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1. Company Snapshot

1.a. Company Description

IDACORP, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, purchase, and sale of electric energy in the United States.The company operates 17 hydropower generating plants located in southern Idaho and eastern Oregon; three natural gas-fired plants in southern Idaho; and interests in two coal-fired steam electric generating plants located in Wyoming and Nevada.As of December 31, 2021, it had approximately 4,843 pole-miles of high-voltage transmission lines; 23 step-up transmission substations located at power plants; 21 transmission substations; 10 switching stations; 30 mixed-use transmission and distribution substations; 187 energized distribution substations; and 28,570 pole-miles of distribution lines, as well as provides electric utility services to approximately 604,000 retail customers in southern Idaho and eastern Oregon.


The company serves commercial and industrial customers, which involved in food processing, electronics and general manufacturing, agriculture, health care, government, and education.It also invests in housing and other real estate tax credit investments.IDACORP, Inc.


was founded in 1915 and is headquartered in Boise, Idaho.

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1.b. Last Insights on IDA

IDACORP's recent performance was driven by strong earnings growth, with Q3 2024 net income increasing to $113.6 million, or $2.12 per diluted share, compared to $105.3 million, or $2.07 per diluted share, in Q3 2023. The company's total operating expenses also increased, but customer growth, rate changes, and favorable weather conditions contributed to higher customer usage. Additionally, IDACORP's five-year capital spending plan remains sufficient to drive solid diluted EPS growth in the future, and the company enjoys a BBB credit rating from S&P on a stable outlook.

1.c. Company Highlights

2. IDACORP's 2025 Earnings Report: A Strong Performance with Growth Ahead

IDACORP reported a strong financial performance for 2025, with diluted earnings per share (EPS) reaching $5.90, up from $5.50 in 2024, marking the company's 18th consecutive year of EPS growth. The actual EPS came out at $0.78 relative to estimates at $0.74. Revenue growth was robust, driven by a 2.3% increase in customer base, including a 2.5% growth in residential customers, bringing the total number of metered customers to over 660,000. Net income increased by $34 million compared to 2024, and operating income benefited from a January rate increase and customer growth, resulting in a $75 million benefit. As Brian Buckham noted, "Our 2025 net income increased over $34 million compared to 2024, and higher operating income at Idaho Power from the January rate increase and from customer growth combined for a roughly $75 million benefit."

Publication Date: Feb -22

📋 Highlights
  • EPS Growth and Guidance Beat:: Diluted EPS rose 7.3% YoY to $5.90, surpassing guidance by $0.15/share, with tax credit amortization increasing to $40M from $30M.
  • Customer Growth Outpacing National Trends:: Total customers grew 2.3% YoY (2.5% residential) to 660,000, driven by housing and industrial demand, including Micron-related subdivisions.
  • 5-Year CapEx Surge and Rate Base Expansion:: Total CapEx forecast at $7B ($1.4B/year) from 2026–2030, with rate base projected to double from $5.3B in 2025 to $11B+ by 2030 (16.7% CAGR).
  • Operational Cash Flow Milestone:: Net cash flow from operations hit $600M+ for the first time, funding 50%+ of CapEx needs and reducing reliance on equity ($1.4B net equity sales remaining through 2030).
  • Large Load Growth and Future Revenue Drivers:: 2027+ demand expected from data centers and manufacturing, with Micron and others driving weather-adjusted sales growth of 2.3% YoY in 2025.

Guidance and Outlook

The company has provided guidance for 2026, expecting diluted EPS to be in the range of $6.25 to $6.45, assuming normal weather conditions and power supply expenses. The forecast is based on a continued robust growth across Idaho Power's service area, outperforming national trends. Analysts estimate next year's revenue growth at 6.7%, which is slightly higher than the company's historical growth rate.

Capital Expenditure and Financing

IDACORP has increased its 5-year capital expenditure (CapEx) forecast to $7 billion, with an average annual spend of $1.4 billion from 2026 to 2030. The company expects to fund over half of its CapEx needs through net cash flow from operations. To maintain its target 50-50 debt-equity capital ratio, IDACORP plans to raise $2 billion in equity and $2.9 billion in debt. The sale of Idaho Power's Oregon distribution assets is expected to provide additional capital to fund growth-related investments.

Valuation Metrics

To understand what's priced into IDACORP's stock, we can look at its valuation metrics. The company has a P/E Ratio of 23.45, P/B Ratio of 2.12, and an EV/EBITDA ratio of 16.81. The Dividend Yield is 2.49%, while the Free Cash Flow Yield is -7.64%. The ROE is 9.38%, and the ROIC is 4.04%. These metrics suggest that the stock is reasonably valued, with a moderate dividend yield and a relatively high P/E ratio.

Growth Prospects

IDACORP is seeing increased inquiries from energy-intensive customers, including data centers and manufacturing industries. The company's pipeline is robust, with a diverse range of interest. Large load growth is expected to start ramping up in 2027, particularly with Micron and other in-service dates. The company's strong balance sheet and cash flow position it well to meet the growing demand and invest in its infrastructure.

