Emera Inc (EMRAF) Q1 2025 Earnings Call Highlights: Record EPS Growth and Strategic Capital ...

In This Article:

  • Adjusted Earnings Per Share (EPS): $1.28, a 68% increase over the same period in 2024.

  • Adjusted Earnings: $379 million, compared to $216 million in 2024.

  • Operating Cash Flow: 37% increase when normalized for fuel and storm deferrals.

  • Capital Deployment: Over $700 million in customer-focused capital in Q1, on track for a $3.4 billion capital plan for the year.

  • Customer Growth: Tampa Electric and People's Gas customer growth at over 1.5% and 3.5%, respectively.

  • Emera Energy Earnings: Adjusted earnings of $48 million, compared to $33 million last year.

  • Foreign Exchange Impact: Strengthening US dollar contributed to a 7% increase in adjusted EPS.

  • Debt Portfolio: 11% of debt is variable rate, with plans to repay $1 billion variable rate debt with proceeds from the sale of New Mexico Gas.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Emera Inc (EMRAF) reported a record first quarter adjusted earnings per share of $1.28, a 68% increase over the same period in 2024.

  • The company's regulated utilities, including Tampa Electric and New Mexico Gas, benefited from new rates reflecting their rate-based investments.

  • Emera Energy had a record quarter, with adjusted earnings of $48 million, capitalizing on higher pricing and market volatility due to cold weather.

  • The company successfully executed its asset sale program in 2024, strengthening its balance sheet and positioning it well for 2025.

  • Emera Inc (EMRAF) remains confident in its 5% to 7% average earnings per share guidance through 2027, supported by a $3.4 billion capital plan for the year.

Negative Points

  • The macroeconomic environment remains uncertain, posing potential challenges to capital deployment and customer affordability.

  • There is some concern over tariff exposure and supply chain constraints, although the company is working to mitigate these risks.

  • Nova Scotia Power is expected to earn just below the allowed rate of return band for the year, despite a strong first quarter.

  • The regulatory process for the sale of New Mexico Gas is ongoing, with a hearing scheduled for June 23rd, and the outcome remains uncertain.

  • Interest rate and tariff uncertainties have caused a chill in the data center community, potentially impacting future growth opportunities in Florida.

Q & A Highlights

Q: Can you provide an update on the regulatory process for the sale of New Mexico Gas? A: Scott Balfour, President and CEO, stated that the process is well underway with no unexpected developments. The next milestone is a hearing scheduled for June, and they expect a successful outcome and closing in the fourth quarter of 2025.