Key Takeaways
Avista Corp. reported first-quarter non-GAAP utility earnings of $1.10 per diluted share, holding flat from the prior year, as the company confirmed its outlook for 2026 and advanced negotiations with a potential large data center customer.
"Strong performance in the first quarter demonstrates our focus on fundamentals: safety, reliability, and sound operational and financial execution," Heather Rosentrater, President and CEO of Avista, said in a statement. "We are on track to meet our 2026 earnings guidance and are confident in the opportunities ahead."
The utility's GAAP earnings were $1.11 per share, an increase from $0.98 in the same period of 2025. Avista affirmed its full-year 2026 non-GAAP utility earnings guidance range of $2.52 to $2.72 per diluted share. The company's results came after the financial effects of its exit from the Colstrip power plant fully lapsed, providing a cleaner baseline for 2026 performance.
A significant focus of the earnings call was a potential deal with a data center developer that could add up to 500 megawatts of incremental load. Management is targeting a signed memorandum of understanding by May 31 for the project, which would require up to $350 million in capital investment not included in the current base plan. This single project would drive rate base growth of 8 percent.
The company detailed its capital investment plans, expecting to spend $615 million in 2026 and a total of $3.4 billion through 2030, excluding the potential data center project. To fund these investments, Avista plans to issue $230 million in long-term debt and up to $90 million in common stock during 2026.
Avista is also navigating a significant regulatory proceeding in Washington, with the first settlement conference for its general rate case scheduled for May 22. This is the first four-year rate plan filed by any utility in the state, setting a potential precedent for the industry. "I would like to think there is an opportunity for us to settle at least some, if not all, of the case," CFO Kevin Christie said, acknowledging the complexity of the novel four-year structure.
The guidance affirmation signals management's confidence in its cost controls and regulatory strategies to manage risks, including inflation. Investors will watch for the outcome of the data center negotiations by the end of May and progress in the Washington rate case for future growth catalysts.
This article is for informational purposes only and does not constitute investment advice.
