Emera Incorporated

Emera reported second-quarter adjusted EPS of $0.69, down $0.10 year over year, and second-quarter adjusted earnings of $212 million. Year-to-date adjusted earnings were $627 million, up $12 million from last year, and year-to-date adjusted EPS was $2.06, effectively flat versus last year. Operating cash flow excluding working capital increased 8% in the first half. Management said it expects after-tax proceeds of approximately USD 650 million to USD 700 million from the New Mexico Gas sale to be reflected in third-quarter results, and reiterated full-year capital deployment of approximately $4 billion. It continues to expect CAGR adjusted EPS growth above its 5% to 7% target range through 2026 and within that range through 2030, alongside targeted 7% to 8% annual rate base growth through 2030.

Scott Balfour focused on portfolio optimization, regulated utility growth, and large-scale infrastructure investment. He said the approved New Mexico Gas sale advances Emera’s strategy by strengthening the balance sheet and allowing more focus on higher-growth core regulated businesses, while also preserving investment capacity for customer service and reliability. His tone was constructive and confident, especially around Florida growth, data center opportunities, Nova Scotia electrification, and adjacency opportunities such as transmission projects in Atlantic Canada and Ontario.

Jared Green emphasized that first-half adjusted earnings of $627 million and 8% higher operating cash flow excluding working capital support the company’s credit profile and financial flexibility. He said Moody’s revised Emera’s credit outlook to stable and that the company remains on track to achieve Moody’s 12% operating cash flow pre-working capital to debt target in 2026, with the New Mexico Gas sale expected to add about 50 basis points on a sustained basis. He also noted the hybrid refinancing and a USD 300 million upsized hybrid issuance, plus year-to-date headwinds from a stronger Canadian dollar and a higher share count, each reducing adjusted EPS by $0.05.

Analysts focused on the balance sheet impact of the New Mexico Gas sale, with management saying the transaction should help push the company above Moody’s 12% CFO-to-debt threshold in calendar 2026 and provide some cushion, though Jared Green said he would prefer a bit more room over time. Questions also centered on Florida data center opportunities and the new large-load tariff; Scott Balfour said Senate Bill 484 gives clarity, protects existing customers from cost shifts, and could make large-load growth beneficial for rate pressure and investment. In Nova Scotia, management said discussions on thermal asset securitization remain on track for year-end, and they expressed increased federal engagement on Atlantic Canada transmission opportunities; they also said a U.S. redomicile is not being considered because of tax implications.