Emera Incorporated

Emera reported second-quarter adjusted earnings of $212 million, or $0.69 per share, versus a $0.10 year-over-year decline in EPS. Year-to-date adjusted earnings were $627 million, up $12 million from last year, with adjusted EPS of $2.06, effectively consistent with the prior year. First-half operating cash flow, excluding working capital, increased 8% year over year. For guidance, management said it remains 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. The company expects the New Mexico Gas transaction to close later this month, with after-tax proceeds of approximately USD 650 million to USD 700 million reflected in third-quarter results and used to reduce holding company debt.

Scott Balfour emphasized that Emera is executing its strategy through portfolio optimization, regulated utility investment, and balance-sheet strengthening. He highlighted the approved New Mexico Gas sale and the earlier Grand Bahama Power sale as important steps that sharpen the company’s focus on higher-growth core utilities. His tone was constructive and confident, pointing to strong demand in Florida and Nova Scotia, ongoing rate base investment, and emerging opportunities in large-load and transmission projects.

Jared Green focused on the company’s financial profile, noting year-to-date adjusted earnings of $627 million, up $12 million, and second-quarter adjusted earnings of $212 million, or $0.69 per share. He said first-half operating cash flow excluding working capital rose 8%, and Emera remains on track to reach 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 Moody’s revised the outlook to stable, and said the company upsized its hybrid issuance by USD 300 million during its refinancing program to support future growth while preserving credit benefits.

Analysts focused on the New Mexico Gas sale and what it means for debt metrics, with management saying the company expects to be above Moody’s 12% CFO-to-debt threshold in calendar 2026 and views the transaction as adding about 50 basis points of cushion. Questions also centered on Atlantic Canada transmission and federal support; management said it sees strong federal engagement and is encouraged by discussions around regional system planning and potential large-scale transmission. On Florida data centers and the new large-load tariff, management said Senate Bill 484 provides useful clarity, reduces cost-shift risk, and could support both new load growth and existing customer rate relief.