IDACORP, Inc. (IDA) Market Cap

IDACORP, Inc. (IDA) has a market capitalization of $7.77B, based on the latest available market data.

Financials updated after earnings reported 2025-12-31.

Sector: Utilities
Industry: Regulated Electric
Employees: 2130
Exchange: New York Stock Exchange
Headquarters: Boise, ID, US
Website: https://www.idacorpinc.com

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📘 IDACORP INC (IDA) — Investment Overview

🧩 Business Model Overview

IDACORP INC (IDA) is a U.S.-based regulated electric utility holding company headquartered in Boise, Idaho. Through its principal operating subsidiary, Idaho Power Company, IDACORP delivers electricity to a diverse mix of residential, commercial, industrial, and irrigation customers across Idaho and parts of eastern Oregon. The company operates as a vertically integrated utility, owning assets spanning the entire electric value chain, including generation, transmission, and distribution networks. Its resource footprint comprises a blend of hydroelectric, natural gas, coal, and renewable sources, with a historical emphasis on hydropower—a distinguishing feature in terms of both cost and environmental impact. Regulated operations underpin nearly all of IDACORP’s revenue, structured under frameworks approved by state commissions, which govern both pricing and allowed returns on capital invested. The utility’s service territory covers a region characterized by above-average population and economic growth, offering a stable end-market while retaining some growth prospects uncommon for regulated names.

💰 Revenue Streams & Monetisation Model

IDACORP’s revenue generation is predominately tied to electricity sales within its franchised monopoly territory. Revenues are collected under multi-year regulatory rate agreements, reflecting the recovery of operating expenses and a return on invested capital (“rate base”) as determined by state regulators. Key revenue drivers include: - **Retail Electric Rates:** Set through utility rate cases, these form the core of IDACORP’s income, structured to earn a regulated rate of return. - **Usage Volumes:** Demand from residential, commercial, agriculture (notably irrigation), and industrial users influences top-line results. - **Transmission & Miscellaneous Fees:** Supplementary income sources include transmission services for third parties and other permitted utility-related activities. The regulated model provides transparency and predictability, with periodic rate filings allowing cost recovery for invested capital and, in many cases, mechanisms that partly decouple revenue from absolute electricity volumes—mitigating weather or economic variability. IDACORP’s monetization model is thus deeply aligned with the prudently invested assets in its rate base and the evolving, regulatorily-sanctioned tariffs.

🧠 Competitive Advantages & Market Positioning

IDACORP operates in a relatively protected competitive environment, shielded by regulatory-ensured monopolies in its service areas. Several factors reinforce its defensibility and market position: - **Hydroelectric Legacy & Resource Diversity:** A substantial share of self-owned, low-cost hydropower offers an edge in both cost competitiveness and environmental credentials. This portfolio also insulates IDACORP from the full brunt of fossil fuel price volatility and carbon regulation. - **Regulatory Relationships and Constructive Environment:** IDACORP maintains a longstanding positive rapport with state regulators, allowing for predictable rate-making and relatively smooth cost recovery relative to peers in more contentious jurisdictions. - **Operational Scale and Focused Geography:** Dominion over a service area with growing demand, coupled with ownership of its infrastructure, curbs competitive threats and supports efficient expansion. - **Stable Customer Base:** Industrial, commercial, and rapidly growing residential demand undergirds steady load growth, reducing customer concentration risks.

🚀 Multi-Year Growth Drivers

IDACORP’s growth prospects—although muted compared to typical unregulated companies—are underpinned by several robust, multi-year themes: - **Regional Population and Economic Growth:** The company’s Idaho and eastern Oregon footprint witnesses strong demographic inflows and business migration, fueling electricity demand above national peer averages. - **Modernization and Infrastructure Investment:** Ongoing system upgrades, grid hardening, advanced metering, and generation fleet investments expand the rate base, directly driving allowed returns. - **Clean Energy Transition:** State-level decarbonization initiatives and demand for cleaner electricity prompt investment in renewables and grid upgrades, unlocking regulatory capital expenditures and associated earnings growth. - **Load Growth from Irrigation and Data Centers:** Specialized regional drivers, including large-scale irrigation and new high-tech loads (e.g., data centers, high-density users) contribute to incremental demand. - **Rate Base Expansion:** The regulatory framework ties earnings growth to prudent capital deployment, making long-cycle infrastructure investments a reliable earnings lever. IDACORP’s value proposition, anchored in regional growth and ongoing capital investment, positions it to outgrow average utilities with more stagnant territories or less favorable commission environments.

