IDACORP's Net Income Jumps 11% on Tax Benefit, Capital Spending Soars

TL;DR

**IDACORP is a BUY, as strong net income growth driven by tax benefits and aggressive capital investment positions it for future stability despite minor revenue headwinds.**

AI Summary

IDACORP, Inc. reported a significant increase in net income attributable to IDACORP, Inc. for the nine months ended September 30, 2025, reaching $279.865 million, up from $251.298 million in the same period of 2024, representing an 11.37% increase. This growth was driven by a substantial reduction in income tax expense, which shifted from an expense of $18.876 million in 2024 to a benefit of $11.460 million in 2025 for the nine-month period. Operating revenues saw a slight decrease to $1,407.754 million in 2025 from $1,428.502 million in 2024, a 1.45% decline, primarily due to lower electric utility revenues. However, operating income increased by 4.80% to $300.323 million from $286.575 million. Key business changes include a notable increase in construction work in progress, rising from $1,244.559 million at December 31, 2024, to $1,619.882 million at September 30, 2025, indicating significant capital investment. Risks highlighted include regulatory decisions impacting cost recovery, expenses associated with utility infrastructure projects, and the volatility of new industrial and commercial customer load. The strategic outlook appears focused on infrastructure development and managing power supply costs, as evidenced by the increase in purchased power expenses for the three months ended September 30, 2025, to $121.276 million from $114.578 million in 2024.

Why It Matters

IDACORP's robust net income growth, despite a slight revenue dip, signals effective cost management and the positive impact of tax benefits, which is crucial for investor confidence. The substantial increase in construction work in progress, up by $375.323 million, indicates significant investment in utility infrastructure, potentially enhancing future capacity and reliability for customers but also introducing execution risks. For employees, these investments could mean job stability and growth opportunities in project development and maintenance. In a competitive utility landscape, IDACORP's ability to manage power costs and secure favorable regulatory outcomes, such as the 2025 Idaho general rate case settlement stipulation, is vital for maintaining its market position and delivering consistent returns.

Risk Assessment

Risk Level: medium — The risk level is medium due to the company's significant capital expenditures, with construction work in progress increasing by $375.323 million, which carries inherent project execution and regulatory approval risks. Additionally, the reliance on regulatory cost recovery mechanisms, as highlighted in the 'Cautionary Note Regarding Forward-Looking Statements,' presents a risk if commissions like the IPUC or FERC make unfavorable decisions impacting cost recovery or return on investment.

Analyst Insight

Investors should consider IDACORP as a potential long-term hold, given its strong net income growth and significant capital investments in utility infrastructure. Monitor regulatory developments, particularly decisions from the IPUC and FERC, as these will directly impact the company's ability to recover costs and earn returns on its substantial construction projects.

Financial Highlights

revenue

$1,407,754,000

operating Margin

21.33%

net Income

$279,865,000

eps

$5.13

revenue Growth

-1.45%

Revenue Breakdown

Key Numbers

• $279.865M — Net Income Attributable to IDACORP, Inc. (Increased by 11.37% for the nine months ended September 30, 2025, compared to 2024.)
• $11.460M — Income Tax Benefit (Shifted from an expense in 2024 to a benefit in 2025 for the nine-month period, significantly boosting net income.)
• $1,407.754M — Total Operating Revenues (Slight decrease of 1.45% for the nine months ended September 30, 2025, compared to 2024.)
• $300.323M — Operating Income (Increased by 4.80% for the nine months ended September 30, 2025, compared to 2024.)
• $1,619.882M — Construction Work in Progress (Increased by $375.323 million from December 31, 2024, indicating significant capital investment.)
• $121.276M — Purchased Power Expense (Increased for the three months ended September 30, 2025, compared to 2024, reflecting power supply costs.)
• 54,045,224 — Common Shares Outstanding (As of October 24, 2025, for IDACORP, Inc.)
• $2.26 — Diluted EPS (For the three months ended September 30, 2025, up from $2.12 in 2024.)

