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Idacor: IDACORP's 2025 Earnings Report: A Strong Performance with Growth Ahead

IDACORP reported a strong financial performance for 2025, with diluted earnings per share (EPS) reaching $5.90, up from $5.50 in 2024, marking the company's 18th consecutive year of EPS growth. The actual EPS came out at $0.78 relative to estimates at $0.74. Revenue growth was robust, driven by a 2.3% increase in customer base, including a 2.5% growth in residential customers, bringing the total number of metered customers to over 660,000. Net income increased by $34 million compared to 2024, and operating income benefited from a January rate increase and customer growth, resulting in a $75 million benefit. As Brian Buckham noted, "Our 2025 net income increased over $34 million compared to 2024, and higher operating income at Idaho Power from the January rate increase and from customer growth combined for a roughly $75 million benefit."

IDA

USD 139.89

1.15%

A-Score: 6.4/10

Publication date: February 19, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • EPS Growth and Guidance Beat: Diluted EPS rose 7.3% YoY to $5.90, surpassing guidance by $0.15/share, with tax credit amortization increasing to $40M from $30M.
  • Customer Growth Outpacing National Trends: Total customers grew 2.3% YoY (2.5% residential) to 660,000, driven by housing and industrial demand, including Micron-related subdivisions.
  • 5-Year CapEx Surge and Rate Base Expansion: Total CapEx forecast at $7B ($1.4B/year) from 2026–2030, with rate base projected to double from $5.3B in 2025 to $11B+ by 2030 (16.7% CAGR).
  • Operational Cash Flow Milestone: Net cash flow from operations hit $600M+ for the first time, funding 50%+ of CapEx needs and reducing reliance on equity ($1.4B net equity sales remaining through 2030).
  • Large Load Growth and Future Revenue Drivers: 2027+ demand expected from data centers and manufacturing, with Micron and others driving weather-adjusted sales growth of 2.3% YoY in 2025.

Guidance and Outlook

The company has provided guidance for 2026, expecting diluted EPS to be in the range of $6.25 to $6.45, assuming normal weather conditions and power supply expenses. The forecast is based on a continued robust growth across Idaho Power's service area, outperforming national trends. Analysts estimate next year's revenue growth at 6.7%, which is slightly higher than the company's historical growth rate.

Capital Expenditure and Financing

IDACORP has increased its 5-year capital expenditure (CapEx) forecast to $7 billion, with an average annual spend of $1.4 billion from 2026 to 2030. The company expects to fund over half of its CapEx needs through net cash flow from operations. To maintain its target 50-50 debt-equity capital ratio, IDACORP plans to raise $2 billion in equity and $2.9 billion in debt. The sale of Idaho Power's Oregon distribution assets is expected to provide additional capital to fund growth-related investments.

Valuation Metrics

To understand what's priced into IDACORP's stock, we can look at its valuation metrics. The company has a P/E Ratio of 23.45, P/B Ratio of 2.12, and an EV/EBITDA ratio of 16.81. The Dividend Yield is 2.49%, while the Free Cash Flow Yield is -7.64%. The ROE is 9.38%, and the ROIC is 4.04%. These metrics suggest that the stock is reasonably valued, with a moderate dividend yield and a relatively high P/E ratio.

Growth Prospects

IDACORP is seeing increased inquiries from energy-intensive customers, including data centers and manufacturing industries. The company's pipeline is robust, with a diverse range of interest. Large load growth is expected to start ramping up in 2027, particularly with Micron and other in-service dates. The company's strong balance sheet and cash flow position it well to meet the growing demand and invest in its infrastructure.

Idacor's A-Score