Idacorp (IDA) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income rose to $89.5 million ($1.71 per diluted share) from $68.6 million ($1.35 per share) year-over-year, with six-month net income at $137.7 million ($2.67 per share), driven by customer growth, higher usage, and rate changes.

• Customer base grew by 2.6% year-over-year, with robust economic expansion and regional GDP growth forecasted at 4.3% in 2024 and 3.8% in 2025.

• Major projects, including battery storage, solar, and transmission lines, are advancing ahead of schedule to meet capacity needs.

• Regulatory proceedings in Idaho and Oregon are ongoing to address rate base growth and capacity needs.

• Record peak load of 3,793 MW was set in July, breaking the previous record for three consecutive hours.

Financial highlights

• Q2 2024 diluted EPS was $1.71, up from $1.35 in Q2 2023; first half 2024 EPS was $2.67, up from $2.46 year-over-year.

• Net income increased by nearly $21 million year-over-year in Q2, mainly from higher usage, customer growth, and rate changes.

• Retail revenues increased $45.8 million in Q2 and $58.2 million in the first half, mainly due to rate increases, customer growth, and higher usage.

• Operating cash flows for the first half of 2024 were $256 million, a significant increase from $7 million in the prior year period.

• O&M expenses rose $13.8 million in Q2, mainly due to pension and wildfire mitigation costs, offset by higher revenues.

Outlook and guidance

• 2024 full-year EPS guidance raised to $5.30–$5.45 per diluted share, up from $5.25–$5.45, assuming normal weather and power supply expenses.

• Hydropower generation for 2024 is expected to be 7.0–8.0 million MWh, up from 6.5 million MWh in 2023.

• Additional tax credit usage for 2024 now expected at $35–$50 million, improved from prior $35–$60 million.

• O&M and CapEx guidance for 2024 remain unchanged; significant capital expenditures are projected over the next five years.

• Pending regulatory approvals in Idaho and Oregon could result in further rate increases effective in late 2024 and early 2025.