Nov 3, 2026, 6:44 PM ETUtilities

Avista Corp. — Q3 2026 Earnings Summary

AVAAVISTA CORP

Financial Performance

GAAP net income for Q3 2026 was $49 million ($0.57 per diluted share), compared to $29 million ($0.36 per diluted share) in Q3 2025.
GAAP net income for the nine months ended Sept. 30, 2026, was $176 million ($2.11 per diluted share), compared to $122 million ($1.51 per diluted share) in the same period in 2025.
Non-GAAP utility earnings for Q3 2026 were $33 million ($0.38 per diluted share), compared to $30 million ($0.37 per diluted share) in Q3 2025.
Non-GAAP utility earnings for the nine months ended Sept. 30, 2026, were $147 million ($1.76 per diluted share), compared to $135 million ($1.67 per diluted share) in the same period in 2025.
Non-regulated other business income was $29 million for the first three quarters of 2026, compared to a loss of $13 million in the same period in 2025, driven by net investment gains in 2026 versus losses in 2025.
Avista Utilities' capital expenditures were $496 million in the first three quarters of 2026.
Available liquidity as of Sept. 30, 2026, included $168 million under the committed line of credit and $57 million under the letter of credit facility.
The company issued $58 million of common stock in the first three quarters of 2026 and $230 million of long-term debt during the same period.

Avista confirmed its 2026 non-GAAP utility earnings guidance of $2.52 to $2.72 per diluted share.
Management expects to be at the midpoint of the 2026 non-GAAP utility earnings guidance range.
Long-term outlook projects non-GAAP utility earnings growth of 4% to 6% annually from the midpoint of the 2025 earnings guidance.
2026 non-GAAP utility earnings guidance assumptions include normal weather, an effective tax rate of 12%, capital expenditures of $615 million, and a negative ERM impact of $0.09 per diluted share within the 90/10 sharing band.
Expected base annual capital expenditures for Avista Utilities through 2031 are: $615 million (2026), $635 million (2027), $800 million (2028), $680 million (2029), $710 million (2030), and $750 million (2031).
The company expects to issue up to $15 million of additional common stock in 2026 and approximately $110 million in 2027.
Avista plans to obtain a short-term loan of up to $100 million by the end of Q4 2026 due to increased regulatory deferrals and delayed recovery, with no further long-term debt issuances expected in 2026.
Approximately $220 million of long-term debt is expected to be issued in 2027.

Electric Revenues: Increased in Q3 2026 due to retail rate increases; decreased year-to-date due to lower wholesale revenues, removal of Colstrip cost recovery revenues, and the departure of a large industrial customer, partially offset by general rate cases.
Natural Gas Revenues: Decreased year-to-date due to purchased gas adjustments (PGAs) and Climate Commitment Act (CCA) related revenues.
Electric Resource Costs: Decreased year-to-date due to lower fuel costs, reduced thermal generation, and lower Energy Recovery Mechanism (ERM) expenses ($10 million pre-tax in 2026 vs. $13 million in 2025); increased in Q3 due to higher volume/price of purchased power and authorized power supply costs from rate cases, partially offset by the removal of Colstrip.
Natural Gas Resource Costs: Decreased year-to-date due to lower purchased volumes, reduced net deferrals/amortizations under PGAs, and lower CCA costs.
Other Operating Expenses: Increased year-to-date primarily due to higher employee salaries and benefits, partially offset by the removal of Colstrip-related costs.
Depreciation and Amortization: Decreased year-to-date primarily due to the exit from Colstrip in 2026, partially offset by plant additions.
AEL&P: Contributed $1 million to earnings and $0.01 to earnings per share year-to-date.
Colstrip Exit: The exit from the Colstrip generation portfolio contributed to decreases in electric resource costs and depreciation/amortization.

Avista Utilities serves approximately 430,000 electric customers and 385,000 natural gas customers across 34,000 square miles in eastern Washington, northern Idaho, and parts of southern and eastern Oregon.
AEL&P provides retail electric service to 18,000 customers in Juneau, Alaska.
The company faces competition from alternative energy sources and customer-owned power resource technologies that may displace utility-supplied energy.
Market trends include the potential for declining electricity and natural gas demand due to customer energy efficiency, conservation, and increased electrification.

Regulatory Risk: Potential for disallowance or delay in cost recovery, loss of regulatory accounting treatment, and changes in allowed returns on investment.
Operational Risk: Exposure to severe weather, wildfires, natural disasters, supply chain disruptions, workforce issues, and cyberattacks.
Climate Change Risk: Increasing frequency of severe weather, changes in water resources affecting hydroelectric generation, and impacts on customer demand.
Financial Risk: Volatility in energy commodity markets, interest rate changes, and potential impacts on credit ratings and access to capital.
Strategic Risk: Risks associated with the loss of key suppliers, municipalization, and volatility from non-regulated investment activities.
External Mandates Risk: Changes in environmental laws, greenhouse gas emission restrictions, and potential tariffs on energy commodities.
Resource Adequacy Risk: Challenges in sourcing adequate energy during high demand or unplanned events.

CEO Heather Rosentrater stated that utility earnings for the third quarter remain on track for the year.
Management emphasized a continued focus on strategic execution and cost management to achieve the midpoint of the 2026 non-GAAP utility earnings guidance.
The tone regarding the non-regulated other business was positive, noting a shift from losses in 2025 to income in 2026 driven by investment gains.
Management noted that GAAP earnings increased due to investment performance and the impacts of general rate cases.

Avista Corp. is unable to provide GAAP earnings guidance or a quantitative reconciliation of forward-looking non-GAAP utility earnings due to the unpredictability of investment gains and losses.
The Energy Recovery Mechanism (ERM) resulted in a $10 million pre-tax expense for the first three quarters of 2026.
The company hosts a conference call for financial analysts and investors on Nov. 4, 2026, at 10:30 a.m. ET.
Avista's stock trades on the NYSE under the ticker symbol "AVA".
The press release includes detailed reconciliations of GAAP net income to non-GAAP utility earnings and per-share data.