Emera Inc (EMA.TO) Q1 2026 Earnings Call Transcript
Bullish Regulated Electric 15.39B Canada
Next Earnings
2026-05-08
Emera Incorporated, an energy and services company, invests in generation, transmission, and distribution of electricity in the United States, Canada, Barbados, and the Bahamas. The company operates through Florida Electric Utility, Canadian Electric Utilities, Gas Utilities and Infrastructure, Other Electric Utilities, and Other segments. It is also involved in the purchase, transmission, distribution, and sale of natural gas; and physical energy marketing, trading, and other energy asset management activities. The company was incorporated in 1998 and is headquartered in Halifax, Canada.
Emera delivered record capital deployment and a 19% jump in 2025 adjusted EPS to $3.49, with ongoing regulatory support and a longer-term 2030 growth framework.
⭐ Key Highlights
Record capital investments
Emera deployed a record $3.6 billion of capital in 2025 across its regulated utilities, driving approx. 8% rate base growth versus 2024.
Strong earnings momentum
Full-year 2025 adjusted earnings per share reached $3.49, up 19% versus 2024, well above the upper end of the 5–7% growth target.
Significant cash flow expansion
Operating cash flow grew 19% year over year, underscoring the strength of the earnings and capital program.
Extended long-term guidance
Management extended the adjusted EPS growth target to 2030 (5–7% annually) and reaffirmed 7–8% rate base growth through 2030, aligning with a multi-year capex plan.
Regulatory and portfolio highlights
Regulatory progress remained favorable (e.g., rate base adjustments in Tampa Electric and Nova Scotia Power; securitization steps for NS Power) while Tampa Electric advanced grid modernization and reliability initiatives, including 150 MW of new solar and undergrounding activity.
✔Positive Signals
- Record $3.6 billion in capital investments in 2025 driving 8% rate base growth
- Full-year adjusted EPS of $3.49, up 19% year over year and above the upper end of prior guidance
- Operating cash flow increased 19% and Moody's CFO preworking capital to debt improved by 130 bps
- Extended 5-year EPS growth target to 2030 (5–7% CAGR) with 7–8% rate base growth through 2030
- Regulatory progress and grid modernization (e.g., Tampa Electric, NS Power) supporting reliable service and affordability
✖Negative Signals
- Higher O&M and depreciation pressures across growing utilities partially offsetting benefits from new rates
- Increased corporate debt and interest expense impacting quarterly results
- Q4 2025 performance in Nova Scotia Power pressured by O&M, depreciation, and a one-off tax recovery in 2024
- New Mexico Gas and some Canadian electric utilities faced earnings headwinds in 2025
- Regulatory and operational risks in Nova Scotia (GRA process and securitization terms) could influence timing and capital allocation
📊Financial Results
- Full-year 2025 adjusted earnings: $1.45 billion and EPS of $3.49, up from $0.94? and $2.94 in 2024 (note: per transcript: $1.45B and $3.49 vs $849M and $2.94 in 2024)
- Q4 2025 adjusted earnings: $167 million and EPS of $0.55, vs $246 million and $0.84 in Q4 2024
- Operating cash flow: up 19% year over year after normalizing for fuel and storm deferrals
- Moody's CFO preworking capital to debt improved by 130 bps, exceeding target thresholds on pro forma metrics
- Payout ratio improved to 83% in 2025, on track for 80% goal by 2027
🔮Future Guidance
- Extend adjusted EPS growth target to 2030: 5–7% annual growth
- Rate base growth outlook raised to 7–8% through 2030
- 2026 expected to be in line with 2025 results; ongoing investment discipline to manage customer affordability
- Capital plan of approximately $20 billion over 5 years; plan to complete New Mexico Gas transaction and continue constructive regulatory engagement in Nova Scotia
- Dividend growth guidance remains 1–2% through 2027 with ongoing consideration of a targeted 70–75% payout ratio as the base case
💡Interesting Insights
- Data center load opportunities in Tampa Electric could be incremental to earnings but are not yet baked into the rate base forecast; potential to reduce overall rate pressures if realized
Detailed Analysis
AI-generated summary of Emera Inc earnings call transcript.
Emera closed 2025 with record capital investments of $3.6 billion across its regulated utilities, yielding 8% rate base growth and a robust 19% rise in adjusted EPS to $3.49, comfortably beating the prior growth target. The year featured strong cash flow (+19%), a diversified earnings mix with gains in Tampa Electric, Emera Energy, and other utilities, and meaningful regulatory clarity through rate-case outcomes and securitization actions. The company highlighted technology-driven efficiency, including AI-enabled initiatives across Nova Scotia Power and other subsidiaries, and outlined a plan to execute a $20 billion capital program through 2030 to support 7–8% rate base growth. Management stressed ongoing affordability for customers, anticipated data-center opportunities in Tampa, and a disciplined approach to timing investments. The long-range outlook was reinforced with an extension of EPS growth targets to 2030 and the continuation of a modest dividend growth trajectory, while preparing for major refinancing activities related to a large acquisition and other debt maturities.
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