Key Players & Entities

• IDACORP, Inc. (company) — parent company
• Idaho Power Company (company) — subsidiary
• SEC (regulator) — filing oversight
• IPUC (regulator) — Idaho Public Utilities Commission
• FERC (regulator) — Federal Energy Regulatory Commission
• $279.865 million (dollar_amount) — Net Income Attributable to IDACORP, Inc. for nine months ended September 30, 2025
• $251.298 million (dollar_amount) — Net Income Attributable to IDACORP, Inc. for nine months ended September 30, 2024
• $1,407.754 million (dollar_amount) — Total operating revenues for nine months ended September 30, 2025
• $1,244.559 million (dollar_amount) — Construction work in progress at December 31, 2024
• $1,619.882 million (dollar_amount) — Construction work in progress at September 30, 2025

FAQ

Risk Factors

• Regulatory Decisions Impacting Cost Recovery [high — regulatory]: Regulatory bodies, such as the Idaho Public Utilities Commission, have the authority to approve or deny rate increases and the recovery of operating costs. Adverse decisions can significantly impact IDACORP's ability to recover expenses related to infrastructure projects and fuel, potentially affecting profitability and cash flows. For instance, the recovery of purchased power costs is subject to regulatory review.
• Expenses Associated with Utility Infrastructure Projects [high — operational]: IDACORP is undertaking significant capital investments, as evidenced by the increase in Construction Work in Progress from $1,244.559 million at December 31, 2024, to $1,619.882 million at September 30, 2025. These projects, while necessary for maintaining and upgrading infrastructure, carry substantial costs and execution risks. Delays or cost overruns can negatively impact financial performance.
• Volatility of New Industrial and Commercial Customer Load [medium — market]: The company's financial performance is sensitive to the addition or loss of large industrial and commercial customers. Fluctuations in demand from these customer segments, driven by economic conditions or specific industry trends, can lead to volatility in revenues. The company's strategic outlook includes managing power supply costs, which are influenced by customer load.
• Interest Expense on Debt [medium — financial]: Interest on long-term debt and finance leases increased to $128.733 million for the nine months ended September 30, 2025, from $102.048 million in the prior year. Higher interest expenses can reduce net income, especially if revenue growth does not keep pace.
• Purchased Power Expense Fluctuations [medium — operational]: Purchased power expenses can be volatile due to market conditions and supply availability. For the three months ended September 30, 2025, this expense was $121.276 million, up from $114.578 million in the same period of 2024. Managing these costs is crucial for maintaining operating margins.
• Depreciation and Amortization Increases [low — operational]: Depreciation and amortization expenses have increased to $185.407 million for the nine months ended September 30, 2025, from $165.133 million in the prior year. This increase is largely due to ongoing capital investments in utility infrastructure.

Industry Context

IDACORP operates in the regulated electric utility sector, primarily serving Idaho and parts of Oregon. The industry is characterized by significant capital intensity, reliance on long-term infrastructure investments, and stringent regulatory oversight. Key trends include the transition to cleaner energy sources, grid modernization, and managing the impact of fluctuating energy commodity prices and customer demand.

Regulatory Implications

IDACORP's operations are heavily influenced by regulatory decisions from bodies like the Idaho Public Utilities Commission. These decisions impact rate structures, cost recovery mechanisms for fuel and purchased power, and the approval of capital projects. Adverse regulatory outcomes can significantly affect financial performance and the ability to earn a fair rate of return.

What Investors Should Do

1. Monitor regulatory filings and decisions closely.
2. Analyze the impact of increasing capital expenditures on future earnings and cash flow.
3. Evaluate the management of purchased power and fuel expenses.
4. Assess the growth prospects related to new industrial and commercial customer load.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported net income of $279.865 million, a 11.37% increase from the prior year, driven by a tax benefit and increased operating income.
• 2025-09-30: Three months ended September 30, 2025 — Diluted EPS was $2.26, up from $2.12 in the same period of 2024, indicating improved profitability on a per-share basis.
• 2025-09-30: Construction Work in Progress as of September 30, 2025 — Increased to $1,619.882 million from $1,244.559 million at December 31, 2024, signaling substantial ongoing capital investments.
• 2025-10-24: Common Shares Outstanding as of October 24, 2025 — Reported as 54,045,224, relevant for per-share calculations and market capitalization.

Glossary

Construction Work in Progress

Costs incurred for utility construction projects that are not yet completed and placed into service. These costs are capitalized on the balance sheet. (A significant increase indicates substantial capital investment and future asset growth for IDACORP.)

