Avista (AVA) Q3 2024 earnings summary

Executive summary

• Q3 2024 consolidated earnings were $0.23 per diluted share, up from $0.19 in Q3 2023; year-to-date earnings reached $1.44 per diluted share, compared to $1.14 last year, with net income rising to $18.5 million from $14.7 million.

• Year-to-date net income increased to $112.8 million from $87.0 million in 2023, driven by higher utility margins, rate case outcomes, and tax customer credits.

• Leadership transition announced: Heather Rosentrater to become CEO on January 1, 2025, succeeding Dennis Vermillion.

• Over $2 billion invested in system improvements and $90 million in state and federal grants secured over the past five years.

• Clean energy progress includes four PPAs totaling 325 MW, early completion of the Clearwater Wind Project, and planning for 490 MW of new capacity by 2030 and 950 MW by 2035, primarily wind and natural gas.

Financial highlights

• Q3 2024 operating revenues were $393.7 million, up from $369.7 million in Q3 2023; nine-month revenues reached $1.41 billion, up from $1.23 billion year-over-year.

• Q3 2024 EPS was $0.23 (basic and diluted), compared to $0.19 in Q3 2023; nine-month EPS was $1.44, up from $1.14.

• Utility margin (net of tax) for Q3 2024 was $192.0 million, up from $176.1 million; electric utility margin was $209.3 million, and natural gas utility margin was $33.8 million.

• Pre-tax expense of $3.2 million under the Energy Recovery Mechanism in Q3; $7.8 million year-to-date.

• Cash flow from operations for the nine months was $444.2 million, up from $393.3 million; capital expenditures were $405.4 million.

Outlook and guidance

• 2024 consolidated earnings guidance lowered to $2.26–$2.46 per diluted share, reflecting higher costs and weaker private equity valuations.

• Avista Utilities expected to contribute near the low end of guidance due to higher power supply, maintenance, medical, bad debt, and legal costs, including a negative $0.08 ERM impact.

• AEL&P expected to contribute $0.09–$0.11 per diluted share in 2024; other businesses expected to have a net loss of $0.06–$0.04 per diluted share.

• 2025 guidance to be provided after December rate case decision.

• The company anticipates additional generating capacity needs due to Colstrip exit and electrification trends.