Avista Corp. Reports Mixed 2025 Results, Issues Cautious 2026 Outlook
AVISTA CORP (NYSE:AVA) released its fourth-quarter and full-year 2025 financial results before the market opened on February 25, 2026. The utility holding company posted earnings that fell short of analyst expectations for the quarter while providing initial guidance for 2026 that reflects a significant headwind from a departing industrial customer.
Earnings and Revenue Versus Estimates
The company's reported figures for the final quarter of 2025 presented a mixed picture relative to Wall Street forecasts.
- Q4 2025 Non-GAAP EPS: Reported $0.88 per diluted share.
- Analyst Estimate for Q4 2025 EPS: $1.03 per diluted share.
- Q4 2025 Revenue: Reported $533 million.
- Analyst Estimate for Q4 2025 Revenue: Approximately $521.1 million.
While Avista's revenue for the quarter modestly exceeded expectations, its earnings per share came in notably below consensus estimates. This shortfall appears to be a primary driver behind the stock's negative reaction in pre-market trading, where shares were indicated down approximately 1.3%.
Market Reaction and Performance Context
The immediate market response to the earnings miss has been negative. However, this reaction occurs within a broader context of relatively stable performance for the utility stock in recent weeks. Prior to the earnings release, AVA shares had shown modest gains over the past month, suggesting investor sentiment was neutral to slightly positive heading into the report. The pre-market decline indicates the quarterly EPS disappointment is outweighing the revenue beat and the company's longer-term operational narrative.
Key Takeaways from the 2025 Press Release
Beyond the quarterly comparison, Avista's detailed release highlighted several important financial and operational developments for the full year 2025 and the path ahead.
Full-Year 2025 Performance: The company reported full-year GAAP net income of $193 million, or $2.38 per diluted share, up from $180 million, or $2.29 per share, in 2024. Management emphasizes the performance of its core utility operations, reporting full-year non-GAAP utility earnings of $207 million, or $2.55 per share, compared to $187 million, or $2.38 per share, the previous year. President and CEO Heather Rosentrater attributed the utility's strength to "strong operational execution, constructive regulatory outcomes, customer load growth, and disciplined cost management."
The earnings bridge for the year showed growth was primarily driven by increased electric and natural gas utility margins, which added $1.09 and $0.22 per share, respectively. These gains were partially offset by higher operating expenses, depreciation, and interest costs.
2026 Guidance and Analyst Expectations: A significant focus of the report was the initiation of 2026 non-GAAP utility earnings guidance. Avista provided a range of $2.52 to $2.72 per diluted share. Crucially, the company stated this guidance already incorporates a $0.12 per share reduction due to the unexpected departure of a large industrial customer who will begin procuring power independently.
This initial 2026 guidance range sits below the current full-year analyst EPS estimate of $2.80. The company's outlook, which assumes normal weather, a 12% effective tax rate, and $585 million in capital expenditures, suggests a year of consolidation rather than growth compared to the 2025 utility EPS of $2.55.
Other Press Release Highlights:
- Non-Regulated Losses: Losses from non-regulated business ventures, primarily investments in clean technology and biotechnology, increased to $14 million in 2025 from $7 million in 2024.
- Capital Expenditures: The company remains in a significant investment phase, with Avista Utilities' capital expenditures reaching $553 million in 2025. A base capital expenditure plan through 2030 forecasts annual spending ranging from $585 million to $800 million.
- Long-Term Growth Target: Management reiterated its long-term target for non-GAAP utility earnings to grow 4% to 6% annually from the midpoint of its 2025 guidance.
Outlook and Path Forward
Avista's results underscore the steady, regulated nature of its core utility business, which delivered predictable growth in 2025. However, the quarterly earnings miss and the lowered 2026 guidance due to customer attrition have tempered near-term optimism. The company's performance will hinge on continued constructive regulatory outcomes, managing its substantial capital investment program efficiently, and offsetting the loss of the large industrial load. Investors will likely weigh the security and dividend typical of a regulated utility against these specific growth headwinds.
For a detailed breakdown of future quarterly and annual earnings estimates for Avista Corp., you can review them here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