⚠ Risk Factors to Monitor

Despite its defensive profile, IDACORP faces several risks, both common to the regulated utility sector and more specific to its operating region: - **Hydrology Variability:** Given its dependence on hydropower, unusual drought conditions or adverse water flow scenarios pose risks to both generation costs and capacity adequacy. - **Regulatory Risks:** Adverse rulings in future rate cases, changes to allowed returns on equity, or shifting policy priorities could impair earnings visibility. - **Commodity and Environmental Policy Uncertainty:** While partially insulated, the company is still exposed to commodity fuel and purchased power costs, as well as to future carbon regulation or mandates that could impair legacy generation assets. - **Cost Overruns on Capital Projects:** Infrastructure investments may experience delays, overruns, or disallowance for rate recovery, impacting returns. - **Weather and Natural Events:** Severe weather events can disrupt service, damage assets, and escalate operating or capital costs. - **Technological & Market Disruption:** Distributed generation (solar, storage) and evolving customer preferences could gradually erode load or shift cost responsibility.

📊 Valuation & Market View

IDACORP is typically valued in line with regulated utility peers, on both P/E and price-to-book (P/B) bases, reflecting its stable earnings outlook and dividend profile. Investors often assign a moderate premium for IDACORP’s above-average rate base growth, constructive regulatory environment, and favorable demographic backdrop. The company provides a reliable and growing dividend, supported by robust cash flows and conservative payout ratios. Key valuation inputs include projected rate base growth, regulatory relationships, regional economic trends, and the evolving resource mix. The market often rewards companies with predictable returns, stable regulatory regimes, and exposure to growth regions, attributes that generally characterize IDACORP.

🔍 Investment Takeaway

IDACORP stands out as a high-quality, regulated electric utility benefitting from ownership of low-cost hydropower, stable and growing service territory demographics, and a generally constructive regulatory landscape. The company’s intrinsic advantages—rooted in its balanced generation mix, operational efficiency, and strategic regional exposure—position it favorably for prudent, low-risk growth. For long-term investors seeking a blend of capital preservation, steady dividend yield, and moderate earnings growth, IDACORP offers an appealing core utility holding. Key risks warrant monitoring—especially hydrological variability and regulatory changes—but the fundamental investment thesis rests on durable competitive advantages and ongoing regional demand growth. This anchors IDACORP's profile as a resilient, income-generating investment in the North American utilities sector.

⚠ AI-generated — informational only. Validate using filings before investing.

📢 Show latest earnings summary

IDA Q4 2025 Earnings Summary

Overall summary: IDACORP delivered another year of EPS growth with solid operational execution, rapid customer expansion, and record retail sales. Management raised the medium-term investment outlook with a ~$7B 5-year CapEx plan and expects rate base to more than double by 2030 while maintaining affordability, aided by growth from large special-contract customers. 2026 EPS guidance of $6.25–$6.45 and no immediate Idaho rate case reflect confidence, though successful delivery on major projects, financing needs, and regulatory approvals—particularly for the Oregon asset sale—remain key execution risks.

Growth

  • 2025 diluted EPS $5.90 vs. $5.50 in 2024; 18th consecutive year of EPS growth
  • Record retail energy sales and among best reliability scores in company history
  • Customer base +2.3% to >660,000; residential +2.5%
  • Strong large-load activity: Meta data center began taking power; Micron Boise fab advancing; Micron announced a second fab (not yet in projections)

Business development

  • Constructive settlement of Idaho general rate case in 2025
  • Signed definitive agreement to sell Oregon distribution and certain transmission assets to Oregon Trail Electric Cooperative (OTEC); base price $154M, subject to approvals
  • Brought on major customers/projects: Tractor Supply distribution warehouse and Chobani expansion
  • Regulators in Idaho and Oregon acknowledged the 2025 IRP

Financials

  • 2026 EPS guidance: $6.25–$6.45, assumes normal weather and power supply costs
  • Additional ADITC amortization in 2025: $40.3M (vs. ~$30M in 2024); 2026 plan uses < $30M
  • Net income up >$34M YoY; ~+$75M operating income from Jan 2025 rate increase and customer growth
  • Milder temperatures reduced usage per customer (–$6.5M operating income impact)
  • Other O&M up < $10M; at low end of guidance
  • D&A up nearly $28M on higher system investment and battery lease amortization (largely offset via PCA)
  • Non-operating expense up ~$23M on higher interest; partially offset by higher AFUDC
  • Income tax expense decreased by $20.4M (ex-ADITC) due to state tax adjustments and flow-through items

