IDACORP's Q3 Net Income Jumps 11% Amidst Capital Expansion

TL;DR

IDACORP is investing heavily in its infrastructure, boosting net income despite revenue dips, making it a solid long-term utility play.

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 prior year, representing an 11.37% increase. Diluted earnings per share also rose to $5.13 from $4.82. Total operating revenues for the nine-month period slightly decreased to $1,407.754 million from $1,428.502 million, a 1.45% decline, primarily due to a $20.433 million decrease in electric utility revenues. Operating expenses saw a reduction of $34.496 million, largely driven by a $44.330 million decrease in power cost adjustment and a $37.697 million decrease in purchased power and fuel expenses. However, other operations and maintenance expenses increased by $22.471 million, and depreciation and amortization rose by $20.274 million. The company's balance sheet shows a substantial increase in Property, Plant and Equipment, net, to $7,374.991 million as of September 30, 2025, from $6,517.318 million at December 31, 2024, indicating significant capital investment. Long-term debt also increased to $3,330.752 million from $3,053.777 million.

Why It Matters

IDACORP's robust net income growth of 11.37% for the nine months ended September 30, 2025, signals strong operational efficiency and profitability for investors, despite a slight dip in total operating revenues. The substantial increase in Property, Plant and Equipment, net, by $857.673 million, reflects significant capital expenditures, which could enhance future earning capacity and competitive positioning in the utility sector. However, this expansion is partly financed by increased long-term debt, which investors should monitor for its impact on financial leverage. For customers and employees, these investments likely translate to improved infrastructure and service reliability, while the broader market sees a utility company actively investing in its asset base, potentially driving regional economic growth in Idaho.

Risk Assessment

Risk Level: medium — The company faces medium risk due to increased long-term debt of $3,330.752 million as of September 30, 2025, up from $3,053.777 million at December 31, 2024, and a significant increase in current maturities of long-term debt to $116.300 million from $19.885 million. This indicates higher financial leverage and refinancing risk. Additionally, while net income is up, total operating revenues decreased by $20.748 million for the nine months ended September 30, 2025, compared to the prior year, suggesting potential challenges in revenue generation.

Analyst Insight

Investors should consider IDACORP's long-term growth potential driven by its significant capital investments in utility plant, which increased by $857.673 million. However, they should also monitor the company's rising debt levels, particularly the increase in current maturities of long-term debt to $116.300 million, and assess its impact on future interest expenses and financial flexibility.

Financial Highlights

revenue

$1,407,754,000

operating Margin

21.33%

total Debt

$3,330,752,000

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 11.37% for the nine months ended September 30, 2025, from $251.298M in 2024.)
• $5.13 — Diluted Earnings Per Share (Increased from $4.82 for the nine months ended September 30, 2024.)
• $1,407.754M — Total Operating Revenues (Decreased 1.45% for the nine months ended September 30, 2025, from $1,428.502M in 2024.)
• $7,374.991M — Property, Plant and Equipment - net (Increased by $857.673M from $6,517.318M at December 31, 2024.)
• $3,330.752M — Long-Term Debt (Increased from $3,053.777M at December 31, 2024.)
• $116.300M — Current Maturities of Long-Term Debt (Increased significantly from $19.885M at December 31, 2024.)
• $185.407M — Depreciation and Amortization (Increased by $20.274M for the nine months ended September 30, 2025, from $165.133M in 2024.)
• $120.398M — Other Operations and Maintenance (Q3 2025) (Increased from $116.168M in Q3 2024.)

Key Players & Entities

• IDACORP, Inc. (company) — parent company and registrant
• Idaho Power Company (company) — subsidiary and registrant
• SEC (regulator) — U.S. Securities and Exchange 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
• $5.13 (dollar_amount) — Diluted Earnings Per Share for nine months ended September 30, 2025
• $4.82 (dollar_amount) — Diluted Earnings Per Share for nine months ended September 30, 2024
• $7,374.991 million (dollar_amount) — Property, Plant and Equipment - net as of September 30, 2025
• $6,517.318 million (dollar_amount) — Property, Plant and Equipment - net as of December 31, 2024
• $3,330.752 million (dollar_amount) — Long-Term Debt as of September 30, 2025