Allowance for equity funds used during construction

A non-cash accounting entry that capitalizes the cost of equity capital used to finance construction projects, effectively increasing the asset's cost basis. (Reduces current period income but increases the asset value on the balance sheet.)

Allowance for borrowed funds used during construction

Interest incurred on debt used to finance construction projects that is capitalized as part of the construction cost, rather than expensed immediately. (Reduces current period interest expense and increases the asset value on the balance sheet.)

Power Cost Adjustment

A regulatory mechanism that allows utilities to adjust customer rates to reflect changes in the cost of fuel and purchased power, typically over a specific period. (Impacts operating expenses and revenue recovery, reflecting the volatility of energy commodity prices.)

Noncontrolling interests

The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership stake of outside shareholders. (Affects the net income attributable to IDACORP, Inc. by subtracting the portion belonging to other owners.)

Diluted EPS

Earnings per share calculated by dividing net income by the weighted average number of diluted common shares outstanding, including the effect of dilutive securities like stock options and convertible bonds. (Provides a more conservative measure of profitability on a per-share basis.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, IDACORP reported a 11.37% increase in net income attributable to IDACORP, Inc., reaching $279.865 million, primarily due to a significant shift from income tax expense to a tax benefit. Operating revenues saw a slight decrease of 1.45% to $1,407.754 million, while operating income grew by 4.80% to $300.323 million. A key development is the substantial increase in Construction Work in Progress, indicating heightened capital investment. New risks may emerge related to the execution of these large projects and ongoing power supply cost management.

Filing Documents

• ida-20250930.htm (10-Q) — 2123KB
• ida93025ex101.htm (EX-10.1) — 54KB
• ida93025ex151.htm (EX-15.1) — 3KB
• ida93025ex152.htm (EX-15.2) — 3KB
• ida93025ex311.htm (EX-31.1) — 10KB
• ida93025ex312.htm (EX-31.2) — 10KB
• ida93025ex313.htm (EX-31.3) — 10KB
• ida93025ex314.htm (EX-31.4) — 10KB
• ida93025ex321.htm (EX-32.1) — 4KB
• ida93025ex322.htm (EX-32.2) — 4KB
• ida93025ex323.htm (EX-32.3) — 4KB
• ida93025ex324.htm (EX-34.4) — 4KB
• ida93025ex951-minesafety.htm (EX-95.1) — 19KB
• 0001057877-25-000082.txt ( ) — 10651KB
• ida-20250930.xsd (EX-101.SCH) — 63KB
• ida-20250930_cal.xml (EX-101.CAL) — 85KB
• ida-20250930_def.xml (EX-101.DEF) — 352KB
• ida-20250930_lab.xml (EX-101.LAB) — 766KB
• ida-20250930_pre.xml (EX-101.PRE) — 578KB
• ida-20250930_htm.xml (XML) — 1725KB

Financial Information

Part I. Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) IDACORP, Inc.: Condensed Consolidated Statements of Income 8 Condensed Consolidated Statements of Comprehensive Income 9 Condensed Consolidated Balance Sheets 10 Condensed Consolidated Statements of Cash Flows 12 Condensed Consolidated Statements of Equity 13 Idaho Power Company: Condensed Consolidated Statements of Income 14 Condensed Consolidated Statements of Comprehensive Income 15 Condensed Consolidated Balance Sheets 16 Condensed Consolidated Statements of Cash Flows 18 Notes to Condensed Consolidated Financial Statements 19 Reports of Independent Registered Public Accounting Firm - Deloitte & Touche LLP 40

Management's Discussion and Analysis of Financial Condition and Results of Operations 42