Capital & funding

  • 5-year CapEx (2026–2030) ~$7B (~$1.4B/yr avg), +26% vs prior plan
  • 2025 additions to PP&E nearly $1.2B; CWIP >$1.7B
  • Rate base: $5.3B post-2025 case; forecast >$11B by 2030 (~16.7% CAGR 2026–2030)
  • Target capital structure ~50/50 debt-equity; no holding company debt; simple MTN and common stock mix
  • Funding plan (2026–2030): >50% of CapEx from operating cash flow; ~$2.9B debt and ~$2.0B equity needed to maintain target mix
  • Executed >$600M of equity via forwards settling in 2026, leaving ~$1.4B equity through 2030 (future issuance roughly 2/3 debt, 1/3 equity; < $300M/yr equity excluding forwards)
  • Expect to use net after-tax proceeds from Oregon asset sale to offset some equity needs (subject to approvals)

Operations & strategy

  • B2H transmission: 80 towers completed; in-service expected late 2027
  • SWIP-North: permitting nearly complete; construction to begin in 2026; completion as early as 2028
  • Gateway West (Hemingway–Midpoint section) targeted as early as 2028
  • Resource additions: 200 MW Pleasant Valley Solar online in 2025; 230 MW batteries added in 2025; +250 MW batteries and +125 MW solar expected by spring 2026
  • Announced 167 MW gas-fired addition at Bennett Mountain for 2028; CPCN filed
  • Valmy coal units converting to gas: Unit 1 converted in 2025; remaining unit conversion to complete summer 2026
  • Use special contracts and growth-oriented regulation to prevent cost shifting from large loads; continue affordability focus
  • Not planning to file an Idaho general rate case by June 1, 2026; will monitor revenues and cash flow

Market & outlook

  • Region continues to outpace national growth; strong residential, commercial, and industrial construction
  • Robust pipeline of potential large-load customers (not included in forecasts until committed)
  • Capacity deficits of ~200 MW in each of 2029 and 2030 expected; additional resources to be procured with forthcoming CPCNs
  • Oregon asset sale approval could take 10+ months; Idaho Power to supply OTEC under a PPA for a period post-close
  • Management expects rates to remain below national average despite elevated investment

Risks & headwinds

  • Execution and permitting risk across multiple large transmission and generation projects
  • Serving rapid large-load growth requires timely, reliable resources and contractual protections
  • Weather and power supply cost variability vs. guidance assumptions
  • Higher interest expense and potential equity dilution amid elevated CapEx
  • Regulatory approval risk for the Oregon asset sale
  • Affordability pressures from rising depreciation, interest, and wildfire mitigation costs
  • Lower per-customer usage vs. prior year

Sentiment: positive

📊 IDACORP, Inc. (IDA) — AI Scoring Summary

📊 AI Stock Rating — Summary

Idacorp Inc. reported a quarterly revenue of $405 million and a net income of $43.6 million, translating to an EPS of $0.79. The net margin stands at 10.8%. The company generated negative free cash flow of $127.9 million. Despite these figures, Idacorp offers a stable dividend payout, with the latest at $0.88 per share, evidencing their commitment to returning value to shareholders. Over a year, the company maintains its position in the utility sector with revenues showing stability, albeit with challenges in cash flow primarily due to significant capital expenditure. Profitability metrics like operating margins remain modest, supported by lower variability in utility revenues. However, high net debt of $3.66 billion and stable liabilities signal a need to manage leverage carefully. Analyst price targets suggest a cautiously optimistic outlook, with a consensus of $141.29. Overall, although leveraging and cash flow raise some concerns, consistent dividends and stable operations in the utility sector render Idacorp a solid presence, pending efficiency improvements.

AI Score Breakdown

Revenue Growth — Score: 6/10

Revenue remains steady at $405 million; growth is limited but stable, driven by consistent utility operations.

Profitability — Score: 7/10

Achieved a 10.8% net margin with EPS at $0.79; profitability is moderate but stable within the industry norms.

Cash Flow Quality — Score: 5/10

Free cash flow is negative at -$127.9 million due to high capex; dividends remain consistent but need careful cash management.

Leverage & Balance Sheet — Score: 5/10

Total equity of $3.58 billion against net debt of $3.66 billion indicates high leverage; focus needed on debt reduction.

Shareholder Returns — Score: 7/10

Reliable dividends, with the latest at $0.88; consistent payments show strong shareholder return policy.

Analyst Sentiment & Valuation — Score: 7/10

Analyst consensus at $141.29 reflects cautious optimism; suggests valuation is close to current price outlooks.

⚠ AI-generated — informational only, not financial advice.

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