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IDIDA

IDACORP (IDA) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Utilities· Apr 30, 2026

Source: earnings call transcript

Executive summary

IDACORP Q1 FY26 — Strong Customer Growth and Infrastructure Build-Out

IDACORP delivered strong Q1 FY26 results, driven by robust customer growth and increasing industrial energy sales, despite mild weather impacts. The company is actively executing on a significant infrastructure expansion to meet growing demand, including new transmission lines and gas generation, while maintaining a focus on customer affordability and a strong balance sheet. Management reiterated its full-year EPS guidance, signaling confidence in its growth-for-growth strategy.

Highlights

5

  • Diluted EPS increased to $1.21 in Q1 FY26 from $1.10 in Q1 FY25.

  • Overall customer count grew by 2.3% year-over-year, with residential customer growth at 2.4%.

  • Industrial energy sales increased by 5.7% year-over-year, driven by new large industrial customers.

  • Reaffirmed full-year 2026 diluted EPS guidance of $6.25 to $6.45, expecting to use less ADITC support.

  • Advanced major infrastructure projects including three new transmission lines and secured CPCN for a 167 MW natural gas plant.

Concerns

4

  • Q1 FY26 operating income decreased by $10.7 million due to unusually mild weather reducing residential and commercial usage.

  • Hydropower generation forecast for FY26 was reduced at the top end of the range to 5.5 million to 7.0 million MWh due to lower snowpack.

  • O&M expenses increased by $13.1 million year-over-year, primarily due to wildfire mitigation and Jim Bridger plant amortization.

  • Moody's downgraded IDACORP's holdco to BAA3 and Idaho Power to BAA2, citing heavier CapEx cycle and weaker near-term credit metrics.

Guidance & targets

CategoryTargetConfidence
IDACORP Diluted EPS
$6.25 to $6.45
high materiality
High
Additional Investment Tax Credit (ADITC) Amortization
less than $30 million
medium materiality
High
O&M Expense
$525 million to $535 million
medium materiality
High
Capital Expenditure
$1.3 billion and $1.5 billion
high materiality
High
Hydropower Generation
5.5 million to 7.0 million megawatt hours
medium materiality
Medium
New At-the-Market (ATM) Program
establish a new ATM program
medium materiality
High

Orderbook & backlog

Large Load Pipeline Well into the 2030s Q1 FY26

Up vs. Q4 FY25

Strong interest from diverse industries, including data centers, food processing, manufacturing, distribution, and warehousing. Max capacity for work between now and 2028. Does not include Micron Fab 2 in current 8.3% IRP growth rate, but anticipated for Q4 IRP update.

Deals & partnerships

not stated Sale of Oregon service area

The transaction continues to progress ahead, and filings are planned in the next couple of months with the Oregon and Idaho commissions and FERC for the approval of the sale.

Capital programs

B2H Transmission Project underway
Spent to date: Nearly half of access roads and structure pads completed, 200 structures (15% of total)

Benefit:Critical flexibility and reliability

Work is progressing quickly, expected to be in service in late 2027.

Swift North Transmission Project underway
Start: June (Nevada), September (Idaho)

Benefit:Critical flexibility and reliability

CPCN received from Idaho Commission. Construction contractor plans to break ground in June in Nevada and September in Idaho.

Gateway West Transmission Project (Hemingway-Midpoint substations) underway

Benefit:Critical flexibility and reliability, access to diverse markets, transmission wheeling revenues

Joint request for CPCN filed with Idaho Commission with PacifiCorp. Critical section expected online as early as 2028.

Bennett Mountain Natural Gas Plant underway

Benefit:167 MW

CPCN received from Idaho Commission for company-owned 167 MW plant. EPC contractor secured.

South Hills Natural Gas Plant underway

Benefit:222 MW

CPCN filed in Idaho. Included in CapEx forecast update.

Paragon Natural Gas Plant underway

Benefit:430 MW

CPCN filed in Idaho. Included in CapEx forecast update.

Valmy Unit 2 Conversion nearing completion

Benefit:Conversion from coal to natural gas

On track to complete conversion from coal to natural gas before the summer peak this year.

Risks & headwinds

Unusually mild weather Q1 FY26

Reduced Q1 operating income by $10.7 million

Mitigation:Offset by higher retail revenues from rate increase and customer growth, and increased FCA revenues.

