On February 20, 2025, Idacorp Inc (IDA, Financial) released its 8-K filing announcing its fourth quarter and year-end 2024 financial results. The company reported a net income of $37.9 million, or $0.70 per diluted share, for the fourth quarter of 2024, surpassing the analyst estimate of $0.62 per share. For the full year, Idacorp achieved a net income of $289.2 million, or $5.50 per diluted share, exceeding the annual estimate of $5.42 per share.
Company Overview
Idacorp Inc is a holding company that operates as an electric utility through its subsidiaries. It is engaged in the generation, transmission, distribution, sale, and purchase of electric energy and capacity. The company owns and operates a diverse portfolio of power plants, including hydroelectric, coal-fired, gas-fired, and diesel-fired facilities, primarily located in the Northwestern United States. Idacorp generates most of its revenue from electricity sales to retail and wholesale customers, with a significant portion of its customer base comprising residential consumers in the Northwestern United States.
Performance and Challenges
Idacorp's performance in 2024 was bolstered by strong customer growth, favorable weather conditions, and strategic rate changes. The company benefited from increased customer usage and the utilization of tax credits under its Idaho regulatory mechanism. However, these gains were partially offset by higher depreciation and financing costs as Idacorp continued to expand its infrastructure to meet growing customer demands. The company's ability to manage these challenges is crucial for maintaining its growth trajectory and ensuring reliable energy supply.
Financial Achievements
Idacorp's financial achievements in 2024 are significant for the regulated utilities industry. The company's ability to increase its net income and earnings per share reflects its effective management of operational costs and strategic investments in infrastructure. These achievements are vital for sustaining long-term growth and providing reliable energy services to its customers.
Key Financial Metrics
Idacorp's income statement revealed a notable increase in retail revenues per megawatt-hour (MWh), contributing $52.7 million to operating income for the year. Customer growth added $19.0 million, while usage per retail customer contributed an additional $4.5 million. Despite these gains, other operations and maintenance expenses rose by $61.1 million, driven by increased pension-related expenses and wildfire mitigation costs. Depreciation expenses also increased by $28.1 million due to an expansion in plant-in-service.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (Q4) | $37.9 million | $31.3 million |
| Earnings Per Share (Q4) | $0.70 | $0.61 |
| Net Income (Full Year) | $289.2 million | $261.2 million |
| Earnings Per Share (Full Year) | $5.50 | $5.14 |
Analysis and Future Outlook
Idacorp's strong financial performance in 2024 positions the company well for future growth. The company's strategic investments in infrastructure and its ability to leverage regulatory mechanisms for tax credits have contributed to its robust earnings. Looking ahead, Idacorp has initiated its 2025 earnings guidance, projecting earnings per diluted share in the range of $5.65 to $5.85. This guidance reflects the company's commitment to supporting ongoing growth and energy reliability through substantial capital investments.
IDACORP's earnings in 2024 benefited from continued strong customer growth, rate changes, spring and summer weather conditions that contributed to higher customer usage, and the use of tax credits under the company’s Idaho regulatory mechanism," said IDACORP President and Chief Executive Officer Lisa Grow.
Overall, Idacorp Inc (IDA, Financial) has demonstrated resilience and adaptability in navigating industry challenges, positioning itself as a strong player in the regulated utilities sector. Investors and stakeholders will be keen to monitor the company's progress as it continues to invest in infrastructure and expand its customer base.
Explore the complete 8-K earnings release (here) from Idacorp Inc for further details.
