Emera (EMA) Q4 2024 earnings summary

Executive summary

• Adjusted annual EPS was CAD 2.94 ($2.94), matching 2023 and prior guidance, with Q4 adjusted EPS up 33% year-over-year, driven by regulated utilities and lower corporate costs.

• Strategic asset sales, including Labrador Island Link and pending New Mexico Gas sale, strengthened the balance sheet and more than doubled expected asset sale proceeds.

• Record annual capital investment of over CAD 3.2 billion ($3.2B) in 2024, focused on infrastructure, reliability, and resiliency, especially in Florida and Nova Scotia.

• Constructive rate case outcomes in Florida and New Mexico resulted in significant new base rates and multi-year rate stability, with Tampa Electric's rate case completion adding $185M USD to 2025 revenue.

• Nova Scotia Power achieved its best reliability year in 30 years, with power on 99.9% of the time.

Financial highlights

• Q4 2024 adjusted earnings: CAD 246 million ($0.84/share), up from CAD 175 million ($0.63/share) in Q4 2023; full-year adjusted EPS was CAD 2.94 ($2.94), nearly flat year-over-year.

• Q4 2024 reported EPS was $0.52, down from $1.04 in Q4 2023; full-year reported EPS was $1.71, down from $3.57 in 2023, reflecting non-recurring items.

• 2024 operating cash flow before working capital, normalized for regulatory deferrals, increased 7% to $2 billion ($2,038M).

• Record performance at Gas Utilities offset the impact of asset sales on adjusted EPS.

• U.S. dollar strength contributed CAD 0.05 to adjusted EPS year-over-year.

Outlook and guidance

• Maintains 5%-7% average adjusted EPS growth guidance through 2027, with expectations to exceed this range in 2025 due to FX tailwinds and strong business catalysts.

• Five-year $20B capital plan (2025–2029) targets 5–7% adjusted EPS growth, with 80% of capital invested in Florida.

• Average rate base forecast to grow at a 7.1% CAGR from 2023 to 2029.

• Capital plan remains focused on infrastructure, reliability, and decarbonization, with continued investment to support customer and economic growth.

• Confident in achieving threshold credit metrics in 2025, supported by the $750M USD NMGC sale and $185M USD new base rates at Tampa Electric.