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1. Company Snapshot

1.a. Company Description

Emera Incorporated, an energy and services company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers.The company operates through Florida Electric Utility, Canadian Electric Utilities, Other Electric Utilities, Gas Utilities and Infrastructure, and Other segments.It generates electricity through coal-fired, natural gas and/or oil, hydro, wind, solar, petroleum coke, and biomass-fueled power plants.


The company is also involved in the purchase, transmission, distribution, and sale of natural gas; and the provision of energy marketing, trading, and other energy asset management services.In addition, it transports re-gasified liquefied natural gas from Saint John, New Brunswick to consumers in the northeastern United States through its 145-kilometer pipeline.As of December 31, 2021, the company's electric utilities served approximately 810,600 customers in West Central Florida; 536,000 customers in Nova Scotia; 132,000 customers in the island of Barbados; 19,000 customers in the Grand Bahama Island; and 35,700 customers in the island of Dominica, as well as gas utilities and infrastructure served approximately 445,000 customers across Florida and 542,000 customers in New Mexico.


It also provides insurance and reinsurance services to Emera and its affiliates, as well as offers financing services.The company was incorporated in 1998 and is headquartered in Halifax, Canada.

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1.b. Last Insights on EMA

Emera Incorporated's recent performance was driven by strong Q2 2025 earnings, with a 49% increase in adjusted EPS. The company's Florida electric utility segment performed well, supporting growth expectations and balance sheet strength (BMO Capital). Additionally, Emera announced a 1% increase in quarterly dividend to $0.7325 per share, reflecting a commitment to shareholder returns. The company also completed a $750 million junior subordinated notes offering, demonstrating access to capital markets. A teleconference will be held on November 7 to discuss Q3 2025 results and a 5-year capital plan.

1.c. Company Highlights

2. Emera's Q3 2025 Earnings: A Strong Performance

Emera reported a robust third quarter 2025, with adjusted earnings per share (EPS) of $0.88, a 9% increase over the same period in 2024, beating analyst estimates of $0.66. Year-to-date, adjusted EPS of $2.94 represents a 14% increase over the same period in 2024. The company's financial performance was driven by its $20 billion capital plan through 2030, which includes investments in solar, energy storage, transmission upgrades, and gas infrastructure, with over 80% of the capital plan to be deployed in Florida.

Publication Date: Nov -13

📋 Highlights
  • Q3 Earnings Growth: Emera reported $0.88 adjusted EPS for Q3 2025, a 9% increase YoY, and $2.94 year-to-date EPS, up 14% YoY.
  • Capital Plan Allocation: The $20 billion 2030 capital plan allocates over 80% ($16 billion) to Florida, focusing on solar, storage, transmission, and gas infrastructure.
  • Rate Base Expansion: Projected 7-8% annual rate base growth through 2030, driven by Florida utilities' investments in reliability and resilience.
  • Solar Savings: Emera’s Florida solar projects have saved customers over $350 million in avoided fuel costs since implementation.
  • Cash Flow & Credit Metrics: Operating cash flow rose 23% YoY, with credit metrics improving by +150 basis points, supporting a 50 bps annual cash flow-to-debt improvement plan.

Rate Base Growth and Customer Benefits

Emera's rate base growth is expected to be 7% to 8% through 2030, driven by investments in reliability, resilience, and generation capacity, particularly in Florida. The company has managed to keep customer cost impacts low, with Tampa Electric's bill increases remaining below the national average since its acquisition in 2016. Emera's solar investments in Florida have saved customers over $350 million in avoided fuel costs, demonstrating the benefits of its customer-focused capital plan.

Regulatory Updates and Funding Plan

The company has made progress on regulatory fronts, including the approval of the Peoples Gas settlement with $67 million of new rates to go into effect in 2026. Emera's funding plan for its capital plan includes reinvested cash flows, debt issuance, and hybrid capital, with proceeds from the sale of New Mexico Gas expected to fund approximately $700 million of the plan. The company's financial highlights include a 23% increase in operating cash flow and improved key credit metrics.

Valuation and Outlook

With a P/E Ratio of 20.97 and an EV/EBITDA of 12.27, Emera's valuation appears reasonable, considering its growth prospects. The company's 7% to 8% rate base growth profile is expected to be durable for a long time, with potential upside from data center opportunities. Emera's leadership transition is seen as a positive step, with Jared Green bringing fresh talent and perspective to the team. Analysts estimate next year's revenue growth at -3.1%, but Emera's diversified portfolio and customer-focused capital plan position it for long-term success.

Growth Initiatives and Risks

Emera is exploring opportunities beyond its current plan, including data center growth, which could support affordability impacts on broader customers. The company's Wind West initiative is still in its early stages, but Emera is interested in supporting the premier's vision and potentially participating in transmission builds. The Nova Scotia rate case is a consensus filing with customer representatives, aiming to balance reliability and affordability.

3. NewsRoom

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Evidentiary hearings on the New Mexico Gas Co. sale have ended. Here are 3 key takeaways from the case.

