IDACORP, Inc. (IDA) Earnings & Analysis

Latest quarter

IDACORP reported Q3 FY2026 revenue of $608.0 million, above the consensus estimate of $561.1 million. Adjusted earnings were $2.73 per share, compared with the consensus estimate of $2.51. Diluted earnings per share were $2.74, up from $2.26 a year earlier.

Revenue rose from $524.4 million a year earlier. IDACORP’s filing attributed higher net income primarily to Idaho Power, where higher Idaho base rates increased operating income. The filing also said customer growth and revenue from large contract customers contributed, after accounting for associated power costs and adjustment mechanisms.

The filing said other operations and maintenance expenses rose because of deferred costs for converting generating units from coal to natural gas and higher wildfire mitigation costs. It said corresponding regulatory recovery revenues substantially offset those increases.

IDACORP reported an operating margin of 29.4%, compared with 27.6% a year earlier. Quarterly free cash flow was −$135.8 million, compared with −$114.7 million in the prior-year quarter.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Lisa Grow said customer count rose 2.2% from the prior-year quarter, including 2.4% growth in residential customers, while industrial revenues increased 27%. She said large contract customers were generating revenue as they constructed facilities and came online, including Meta’s data center, which began operations in September.

Grow said contracts with large customers seek to protect Idaho Power and existing customers from risk and cost-shifting. She attributed the decision not to file a rate case in 2026 in part to increased revenue from those customers. CFO Brian Buckham said higher base rates and customer growth together benefited quarterly results by nearly $44 million; large contract customer revenues increased operating income by almost $12 million.

Buckham said higher operations and maintenance expenses principally reflected deferred plant-conversion and wildfire mitigation costs, with a large portion recovered through rates and regulatory mechanisms. He also cited lower net power supply expenses and property taxes as contributors to operating income.

On investment, Grow said the Boardman to Hemingway transmission line remained scheduled to enter service in late 2027. She said Idaho Power had shortlisted 11 projects in its resource procurement process and expected to move forward with selected projects by year-end. Buckham said the previous capital spending graph was outdated and that an updated forecast was planned for the Q4 call.

Asked about financing additional spending, Buckham said the company generally expected to fund costs above its existing plan with debt and equity, while customer funding or payment arrangements could change the mix. He said projects entering service in 2027 increased the likelihood of a general rate case that year.

In response to a question about tax credits, Buckham said his preliminary view was that Idaho Power would use additional credits in 2027, partly because projects entering service would add depreciation and end their construction-related financing allowance.

Guidance

IDACORP raised its FY2026 diluted earnings guidance to $6.40 to $6.50 per share, assuming Idaho Power uses less than $10 million of additional tax credits under its Idaho regulatory mechanism.

IDACORP raised its FY2026 operations and maintenance expense forecast to $535.0 million to $545.0 million from $525-$535 million. The company narrowed its hydropower generation outlook to 5.5-6 million megawatt-hours from 5.5-6.5 million megawatt-hours.