and constructive regulatory outcomes.

• Avista Utilities contributed $78 million to net income, AEL&P $4 million, and other businesses posted a $3 million loss due to investment volatility.

• Wildfire mitigation advanced with legislative support in Washington and Idaho, enabling cost securitization.

• Oregon rate case settlement reached; Idaho settlement discussions to begin, with new rates expected in September 2025.

• Company remains on track to meet 2025 consolidated earnings guidance.

Financial highlights

• Q1 2025 consolidated EPS was $0.98, up from $0.91 year-over-year, with Avista Utilities contributing $0.97 and AEL&P $0.04.

• Operating revenues for Q1 2025 were $617 million, up from $609 million in Q1 2024.

• Pre-tax expense of $7 million recognized under the energy recovery mechanism (ERM) in Q1 2025.

• Other businesses posted a $0.03 loss per diluted share due to market volatility and early-stage investments.

• Operating cash flow was $184 million, down from $190 million in Q1 2024.

Outlook and guidance

• 2025 consolidated earnings guidance confirmed at $2.52–$2.72 per diluted share; Avista Utilities expected to contribute $2.43–$2.61, AEL&P $0.09–$0.11, and other businesses zero.

• Guidance midpoint includes a $0.12 negative impact from the ERM within the 90% customer/10% company sharing band.

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

• Capital expenditures expected at $525 million for 2025 and nearly $3 billion from 2025–2029, with annual growth of 5%–6%.

• 2025 IRP calls for 490 MW of new capacity by 2030, mainly wind and natural gas, and 950 MW by 2035.