Nov -16

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Emera Incorporated Beat Revenue Forecasts By 7.6%: Here's What Analysts Are Forecasting Next

Nov -11

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Emera reports Q3 adjusted EPS 88c, consensus 61c

Nov -08

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Calculating The Fair Value Of Emera Incorporated (TSE:EMA)

Nov -07

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Emera Q3 Adjusted Net Income Climbs YoY, Details $20 Billion 5-Year Capital Plan

Nov -07

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Emera Reports 2025 Third Quarter Financial Results and Unveils $20 Billion Five-Year Capital Plan

Nov -07

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Emera's (TSE:EMA) Upcoming Dividend Will Be Larger Than Last Year's

Oct -18

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Emera Declares Quarterly Dividends

Oct -14

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.55%)

6. Segments

Florida Electric Utility

Expected Growth: 3.5%

Florida Electric Utility's 3.5% growth is driven by increasing demand for electricity in the state, fueled by population growth and economic expansion. Additionally, investments in grid modernization and renewable energy sources, such as solar power, contribute to the growth. Furthermore, the utility's focus on energy efficiency and customer growth initiatives also support the segment's growth.

Canadian Electric Utilities

Expected Growth: 4.0%

Emera Incorporated's 4.0% growth in Canadian Electric Utilities is driven by increasing demand for renewable energy, government incentives for clean power, and strategic acquisitions. Additionally, investments in grid modernization and infrastructure upgrades contribute to growth. Furthermore, a stable regulatory environment and long-term contracts with industrial customers provide a solid foundation for steady revenue growth.

Gas Utilities and Infrastructure

Expected Growth: 3.2%

Emera's 3.2% growth in Gas Utilities and Infrastructure is driven by increasing demand for natural gas, strategic acquisitions, and investments in pipeline infrastructure. Additionally, favorable regulatory environments and a focus on cost savings initiatives contribute to the segment's growth.

Other Electric Utilities

Expected Growth: 3.8%

Emera's 3.8% growth in Other Electric Utilities is driven by increasing demand for renewable energy, strategic acquisitions, and investments in grid modernization. Additionally, favorable regulatory environments and cost savings initiatives contribute to the growth. Furthermore, the company's focus on energy efficiency and customer growth also support this upward trend.

Other

Expected Growth: 3.0%

Emera's 3.0% growth is driven by increasing demand for renewable energy, strategic acquisitions, and investments in grid modernization. Additionally, the company's focus on cost savings initiatives and operational efficiencies have contributed to its growth. Furthermore, Emera's diversified portfolio of energy generation and transmission assets has provided a stable foundation for growth.

7. Detailed Products

Electricity Generation

Emera Incorporated generates electricity through various sources including fossil fuels, nuclear, and renewable energy.

Transmission and Distribution

Emera operates and maintains a vast network of transmission and distribution lines, substations, and other infrastructure to deliver electricity to customers.

Natural Gas Distribution

Emera distributes natural gas to customers through its pipeline network, providing a clean and efficient source of energy.

Renewable Energy

Emera develops and operates renewable energy projects, including wind, solar, and hydroelectric power generation.

Energy Services

Emera offers a range of energy services, including energy efficiency solutions, demand response, and energy management.

Infrastructure Development

Emera develops and invests in energy infrastructure projects, including transmission lines, substations, and generation facilities.

8. Emera Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Emera Incorporated's threat of substitutes is moderate due to the availability of alternative energy sources, such as solar and wind power.

Bargaining Power Of Customers

Emera Incorporated's customers have limited bargaining power due to the company's diversified customer base and lack of dependence on a single customer.

Bargaining Power Of Suppliers

Emera Incorporated's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for fuel and equipment.

Threat Of New Entrants

The threat of new entrants in the energy industry is low due to high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in the energy industry is high due to the presence of several established players and the ongoing competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.12%
Debt Cost 5.33%
Equity Weight 37.88%
Equity Cost 5.37%
WACC 5.34%
Leverage 164.00%

11. Quality Control: Emera Incorporated passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Emera

A-Score: 6.9/10

Value: 5.7

Growth: 4.1

Quality: 4.2

Yield: 9.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Pinnacle West Capital

A-Score: 6.4/10

Value: 5.9

Growth: 5.2

Quality: 4.1

Yield: 8.0

Momentum: 5.5

Volatility: 10.0

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Stock-Card
Ameren

A-Score: 6.4/10

Value: 5.3

Growth: 4.8

Quality: 4.5

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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PPL

A-Score: 6.3/10

Value: 4.9

Growth: 4.2

Quality: 4.1

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Alliant Energy

A-Score: 6.1/10

Value: 4.8

Growth: 4.2

Quality: 4.9

Yield: 6.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
PGE

A-Score: 6.1/10

Value: 6.8

Growth: 4.4

Quality: 4.1

Yield: 8.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.12$

Current Price

66.12$

Potential

-0.00%

Expected Cash-Flows