Avista Q2 2025 Earnings: Revenue Up 2.2% but EPS Misses Expectations

Avista reported Q2 2025 revenue of $411m, up 2.2% YoY, but net income fell 39% to $14m. Profit margin decreased to 3.4% from 5.7% in Q2 2024. EPS missed analyst estimates by 44% at $0.17. Revenue is forecast to grow 3.3% p.a. over the next 3 years, compared to a 5.0% growth forecast for the Integrated Utilities industry in the US.

Avista Corp. (AVA) reported its fiscal 2025 Q2 earnings on Aug 7, 2025, with results falling short of expectations. The company's revenue increased by 2.2% year-over-year (YoY) to $411 million, driven primarily by its core utility operations. However, net income fell 39.1% to $14 million, marking a significant decline from the same period last year. The earnings per share (EPS) dropped 41.4% to $0.17, missing analyst estimates by 44% [1].

Avista Utilities, a significant contributor to the company's revenue, accounted for $400 million, while Alaska Electric Light and Power Company (AEL&P) contributed $11 million. Despite the revenue growth, the company's profit margin decreased to 3.4% from 5.7% in Q2 2024. This decline in profitability was primarily attributed to unrealized investment losses, particularly in clean technology [1].

The stock price of Avista has experienced a decline in recent trading periods. Over the latest trading day, the stock edged down 1.61%. The downward trend continued with a 1.53% drop during the most recent full trading week, and a 3.88% month-to-date decline. The post-earnings price action reflects market uncertainty and investor sentiment influenced by the disappointing earnings results [1].

CEO Heather Rosentrater emphasized operational resilience and long-term 4-6% earnings growth. She confirmed $525 million in utility capital expenditures and $120 million in debt issuance for 2025. Rosentrater highlighted the strength of core utility operations and the recent regulatory settlements in Washington, Oregon, and Idaho as confidence boosters. She remained optimistic about future opportunities to meet customer needs and continue strategic progress [1].

Avista Corp. confirmed its 2025 consolidated earnings guidance of $2.52 to $2.72 per diluted share but anticipates being at the lower end due to investment losses recorded in the first half. Avista Utilities is expected to perform at the upper end of its guidance range of $2.43 to $2.61 per diluted share, reflecting strong performance and cost management. The company expects earnings growth in the 4-6 percent range over the long term from its 2025 base year. Avista also anticipates $525 million in utility capital expenditures for 2025 and up to $80 million in common stock issuance [1].

Avista Corp. issued $120 million in long-term debt in July 2025 to repay borrowings on its committed line of credit. Additionally, AEL&P secured a $20 million term loan to fund capital expenditures and repay its line of credit. The company anticipates issuing up to $80 million in common stock in 2025 and has no plans for further long-term debt issuance. Capital expenditures for Avista Utilities are expected to total $3 billion over the five-year period ending in 2029. The company also plans to invest $5 million in non-regulated investment opportunities and economic development projects within its service territory in 2025 [1].

References:
[1] https://www.ainvest.com/news/avista-2025-q2-earnings-misses-targets-net-income-drops-39-1-2508/