Avista Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP net income for the third quarter of 2026 was $49 million, compared to $29 million in the same period of 2025.
• GAAP earnings per diluted share for the third quarter of 2026 were $0.57, compared to $0.36 in 2025.
• Year-to-date GAAP net income for the nine months ended Sept. 30, 2026, was $176 million, compared to $122 million in 2025.
• Year-to-date GAAP earnings per diluted share for the nine months ended Sept. 30, 2026, were $2.11, compared to $1.51 in 2025.
• Non-GAAP utility earnings for the third quarter of 2026 were $33 million, compared to $30 million in 2025.
• Non-GAAP utility earnings per diluted share for the third quarter of 2026 were $0.38, compared to $0.37 in 2025.
• Year-to-date non-GAAP utility earnings for the nine months ended Sept. 30, 2026, were $147 million, compared to $135 million in 2025.
• Year-to-date non-GAAP utility earnings per diluted share for the nine months ended Sept. 30, 2026, were $1.76, compared to $1.67 in 2025.
• Non-regulated other business income was $29 million for the first three quarters of 2026, compared to losses of $13 million in the same period of 2025.
• 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.
• Avista issued $58 million of common stock in the first three quarters of 2026.
• Avista issued $230 million of long-term debt during the first three quarters of 2026.

Guidance and Future Outlook:

• Avista confirmed its 2026 non-GAAP utility earnings guidance range of $2.52 to $2.72 per diluted share.
• Management expects to be at the midpoint of the 2026 non-GAAP utility earnings guidance.
• Long-term outlook expects non-GAAP utility earnings to grow 4% to 6% from the midpoint of 2025 earnings guidance.
• 2026 non-GAAP utility earnings guidance assumptions include normal weather, a negative ERM impact of ($0.09) per diluted share, an effective tax rate of 12%, and capital expenditures of $615 million.
• Expected base capital expenditures for Avista Utilities are $615 million in 2026, $635 million in 2027, $800 million in 2028, $680 million in 2029, $710 million in 2030, and $750 million in 2031.
• Avista expects to issue up to $15 million of additional common stock in 2026 and approximately $110 million in 2027.
• Avista does not expect further long-term debt issuances in 2026 but plans to obtain a short-term loan of up to $100 million by the end of Q4 2026 due to regulatory deferrals.
• Approximately $220 million of long-term debt is expected to be issued in 2027.

Business Segments and Product Lines:

• Electric revenues increased in the third quarter of 2026 due to retail rate increases but decreased year-to-date due to lower wholesale revenues, removal of Colstrip cost recovery revenues, and decreased industrial sales volumes from a large customer departure.
• 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 a decrease in Energy Recovery Mechanism (ERM) expense to $10 million from $13 million in 2025.
• Electric resource costs increased in the third quarter due to higher volume and price of purchased power and increased authorized power supply costs from general rate cases.
• Natural gas resource costs decreased year-to-date due to lower purchased volumes, decreased net deferrals/amortizations of deferred costs, and lower CCA costs.
• Other operating expenses increased year-to-date primarily due to higher employee salaries and benefit costs, 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.
• Avista Utilities serves approximately 430,000 electric customers and 385,000 natural gas customers across 34,000 square miles.
• AEL&P serves 18,000 customers in Juneau, Alaska.

Market and Competitive Landscape:

• The press release notes competition from alternative energy sources, customer-owned power resource technologies, and alternative energy suppliers.
• Trends include the potential decline in electricity and natural gas demand due to customer energy efficiency, conservation, and increased distributed generation or electrification.

Risks and Challenges:

• Regulatory risks include potential disallowance or delay in cost recovery, loss of regulatory accounting treatment, and refunds to customers.
• Operational risks include weather conditions affecting demand and generation, wildfire liability, natural disasters, supply chain disruptions, and workforce issues.
• Climate change risks involve increased frequency of severe weather, water resource changes, and impacts on hydroelectric generation.
• Cybersecurity risks include attacks on operating and administrative systems.
• Strategic risks include the decline of the customer base due to distributed generation and volatility in non-regulated activities.
• Financial risks include access to financing, interest rate volatility, and commodity market volatility.
• Resource adequacy risks involve sourcing adequate energy during high demand or unplanned events.

Management Commentary and Tone:

• Heather Rosentrater, President and CEO, stated that utility earnings for the third quarter remain on track for the year.
• Management emphasized an ongoing focus on strategic execution and cost management.
• Management expressed confidence in reaching the midpoint of the 2026 non-GAAP utility earnings guidance.

Other Key Points:

• Avista Corp. is unable to provide GAAP earnings guidance or a quantitative reconciliation of forward-looking non-GAAP utility earnings without unreasonable effort due to the unpredictability of investment gains and losses in non-regulated businesses.
• The company plans to issue a conference call on Nov. 4, 2026, at 10:30 a.m. ET for analysts and investors.
• The exit from the Colstrip generation portfolio in 2026 contributed to decreases in depreciation, amortization, and certain resource costs.
• The Energy Recovery Mechanism (ERM) resulted in a $10 million pre-tax expense for the first three quarters of 2026.
• Avista Utilities' capital expenditures were $496 million in the first three quarters of 2026.