IDACORP Delivers Strong Q1 Results, Maintains Optimism Amid Regulatory and Operational Headwinds

IDACORP, Inc. (NYSE: IDA) kicked off 2025 with robust first-quarter financial results, reporting a 12.4% year-over-year rise in net income to $59.6 million ($1.10 per diluted share), while reaffirming its full-year 2025 earnings guidance of $5.65 to $5.85 per share. The results underscore the utility holding company’s resilience, driven by rate adjustments, customer growth, and cost efficiencies, even as it navigates rising operational expenses and infrastructure investments.

Q1 2025 Highlights: Growth Drivers and Strategic Momentum

The quarter’s earnings surge was fueled by three key factors:
1. Rate Hikes and Revenue Growth: A 2.6% increase in Idaho Power customers (adding ~16,500 households and businesses) and a $11.3 million boost from higher base rates—effective January 1, 2025—after regulatory approval.
2. Tax Credit Utilization: A $6.8 million increase in accumulated deferred investment tax credits (ADITC) amortization, reflecting improved regulatory mechanisms.
3. Lower Power Supply Costs: More stable wholesale energy prices in the western U.S. cut net power supply expenses by $1.9 million.

Challenges and Operational Pressures

Despite the positive results, idacorp faces headwinds that could test its ability to meet its guidance:
- Rising O&M Costs: A $7.2 million increase in operations and maintenance expenses, driven by wildfire mitigation ($3.2 million), reduced grant funding ($1.8 million), and inflation.
- Depreciation Pressures: A $5.8 million rise due to expanded infrastructure, including ongoing transmission projects.
- Interest Expense Growth: Higher debt levels and customer deposits increased interest costs by $2.2 million, though partially offset by elevated AFUDC (interest savings from construction spending).

Strategic Priorities and Long-Term Outlook

IDACORP’s reaffirmed guidance reflects confidence in its ability to balance growth with regulatory and operational demands:
- Infrastructure Investments: The company plans to begin construction on three major transmission projects in 2025, supporting its goal of 100% clean energy by 2045. Capital expenditures are projected at $1.0–1.1 billion (excluding AFUDC).
- Regulatory Compliance: Idaho Power’s reliance on rate-case approvals and tax credit utilization requires steady regulatory cooperation, particularly as it navigates wildfire risks and inflation.
- Hydropower Growth: Anticipated hydropower generation of 7.0–8.5 million MWh in 2025, up from prior estimates, highlights the reliability of its renewable energy assets.

Conclusion: A Steady Hand in a Volatile Landscape

IDACORP’s first-quarter results and reaffirmed guidance signal a disciplined approach to growth, leveraging stable utility operations and strategic investments. With a 23.6% increase in EPS year-over-year and a clear path to its $5.65–$5.85 2025 target, the company appears well-positioned to capitalize on its regulated utility advantages.

However, risks remain: extreme weather, supply chain delays, and regulatory uncertainties could disrupt the outlook. Investors should monitor Idaho Power’s O&M cost trends and the pace of transmission project approvals.

Ask Aime: How much has Idaho Power's stock price risen since Q1 2025?

For now, IDACORP’s diversified portfolio—anchored by Idaho Power’s 650,000+ customers and clean energy commitments—supports its status as a defensive utility play with moderate growth potential. While challenges loom, the company’s Q1 performance and reaffirmed targets suggest it remains on track to deliver steady returns for shareholders.