EMA · Emera Incorporated

Emera’s Q1 2026 results reflect continued execution against its regulated utility strategy, with adjusted EPS growth of 7% year-over-year driven by strong operational performance across key US assets—particularly Tampa Electric (TEC) and Peoples Gas (PGS)—and record contributions from Emera Energy Services (EES). The $1.37 adjusted EPS exceeded the prior-year $1.28 despite headwinds including lower earnings at Nova Scotia Power (NSPI), higher corporate costs, and a $17 million CAD translation impact on USD-denominated earnings. Management attributes the TEC and PGS gains to new base rate recoveries and off-system sales, while EES benefited from favorable natural gas market volatility. Reported GAAP net income declined modestly to $562 million, largely due to the exclusion of $147 million in after-tax mark-to-market gains—consistent with Emera’s policy of excluding non-cash MTM adjustments to better align earnings with underlying cash flows. The company reaffirmed its long-term 5–7% average annual adjusted EPS growth target through 2030 (using 2024 as base year) and signaled confidence in exceeding that range in 2026. Capital deployment remained disciplined: $879 million was invested in Q1 against a $4.0 billion 2026 plan, with ~80% of the broader $20 billion 2026–2030 capital program earmarked for Florida to address rapid customer growth and infrastructure modernization. Strategically, Emera advanced portfolio optimization by entering into an agreement to sell Grand Bahama Power Company (GBPC) on May 5, 2026—following the August 2024 announcement of NMGC’s sale—indicating a deliberate shift toward core, high-growth regulated operations in Florida and Atlantic Canada. These developments collectively reinforce Emera’s focus on predictable, rate-base-driven earnings, investment-grade credit maintenance, and sustainable dividend growth—now extended to 19 consecutive years.