Higher O&M expenses Q1 FY26

Up $13.1 million in Q1 FY26

Mitigation:Primary drivers (wildfire mitigation, Jim Bridger amortization) are largely recoverable in customer rates, reflected in offsetting revenues.

Higher depreciation and interest expense Q1 FY26

Depreciation up $6 million, nonoperating expense (mostly interest) up $4 million in Q1 FY26

Mitigation:Expected to be offset by revenues from new large load contracts; increased AFUDC partially offsets nonoperating expense.

Lower hydropower generation Full-year 2026

FY26 guidance reduced to 5.5 million to 7.0 million MWh (from 7.5 million MWh top end)

Mitigation:Record wet April conditions helped increase spring stream flows, but will not completely offset lack of winter snowpack.

Moody's credit rating downgrade Recent

IDACORP holdco to BAA3, Idaho Power to BAA2

Mitigation:Company maintains focus on strong 50-50 balance sheet, requiring equity issuances; new stable outlook and 12% downgrade threshold for Moody's are noted as positive.

What to watch in Q2 FY26

Micron Fab 2 ESA negotiation

Next quarter
Current Still negotiating
Target ESA signed and public

Why it matters

Signing of the ESA for Micron's second fab will provide clarity on future load and associated capital investment, impacting long-term growth projections.

On the ESA side, we're still working with Micron on that. Hard to say exactly the timing of that, but we'll let you know when it becomes more public.

Find out whether IDA delivers this. Inve re-checks your case every morning.

Q&A highlights

When might the next full rate case be filed, given the decision not to file in 2026?

Management stated that while June 2027 has been a traditional cadence, they will continue to evaluate the timing based on factors like the conversion of QIP to plant in service and the magnitude of large load revenues. They described their approach as "opportunistic" rather than a fixed annual cadence, prioritizing customer affordability.

“We will look each year at what our rate app would be. We don't want to go in and make really large rate requests, and it's this growth pace for growth mentality. And really the way we operate our business from an O&M and affordability perspective that help us stay out and use those revenues instead of rate cases in some years.”

asked by David Arcaro · answered by Lisa Grow

2 min read 5 chapters

Detailed narrative

Customer Growth and Industrial Demand

IDACORP experienced a 2.3% overall customer increase and 2.4% residential growth since Q1 FY25. Industrial energy sales surged by 5.7% year-over-year, driven by the ramp-up of large industrial customers like Micron (Fab 1 testing, Fab 2 ground prep) and Meta (data center testing/commissioning). The company continues to see significant interest from diverse industries, with a strong pipeline extending into the 2030s.

Strategic Infrastructure Investment

Idaho Power is undertaking a major infrastructure expansion, including three critical transmission lines: B2H (expected late 2027), Swift North (early 2028), and Gateway West (Hemingway-Midpoint section by early 2028). These projects aim to enhance system flexibility, reliability, and market access. The company also secured a CPCN for a 167 MW natural gas plant (in-service summer 2028) and filed for two more (South Hills 222 MW by 2029, Paragon 430 MW by 2030) to meet growing demand.

Regulatory and Affordability Focus

The company is not planning a general rate case filing in 2026, expecting revenues from new large load contracts to offset rising depreciation, interest, and wildfire mitigation costs. Idaho legislation codified the large load contract approval process with a 9-month deadline. Idaho Power's rates remain 20-30% lower than the national average, increasing at a slower pace (23% over a decade) compared to national averages (41%) and CPI (36%).

Financing Strategy and Credit Metrics

IDACORP's financing plan for 2026-2030 anticipates funding over half of its CapEx from operating cash flow, requiring approximately $2 billion in equity and $2.9 billion in debt to maintain a 50-50 capital ratio. The company executed $165 million in forward sales via its ATM program in Q1 FY26 and settled $52 million from prior sales, having settled or executed forward on over $750 million of its equity needs. Moody's recently downgraded IDACORP's holdco to BAA3 and Idaho Power to BAA2, citing the heavy CapEx cycle but maintaining a stable outlook.

Resource Planning and Oregon Sale

The Idaho Commission approved the 2032 RFP to address a projected capacity deficit of at least 200 MW, with Idaho Power planning to bid its own projects. The sale of the Oregon service area is progressing, with filings expected in the coming months with Oregon and Idaho commissions and FERC. Additionally, 250 MW of company-owned battery storage will come online this quarter, and 125 MW of third-party solar will be added later this year.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.