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1. Company Snapshot

1.a. Company Description

Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company.It operates in two segments, Avista Utilities and AEL&P.The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana.


This segment also engages in the wholesale purchase and sale of electricity and natural gas.The AEL&P segment offers electric services to 17,400 customers in the city and borough of Juneau, Alaska.The company generates electricity through hydroelectric, thermal, and wind facilities.


As of February 23, 2022, it provided electric service to 406,000 customers and natural gas to 372,000 customers.In addition, the company engages in venture fund investments, real estate investments, and other investments.Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.

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1.b. Last Insights on AVA

Avista Corporation's recent performance was driven by several positive factors. The company's substantial capital expenditure plans and favorable rate cases are expected to drive significant earnings growth and higher returns on equity. Additionally, Avista's decision to increase its quarterly dividend by 3% to $0.49 per share, yielding an annualized dividend of $1.96, provides a attractive income stream for investors. The company's commitment to environmental, social, and governance (ESG) initiatives, as shown in its updated corporate responsibility report, also suggests a positive evolution of business conditions.

1.c. Company Highlights

2. Avista Corporation's Q3 2025 Earnings: A Strong Beat

Avista Corporation reported Q3 2025 consolidated earnings of $0.36 per diluted share, significantly beating the estimated $0.27. The company's year-to-date earnings also showed a notable increase, reaching $1.51 per diluted share, up from $1.44 in 2024. The earnings guidance for 2025 remains unchanged at $2.52 to $2.72 per diluted share, with Avista Utilities expected to be at the upper end of its guidance range of $2.43 to $2.61 per diluted share. Revenue growth is expected to be modest, with analysts estimating a 0.8% increase for next year.

Publication Date: Nov -15

📋 Highlights
  • Q3 2025 Earnings Growth: Avista's Q3 2025 earnings rose to $0.36/share, up from $0.23/share in Q3 2024.
  • 2025 Earnings Guidance: Maintained at $2.52–$2.72/share, with Avista Utilities targeting the upper end of $2.43–$2.61/share.
  • Capital Expenditures: $363M spent in Q1–Q3 2025, with $3.7B planned from 2025–2030 at 6% annual growth.
  • Debt and Equity Financing: $120M long-term debt issued in 2025, with $80M equity planned, maintaining a 50-50 capital structure.
  • Long-Term Growth Outlook: 4–6% annual earnings growth expected from 2025 guidance midpoint, supported by potential $500M customer opportunity 2026–2029.

Operational Highlights

The company has made significant progress in its wildfire resiliency program, completing pilot projects for strategic undergrounding and installation of covered conductor, and expanding its network of AI-enabled cameras. Avista Utilities' capital expenditures were $363 million in the first three quarters of 2025, with an expected $525 million in 2025 and $3.7 billion from 2025 to 2030, representing an annual growth rate of 6%. This investment is expected to drive future growth.

Financing and Capital Structure

Avista issued $120 million of long-term debt in July 2025 and expects to issue up to $80 million of common stock in 2025 and approximately $120 million of long-term debt and up to $80 million of common stock in 2026. The company's planned capital structure for next year is $120 million debt and $80 million equity, and it expects to maintain a roughly 50-50 debt-to-equity ratio for any incremental spending opportunities.

Valuation and Growth Expectations

Avista's long-term earnings growth expectation remains at 4% to 6% from the midpoint of its 2025 guidance. With a current P/E Ratio of 17.65 and a Dividend Yield of 4.73%, the company's valuation appears reasonable. The EV/EBITDA ratio of 9.92 also suggests a relatively stable valuation. Given the company's growth prospects, including a potential $500 million capital opportunity from 2026 to 2029, the current valuation metrics seem to be in line with expectations.

Future Prospects

The company is evaluating a 2, 3, or 4-year rate plan for its upcoming Washington multiyear rate plan filing, aiming to mitigate external risks such as inflation and interest rates. Avista may explore other avenues for funding growth, but it does not expect to make a sale of its other businesses to fund growth at the utility. The company's long-term growth prospects and stable valuation make it an attractive investment opportunity.

