Avista Q3 Profit Rises; 2026 Utility Guidance Affirmed

Avista Corp. (NYSE: AVA) reported a sharp increase in third-quarter 2026 consolidated profit, largely reflecting non-regulated investment activity, while underlying utility earnings changed only slightly. The company affirmed its full-year non-GAAP utility earnings guidance and said cost management and operational execution kept it on track to reach the midpoint of the range.

GAAP net income rose to $49 million, or $0.57 per diluted share, from $29 million, or $0.36 per share, in the third quarter of 2025. Non-GAAP utility earnings were $33 million, or $0.38 per diluted share, compared with $30 million, or $0.37 per share, a year earlier.

The difference between consolidated and utility results came from non-regulated other business activity, primarily investment gains and losses. That activity contributed $16 million, or $0.19 per diluted share, in the latest quarter, compared with a $1 million loss, or $0.01 per share, in the prior-year period. Avista said its consolidated earnings reflected the recovery of non-utility investment losses recognized in 2025.

For the first nine months of 2026, GAAP net income increased to $176 million from $122 million. Diluted EPS rose to $2.11 from $1.51. Non-GAAP utility earnings totaled $147 million, or $1.76 per share, compared with $135 million, or $1.67 per share, in the same period last year.

Utility guidance affirmed

Avista maintained its 2026 non-GAAP utility earnings guidance of $2.52 to $2.72 per diluted share. The outlook assumes normal weather for the remainder of the year, a $0.09-per-share negative impact from the Energy Recovery Mechanism within the 90% customer and 10% company sharing band, a 12% effective tax rate and $615 million of annual capital expenditures.

The company did not provide GAAP earnings guidance, saying investment gains and losses and other potential reconciling items cannot be estimated without unreasonable effort. Such items have historically represented most of its non-regulated other business earnings and may materially affect future GAAP results.

Capital spending and financing

Avista Utilities expects capital investment of $635 million in 2027, $800 million in 2028, $680 million in 2029, $710 million in 2030 and $750 million in 2031. Transmission and distribution account for 53% of expected base capital spending over that period, followed by generation at 15%, natural gas at 13%, enterprise technology at 10% and other projects at 9%.

The estimates include projects selected through Avista’s 2025 request for proposal. The company continues to evaluate additional investments intended to support safe and reliable service, including projects addressing peak-day resource needs. The North Plains Connector is excluded from the plan and likely falls outside the five-year horizon.

At Sept. 30, Avista’s consolidated capital structure consisted of 55% debt and 45% equity. It had $225 million of available liquidity, with $327 million of borrowings and $13 million of letters of credit outstanding. The company issued $230 million of long-term debt during 2026, comprising a $90 million three-year issuance and two $70 million 30-year issuances. It had also issued $58 million of common stock through Sept. 30 and expected up to $15 million of additional issuance.

Avista identified regulatory cost recovery, weather, wildfires, cybersecurity incidents, commodity-price volatility, capital-market access, construction costs and resource adequacy among the factors that could cause results to differ from its expectations. Other uncertainties include climate-related disruptions, supply-chain constraints, changing environmental requirements, tariffs and the earnings volatility associated with non-regulated investments.