On February 26, 2025, Avista Corp (AVA, Financial) released its 8-K filing detailing its financial performance for the year 2024. Avista Corp, an electric and natural gas utility company headquartered in Spokane, Washington, operates primarily in the Pacific Northwest and Juneau, Alaska. The company reported consolidated earnings per diluted share of $2.29 for 2024, slightly below the annual estimate of $2.32. The company also initiated its 2025 earnings guidance with a range of $2.52 to $2.72 per share.
Company Overview
Avista Corp operates through two major business segments: Avista Utilities and AEL&P. Avista Utilities provides electric distribution, transmission, and natural gas distribution services in parts of eastern Washington, northern Idaho, and parts of Oregon. AEL&P, a wholly-owned subsidiary, offers electric services in Juneau, Alaska.
Performance and Challenges
Avista Corp's performance in 2024 was marked by a net income of $180 million, up from $171 million in 2023. However, the earnings per diluted share for the fourth quarter fell to $0.84 from $1.08 in the same period of the previous year. The company faced challenges from higher power supply and operating costs, which impacted its overall earnings.
Financial Achievements
Despite the challenges, Avista Corp achieved a record level of capital investment in 2024, which is crucial for utility companies to maintain and expand infrastructure. The company reported capital expenditures of $510 million for Avista Utilities and $23 million for AEL&P. These investments are essential for improving service reliability and meeting future demand.
Key Financial Metrics
The income statement revealed a total net income of $180 million for 2024, with Avista Utilities contributing $179 million. The balance sheet showed available liquidity of $153 million under Avista Corp's committed line of credit. The company plans to issue $120 million of long-term debt and up to $80 million of common stock in 2025 to support its capital expenditure plans.
“I’m proud of our performance in 2024. Our utility operations led continued improvement in our consolidated earnings, even with the headwinds we experienced from higher power supply and operating costs during the year,” said Avista President and CEO Heather Rosentrater.
Analysis and Outlook
Avista Corp's 2024 performance highlights the challenges faced by utility companies in managing costs while investing in infrastructure. The company's strategic focus on regulatory outcomes and capital investments positions it for potential growth. The 2025 earnings guidance reflects optimism about future opportunities, including transmission projects and customer growth.
Overall, Avista Corp's financial results underscore the importance of strategic investments and regulatory strategies in navigating the complex utility landscape. Investors and stakeholders will be keenly watching how the company executes its plans in 2025 and beyond.
Explore the complete 8-K earnings release (here) from Avista Corp for further details.
