IDACORP, Inc. (IDA): BCG Matrix [Dec-2025 Updated]

You're looking for the hard truth on where IDACORP, Inc. (IDA) is putting its capital as of late 2025, so let's cut straight to the Boston Consulting Group Matrix view. Honestly, this picture is dominated by the regulated utility-your reliable Cash Cows generating predictable revenue, supported by that recent 3.7% rate increase effective January 2025. Still, the future growth engine, the Stars, is tied up in massive infrastructure bets like the $4 billion capex plan and the 100% clean energy goal. We've also got legacy coal assets sitting in the Dogs quadrant, while non-core real estate plays in IDACORP Financial are the Question Marks needing a clear answer before they become anything more substantial than a small part of the $1.68 billion revenue base. Dive in below to see exactly which segments are pulling their weight and where you should expect the next big investment to land.

Background of IDACORP, Inc. (IDA)

You're looking at IDACORP, Inc. (IDA), the holding company you know best for its regulated electric utility, Idaho Power. Honestly, the story here is all about growth in their service territory across Idaho and Oregon. As of late 2025, the customer base has been expanding nicely, hitting 659,000 customers by the second quarter, which is a 2.5% year-over-year jump. By the end of the third quarter, that growth was still strong, with the customer count up 2.3% over the prior twelve months.

This regional economic expansion, fueled by major commercial and industrial players like Meta and Micron, is forcing IDACORP to plan for serious capacity increases. Their 2025 Integrated Resource Plan (IRP) is quite aggressive, projecting peak demand to grow nearly 45% or 1,700 megawatts (MW) over the next two decades, with nearly 1,000 MW of that needed in just the next five years. To meet this, the company is pushing a 100% clean energy by 2045 goal, backed by significant capital spending.

Financially, the year 2025 has been solid, driven by that customer growth and rate adjustments from a constructive settlement in their Idaho general rate case. For the first nine months of 2025, IDACORP reported net income attributable to the company of $279.865 million, a good jump from $251.298 million in the same period last year. Diluted earnings per share (EPS) for that nine-month period reached $5.13, up from $4.82 in 2024.

Looking at the top line, revenue for the third quarter of 2025 was $663.69 million, though the trailing twelve months revenue was reported at $1.81B, showing a slight year-over-year decrease of -1.88%. Management is confident enough in the trajectory, however, that they raised the full-year 2025 EPS guidance to a range of $5.80 to $5.90 per diluted share. To support this expansion, IDACORP maintained a hefty capital expenditure forecast of $1.0 to $1.1 billion for 2025, with even larger investments planned for the following years.

IDACORP, Inc. (IDA) - BCG Matrix: Stars

The Star quadrant for IDACORP, Inc. (IDA) is defined by its regulated electric utility operations in Idaho, which are experiencing high market growth driven by population and commercial expansion across its service territory. This high growth necessitates massive, ongoing investment to maintain market leadership and secure future capacity.

The near-term demand growth is significant, with peak demand projected to increase nearly 45% or 1,700 megawatts (MW) over the next 20 years. Critically, nearly 1,000 MW of this total growth is expected within the next five years to meet immediate needs. This rapid expansion forces IDACORP, Inc. (IDA) to commit substantial capital to new generation, transmission, and storage projects, which is the hallmark of a Star business unit.

The customer base itself reflects this high-growth market share. As of September 30, 2025, the number of Idaho Power customers grew by approximately 2.3 percent year-over-year, totaling about 655,000 customers served. This sustained customer addition directly translates to higher revenue potential, provided the necessary infrastructure is in place.

The required infrastructure investment is substantial, positioning these projects as cash consumers despite their high market share. IDACORP, Inc. (IDA) expects capital expenditure in the range of $1-$1.1 billion in 2025. The 5-year capital expenditure forecast spanning 2025 through 2029 includes significant allocations for growth-enabling projects.

The commitment to the 100% clean energy by 2045 goal is a major driver of this high investment, securing the long-term market position against future regulatory and environmental shifts. This transition requires immediate, large-scale deployment of new technologies.

Specific projects categorized as Stars due to their high investment and critical role in future capacity include:

• New transmission line infrastructure, such as the Boardman to Hemingway (B2H) project, in which Idaho Power holds an interest of approximately ~45%, with an expected in-service date no earlier than 2027.
• The Southwest Intertie Project - North, with construction expected to begin as early as 2025 and take approximately two years to complete.
• Significant deployment of battery storage and solar to meet the near-term demand growth. The 2025 resource plan specifically calls for adding 80 MW BESS, 150 MW BESS, and 200 MW Solar.

