Emera (EMA) Q1 2025 earnings summary

Executive summary

• Achieved record first quarter results with adjusted EPS rising 68% to CAD 1.28, the strongest Q1 in company history, and reported EPS increasing to CAD 1.96 from CAD 0.73, setting a robust foundation for above-guidance earnings growth in 2025.

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

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

• Over $700 million invested in Q1 2025, supporting infrastructure modernization, reliability improvements, and customer-focused capital deployment.

• 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 2025 was CAD 379 million, up from CAD 216.76 million in Q1 2024; reported net income reached CAD 583 million, compared to CAD 207 million.

• Adjusted EPS increased to CAD 1.28 from CAD 0.76; reported EPS rose to CAD 1.96 from CAD 0.73.

• Operating cash flow before working capital changes grew 37% year-over-year when normalized for fuel and storm deferrals.

• Emera Energy's adjusted earnings reached CAD 48 million, up from CAD 33 million last year.

• Weakening Canadian dollar increased adjusted net income by CAD 14 million and reported net income by CAD 30 million.

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 CAD 20-20.4 billion expected to drive 7-8% rate base growth, with upside potential from new customer opportunities.

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

• On track to deploy CAD 3.4 billion in capital for 2025, with 22% of 2025 capital spend invested in Q1.

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