Q2 2026 Idacorp, Inc Earnings Call Transcript
Key Points
- Idacorp Inc (IDA) raised the lower end of its full-year 2026 diluted EPS guidance by $0.05 to a new range of $6.30 to $6.45, driven by strong operational results in the second quarter.
- Customer growth remains robust, with a 2.3% increase in customer count year-over-year and a 17% surge in industrial revenues, driven by large contract customers like Micron and Meta ramping up operations.
- The company successfully brought 250 MW of new company-owned battery storage online as scheduled, marking its fourth consecutive year of adding batteries, and completed the conversion of Balmy Unit 2 from coal to natural gas.
- Idacorp Inc (IDA) significantly reduced its expected use of additional tax credit amortization (ADITC) for 2026 to less than $15 million, down from prior guidance of less than $30 million, indicating strong financial performance and higher earned ROEs.
- The Idaho Commission issued a favorable prudence determination for the company's health care and relicensing expenditures from 2016 through 2025, rendering them eligible for inclusion in retail rates in future regulatory proceedings.
- The company has secured approximately $1 billion of its $2 billion five-year equity needs through forward sale agreements, providing financial flexibility and a strong balance sheet position into 2027.
- Idacorp Inc (IDA) trimmed the top end of its full-year hydropower generation guidance by 500,000 MWh to a range of 5.5 to 6.5 million MWh, due to dry conditions returning in May and June.
- Operating and maintenance (O&M) expenses increased by nearly $12 million in the second quarter, primarily driven by the amortization of previously deferred costs associated with the Jim Bridger plant and the wildfire mitigation plan.
- The company faces significant capital expenditure requirements, with 2026 CapEx trending to the high end of its $1.3 billion to $1.5 billion range, and additional capital needs for projects like Micron Fab 2 not yet included in the forecast.
- Operating cash flow appears low on a comparative basis this year, though much of the deviation is attributed to timing differences in items like accounts receivable, payable, prepayments, and the PCA mechanism.
- The proposed sale of the Oregon distribution system is expected to close in spring 2027, pending successful regulatory outcomes, creating uncertainty and potential delays in the transaction.
- The company noted that SMR technology pricing is currently over $150 per megawatt hour, which is not attractive at this time, and commercial availability remains a constraint for future resource planning.
Good afternoon, everyone, and welcome to Idacorp's second quarter 2026 earnings call.
Today's call is being recorded, and our webcast is live.
A replay will be available later today and for the next 12 months on the Idacorp website.
If you need assistance at any time during the presentation, please press star 0 on your phone.
I will now turn the call over to Amy Shaw, Vice President of Finance, Compliance and Risk.
Thank you. Good afternoon, everyone. We appreciate you joining our call. The slides we'll reference during today's call are available on Idacorp's website. As noted on slide 2, our discussion today includes forward-looking statements, including things like earnings guidance, spending forecasts. Financing plans, regulatory plans and actions, and estimates and assumptions that reflect our current views on what the future holds. These are all subject to risks and uncertainties. Those risks and uncertainties
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