Avista (AVA) investor relations material

Executive summary

• Q1 2026 GAAP net income was $92 million ($1.11 per diluted share), up from $79 million ($0.98 per share) in Q1 2025, driven by higher utility margins, investment gains, and strong operational execution.

• Non-GAAP utility earnings were $91 million ($1.10 per share), compared to $82 million ($1.01 per share) in Q1 2025.

• Management reaffirmed 2026 non-GAAP utility earnings guidance of $2.52 to $2.72 per diluted share, citing continued progress toward strategic and financial goals.

• Progress continues on negotiations with a major data center customer, targeting an MOU by May 31.

• Hydroelectric generation year-to-date was above normal due to precipitation and warm weather, with full-year hydro generation expected to be above normal.

Financial highlights

• GAAP net income for Q1 2026 was $92 million, up from $79 million in Q1 2025; diluted EPS rose to $1.11 from $0.98 year-over-year.

• Non-GAAP utility EPS for Q1 2026 was $1.10, compared to $1.01 in Q1 2025.

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

• Q1 ERM impact was $0.01 expense, with $0.09 expected to be recognized over Q2 and Q3; guidance assumes a negative ERM impact of $(0.10) per share and a 12% effective tax rate.

• Electric utility margin decreased due to Colstrip exit, while natural gas margin increased from general rate cases.

Outlook and guidance

• 2026 capital expenditures projected at $615 million, rising to $800 million by 2028; $3.4 billion planned for 2026–2030.

• Additional $350 million potential CapEx for integrating a large load customer, not included in base plan.

• Long-term non-GAAP utility earnings growth expected at 4–6% from the midpoint of 2025 guidance.

• Guidance assumes normal weather, a 12% effective tax rate, and adequate liquidity for the next 12 months.

• Major ERP system implementation planned for 2028 at $130 million.