Avista (AVA) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income was $14 million ($0.17 per share), down from $23 million ($0.29 per share) in Q2 2024; year-to-date net income was $93 million ($1.15 per share), slightly below $94 million ($1.20 per share) in 2024, mainly due to investment losses in non-utility businesses and higher operating costs.

• Utility operations remained strong, supported by regulatory settlements and cost management, offsetting investment portfolio losses, particularly in clean technology.

• Multiyear rate plans and regulatory settlements in Washington, Oregon, and Idaho led to increased electric and natural gas revenues, with new rates effective in 2025 and 2026.

• Colstrip coal plant exit scheduled for December 31, 2025, with ownership transfer to NorthWestern; not expected to materially impact financial results.

• Resource adequacy planning underway, targeting up to 950 MW of new capacity by 2035 and expanded transmission infrastructure initiatives.

Financial highlights

• Q2 2025 consolidated earnings were negatively impacted by $0.12 per diluted share in valuation losses from clean technology-focused investments.

• Q2 2025 operating revenues were $411 million, up from $402 million in Q2 2024; six-month revenues were $1,028 million, up from $1,011 million year-over-year.

• Avista Utilities contributed $0.28 EPS in Q2 2025, down from $0.31 in Q2 2024; AEL&P contributed $0.01 in both periods.

• Capital expenditures for the first half of 2025 were $236 million at Avista Utilities and $10 million at AEL&P; full-year 2025 capex expected at $525 million.

• Operating cash flow for the first half of 2025 was $224 million, down from $317 million in the prior year, mainly due to changes in regulatory deferrals and insurance proceeds.

Outlook and guidance

• 2025 consolidated earnings guidance affirmed at $2.52–$2.72 per diluted share, with expectations to be at the low end due to $0.15 per share losses at other businesses.

• Avista Utilities expected to contribute toward the upper end of its $2.43–$2.61 per diluted share range; AEL&P expected to contribute $0.09–$0.11 per share.

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

• No material impact expected from recent U.S. reconciliation bill or current tariffs; ongoing monitoring of regulatory and legislative changes.

• Pension contributions expected to total $10 million in 2025 and $40 million from 2026–2029.