Q2 2026 Emera Inc Earnings Call Transcript
Key Points
- Approval of New Mexico Gas sale to Bernhard Capital Partners, expected to close later this month, with after-tax proceeds of approximately USD650-700 million to reduce debt and enhance financial flexibility.
- Year-to-date adjusted EPS of $2.06, consistent with last year's strong performance, and on track to deliver compound annual adjusted EPS growth above the 5-7% target range through 2026.
- Strong operational performance at Peoples Gas and Tampa Electric, driven by new rates, customer growth, and favorable market conditions, supporting long-term rate base growth.
- Encouraging progress on securitization of Nova Scotia Power's retiring thermal assets, expected to deliver meaningful long-term savings for customers and support coal phase-out objectives.
- Moody's revised credit outlook to stable, reflecting improved financial position, and the company is on track to achieve the 12% operating cash flow to debt target in 2026.
- Emera Energy delivered year-to-date earnings more than $40 million higher than last year, driven by favorable market conditions and disciplined execution.
- Second quarter adjusted EPS decreased by $0.10 year-over-year, impacted by higher interest expense, regulatory lag, and lower earnings at New Mexico Gas.
- New Mexico Gas earnings were negatively affected by higher operating and maintenance costs, depreciation, and less favorable weather compared to the prior year.
- Canadian Electric segment earnings declined due to a lower income tax recovery and regulatory lag from delayed rate implementation until May 1.
- Year-to-date EPS was reduced by $0.05 due to a stronger weighted average Canadian dollar and another $0.05 from a higher average share count.
- Corporate costs increased due to higher interest expense from temporarily carrying both new financing and maturing obligations during the refinancing period.
- Tampa Electric earnings were partially offset by increased depreciation, operating and maintenance, and interest expenses.
Good morning, ladies and gentlemen, and welcome to the Emera 2026 Q2 Conference Call. (Operator Instructions) This conference call is being recorded on August 7, 2026. I would like to turn the conference over to Dave Bezanson. Please go ahead.
Thank you, Sylvie, and thank you all for joining us this morning for Emera's second quarter 2026 conference call and live webcast. Emera's second quarter earnings release was distributed this morning via Newswire and the financial statements, Management's Discussion and Analysis and the presentation being referenced on this call are available on our website at emera.com. Joining me for this morning's call are Scott Balfour, Emera's President and Chief Executive Officer; Jared Green, Emera's Chief Financial Officer; and other members of Emera's management team.
Before we begin, I'd like to advise you that this morning's discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slide.
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