These investments are designed to support the rapidly growing customer base, particularly in areas like the Boise region. The high investment level is reflected in the company's financial outlook; IDACORP, Inc. (IDA) raised its full-year 2025 earnings guidance to the range of $5.80 to $5.90 per diluted share following strong third-quarter results, showing that while cash is consumed by investment, the high market share and growth are translating to increased profitability expectations.

The Star category represents where IDACORP, Inc. (IDA) must deploy capital to maintain its leadership position in a high-growth service territory. If these massive infrastructure and clean energy investments are successfully integrated, these Stars are positioned to become the Cash Cows of the future as the high-growth market eventually matures.

IDACORP, Inc. (IDA) - BCG Matrix: Cash Cows

The regulated electric utility operations of Idaho Power, the primary subsidiary of IDACORP, Inc., represent the quintessential Cash Cow in the portfolio. This segment provides stable, predictable revenue streams, which is the hallmark of a high market share business operating in a mature, regulated environment.

The foundation of this stability rests upon the 17 low-cost hydroelectric projects that form the core of the energy mix. These assets, situated on the Snake River and its tributaries, offer generation at a cost basis that competitors in unregulated markets simply cannot match, leading to high inherent profit margins when operational.

Cash flow generation is robust and supported by regulatory mechanisms that allow for cost recovery and revenue adjustments. For instance, the first nine months of 2025 saw operating income benefit by $37.2 million due to an overall increase in Idaho base rates effective January 1, 2025, stemming from the 2024 Limited-Issue Rate Case. Furthermore, the third quarter of 2025 alone saw a net increase in retail revenues per MWh, net of power cost adjustment mechanisms, that increased operating income by $17.6 million compared to the third quarter of 2024.

This unit serves a monopolistic territory, distributing power to a growing customer base. As of the twelve months ended September 30, 2025, the customer volume increased by 2.3% year-over-year, adding approximately 15,000 new customers. The total customer base now exceeds 640,000 accounts.

Cash Cows are where you 'milk' the gains, and IDACORP, Inc. demonstrates this through strong cash generation that funds other corporate needs. Net cash provided by operating activities for the first nine months of 2025 was $464.1 million. This cash is vital, especially as the company manages a long-term debt balance of $3.33 billion as of September 30, 2025, and supports the overall corporate structure where total assets exceed $10B.

The stability of this unit allows IDACORP, Inc. to confidently raise its full-year 2025 earnings guidance to a range of $5.80 - $5.90 per diluted share, demonstrating the reliable earnings power derived from this segment.

Here are key operational and financial metrics supporting the Cash Cow classification for the regulated utility segment:

Investments here are focused on maintenance and efficiency to 'milk' the maximum cash flow, rather than aggressive market expansion spending:

• Investments support infrastructure to meet growing customer needs.
• Capital Expenditures (CapEx) ex-AFUDC forecast for 2025 is $1,000 - $1,100 million.
• Operations and Maintenance (O&M) Expense forecast for 2025 is $470 - $480 million.
• Expected use of additional tax credits (ADITCs) for FY 2025 is $50 million to $60 million.

IDACORP, Inc. (IDA) - BCG Matrix: Dogs

You're looking at the parts of IDACORP, Inc. (IDA) that aren't driving significant growth or market share right now. These are the units that often require cash just to maintain operations or face structural headwinds, making them prime candidates for divestiture or minimal investment.

Legacy, non-hydro generation assets, specifically the remaining coal-fired power plants, facing phase-out pressure.

The strategic direction for IDACORP, Inc. clearly signals a move away from coal. The plan is to exit all remaining participation in coal-fired generation by the end of 2030. This inherent sunset clause places these assets firmly in the Dog quadrant due to low future growth prospects and regulatory pressure. In 2024, coal represented 12.3% of Idaho Power's total energy mix. The projected share for coal in the energy mix for 2025 is 14%. The company has already taken steps to reduce reliance, converting two coal-fired units to cleaner natural gas during 2024. The average $\text{CO}_2$ emissions intensity from Idaho Power-owned generation sources for 2021 through 2024 was 790 pounds per MWh, with the 2024 intensity recorded at 656 pounds per MWh.

Ida-West Energy, the small hydropower generation operator, a mature, low-growth segment under the Public Utility Regulatory Policies Act (PURPA).

Ida-West Energy operates nine hydropower projects, all designated as qualifying facilities under PURPA. This segment is mature, meaning market growth is constrained by existing agreements. The total nameplate capacity across these nine projects is 44 MW. For context on its scale relative to the parent company, Idaho Power purchased power from Ida-West's four Idaho projects for approximately $10 million in 2024.

