IDACORP Earnings Call Highlights Aggressive Growth Push
IdaCorp ((IDA)) has held its Q4 earnings call. Read on for the main highlights of the call.
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IDACORP’s latest earnings call struck an upbeat, growth-focused tone as management celebrated an 18-year streak of EPS gains, record retail sales, and a milestone in operating cash flow. Executives acknowledged mounting CapEx, financing, and credit pressures, but argued that strong execution, constructive regulation, and a growing project pipeline keep risks manageable for long-term investors.
18th year of EPS growth and stronger guidance
IDACORP reported 2025 diluted EPS of $5.90, up about 7.3% from 2024’s $5.50 and roughly $0.15 above the midpoint of prior guidance. Management initiated 2026 EPS guidance at $6.25–$6.45, implying around 8% growth at the midpoint and with investment tax credit amortization expected to drop below $30 million from about $40 million in 2025.
Record retail demand and expanding customer base
Retail energy sales hit an all-time high as IDACORP’s service territory continued to attract new residents and businesses. The metered customer base grew 2.3% in 2025, including 2.5% residential growth, bringing the company to more than 660,000 metered customers and underpinning the long-term demand story.
Transmission build-out moves from planning to construction
The company reported tangible progress on major transmission projects, signaling a shift from planning to execution. The B2H line has broken ground with roughly 80 towers already installed, while SWIP-North and a critical section of Gateway West are advancing toward targeted in-service dates between 2027 and 2028.
New solar, storage and gas bolster reliability
On the generation side, IDACORP brought the 200 MW Pleasant Valley Solar facility online in 2025 and added 230 MW of battery storage to support grid flexibility. Another roughly 250 MW of batteries and 125 MW of solar are slated for service this spring, alongside plans for a 167 MW natural gas unit at Bennett Mountain in 2028 and ongoing gas conversions at Valmy to maintain high reliability.
Cash flow milestone and detailed financing roadmap
Operating cash flow topped $600 million for the first time, and management expects net cash flows to fund more than half of CapEx from 2026 through 2030. The company has already executed over $600 million of forward equity sales to settle in 2026 and plans to raise about $2 billion of equity and $2.9 billion of debt by 2030 while targeting a roughly 50/50 capital structure.
CapEx surge drives rapid rate base growth
IDACORP lifted its five-year CapEx forecast for 2026–2030 to about $7 billion, averaging $1.4 billion annually, which is roughly double the prior five-year historical spend. This updated plan represents a 26% increase versus the previous forecast and is expected to push system rate base above $11 billion by 2030, implying a roughly 16.7% CAGR.
Regulatory backdrop remains constructive and affordability-focused
Management highlighted a constructive settlement in the Idaho general rate case and reiterated its decision not to file a new general rate case on June 1, 2026. Leaders stressed that customer rates remain well below national averages, emphasizing a strategy of careful capital allocation and regulatory tools to balance growth with affordability.
Operational outlook and 2026 generation expectations
For 2026, IDACORP is guiding to O&M expenses of $525 million to $535 million, with wildfire mitigation as a key driver but largely offset by rate revenues. CapEx is projected at $1.3 billion to $1.5 billion, while hydropower generation is forecast between 5.5 and 7.5 million MWh, assuming historically normal weather and power supply conditions.
CapEx spike brings sizable financing demands
The doubling of annual CapEx to about $1.4 billion on average from 2026 to 2030 will require substantial new capital despite healthy cash flow. Management expects to raise roughly $2 billion of equity and $2.9 billion of debt to maintain its 50/50 leverage target, noting that any incremental projects, such as potential Micron expansions, would require extra funding likely weighted toward later years.
Credit metrics hovering near rating thresholds
IDACORP acknowledged that credit metrics are close to rating-agency thresholds as it ramps investment. Funds-from-operations to debt at Idaho Power is around 14.3% against a Moody’s threshold near 13% and just under 14% for S&P measures, keeping ratings on a tight leash even as management expressed confidence in maintaining its current profile.
Higher interest, depreciation and tax credits weigh on earnings
Rising long-term debt drove a roughly $23 million increase in nonoperating expense, while ongoing system investment pushed depreciation and amortization up nearly $28 million year over year. The company also amortized about $40.3 million of additional investment tax credits in 2025, up $10.5 million from 2024, which pressured GAAP EPS and will remain a headwind despite lower planned usage in 2026.
Weather, O&M inflation and wildfire spending add noise
Mild weather in parts of 2025 reduced usage per customer and cut operating income by around $6.5 million, underscoring the ongoing volatility tied to temperatures and hydropower conditions. Other O&M increased by less than $10 million as labor and inflation pressures rose, while wildfire mitigation emerged as a notable cost driver heading into 2026 despite partial recovery through rates.
Large-load pipeline and Oregon sale add uncertainty
Management emphasized that major prospects such as Micron’s second fab and more than 4,000 MW of pipeline opportunities are not yet in the base forecast because contracts remain unsigned, meaning future CapEx and earnings could shift materially. The planned $154 million sale of Oregon distribution and transmission assets is also subject to multiple regulatory approvals and long timing, so proceeds are excluded from current financing tables.
One-time items complicate year-on-year comparisons
Executives cautioned that 2025 results are somewhat distorted by regulatory timing and the absence of a property tax refund that benefited 2024. These one-time and timing items reduced 2025 operating income comparability by about $3.8 million, prompting investors to look through the noise to underlying growth trends.
Guidance signals confidence in sustained growth
Looking ahead, IDACORP’s 2026 guidance calls for EPS of $6.25–$6.45, roughly 8% growth over 2025, under assumptions of normal weather, typical power costs, and less than $30 million of additional tax credit amortization. The plan hinges on executing a $7 billion, five-year CapEx program that more than doubles rate base from a $5.3 billion 2025 base to over $11 billion by 2030, supported by a carefully sequenced financing strategy and no planned June 1, 2026 general rate case.
IDACORP’s earnings call painted the picture of a utility in full investment mode, pairing record financial and operational performance with an aggressive build-out of transmission, generation, and storage. While higher CapEx, tight credit metrics, and regulatory and weather uncertainties create risks, management’s consistent EPS growth, constructive regulatory outcomes, and visible pipeline leave investors with a generally positive long-term story.
