Breaking Down IDACORP, Inc. (IDA) Financial Health: Key Insights for Investors

You might look at a regulated utility like IDACORP, Inc. (IDA) and think, stable but boring-but honestly, the near-term financial picture is far more dynamic than you'd expect, driven by explosive growth in their service area. The company has already raised its 2025 diluted earnings per share (EPS) guidance to a tight range of $5.80 to $5.90, a defintely strong signal of confidence. Here's the quick math: that EPS strength is anchored by a robust 2.5%-plus customer growth and a massive capital expenditure (CapEx) program, which is slated to hit between $1.0 billion and $1.1 billion this year alone to support the new industrial load from places like data centers. Still, this growth isn't free; you need to weigh the Q1-Q3 2025 net income of $279.9 million against the rising interest and depreciation costs tied to all that new infrastructure, plus the ever-present risk of regulatory lag on their pending rate case settlement. The question isn't whether they're growing, but whether the regulator will let them earn an adequate return on that massive investment.

Revenue Analysis

You are looking at IDACORP, Inc. (IDA) because you want a clear picture of where its money comes from, and honestly, it's a simple story. The direct takeaway is that IDACORP is a pure-play regulated utility holding company, meaning its revenue is stable but currently showing a slight dip, with Trailing Twelve Months (TTM) revenue ending September 30, 2025, at $1.806 billion. That TTM figure represents a -1.88% decline year-over-year. This is a utility, so you shouldn't expect Silicon Valley-style growth, but you need to understand the moving parts.

The company's revenue streams are almost entirely concentrated in one area: its regulated utility operations, Idaho Power. This core segment, which includes the generation, transmission, distribution, purchase, and sale of electricity, drives 98%+ of the company's earnings. The remaining 'All Other' segments-like investments in affordable housing tax credits and small hydropower joint ventures-are negligible by comparison. This concentration is defintely a risk, but it also means the business model is straightforward and highly regulated.

Retail revenues are broken down across key customer segments, which is standard for a utility. The main sources of retail revenue for the nine months ended September 30, 2025, came from:

• Residential customers
• Commercial businesses
• Industrial operations
• Irrigation for agriculture

Near-Term Revenue Trends and Drivers

The slight revenue decline of -1.88% (TTM through Q3 2025) isn't a red flag, but it shows the tension between growth and regulatory mechanisms. Here's the quick math on what's driving the top line for 2025:

The positive impact from both customer growth and new base rates-a benefit of $56.8 million combined-was partially offset by lower electric utility revenues in Q3 2025 and the mechanics of the Fuel Cost Adjustment (FCA). What this estimate hides is the impact of weather; milder weather can reduce energy usage per customer, which cuts into sales volume even with more customers. Still, the underlying story is strong customer growth, which is a powerful long-term tailwind for a utility.

For a deeper dive into the company's valuation, check out our full report on Breaking Down IDACORP, Inc. (IDA) Financial Health: Key Insights for Investors. Your next step should be to look closely at the regulatory environment, as rate cases are the primary lever for future revenue growth in this sector.

Profitability Metrics

You want to know if IDACORP, Inc. (IDA) is making money efficiently, and the short answer is yes-the company is outperforming its industry peers on bottom-line profitability, largely due to effective rate base management and customer growth. For the Trailing Twelve Months (TTM) ending September 30, 2025, IDACORP's Net Profit Margin was approximately 17.6%, a significant climb from the previous year's 15.4%.

This margin expansion is a clear signal of strong financial health, especially when you consider the capital-intensive nature of the utility business. The company's net income for the TTM ending September 30, 2025, was approximately $318 million on revenues of $1.806 billion. This represents a solid 12.45% increase in net income year-over-year. The utility sector (electric utilities) is a regulated industry, so profitability often comes down to successful rate case outcomes and managing operating costs.

Margin Analysis and Industry Comparison

When we break down the margin structure, IDACORP's performance is compelling. The high Gross Margin is typical for a utility, but the spread between the Gross and Net margins shows where the operational leverage-or lack thereof-is. Here is a quick look at the TTM profitability ratios for IDACORP compared to the broader industry average, which is crucial for contextualizing performance.

Here's the quick math on the Gross Margin: IDACORP's TTM Gross Profit of $1.123 billion divided by its TTM Revenue of $1.806 billion yields a Gross Margin of approximately 62.2%. This high figure reflects the nature of utility revenue, but the key takeaway is the Net Profit Margin of 17.59%, which is nearly double the industry average of 10.08%. That's a huge competitive advantage in translating revenue to the bottom line.

Operational Efficiency and Cost Trends

IDACORP's improved profitability is directly linked to operational effectiveness and supportive regulatory action. In the first nine months of 2025, the company's net income increased by $28.6 million over the same period in 2024. This was largely driven by an overall increase in Idaho base rates, effective January 1, 2025, following a successful rate case. That's the utility playbook working as intended.

