IDACORP INC (NYSE:IDA), the holding company for Idaho Power, reported fourth-quarter and full-year 2025 financial results that exceeded earnings expectations, though revenue fell short of analyst forecasts. The company also provided initial earnings guidance for 2026 that suggests continued growth, albeit at a pace that appears to have underwhelmed investors in early trading.
Earnings and Revenue Versus Estimates
The utility’s performance for the final quarter of 2025 presented a mixed picture when held against Wall Street’s expectations. The company reported non-GAAP earnings per share (EPS) of $0.78, surpassing the analyst consensus estimate of $0.7387. This continues a trend of earnings beats for the company.
However, the top-line story was less robust. IDACORP reported quarterly revenue of approximately $405.2 million, which came in significantly below the analyst estimate of about $538.4 million. This substantial revenue miss highlights a divergence between profitability and sales growth during the period.
The full-year 2025 results showed strong earnings growth, with EPS reaching $5.90, up from $5.50 in 2024. This result landed at the top end of the company’s previously increased guidance range.
Market Reaction and Price Action
The market’s immediate reaction to the report has been negative. In pre-market trading following the earnings release, IDA stock is indicating an opening decline of approximately 4%. This sell-off suggests investors are focusing on the revenue shortfall and perhaps weighing the company’s forward guidance against elevated expectations, despite the earnings beat.
This pre-market drop contrasts with the stock’s recent positive trajectory, which had seen gains over the past month, week, and two-week periods. The sharp reversal indicates the earnings report contained elements that disappointed the market.
Key Drivers from the 2025 Results
According to the press release, IDACORP’s full-year earnings benefited from several key factors:
- Regulatory Rate Changes: Increased base rates in Idaho, effective January 2025, provided a significant boost to operating income.
- Customer Growth: The utility added approximately 15,000 new customers in 2025, a 2.3% increase, which contributed to higher earnings.
- Lower Tax Expense: Reduced income tax expense and the use of accumulated deferred investment tax credits (ADITC) under its Idaho regulatory mechanism positively impacted net income.
These benefits were partially offset by higher depreciation and financing costs associated with the company’s ongoing substantial investments in infrastructure.
2026 Outlook and Analyst Comparisons
Looking ahead, IDACORP initiated its 2026 earnings guidance in the range of $6.25 to $6.45 per diluted share. This midpoint of $6.35 represents year-over-year growth of approximately 7.6% from the 2025 EPS of $5.90.
The company’s guidance is based on several operational assumptions:
- The use of less than $30 million of additional tax credits, compared to $40.3 million used in 2025.
- A projected increase in Operations & Maintenance (O&M) expenses to $525-$535 million from $471 million in 2025.
- Capital expenditures are expected to rise to a range of $1.3 to $1.5 billion, up from $1.083 billion in 2025.
- The guidance assumes normal weather and power supply costs.
For context, analyst estimates for IDACORP’s full-year 2026 revenue currently stand at approximately $2.13 billion, with an EPS estimate of $6.44. The company’s provided EPS guidance range brackets this consensus figure, suggesting management’s outlook is largely in line with Wall Street’s profit expectations for the coming year.
Conclusion
IDACORP’s 2025 finish demonstrates the strength of its regulated utility model, delivering earnings at the high end of guidance through a combination of rate increases, customer growth, and tax benefits. However, the significant revenue miss for the fourth quarter and a 2026 outlook that calls for materially higher operating and capital expenditures appear to have given investors pause, as reflected in the pre-market decline. The focus now shifts to the company’s ability to execute its substantial investment plan while managing costs and navigating the regulatory environment to hit its 2026 targets.
For a detailed look at historical earnings, future estimates, and analyst projections, visit the IDACORP earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