FAQ

Risk Factors

• Regulatory Environment and Rate Setting [high — regulatory]: Idaho Power operates under extensive regulation by the Idaho Public Utilities Commission (IPUC) and the Oregon Public Utility Commission (OPUC). Changes in regulatory policy, rate decisions, or the disallowance of costs could materially impact financial results. For instance, the company's ability to recover fuel and purchased power costs through mechanisms like the Power Cost Adjustment (PCA) is subject to regulatory approval and can lead to variances in earnings.
• Commodity Price Volatility [medium — market]: The company is exposed to fluctuations in the prices of natural gas and other fuels used for power generation, as well as the cost of purchased power. While the Power Cost Adjustment mechanism helps to mitigate some of this volatility by allowing for recovery of these costs, significant price swings can still affect interim earnings and cash flow before adjustments are fully realized. For the nine months ended September 30, 2025, purchased power and fuel expenses decreased by $44.330 million and $37.697 million respectively, indicating some cost management or market shifts.
• Infrastructure and Asset Management [medium — operational]: Maintaining and upgrading a vast network of generation, transmission, and distribution assets is critical. Significant increases in Property, Plant and Equipment, net, to $7,374.991 million as of September 30, 2025, from $6,517.318 million at December 31, 2024, reflect substantial capital investments. Unexpected outages, natural disasters, or failures in these assets could lead to significant repair costs, service disruptions, and potential liabilities.
• Debt Management and Financing [medium — financial]: The company's long-term debt increased to $3,330.752 million from $3,053.777 million at December 31, 2024, and current maturities of long-term debt rose significantly to $116.300 million from $19.885 million. Managing this debt load, especially with increased near-term obligations, is crucial. Interest expenses on long-term debt and finance leases rose to $128.733 million for the nine months ended September 30, 2025. Access to capital markets and interest rate fluctuations pose financial risks.
• Cybersecurity and Data Security [medium — operational]: As a critical infrastructure provider, Idaho Power is a target for cyberattacks. A successful breach could disrupt operations, compromise sensitive customer data, and lead to significant financial and reputational damage. The company's reliance on sophisticated IT systems for grid management and customer service makes robust cybersecurity measures essential.
• Environmental Regulations and Climate Change [medium — regulatory]: Increasingly stringent environmental regulations related to emissions, water usage, and waste disposal can necessitate costly upgrades to generation facilities or changes in fuel mix. The company must also adapt to potential impacts of climate change on resource availability and demand. While not explicitly detailed as a risk in the provided excerpt, this is a pervasive industry concern.
• Competition and Market Dynamics [low — market]: While regulated, the energy market is evolving with distributed generation, energy storage, and potential for new market entrants or service models. Idaho Power must adapt to changing customer preferences and technological advancements to maintain its competitive position and relevance.

Industry Context

Idaho Power operates within the regulated electric utility sector, characterized by significant capital intensity and reliance on stable, predictable revenue streams. The industry is increasingly focused on the transition to cleaner energy sources, grid modernization, and adapting to evolving customer demands for energy services. Regulatory frameworks play a crucial role in shaping operational strategies and financial performance.

Regulatory Implications

The company's financial health is heavily dependent on decisions made by state utility commissions regarding rate structures, cost recovery mechanisms (like the Power Cost Adjustment), and capital investments. Changes in environmental regulations or mandates for renewable energy integration could also necessitate substantial future expenditures and operational adjustments.

What Investors Should Do

1. Monitor regulatory filings and rate case outcomes.
2. Analyze capital expenditure plans and their financing.
3. Evaluate the impact of energy commodity price volatility.
4. Assess operational efficiency and cost management.

Glossary

Power Cost Adjustment (PCA)

A regulatory mechanism that allows an electric utility to adjust customer rates to reflect changes in the cost of fuel and purchased power, typically on a quarterly basis, subject to regulatory approval. (This mechanism directly impacts the company's ability to recover significant operating expenses and influences its reported revenues and profitability by smoothing out volatile energy commodity prices.)

Allowance for equity funds used during construction (AFUDC)

A regulatory accounting practice that allows utilities to include the cost of capital (both debt and equity) used to finance construction of new facilities in the cost of those assets, which is then recovered over the life of the asset once it is placed in service. (This reduces current income tax expense and increases net income by capitalizing interest and equity costs, impacting the timing of revenue recognition for capital projects.)

Allowance for borrowed funds used during construction (ABUFDC)

A component of AFUDC that specifically accounts for the interest cost on debt incurred for construction projects. (Similar to AFUDC, it affects the capitalization of interest costs and the timing of expense recognition.)

Noncontrolling interests

The portion of equity interest in a subsidiary that is not attributable to the parent company. It represents the ownership stake of outside shareholders in a consolidated subsidiary. (This line item on the income statement indicates that a portion of the net income belongs to other shareholders, not IDACORP, Inc. itself.)

Operating Income

A measure of a company's profit after deducting operating expenses from operating revenues. It reflects the profitability of the core business operations. (This is a key indicator of the company's operational efficiency and profitability before considering interest, taxes, and other non-operating items.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, IDACORP, Inc. reported a notable 11.37% increase in Net Income Attributable to IDACORP, Inc. to $279.865 million, with Diluted EPS rising to $5.13 from $4.82. This profit growth occurred despite a slight 1.45% decrease in Total Operating Revenues to $1,407.754 million, primarily due to lower electric utility revenues. The improved net income was largely driven by a significant reduction in operating expenses, specifically a $44.330 million decrease in power cost adjustment and a $37.697 million decrease in purchased power and fuel expenses, partially offset by increases in other operations and maintenance and depreciation. The balance sheet reflects substantial capital investment, with Property, Plant and Equipment, net, growing by $857.673 million, and long-term debt increasing to $3,330.752 million.

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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