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.

• Q2 2024 earnings per diluted share were $0.29, up from $0.23 in Q2 2023; year-to-date EPS was $1.20, up from $0.96.

• Utility operations performed strongly, with investments in infrastructure, grid reliability, wildfire mitigation, and clean energy goals 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.

• 2024 consolidated earnings guidance is confirmed at $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.

• Year-to-date electric utility margin was $398.9 million (pre-tax), up from $355.4 million; natural gas utility margin was $151.1 million, up from $141.2 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 is $2.36–$2.56 per diluted share; Avista Utilities expected to contribute $2.23–$2.39, AEL&P $0.09–$0.11, and other businesses $0.04–$0.06.

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

• Additional generating capacity may be needed earlier than previously planned due to increased demand and clean energy transition; resource plan updates expected in early 2025.

• Energy Recovery Mechanism impact forecasted at negative $0.07 per diluted share for 2024.

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