Wholesale energy sales, which are highly volatile and subject to fluctuating market prices, offering low strategic control.

While increased wholesale energy sales in 2024 helped decrease Idaho Power's net power supply expenses compared to 2023, the underlying market remains a Dog characteristic: volatile. More moderate wholesale natural gas and power market prices in the western United States during 2024 provided temporary relief. However, this reliance on market timing means low strategic control. For example, transmission wheeling-related revenues saw a decrease in Q4 2023 compared to Q4 2022, driven by lower energy prices in the western US.

Other miscellaneous utility-related income sources that are small and non-material to the overall $1.68 billion revenue base.

These are the residual income streams that don't fit neatly into the core regulated utility operations or the major growth areas. They are, by definition, low market share and low growth. They are not material when compared to the full-year 2024 revenue of $1,880 million reported by IDACORP, Inc..

Here's the quick math on the quantitative aspects of these low-growth units:

These Dog units generally break even or consume minimal cash, but the capital tied up in the remaining coal assets represents a clear liability given the 2030 exit target.

• Legacy coal assets face mandatory phase-out by 2030.
• Ida-West Energy operates in a mature, low-growth PURPA segment.
• Wholesale sales expose the company to volatile market price swings.
• The overall strategy suggests these units should be minimized or divested to free up capital for Stars and Cash Cows.

What this estimate hides is the specific operating margin or cash flow contribution of the wholesale segment versus the fixed costs of the remaining coal fleet. If onboarding takes 14+ days, churn risk rises for the regulated utility, but for these Dogs, the risk is obsolescence. Finance: draft 13-week cash view by Friday.

IDACORP, Inc. (IDA) - BCG Matrix: Question Marks

You're looking at the Question Marks quadrant for IDACORP, Inc. (IDA), which represents business units or investments operating in high-growth markets but currently holding a low market share. These areas consume cash while management decides whether to heavily invest to capture share or divest.

The primary component fitting this description is the activity within IDACORP Financial. This subsidiary is an investor in affordable housing and other real estate tax credit projects. Real estate development, particularly in the form of tax credit projects, often represents a high-growth market segment, but IDACORP Financial remains a small, non-regulated part of the overall IDACORP, Inc. structure, which is dominated by the regulated utility, Idaho Power. The returns here are not guaranteed by utility regulation, making their success a classic Question Mark scenario.

The pursuit of new technology adoption, such as advanced grid sensors and software, falls into this category due to the high capital requirement and uncertain, long-term return on investment until full operational scale is achieved. IDACORP, Inc. is clearly committing capital to grid modernization, as evidenced by the overall investment plan. For 2025, the company maintained its capital expenditure forecast in the range of $1,000 - $1,100 million. This substantial outlay supports infrastructure to meet accelerating growth, which is projected with an annual load growth of approximately 8.3 percent over the next five years.

The most immediate, high-stakes Question Mark involves the regulatory outcome of a recent rate case settlement. This is a direct attempt to solidify future returns in the core, high-growth regulated market.

Here are the key figures surrounding this regulatory uncertainty:

• IDACORP, Inc. reached a settlement for a $110.0 million annual retail revenue increase.
• This increase is proposed to take effect on January 1, 2026, pending final approval from the Idaho Public Utilities Commission (IPUC).
• The settlement authorizes a 9.6 percent return on equity (ROE).
• The authorized rate of return is set at 7.410 percent.
• This is based on an Idaho-jurisdictional rate base of approximately $4.9 billion.
• The initial general rate case filing, submitted on May 30, 2025, had requested a much larger $199.1 million in additional annual revenues.

The market is watching the IPUC decision closely, as the outcome directly impacts the potential for these growth investments to transition into Stars. The company's confidence in its core business, despite the regulatory hurdle, is reflected in its raised 2025 earnings guidance.

The need to quickly gain regulatory approval for the revenue increase is paramount; if the decision is delayed or unfavorable, these high-growth areas, which are currently consuming capital for infrastructure and non-regulated ventures, risk becoming Dogs.

• The regulatory risk centers on the IPUC's final decision regarding the $110.0 million settlement.
• The initial request was for a 13.09 percent overall average net revenue increase.
• The settlement implies a 7.48 percent rate hike, significantly lower than the initial ask.
• The non-regulated IDACORP Financial segment requires investment without the guaranteed cost recovery of the utility business.

Finance: draft sensitivity analysis on the $110.0 million rate case approval timeline by next Tuesday.