Emera (EMA) Q1 2025 earnings summary

Executive summary

• Reported record first quarter adjusted EPS of $1.28 (CAD 1.28), a 68% increase year-over-year, marking the strongest Q1 in company history and setting a robust foundation for above-guidance earnings growth in 2025.

• Reported EPS increased to $1.96 from $0.73 year-over-year, mainly due to market-to-market gains in 2025 versus losses in 2024.

• Robust performance across regulated utilities, with Tampa Electric, New Mexico Gas, and Nova Scotia Power benefiting from new rates, colder weather, and tax credits.

• Emera Energy delivered a record quarter, capitalizing on higher pricing, market volatility, and delivered Q1 adjusted net income of $68M.

• Strategic actions in 2024, including asset sales and balance sheet strengthening, provided a strong foundation for 2025 execution.

Financial highlights

• Adjusted net income for Q1 was $379 million (CAD 379 million), up from $216 million (CAD 216.76 million) in Q1 2024; adjusted EPS increased to $1.28 from $0.76.

• Reported net income was $583 million, up from $207 million; reported EPS was $1.96, up from $0.73.

• Operating cash flow increased 37% year-over-year when normalized for fuel and storm deferrals.

• Over $700 million of a planned $3.4 billion capital deployment for 2025 was invested in Q1.

• Weakening Canadian dollar increased adjusted net income by $14 million and reported net income by $30 million year-over-year.

Outlook and guidance

• Confident in delivering well above the 5%-7% EPS growth per share range for 2025 and maintaining 5%-7% average EPS growth through 2027.

• Five-year capital plan of $20B expected to drive 7-8% rate base growth.

• Emera Energy's 2025 earnings guidance raised to CAD 35-45 million from the usual CAD 15-30 million.

• No material changes expected to the five-year CAD 20 billion capital plan, with upside potential from new customer opportunities such as data centers.

• Regulatory approval for New Mexico Gas sale anticipated in Q4 2025.