However, operational efficiency is a constant battle. While revenue drivers are strong, the company is facing cost pressures:

• Operating expenses increased in Q1 2025 due to higher costs for wildfire mitigation efforts.
• Financing costs and depreciation expense are rising, offsetting some benefits from customer growth.
• Customer growth, which added about 15,000 new customers (a 2.3% increase) in the twelve months ending September 30, 2025, is a major revenue driver.

The rise in operating costs is a near-term headwind, but the company's ability to secure rate increases and manage a growing customer base-which is the core of its Mission Statement, Vision, & Core Values of IDACORP, Inc. (IDA).-shows strong execution. Your next step should be to monitor the outcome of the pending Idaho general rate case settlement, as future margin expansion will defintely rely on favorable regulatory decisions.

Debt vs. Equity Structure

When you look at IDACORP, Inc. (IDA)'s balance sheet, the key takeaway is that the company operates with a conservative capital structure for a capital-intensive utility, relying on a balanced mix of debt and shareholder equity to fund its growth projects.

The latest figures from September 2025 show the company's financial leverage is well-controlled. Your first look should be at the Debt-to-Equity (D/E) ratio, which recently stood at about 1.01. This means that for every dollar of shareholder equity, IDACORP, Inc. (IDA) has borrowed roughly one dollar. Honestly, for an electric utility, that's a defintely solid position.

Here's the quick math on their financing mix, using the latest reported balance sheet figures from Q3 2025.

The total debt load of approximately $3.447 billion is substantial, but that's the nature of this business-you need massive capital for infrastructure like power plants and transmission lines. What matters is how that debt stacks up against the industry. The average D/E ratio for the Electric Utilities sector in the US is around 1.58. IDACORP, Inc. (IDA)'s 1.01 ratio is significantly lower, suggesting less financial risk compared to many peers. This is a clear sign of balance sheet discipline.

In terms of recent financing activity, the company has been strategic. Management indicated in the Q3 2025 earnings call that they are focused on improving their credit rating metrics, which should allow them to avoid issuing incremental equity in the near term. This is a smart move, as it prevents shareholder dilution. They did, however, use Forward Sale Agreements (FSAs) in May 2025, which is a flexible way to lock in a future equity price without immediate dilution. This balanced approach shows they are actively managing their capital structure to maintain favorable credit ratings and a low cost of capital, which is crucial for a regulated entity.

The company's capital strategy leans into debt financing because, as a regulated utility, its cash flows are predictable and stable, which makes taking on debt less risky. Plus, in a regulated environment, the interest expense on debt is often recovered through customer rates. Still, the lower-than-average D/E ratio gives them a buffer. If you want to dive deeper into who holds this equity, you can check out Exploring IDACORP, Inc. (IDA) Investor Profile: Who's Buying and Why?

• Maintain a lower D/E ratio than the sector average.
• Prioritize debt for capital-intensive projects.
• Use equity financing tools, like FSAs, to manage future dilution.

Liquidity and Solvency

You need to know if IDACORP, Inc. (IDA) can meet its short-term obligations while funding its massive infrastructure build-out. The short answer is yes, their near-term liquidity is solid, but the long-term solvency picture is defined by a classic utility trade-off: strong operating cash flow versus heavy capital expenditure.

We see a healthy short-term liquidity position, which is defintely a strength for a regulated utility. The company's liquidity ratios as of September 30, 2025, are reassuring. The Current Ratio is 1.45, meaning IDACORP, Inc. (IDA) has $1.45 in current assets for every $1.00 in current liabilities. Even more telling is the Quick Ratio (or acid-test ratio), which stands at 1.00. This is a very strong signal, as it means the company can cover all its current debt obligations using only its most liquid assets-cash and receivables-without needing to sell inventory.

Here's the quick math on their short-term position:

• Current Ratio: 1.45 (Strong for a utility)
• Quick Ratio: 1.00 (Excellent, implies immediate coverage)
• Working Capital Trend: Positive, but heavily managed to fund capital projects.

Analysis of Working Capital and Cash Flow Trends

The working capital position is positive, but for a utility like IDACORP, Inc. (IDA), the focus is less on a massive working capital surplus and more on efficient cash flow management. Why? Because most of their assets are long-term-property, plant, and equipment-not inventory or short-term receivables. The current ratio of 1.45 shows they are managing their current assets (like the $333.2 million in cash and cash equivalents as of September 30, 2025) efficiently against their current liabilities.

