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 consistent with last year. Operating cash flow excluding working capital was up 8% year over year in the first half. Management did not provide next-quarter EPS guidance, but it said the New Mexico Gas transaction should close later this month, with after-tax proceeds of approximately USD 650 million to USD 700 million reflected in third-quarter results. The company reiterated it is on track to deliver compound annual adjusted EPS growth above its 5% to 7% target range through 2026 and expects growth within that range through 2030; it also remains on track for Moody’s 12% operating cash flow pre-working capital-to-debt target in 2026.

Scott Balfour framed the quarter around execution of Emera’s strategy: portfolio optimization, regulated utility investment, and strengthening the balance sheet. He emphasized the New Mexico Gas sale as a strategic milestone that supports higher-growth core areas while improving financial flexibility, and he pointed to Florida and Nova Scotia as key growth markets. His tone was constructive and confident, especially on large-load opportunities in Tampa, Atlantic Canada transmission, and long-term rate base growth.

Jared Green focused on the numbers and balance-sheet impact. He cited year-to-date adjusted earnings of $627 million, second-quarter adjusted earnings of $212 million, 8% higher operating cash flow excluding working capital, and a Moody’s outlook revision to stable. He said the New Mexico Gas sale should add about 50 basis points to the operating cash flow-to-debt ratio on a sustained basis, and he noted the company remains on track for Moody’s 12% target in 2026. He also pointed to financing actions, including a refinancing program and a USD 300 million upsized hybrid issuance, as evidence of continued access to capital on attractive terms.

Analysts pressed on the New Mexico Gas sale, asking about the FFO-to-debt cushion and downgrade threshold; management said it expects to be above the 12% CFO-to-debt threshold in calendar 2026 and would be comfortable with a mid-12s to higher-12s cushion over time. Questions also focused on Tampa Electric’s large-load tariff and data center growth, with management saying Senate Bill 484 clarifies the rules, avoids cost shifts to existing customers, and could support new large loads if they pay their fair share. On the Maritimes and Nova Scotia securitization, management said progress remains encouraging and year-end completion is the goal. When asked about a potential U.S. redomicile, Scott Balfour said Emera is not looking at that now and highlighted the tax cost as an impediment.