Avista Earnings More Than Double on Nonutility Investments
Second-quarter profit reached $35 million as gains outside the utility offset higher operating costs.
Avista Corp. (AVA), the energy company, more than doubled second-quarter profit as non-regulated investments outweighed weaker utility earnings.
The mix marked a shift from the first quarter, when the regulated utility supplied nearly all of Avista’s earnings. Non-regulated other-business income accelerated to $12 million from $1 million sequentially and swung from a $10 million loss a year earlier.
GAAP earnings were $0.43 a diluted share, up from $0.17 a share a year earlier. Results declined from first-quarter net income of $92 million, or $1.11 a share, reflecting the utility’s seasonal earnings pattern. For the first half, net income rose to $127 million from $93 million, while diluted EPS increased to $1.54 from $1.15.
Non-GAAP utility earnings slipped to $23 million from $24 million a year earlier, while diluted utility EPS held at $0.29. Other operating expenses reduced after-tax utility earnings by $9 million, mainly because of higher salaries and benefit costs, after having no year-over-year effect in the first quarter.
The Energy Recovery Mechanism also weighed on the quarter, producing a $6 million pretax expense, compared with $1 million both a year earlier and in the first quarter. Across the first half, lower electric and natural-gas revenue reduced utility earnings, while corresponding declines in resource costs offset those pressures.
Avista reiterated its 2026 non-GAAP utility EPS guidance of $2.52 to $2.72 and retained its long-term utility earnings-growth target of 4% to 6%. First-half utility capital spending totaled $314 million against the company’s $615 million full-year assumption.
Increased regulatory deferrals and delayed recovery could lead the company to evaluate as much as $100 million of additional short-term liquidity by year-end. At June 30, Avista had $199 million available under its committed credit line and another $59 million under its letter-of-credit facility.
A fund investment completed an initial public offering during the quarter, leading Avista to estimate a $17 million fair-value increase for third-quarter recognition. Based on the investment’s July 31 value, the company subsequently estimated a $13 million loss, leaving non-regulated holdings as a source of continued earnings volatility.