IDACORP Q2 Earnings Call Highlights

Key Points

• IDACORP raised its 2026 earnings outlook to $6.30–$6.45 per diluted share after second-quarter EPS rose to $1.79 from $1.76, helped by rate changes, customer growth and sharply lower tax-credit amortization.
• Large industrial customers are becoming a significant growth driver: industrial revenue increased 17% year over year, while Micron and Meta contributed only limited revenue in the quarter and are expected to ramp further in the second half.
• IDACORP is advancing major capacity and transmission investments, including 250 MW of new battery storage, multiple transmission projects and three gas-generation plants, with 2026 capital spending expected toward the high end of its $1.3 billion–$1.5 billion range.

IDACORP NYSE: IDA raised the lower end of its 2026 earnings guidance after reporting higher second-quarter profit, supported by January rate changes, customer growth and an early ramp in revenue from large industrial customers.

The utility holding company reported second-quarter diluted earnings per share of $1.79, compared with $1.76 a year earlier. First-half diluted EPS was $3.00, up from $2.87 in the prior-year period.

Amy Shaw, IDACORP’s vice president of finance, compliance and risk, said the results reflected a sharp reduction in additional tax-credit amortization under Idaho’s regulatory mechanism. The company recorded no additional tax-credit amortization in the second quarter, compared with $17.2 million in the same period last year. For the first half, additional amortization totaled $6.3 million, compared with $36.5 million a year earlier.

IDACORP now expects full-year diluted EPS of $6.30 to $6.45, raising the low end of its prior range by $0.05. The outlook assumes historically normal weather for the remainder of 2026 and less than $15 million of additional tax-credit amortization for the year, down from prior guidance of less than $30 million.

Large Customers Drive Revenue Growth

President and CEO Lisa Grow said IDACORP’s customer count rose 2.3% from the second quarter of 2025, with growth across customer segments. Industrial revenue, including large contracts, increased 17% year over year as large customers began contributing more meaningfully in June.

Grow pointed to projects including Micron’s expansion and Meta’s data center, along with other large customers such as Chobani and Idaho National Laboratory. She said the company expects its agreements with large customers to include take-or-pay provisions, termination payments, certain upfront payments and credit requirements designed to ensure that growth-related costs are not shifted to existing customers.

“Growth pays for growth” remains an important principle, Grow said, adding that Idaho Power’s average residential price is about 30% below the national average. Revenue from large-contract customers is also a key reason the company expects to avoid filing a general rate case in 2026, she said.

Chief Financial Officer Brian Buckham said rate increases and customer growth contributed a combined $32 million benefit to second-quarter results and more than $52 million year to date. Large-contract customers added $6.5 million to operating income during the quarter.

Only one month of revenue from Micron’s first fab was included in the period, Buckham said, while Meta’s ramp-up was still in its early stages. The company expects more benefit from those contracts in the second half of the year. Unlike residential load, large industrial demand is primarily tied to equipment installation and operations rather than weather-driven seasonal usage, he said.

Capacity, Transmission and Generation Projects Advance

IDACORP said it placed 250 megawatts of company-owned battery storage into service during the quarter, its fourth consecutive year of adding batteries. Since 2023, the company has added more than 550 MW of company-owned battery capacity. It also converted Valmy Unit 2 from coal to natural gas and commissioned a 125-MW third-party solar project through its Clean Energy Your Way program.

Grow said battery storage is useful for filling gaps as solar generation declines in the evening, particularly in the summer, but is not a complete long-term capacity solution because the batteries provide about four hours of duration and have more limited winter applications.

The company continues to advance three major transmission projects:

• Boardman-to-Hemingway: About 70% of 1,300 structure pads have been completed, more than 400 towers have been built, and wire stringing has begun. The project is expected to enter service in late 2027.
• Swift North Transmission Project: Construction has begun in Nevada following receipt of an Idaho certificate of public convenience and necessity. Completion is expected in 2028.
• Gateway West: IDACORP and PacifiCorp have filed a joint request for regulatory approval, with part of the segment potentially entering service as early as 2028.

The company is also developing three gas-fueled generation projects to address near-term capacity deficits: the 167-MW Bennett Mountain project, targeted for 2028; the 222-MW South Hills project, planned for 2029; and the 430-MW Peregrine project, slated for 2030.

Adam Richins, executive vice president and chief operating officer, said the company expects a mix of solar and battery additions in 2027, followed by a greater emphasis on gas generation. IDACORP has also evaluated small modular reactor technology, he said, but considers current estimated pricing of more than $150 per MWh and uncertain commercial availability limiting factors.

Capital Plan and Regulatory Outlook

IDACORP maintained 2026 capital expenditure guidance of $1.3 billion to $1.5 billion, though management said spending is trending toward the high end of that range. The forecast does not include potential resource additions from the company’s 2032 request for proposals, projects serving Micron’s second fab, or updates from annual capital budgeting work.

The company expects to release a final shortlist from its 2032 RFP in the third quarter and begin contract negotiations afterward. Richins said the original procurement requirement was a minimum of 200 MW of firm capacity, but the need could increase as load forecasts are updated. IDACORP submitted eight self-build projects into the process, including six gas projects and two storage projects.

Buckham said IDACORP executed about $260 million of additional forward-sale agreements through its at-the-market equity program during the quarter. Of approximately $2 billion in equity funding needs under its current five-year plan, the company has issued or sold forward about $1 billion, and it has the equity needed through 2027, he said.

Management said a June 2027 general rate case filing remains a possibility, depending on projected large-load revenue, depreciation, interest expense and capital projects entering service. The company is not currently pursuing a depreciation or interest tracker.

IDACORP also said the Idaho Commission found that its Hells Canyon relicensing expenditures from the start of 2016 through the end of 2025 were prudently incurred, making them eligible for inclusion in retail rates in a future regulatory proceeding.

About IDACORP (NYSE:IDA)

IDACORP, Inc is a diversified energy holding company headquartered in Boise, Idaho, whose primary subsidiary, Idaho Power Company, operates as a regulated electric utility. Through Idaho Power, the company provides generation, transmission and distribution services to residential, commercial and industrial customers. The company's service territory spans southern Idaho and eastern Oregon, where it serves over half a million customers with a mix of hydroelectric, natural gas, wind and solar generation assets.

Idaho Power's generation portfolio is anchored by a network of hydroelectric facilities along the Snake River system, complemented by natural-gas-fired plants and growing investments in renewable resources.

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