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Jun 30
Avista Q2 2025 Earnings Report
Avista Corp. reported financial results for the second quarter of 2025, confirming 2025 earnings guidance with strong utility performance offsetting investment losses.
Key Takeaways
Avista Corp. reported a net income of $14 million and diluted EPS of $0.17 for the second quarter of 2025. While core utility operations, particularly Avista Utilities, showed strength with increased margins, the consolidated results were negatively impacted by unrealized losses in the investment portfolio, primarily in clean technology investments.
Net income for Q2 2025 was $14 million, a decrease from $23 million in Q2 2024.
Diluted earnings per share for Q2 2025 were $0.17, down from $0.29 in Q2 2024.
Avista Utilities' net income for the quarter was $23 million, driven by increased electric and natural gas utility margins.
Losses from other non-reportable segments significantly increased to $10 million due to higher net investment losses.
Avista
Avista
Avista Revenue by Segment
Revenue by Segment
Avista Utilities Revenue
CapyFin.comAEL&P Revenue
CapyFin.comOther non-reportable segment Revenue
CapyFin.com Forward Guidance
Avista Corp. confirmed its 2025 consolidated earnings guidance of $2.52 to $2.72 per diluted share, expecting to be at the low end of this range due to investment losses. Avista Utilities is expected to contribute towards the upper end of its guidance range of $2.43 to $2.61 per diluted share.
Positive Outlook
- Strong performance and cost management at Avista Utilities.
- Constructive regulatory outcomes, including multiyear rate plan in Washington and approved settlements in Oregon and Idaho.
- Avista Utilities expected to contribute towards the upper end of its guidance range ($2.43 to $2.61 per diluted share).
- Long-term earnings growth expected in the 4-6 percent range from the 2025 base year.
- No further issuances of long-term debt expected in 2025 after July issuance.
Challenges Ahead
- Consolidated earnings expected to be at the low end of the guidance range ($2.52 to $2.72 per diluted share) due to unrealized losses on investments.
- Losses at other businesses increased due to higher net investment losses, primarily from clean technology investments.
- Negative impact of $0.12 per diluted share expected from the Energy Recovery Mechanism (ERM) in 2025.
- Lower valuations in the investment portfolio during the second quarter, impacted by shifting public policy and sentiment.
- Increased other operating expenses due to employee costs and thermal generation costs.