Avista (AVA) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 earnings were $0.84 per diluted share, down from $1.08 in Q4 2023; full-year 2024 earnings were $2.29 per diluted share, up from $2.24 in 2023, with net income rising to $180 million from $171 million year-over-year.

• Utility earnings improved nearly 5% year-over-year, reaching near the midpoint of original expectations despite higher purchased power costs.

• Initiated 2025 consolidated earnings guidance of $2.52–$2.72 per diluted share, reflecting confidence in regulatory execution and capital investment plans.

• Record $510 million invested in Avista Utilities in 2024 to enhance service and reliability.

Financial highlights

• Electric and natural gas utility margins increased in 2024 due to general rate cases and customer growth, while higher operating, depreciation, and interest expenses partially offset gains.

• Pre-tax expense of $8 million under the Energy Recovery Mechanism (ERM) due to poor hydro and power supply costs.

• Dividend for 2024 was $1.96 per share, with a 3.8% CAGR since 2021; payout ratio targeted at 65%–75%.

• Available liquidity at year-end 2024: $153 million under line of credit, $38 million under letter of credit facility, and $13 million at AEL&P.

• Capital expenditures in 2024: $510 million at Avista Utilities, $23 million at AEL&P, $10 million at other businesses.

Outlook and guidance

• 2025 consolidated earnings guidance set at $2.52–$2.72 per diluted share, with midpoint at $2.62 and a $0.12 negative impact from the ERM.

• Avista Utilities expected to contribute $2.43–$2.61 per diluted share; AEL&P $0.09–$0.11; other businesses expected to contribute zero.

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

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