Avista (AVA) Q4 2025 earnings summary

Executive summary

• 2025 GAAP net income was $193 million ($2.38 per diluted share), up from $180 million ($2.29 per share) in 2024, with non-GAAP utility earnings at $207 million ($2.55 per share) versus $187 million ($2.38 per share) last year.

• Q4 2025 GAAP net income was $71 million ($0.87 per share), up from $67 million ($0.84 per share) in Q4 2024; non-GAAP utility Q4 EPS was $0.88, slightly down from $0.89.

• Results were impacted by a one-time Colstrip-related adjustment, reducing EPS by $0.07, and a late-December regulatory order, but utility earnings landed within guidance.

• Dividend raised to $1.97 per share, marking 24 consecutive years of increases and a 5% CAGR, though dividend growth is expected to lag earnings until the payout ratio returns to the 60%-70% target.

• Significant deposit received from a data center developer, with an initial 125 MW load expected by 2030, ramping to 500 MW.

Financial highlights

• 2025 non-GAAP utility earnings: $2.55 per diluted share, up from $2.38 in 2024, reflecting positive electric and gas margins, offset by higher depreciation, operating expenses, and interest.

• Electric utility margin for 2025 was $735 million, up from $647 million in 2024; natural gas utility margin was $234 million, up from $216 million.

• Q4 2025 utility margin (net of tax) was $260 million, compared to $236 million in Q4 2024.

• Effective tax rate increased to 11% in 2025 from 2% in 2024, mainly due to reduced tax customer credits.

• 2026 non-GAAP utility earnings guidance: $2.52–$2.72 per diluted share.

Outlook and guidance

• 2026 non-GAAP utility earnings guidance set at $2.52–$2.72 per share, assuming normal weather, hydro generation, and a negative ERM impact of $(0.10) per share.

• Guidance reflects a $0.12 per share decrease due to a large industrial customer returning to independent power procurement.

• Long-term EPS CAGR targeted at 4%-6% from the midpoint of 2025 guidance, with potential upside from large load investments.

• Long-term expected ROE at Avista Utilities raised to ~9%, excluding ERM impact.

• Dividend growth rate will lag EPS growth until payout ratio returns to 60%-70% target.