3. NewsRoom

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Aster Capital Management DIFC Ltd Sells 5,601 Shares of IDACORP, Inc. $IDA

Feb -28

Source: defenseworld.net

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Idacorp: Now Is No Longer The Time To Buy (Rating Downgrade)

Feb -23

Source: seekingalpha.com

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IDACORP Q4 Earnings Beat Estimates, Revenues Increase Y/Y

Feb -20

Source: zacks.com

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IdaCorp (IDA) is a Top Dividend Stock Right Now: Should You Buy?

Feb -20

Source: zacks.com

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IDACORP, Inc. (IDA) Q4 2025 Earnings Call Transcript

Feb -20

Source: seekingalpha.com

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IdaCorp (IDA) Q4 Earnings Surpass Estimates

Feb -19

Source: zacks.com

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IDACORP, Inc. Announces Fourth Quarter and Year-End 2025 Results, Initiates 2026 Earnings Guidance

Feb -19

Source: businesswire.com

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IDACORP (NYSE:IDA) vs. RWE (OTCMKTS:RWEOY) Financial Survey

Feb -19

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.60%)

6. Segments

Utility Operations

Expected Growth: 8.8%

The utility operations segment is likely to grow slightly above the global average due to the steady demand for electricity and the regulated nature of the business, which provides a stable revenue stream. The expected growth rate is slightly higher than the global average, reflecting the essential nature of the business and the likelihood of continued investment in the sector.

All Other

Expected Growth: 8.0%

The 'All Other' segment is expected to grow at a rate slightly below the global average, reflecting the more volatile nature of unregulated businesses and the potential for variability in revenue. The growth rate is still relatively high, reflecting the company's efforts to diversify its revenue streams and adapt to changing market conditions.

7. Detailed Products

Electricity Generation

IDACORP, Inc. generates electricity through its hydroelectric, natural gas, and coal-fired power plants, providing reliable and efficient energy to its customers.

Transmission and Distribution

IDACORP, Inc. owns and operates a vast network of transmission and distribution lines, substations, and other infrastructure to deliver electricity to its customers.

Renewable Energy

IDACORP, Inc. invests in renewable energy sources such as wind, solar, and hydroelectric power to reduce its carbon footprint and provide clean energy to its customers.

Energy Efficiency Programs

IDACORP, Inc. offers energy efficiency programs and incentives to help its customers reduce their energy consumption and lower their energy bills.

Customer Service

IDACORP, Inc. provides customer service and support to its customers, including billing, payment, and outage reporting services.

8. IDACORP, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

IDACORP, Inc. operates in the utility industry, which has a moderate threat of substitutes. While there are alternative energy sources available, they are not yet widely adopted, and the company's services remain essential for many customers.

Bargaining Power Of Customers

IDACORP, Inc.'s customers have limited bargaining power due to the company's monopoly in the utility industry. Customers have limited alternatives, giving the company significant pricing power.

Bargaining Power Of Suppliers

IDACORP, Inc. relies on a few large suppliers for fuel and other essential materials. While the company has some bargaining power, suppliers also have some leverage, leading to a moderate level of bargaining power.

Threat Of New Entrants

The utility industry has significant barriers to entry, including high capital costs and regulatory hurdles. This limits the threat of new entrants and gives IDACORP, Inc. a competitive advantage.

Intensity Of Rivalry

The utility industry is highly competitive, with several large players competing for market share. IDACORP, Inc. faces intense rivalry from other utility companies, which can lead to pricing pressure and competitive pricing strategies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.29%
Debt Cost 4.55%
Equity Weight 50.71%
Equity Cost 6.70%
WACC 5.64%
Leverage 97.18%

11. Quality Control: IDACORP, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ameren

A-Score: 6.5/10

Value: 5.5

Growth: 4.8

Quality: 4.6

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

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Idacor

A-Score: 6.4/10

Value: 5.1

Growth: 4.9

Quality: 4.8

Yield: 6.0

Momentum: 7.5

Volatility: 10.0

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CMS Energy

A-Score: 6.3/10

Value: 5.5

Growth: 4.1

Quality: 4.4

Yield: 6.0

Momentum: 7.5

Volatility: 10.0

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CenterPoint Energy

A-Score: 6.1/10

Value: 5.0

Growth: 3.4

Quality: 4.4

Yield: 5.0

Momentum: 9.0

Volatility: 10.0

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Alliant Energy

A-Score: 5.9/10

Value: 2.4

Growth: 4.2

Quality: 5.0

Yield: 6.0

Momentum: 7.5

Volatility: 10.0

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PNM Resources

A-Score: 4.8/10

Value: 5.8

Growth: 4.2

Quality: 3.6

Yield: 6.0

Momentum: 6.0

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

141.6$

Current Price

141.6$

Potential

-0.00%

Expected Cash-Flows