When you look at the cash flow statement, you see the real story of a capital-intensive utility. Cash flow from operating activities (CFO) is robust and growing, which is the engine of the business. For the first nine months of 2025, net cash provided by operating activities was $464.1 million, an increase of $6.1 million over the same period last year. This steady improvement is crucial, as it funds the company's infrastructure needs.

However, this strong operating cash flow is immediately offset by massive capital expenditures (CapEx). This is the key risk/opportunity map you need to focus on:

Potential Liquidity Concerns and Strengths

The primary liquidity concern is the consistently high capital expenditure, with a full-year 2025 CapEx guidance of $1.0 billion to $1.1 billion. This massive investment means IDACORP, Inc. (IDA) typically runs a negative free cash flow (FCF), which is common for utilities. They must rely on the financing market to fund the difference, which is why their long-term debt increased to $3.33 billion as of September 30, 2025, up from $3.05 billion at the end of 2024.

The strength, though, is that this debt is manageable because of the company's regulated nature. The strong operating cash flow is highly predictable, and rate case settlements, like the constructive settlement pending approval with the Idaho Public Utilities Commission, help stabilize revenue and cash collection. This regulatory framework is what ultimately backs the debt and ensures long-term solvency, even with high leverage. If you want to dive deeper into who's holding that debt, check out Exploring IDACORP, Inc. (IDA) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at IDACORP, Inc. (IDA) and trying to figure out if you're buying a dollar for fifty cents or paying a premium for a utility stock. The quick takeaway is that IDACORP is priced for stability-it's not cheap, but the analyst consensus suggests a modest upside based on its regulated, predictable earnings stream.

As of late 2025, the market is valuing IDACORP with a forward Price-to-Earnings (P/E) ratio estimate of around 21.97, which is based on the company's full-year 2025 earnings guidance of $5.80-$5.90 per share. This is slightly higher than its trailing twelve months (TTM) P/E of 19.4, indicating that investors are paying up for expected earnings growth, albeit in a low-growth utility sector. For comparison, the broader utilities sector often trades at a lower multiple, so this valuation suggests confidence in the company's regulated asset base and customer growth in its Idaho Power service area.

Here's the quick math on the key valuation multiples right now:

• Price-to-Book (P/B): The ratio stands at approximately 2.00 as of the third quarter of 2025. This means the stock price is double the company's book value (assets minus liabilities), which is a common premium for a stable, high-quality utility with a strong balance sheet.
• EV/EBITDA: The Enterprise Value-to-EBITDA ratio is around 14.43 as of November 2025. This is a crucial metric for capital-intensive companies like IDACORP, and this figure is on the higher end of its historical range, which points to a full valuation.

The stock price trend over the last 12 months shows a solid performance, with the stock increasing by 9.42%. The 52-week trading range has been between a low of $104.74 and a high of $138.03, with the stock currently trading near the middle of that range at around $128.00.

When you look at the dividend, IDACORP remains a reliable income play. The annual dividend is set at $3.52 per share, which translates to a dividend yield of roughly 2.7%. The payout ratio is sustainable at approximately 59% of earnings, which is right in the company's target range of 50-60%. This leaves enough retained earnings for capital expenditures, which is important for a utility that needs to invest in its infrastructure.

What this estimate hides is the regulatory risk inherent in the sector. Still, the analyst community has a clear view. The consensus rating from nine brokerages is a Moderate Buy. The average 12-month price target is approximately $136.88, suggesting a potential upside of about 6.89% from the current price. This modest upside is typical for a utility-you are buying stability and income, not explosive growth.

If you want to understand the long-term drivers behind this stability, you should review the company's strategic goals: Mission Statement, Vision, & Core Values of IDACORP, Inc. (IDA).

Risk Factors

You're looking at IDACORP, Inc. (IDA) because of its strong customer growth-a healthy 2.3% increase year-over-year through Q3 2025-but a utility's financial health always hinges on managing its inherent risks. The biggest near-term challenge isn't demand; it's execution and the regulatory environment. We need to map these risks to clear actions.

The company is in a massive capital investment cycle, with 2025 capital expenditures (CapEx) projected in the $1.0 billion to $1.1 billion range. This kind of spending is a double-edged sword: it drives future rate base growth but immediately increases financial and operational risk. Here's the quick math: Long-term debt already climbed to $3.33 billion as of September 30, 2025, up from $3.05 billion at the end of 2024. That's a significant jump in leverage, which can weigh on free cash flow.

Operational and Financial Headwinds

The company is facing classic operational pressures, which you can see directly in their guidance. They had to raise their full-year 2025 Operations and Maintenance (O&M) expense guidance to a range of $470 million to $480 million. This marginal increase, up from a prior range of $465 million to $475 million, reflects higher costs, defintely tied to inflation, wildfire mitigation efforts, and the sheer scale of their infrastructure projects. Execution risk on these large-scale projects, like the 167-megawatt expansion of the Bennett Mountain gas-fired plant, is real. If those projects face delays or cost overruns, it directly pressures the earnings per share (EPS) guidance of $5.80 to $5.90.

