- Earnings Growth 2025 consolidated earnings rose to $2.38/share (+3.9% YoY) with non-GAAP utility earnings at $2.55/share (+6.7% YoY).
- 2026 Guidance Initiated non-GAAP utility earnings guidance of $2.52–$2.72/share, incorporating $0.12 one-time impact from a large industrial customer loss and $0.10 from energy recovery mechanisms.
- Energy Assistance Expansion Program reach quadrupled over two years, aiding four times more customers compared to 2023 levels.
- ROE Target Increase Long-term expected return on equity at Avista Utilities raised to ~9% (excludes energy recovery impacts) from prior expectations.
Operational Highlights
The company made significant strides in expanding its energy assistance programs, increasing its reach to four times as many customers in need over the last two years. Avista also filed a four-year rate plan with the Washington Utilities and Transportation Commission, addressing rising costs related to grid modernization and clean energy compliance.
Guidance and Outlook
Avista initiated non-GAAP utility earnings guidance for 2026, with a range of $2.52 to $2.72 per diluted share. The guidance includes an expected one-time decrease of $0.12 due to a large industrial customer's departure. The company is raising its long-term expected return on equity at Avista Utilities to approximately 9%, excluding any impact from the energy recovery mechanism.
Valuation and Growth Prospects
With a P/E Ratio not available due to 'None' actual eps, the stock's valuation is more appropriately assessed using other metrics. The P/S Ratio stands at 2.46, indicating a moderate valuation relative to sales. The EV/EBITDA ratio is 12.42, suggesting a reasonable valuation relative to earnings before interest, taxes, depreciation, and amortization. The Dividend Yield is 4.83%, attractive for income-seeking investors. Avista's long-term EPS CAGR is expected to be in the range of 4-6%, correlating with a 5% rate base CAGR, and potentially reaching the top end of this range if a 12% rate base CAGR is achieved.
Investment and Funding Strategy
Avista's management discussed potential large load customer investments, with an internal go-or-no-go threshold of around $250,000,000 for incremental build. The company would reassess its debt and equity issuance based on additional capital investment opportunities, potentially using a 50-50 debt and equity funding approach for the potential $350,000,000 upside CapEx.