8-K: IDACORP Reports Strong Q1 2026 Results, Reaffirms Guidance

IDACORP, Inc. announced first quarter 2026 net income of $68.0 million, or $1.21 per diluted share, exceeding the prior year's $59.6 million ($1.10 per diluted share), and reaffirmed its full-year earnings guidance.

Summary

• IDACORP, Inc. reported first quarter 2026 net income of $68.0 million, or $1.21 per diluted share, an increase from $59.6 million, or $1.10 per diluted share, in the first quarter of 2025.
• The company reaffirmed its full-year 2026 earnings guidance of $6.25 to $6.45 per diluted share.
• Key drivers for the increased net income included higher retail revenues per megawatt-hour due to rate changes effective January 1, 2026, and customer growth of approximately 2.3% (15,000 customers) over the twelve months ended March 31, 2026.
• These positive impacts were partially offset by higher operations and maintenance (O&M) expenses, including wildfire mitigation and amortization of deferred costs, and lower utilization of tax credits under the Idaho regulatory mechanism.
• IDACORP is progressing on major projects, including 250 MW of batteries coming online and continued development of transmission and generation projects.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, with strong year-over-year earnings growth and reaffirmed guidance, indicating solid operational execution and financial health despite some cost pressures.

Positives

• First quarter 2026 net income increased to $68.0 million from $59.6 million in Q1 2025.
• Diluted earnings per share rose to $1.21 in Q1 2026 from $1.10 in Q1 2025.
• Customer growth of approximately 2.3% (15,000 customers) in the twelve months ended March 31, 2026.
• Retail revenues per megawatt-hour increased by $18.0 million due to rate changes effective January 1, 2026.
• Idaho fixed cost adjustment (FCA) revenues positively affected retail revenues by $19.1 million.
• Full-year 2026 earnings guidance of $6.25 to $6.45 per diluted share was reaffirmed.

Negatives

• Other operations and maintenance (O&M) expenses increased by $13.1 million, primarily due to wildfire mitigation and amortization of deferred costs.
• Usage per retail customer decreased operating income by $10.7 million due to more moderate temperatures impacting heating energy use.
• Non-operating expense, net, increased by $4.1 million, mainly due to higher interest expense on increased long-term debt.
• Additional accumulated deferred investment tax credits (ADITC) amortization decreased by $13.0 million, impacting net income.

Risks

• Decisions or actions by state and federal regulators impacting Idaho Power's ability to recover costs and earn a return on investment.
• Changes to or elimination of Idaho Power's regulatory cost recovery mechanisms.
• Expenses and risks associated with capital expenditures and contractual obligations for utility infrastructure projects, including potential delays, cost increases, and regulatory prudence.
• Impacts of economic conditions, including inflation, recessionary environment, interest rates, and tariffs, on operations, capital investments, and customer demand.
• Uncertainty of forecasted power usage ramp rates or volumes for new industrial customer load, potentially leading to demand exceeding supply and revenue volatility.
• Risks of operating an electric utility system, including compliance with regulatory obligations and potential liability for fires, outages, and personal injury or property damage.
• Abnormal or severe weather conditions, wildfires, droughts, earthquakes, and other natural phenomena and natural disasters.
• Ability to acquire equipment, materials, fuel, power, and transmission capacity on reasonable terms and prices, especially amidst supply chain constraints and price volatility.

Future Outlook

IDACORP is reaffirming its full-year 2026 earnings guidance of $6.25 to $6.45 per diluted share. This guidance assumes normal weather conditions and power supply expenses, and anticipates Idaho Power will use less than $30 million of additional tax credits available under the Idaho regulatory mechanism in 2026. The company expects 2026 to be an exciting year of execution with 250 MW of batteries coming online and continued progress on major transmission and generation projects.

Management Comments

• "Strong first quarter results benefited from customer growth and rate changes," said IDACORP President and Chief Executive Officer Lisa Grow.
• "As expected, those benefits were partially offset by higher O&M expenses and recording fewer tax credits under the companys Idaho regulatory mechanism."
• "We expect 2026 will be an exciting year of execution for us, with 250 MWs of batteries coming online and continued progress on our major transmission and generation projects. During this period of growth, we remain focused on reliability and affordability for our customers and providing increased value for our shareholders," Grow added.

Industry Context

StockSavvy.ai notes that IDACORP's Q1 2026 results reflect typical operational dynamics for a regulated electric utility, balancing revenue growth from rate adjustments and customer expansion against rising operational costs and regulatory mechanisms. The company's focus on battery storage and transmission projects aligns with broader industry trends towards grid modernization and renewable energy integration.

Comparison to Industry Standards

• Idaho Power's residential average electricity rates (cents/kWh) are presented as being competitive, with the company's rates for the 12 months ending June 30, 2025, being lower than the national average, according to the Edison Electric Institute Typical Bills and Average Rates Report.
• The company's customer growth rate of 2.3% for the twelve months ended March 31, 2026, is presented alongside historical Integrated Resource Plan (IRP) forecasts, with the 2025 IRP projecting higher near-term growth rates (8.3% for retail sales, 5.1% for annual peak) compared to older IRPs, indicating a potentially stronger demand environment than previously anticipated.
• Capital expenditure forecasts show an average of approximately $1,416 million per year for 2026-2030, a significant increase from the ~$709 million per year average over the previous five years, reflecting substantial investment in new capacity, transmission, and infrastructure upgrades, which is common for utilities undertaking modernization and expansion efforts.

Legal Proceedings

• The Idaho Wildfire Standard of Care Act establishes a statutory wildfire-related liability standard, creating a rebuttable presumption that the utility was not negligent if it reasonably implemented the Commission-approved wildfire mitigation plan.

Stakeholder Impact

• Shareholders: Reaffirmed earnings guidance and positive Q1 results suggest continued value creation.
• Customers: Rate changes effective January 1, 2026, contributed to revenue growth, while the company emphasizes affordability and reliability.
• Employees: Focus on safety, integrity, and respect for all is mentioned in the background information.
• Suppliers/Contractors: Risks associated with supplier and contractor delays and performance standards on utility infrastructure projects are noted.

Next Steps

• Continue execution of 2026 plans, including bringing 250 MW of batteries online.
• Progress on major transmission and generation projects.
• Focus on reliability and affordability for customers and increased value for shareholders.
• Final short list for the 2032 all-resource RFP expected by the end of summer.
• Contracting for the 2032 RFP anticipated to be completed by the end of 2026.
• Settlement of Forward Sale Agreements expected on or prior to November 9, 2026.

Key Dates

Recommendation

The company delivered expected results with year-over-year growth and reaffirmed guidance, demonstrating operational stability. However, the increase in O&M expenses and the partial offset from tax credits, along with ongoing capital expenditure needs and regulatory risks, suggest a steady 'hold' rather than a strong buy or sell recommendation at this juncture.

Keywords

IDACORP, Idaho Power, Q1 2026 Earnings, Financial Results, Utilities, Electric Utility, Earnings Guidance, Regulatory Filings