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 42

Quantitative and Qualitative Disclosures About Market Risk 66

Item 3. Quantitative and Qualitative Disclosures About Market Risk 66

Controls and Procedures 67

Item 4. Controls and Procedures 67

Other Information

Part II. Other Information

Legal Proceedings 68

Item 1. Legal Proceedings 68

Risk Factors 68

Item 1A. Risk Factors 68

Unregistered Sales of Equity Securities and Use of Proceeds 68

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 68

Defaults Upon Senior Securities 68

Item 3. Defaults Upon Senior Securities 68

Mine Safety Disclosures 68

Item 4. Mine Safety Disclosures 68

Other Information 68

Item 5. Other Information 68

Exhibits 69

Item 6. Exhibits 69 Signatures 70 3 Table of Contents COMMONLY USED TERMS The following select abbreviations, terms, or acronyms are commonly used or found in multiple locations in this report: 2018 Settlement Stipulation - May 2018 Idaho settlement stipulation related to tax reform Idaho ROE - Idaho-jurisdiction return on year-end equity 2023 Settlement Stipulation - The settlement stipulation for Idaho Power's 2023 Idaho general rate case Ida-West - Ida-West Energy Company, a subsidiary of IDACORP, Inc. 2024 Annual Report - IDACORP's and Idaho Power's Annual Report on Form 10-K for the year ended December 31, 2024 IERCo - Idaho Energy Resources Co., a subsidiary of Idaho Power Company 2024 Idaho Limited-Issue Rate Case - A limited-issue rate case Idaho Power filed with the IPUC finalized by order of the IPUC in December 2024 IFS - IDACORP Financial Services, Inc., a subsidiary of IDACORP, Inc. 2025 Settlement Stipulation - The settlement stipulation for Idaho Power's 2025 Idaho general rate case IPUC - Idaho Public Utilities Commission ADITC - Accumulated Deferred Investment Tax Credits IRP - Integrated Resource Plan AFUDC - Allowance for Funds Used During Construction Jim Bridger plant - Jim Bridger power plant AOCI - Accumulated Other Comprehensive Income MD&A - Management's Discussion and Analysis of Financial Condition and Results of Operations APCU - Annual power cost update MMBtu - Million British Thermal Units ASU - Accounting Standards Update MW - Megawatt ATM - At-the-market offering program MWh - Megawatt-hour B2H - Boardman-to-Hemingway, a high-voltage transmission line project NAV - Net asset value BCC - Bridger Coal Company, a jointly-owned investment of IERCo NEPA - National Environmental Policy Act CPCN - Certificate of Public Convenience and Necessity North Valmy plant - Idaho Power's jointly-owned generating plant in Valmy, Nevada CWA - Clean Water Act O&M - Operations and Maintenance EPA - U.S. Environmental Protection

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS IDACORP, Inc. Condensed Consolidated Statements of Income (unaudited) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 (in thousands, except per share amounts) (in thousands, except per share amounts) Operating Revenues: Electric utility revenues $ 523,549 $ 527,487 $ 1,405,173 $ 1,425,606 Other 868 1,040 2,581 2,896 Total operating revenues 524,417 528,527 1,407,754 1,428,502 Operating Expenses: Electric utility: Purchased power 121,276 114,578 284,163 321,860 Fuel expense 74,992 73,471 179,238 188,411 Power cost adjustment ( 18,295 ) 20,779 57,967 102,297 Other operations and maintenance 120,398 116,168 355,371 332,900 Energy efficiency programs 7,460 5,283 18,808 16,699 Depreciation and amortization 64,493 56,388 185,407 165,133 Other electric utility operating expenses, net 8,112 7,453 24,053 12,482 Total electric utility operating expenses 378,436 394,120 1,105,007 1,139,782 Other 1,160 698 2,424 2,145 Total operating expenses 379,596 394,818 1,107,431 1,141,927 Operating Income 144,821 133,709 300,323 286,575 Nonoperating (Income) Expense: Allowance for equity funds used during construction ( 15,569 ) ( 15,179 ) ( 45,177 ) ( 39,610 ) Earnings of unconsolidated equity-method investments ( 2,185 ) ( 1,978 ) ( 4,208 ) ( 3,880 ) Interest on long-term debt and finance leases 46,244 35,432 128,733 102,048 Other interest 7,847 6,353 21,696 17,895 Allowance for borrowed funds used during construction ( 9,207 ) ( 7,639 ) ( 26,075 ) ( 20,518 ) Other income, net ( 14,604 ) ( 13,478 ) ( 43,582 ) ( 40,188 ) Total nonoperating expense, net 12,526 3,511 31,387 15,747 Income Before Income Taxes 132,295 130,198 268,936 270,828 Income Tax Expense (Benefit) 7,686 16,358 ( 11,460 ) 18,876 Net Income 124,609 113,840 280,396 251,952 Income attributable to noncontrolling interests ( 172 ) ( 235 ) ( 531 ) ( 654 ) Net Income Attributable to IDACORP, Inc. $ 124,437 $ 113,605 $

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