Emera Reports 2025 Second Quarter Financial Results

Executive Summary

• Emera Inc. reported strong financial results for the second quarter and year-to-date 2025, with quarterly adjusted EPS growing 49% to $0.79 and reported EPS of $0.45.
• The company successfully deployed more than $1.7 billion in customer-focused capital in the first half of 2025 and remains on track to invest over $3.4 billion for the full year.
• Emera reaffirmed its guidance for 5% to 7% annual average adjusted EPS growth through 2027 and 7% to 8% forecasted rate base growth through 2029, driven by essential infrastructure investments and strong performance in Florida.

Key Details

• Q2 2025 Financial Performance:
  • Adjusted net income: $236 million ($0.79 per share), compared to $151 million ($0.53 per share) in Q2 2024.
  • Reported net income: $135 million ($0.45 per share), compared to $129 million ($0.45 per share) in Q2 2024.
  • Key drivers for adjusted income increase: Higher earnings at Tampa Electric (TEC), Emera Energy Services (EES), and New Mexico Gas Company (NMGC), and lower corporate costs.
  • Offsets: Lower earnings at Nova Scotia Power (NSPI) and decreased earnings from the sale of the Labrador Island Link (LIL) equity interest in Q2 2024.
• Year-to-Date (YTD) Financial Performance:
  • Adjusted net income: $615 million ($2.07 per share), compared to $367 million ($1.28 per share) in YTD 2024.
  • Reported net income: $718 million ($2.41 per share), compared to $336 million ($1.17 per share) in YTD 2024.
  • YTD reported income included a $175 million after-tax mark-to-market (MTM) gain (vs. $138 million loss in 2024) and $72 million in after-tax charges related to the pending sale of NMGC.
  • YTD 2024 reported income included a $107 million after-tax gain on the sale of the LIL equity interest.
• Segment Results (Adjusted Net Income):
  • Florida Electric Utility: $260 million (Q2 2025) vs. $187 million (Q2 2024); $424 million (YTD 2025) vs. $272 million (YTD 2024). Driven by higher revenue from new base rates, favorable weather, and customer growth.
  • Canadian Electric Utilities: $17 million (Q2 2025) vs. $42 million (Q2 2024); $138 million (YTD 2025) vs. $129 million (YTD 2024).
  • Gas Utilities and Infrastructure: $48 million (Q2 2025) vs. $44 million (Q2 2024); $168 million (YTD 2025) vs. $142 million (YTD 2024).
  • Other Electric Utilities: $12 million (Q2 2025) vs. $8 million (Q2 2024); $12 million (YTD 2025) vs. $17 million (YTD 2024).
  • Other: $(101) million (Q2 2025) vs. $(130) million (Q2 2024); $(127) million (YTD 2025) vs. $(193) million (YTD 2024). Higher earnings due to contributions from EES, decreased OM&G, and higher income tax recovery, partially offset by increased interest expense.
• Operational and Capital Updates:
  • Capital deployment: >$1.7 billion deployed in H1 2025; >$3.4 billion expected for full year 2025.
  • Guidance: 5% to 7% annual average adjusted EPS growth through 2027; 7% to 8% rate base growth through 2029.
  • Currency Impact: Weaker CAD increased adjusted net income by $1 million in Q2 2025 and $15 million YTD; increased reported net income by $32 million in Q2 2025 and $62 million YTD.
• Specific Charges and Gains:
  • $72 million after-tax charges related to the pending sale of NMGC ($71 million non-cash impairment, $1 million transaction costs).
  • $107 million after-tax gain on the sale of LIL equity interest (recognized in Q2 2024).

Notable Quotes

• “The second quarter of 2025 marks our fourth consecutive quarter of meaningful earnings increases, which can be attributed in large part to strong growth and favourable weather in Florida,” says Scott Balfour, President and CEO of Emera Inc. “We continue to make essential investments across our operating companies to enhance reliability, storm harden our infrastructure and support economic and customer growth in the communities we serve. The continued need for this type of capital investment remains the fundamental driver of our 7% to 8% rate base growth expectations.”