• Higher O&M costs squeeze margins.
• Project delays hit the rate base timeline.

Also, IDACORP is heavily reliant on weather-sensitive hydropower generation, which introduces volatility. The company lowered its 2025 hydropower generation forecast to 6.5 to 7.0 megawatt-hours (MWh), down from an earlier 7.0 to 8.0 MWh estimate. Lower hydro output means buying more power on the open market, which can be expensive and unpredictable.

Regulatory and Strategic Uncertainty

In the utility space, regulatory decisions are the ultimate determinant of financial health. The primary external risk for IDACORP, Inc. is the potential for adverse rulings from state and federal regulators that could affect their ability to recover costs or earn a fair return on their massive infrastructure investments. While they have reached a constructive settlement on their Idaho general rate case, which is a good sign, it still awaits final approval from the Idaho Public Utilities Commission (IPUC).

Strategically, the cancellation of the Jackalope Wind Project created uncertainty. It forces Idaho Power to pivot and find alternative generation options to meet the projected 8.3% annual load growth they anticipate over the next five years. This unexpected shift adds complexity and cost to their resource planning, which you can read more about in Exploring IDACORP, Inc. (IDA) Investor Profile: Who's Buying and Why?

The company is actively trying to mitigate these risks. Their 2025 Integrated Resource Plan (IRP) is the roadmap, prioritizing major transmission projects like the Boardman to Hemingway and Southwest Intertie lines to ensure they can import necessary energy. Still, the core action for you is to watch the IPUC's decision on that rate case. That single ruling will clarify the path for recovering their capital spend.

Growth Opportunities

You're looking past the quarterly noise to see where IDACORP, Inc. (IDA) will generate real, sustainable returns, and the answer is clear: infrastructure investment driven by unprecedented customer demand. The company's growth story is tightly coupled with the rapid economic expansion of its service territory, particularly the influx of large commercial and industrial players.

The core growth driver is the sheer increase in electricity demand (load growth) from new customers like Meta, Micron, and Chobani, which is pushing the system to its limits. This is why the 2025 Integrated Resource Plan (IRP) now projects annual retail sales growth at an 8.3% rate over the next five years, a significant jump from previous estimates. That kind of demand dictates capital spending, which is the utility's engine for rate base growth.

Here's the quick math: IDACORP is doubling down on its infrastructure. Its 2025-2029 IRP allocates $5.6 billion in capital expenditures (CapEx) to fuel this expansion, targeting a 16.1% compounded annual growth rate (CAGR) for its rate base. For the current fiscal year, CapEx is expected to be in the range of $1 billion to $1.1 billion.

• Customer Growth: Added approximately 15,000 new customers in the 12 months ending September 30, 2025, a 2.3% increase.
• Rate Base Expansion: Targeting a 16.1% rate base CAGR through 2029 via infrastructure investment.
• Regulatory Tailwinds: A constructive settlement with the Idaho Public Utilities Commission (IPUC) is expected to yield a $110 million increase in annual revenues.

The strategic initiatives are focused on grid resilience and clean energy transition, but they are still capital-intensive. The massive Boardman-to-Hemingway (B2H) transmission line, where Idaho Power holds about a 45% interest, broke ground in June 2025 and is a critical step for grid reliability. Plus, the company is moving forward with a pending 600 MW wind project and expanding its battery storage capacity, which currently sits at 908 MWh.

Honestly, IDACORP's biggest competitive advantage is its legacy: its 17 hydropower plants provide a stable, low-cost, and dispatchable energy source that is hard to replicate. This, along with low average industrial and residential rates compared to the national average, makes its service territory a magnet for new business, which feeds the customer growth cycle.

The financial projections reflect this accelerating growth. Management raised its full-year 2025 earnings guidance to a range of $5.80 to $5.90 per diluted share, up from the prior range of $5.70 to $5.85. This is a regulated utility, so earnings stability is a given, but the rate of growth is what makes this compelling. You can read more about their long-term vision in their Mission Statement, Vision, & Core Values of IDACORP, Inc. (IDA).

To be fair, this infrastructure push requires debt; long-term debt stood at $3.33 billion as of September 30, 2025, up from $3.05 billion at the end of 2024. But in a regulated environment, CapEx eventually translates to rate base growth and higher allowed earnings, so it's a necessary trade-off.

Here is a snapshot of the key financial drivers for the 2025 fiscal year:

The action for you is to monitor the regulatory approval process for the new rate settlement and the progress of the B2H project; those are the near-term catalysts that will lock in the projected rate base growth.