3. NewsRoom

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November's 5 Dividend Growth Stocks With Yields Up To 6.96%

Nov -18

Source: seekingalpha.com

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Connor Clark & Lunn Investment Management Ltd. Makes New Investment in Avista Corporation $AVA

Nov -17

Source: defenseworld.net

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Avista Corp. Board Declares Common Stock Dividend

Nov -12

Source: globenewswire.com

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Avista Corporation (AVA) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Avista (AVA) Q3 Earnings Top Estimates

Nov -05

Source: zacks.com

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Teacher Retirement System of Texas Increases Holdings in Avista Corporation $AVA

Nov -05

Source: defenseworld.net

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Comparing Cassava Sciences (NASDAQ:SAVA) and Carisma Therapeutics (NASDAQ:CARM)

Nov -05

Source: defenseworld.net

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VivoPower's Tembo to Accelerate Africa Expansion in Definitive Agreement with AVA, East Africa's Largest Vehicle Assembler

Oct -31

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.99%)

6. Segments

Avista Utilities

Expected Growth: 3.0%

Avista Utilities' 3.0% growth is driven by increasing electricity and natural gas demand from residential and commercial customers, rate base growth through infrastructure investments, and favorable regulatory environments. Additionally, the company's focus on renewable energy sources and grid modernization efforts contribute to its growth momentum.

Alaska Electric Light and Power Company

Expected Growth: 2.5%

Alaska Electric Light and Power Company's 2.5% growth is driven by increasing demand for electricity in the residential and commercial sectors, fueled by Alaska's growing population and economy. Additionally, investments in grid modernization and renewable energy sources, such as wind and hydroelectric power, are expected to contribute to the company's growth.

Other

Expected Growth: 2.0%

Avista Corporation's 2.0% growth in 'Other' segment is driven by increasing demand for infrastructure services, expansion of electric transmission lines, and growing investments in renewable energy sources. Additionally, favorable regulatory environments and cost savings initiatives contribute to the segment's growth.

7. Detailed Products

Electricity

Avista Corporation provides electricity to residential, commercial, and industrial customers in the Pacific Northwest region of the United States.

Natural Gas

Avista Corporation delivers natural gas to customers in Washington, Idaho, and Oregon, providing a clean and efficient source of energy.

Energy Efficiency Services

Avista Corporation offers energy efficiency services, including energy audits, rebates, and incentives, to help customers reduce energy consumption and costs.

Renewable Energy Solutions

Avista Corporation provides renewable energy solutions, including wind, solar, and hydroelectric power, to customers seeking sustainable energy options.

Transmission and Distribution Services

Avista Corporation operates and maintains a vast network of transmission and distribution lines, ensuring reliable and efficient energy delivery.

8. Avista Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Avista Corporation's threat of substitutes is moderate due to the availability of alternative energy sources such as solar and wind power. However, the company's strong brand presence and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

Avista Corporation's customers have low bargaining power due to the company's dominant market position and lack of alternative energy providers in the region.

Bargaining Power Of Suppliers

Avista Corporation's suppliers have moderate bargaining power due to the availability of alternative suppliers in the market. However, the company's long-term contracts with suppliers mitigate this threat to some extent.

Threat Of New Entrants

The threat of new entrants is low for Avista Corporation due to the high barriers to entry in the energy industry, 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, including Avista Corporation. The company faces intense competition from other energy providers, which can lead to pricing pressures and reduced 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 54.97%
Debt Cost 3.95%
Equity Weight 45.03%
Equity Cost 6.33%
WACC 5.02%
Leverage 122.06%

11. Quality Control: Avista Corporation passed 1 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
Otter Tail

A-Score: 6.6/10

Value: 5.3

Growth: 7.0

Quality: 6.5

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
NorthWestern

A-Score: 6.5/10

Value: 6.1

Growth: 3.4

Quality: 5.1

Yield: 8.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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ALLETE

A-Score: 6.4/10

Value: 5.9

Growth: 4.0

Quality: 4.3

Yield: 8.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Avista

A-Score: 6.3/10

Value: 6.5

Growth: 4.2

Quality: 4.3

Yield: 8.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Black Hills

A-Score: 6.2/10

Value: 5.2

Growth: 4.4

Quality: 4.4

Yield: 8.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
AES

A-Score: 5.1/10

Value: 6.6

Growth: 5.4

Quality: 3.5

Yield: 8.0

Momentum: 3.0

Volatility: 4.0

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

38.51$

Current Price

38.52$

Potential

-0.00%

Expected Cash-Flows