AVA · Avista Corporation

Avista Corp. delivered a strong Q1 2026 performance with GAAP net income rising to $92 million or $1.11 per diluted share from $79 million or $0.98 in the prior year, primarily fueled by improved utility margins from general rate cases and a swing from net investment losses to gains in non-regulated businesses. Non-GAAP utility earnings reached $91 million or $1.10 per share, up from $82 million or $1.01, reflecting a $9 million after-tax increase. Key drivers included a $4 million boost in natural gas utility margin from rate adjustments, partially offsetting a $2 million electric margin decline due to removal of Colstrip cost recovery revenues, though the Energy Recovery Mechanism expense improved to $1 million pre-tax from $7 million. Depreciation fell $3 million post-Colstrip exit, while other factors like interest income and lower taxes added support. CEO Heather Rosentrater highlighted focus on safety, reliability, and execution, positioning the company on track for full-year goals. Guidance for 2026 non-GAAP utility earnings remains $2.52-$2.72 per share, assuming normal weather, a ($0.10) ERM impact, 12% effective tax rate, and $615 million capex. Q1 capex hit $147 million, with base plans escalating to $710 million by 2030. Liquidity stood at $156 million total, supporting planned $90 million equity and $230 million debt issuances. Long-term, 4-6% utility earnings growth is targeted from 2025 midpoint, underscoring operational stability amid regulatory and weather risks.