Avista (AVA) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $22.9 million, up from $17.5 million in Q2 2023; year-to-date net income reached $94.4 million, up from $72.3 million year-over-year.

• Earnings per diluted share were $0.29 for Q2 2024 and $1.20 year-to-date, compared to $0.23 and $0.96, respectively, in 2023.

• Core utility operations performed strongly, with investments in grid reliability and infrastructure supporting stable performance during a recent heat wave.

• A new large electric customer added in August 2024 is expected to offset higher power supply costs for the year.

• The company reaffirmed its 2024 consolidated earnings guidance of $2.36–$2.56 per diluted share.

Financial highlights

• Q2 2024 operating revenues were $402.1 million, up from $368.6 million in Q2 2023; six-month revenues reached $1.01 billion, up from $828.7 million year-over-year.

• Utility margin increased due to general rate cases, with Q2 2024 electric utility margin at $198.4 million (pre-tax), up from $182.8 million; natural gas utility margin was $49.2 million, up from $45.7 million.

• Operating income for Q2 2024 was $54.3 million, up from $43.8 million in Q2 2023; six-month operating income was $155.4 million, up from $120.4 million.

• Cash flow from operations for the first half of 2024 was $317.0 million, up from $269.6 million in 2023.

• A $0.03 per diluted share loss was recognized in other businesses due to periodic market valuations.

Outlook and guidance

• 2024 consolidated earnings guidance confirmed at $2.36–$2.56 per diluted share; Avista Utilities expected to contribute $2.23–$2.39, AEL&P $0.09–$0.11, other businesses $0.04–$0.06.

• Long-term earnings growth projected at 4–6% off a 2025 base year, assuming constructive rate case outcomes.

• Lower than normal hydroelectric generation expected to continue, with ERM impact forecasted at negative $0.07 per diluted share for 2024.

• Additional generating capacity may be needed earlier than previously planned due to increased demand and clean energy transition.

• Guidance excludes unusual or non-recurring items until effects are probable.