Emera (TSE:EMA) opened 2026 highlighting what management described as the strongest year in the company’s history, fueled by record capital deployment, strong performance at Tampa Electric, and favorable market conditions at Emera Energy. On its fourth-quarter 2025 earnings call, executives emphasized a step-change in earnings in 2025, progress on credit metrics, and an extension of the company’s long-term adjusted EPS growth target through 2030.
Record 2025 results and capital deployment
CEO Scott Balfour said Emera safely deployed a record CAD 3.6 billion of capital in 2025, driving about 8% rate base growth versus 2024. He said the company delivered “more than CAD 1 billion in annual adjusted net income for the first time” and entered 2026 with “strong momentum.”
New CFO Jared Green, on his first call since joining in December, reported full-year adjusted earnings of CAD 1,045 million versus CAD 849 million in 2024. Fourth-quarter adjusted earnings were CAD 167 million (CAD 0.55 per share), down from CAD 246 million (CAD 0.84 per share) in the fourth quarter of 2024, reflecting several items that did not repeat year over year.
Key operating drivers across the portfolio
Management repeatedly pointed to Tampa Electric as a major contributor in 2025, citing the impact of new rates and continued customer growth. Green said those benefits were partially offset by higher operations and maintenance, depreciation, interest expense, and income taxes as the business grew.
Emera Energy also produced a “very strong year,” supported by favorable market conditions and market volatility, with Balfour citing cold weather in the Northeast as a key factor in the first quarter and stronger conditions again in the fourth quarter. In Q&A, the company said it expects 2026 results for Emera Energy to be “in line with 2025,” while maintaining what it described as “normal” guidance of 15–30.
At the gas utilities, Green said:
- New Mexico Gas earnings rose on the first full year of new rates, though the fourth quarter was softer due to higher labor and benefit costs.
- Peoples Gas earnings were flat year over year for 2025, while the fourth quarter was strong (up 11%) supported by higher off-system sales.
Canadian electric utility earnings were lower year over year, primarily due to higher O&M and depreciation at Nova Scotia Power and the sale of Emera’s equity interest in the Labrador-Island Link in early 2024, partially offset by stronger sales and modestly favorable weather in Nova Scotia.
Foreign exchange also mattered in 2025. Green said a weaker Canadian dollar benefited earnings from U.S. utilities. Looking ahead, he said that based on Emera’s hedge-adjusted position, each CAD 0.01 change in the CAD/USD exchange rate is expected to have an approximate CAD 0.02 impact on adjusted EPS.
2026 capital plan, reliability investments, and technology initiatives
Balfour said Emera plans to execute a record CAD 4 billion of capital in 2026 across regulated utilities as part of a CAD 20 billion five-year capital plan. More than half of the program is directed toward transmission, distribution, and gas infrastructure expansion, including storm hardening, vegetation management, and grid modernization. Executives stressed that the plan does not include data center-driven growth assumptions.
Management also described technology deployments across operating companies, including AI-enabled tools at Nova Scotia Power and Peoples Gas, and drone and AI-supported inspections at Tampa Electric solar sites.
Operational updates included:
- Tampa Electric: Installed 150 MW of solar in 2025, bringing total installed solar in service to 1,505 MW. Undergrounded 77 miles of overhead distribution circuits in 2025; management said more than 54% of the system is now underground. The company also opened a new energy control center and is near completion of a private LTE network deployment.
- Peoples Gas: Management cited steady residential and commercial growth in Florida and noted Peoples Gas ranked number one in J.D. Power’s 2025 Residential Customer Satisfaction Study.
- Nova Scotia Power: Brought two 50 MW, four-hour battery storage facilities into service, with a third expected this summer. Executed more than CAD 200 million in the first year of a CAD 1.3 billion, five-year reliability plan.
Regulatory items: Florida, Nova Scotia, and New Mexico Gas sale
Management highlighted constructive regulatory progress in Florida, including a favorable rate case outcome at Peoples Gas and a CAD 88 million rate base adjustment for Tampa Electric for 2026 approved by the Florida Commission, consistent with Tampa Electric’s 2024 rate case decision.
In Nova Scotia, management said the general rate application hearing concluded in mid-January and the company is awaiting a final decision from the Nova Scotia Energy Board, which it expects “in the next month or two.” The consensus solution referenced on the call would limit average rate increases to about 2% per year across customer classes over 2026–2027 and includes a proposal to securitize approximately CAD 700 million of retiring thermal assets. Executives said two prior securitizations related to unrecovered fuel costs had already been completed (CAD 117 million and CAD 500 million).
On reliability and coal retirement planning, Nova Scotia Power leadership said coal units continue to contribute to reliability during cold snaps, while the province’s system operator has received environmental assessment approval for two sites for fast-acting gas generation. Management said the utility is seeking up to CAD 18 million to invest in the Lingan 2 generating asset to support reliability through the 2030 coal phase-out. The company also provided an update that work on the New Brunswick intertie is underway and remains on track for a 2028 in-service date.
On the New Mexico Gas divestiture, management said the hearing concluded in mid-November and it is awaiting the hearing examiner’s recommendation, still expecting a positive decision and closing in the first half of 2026. Executives said they do not believe the timing is linked to a separate TXNM transaction involving Blackstone.
Long-term targets, financing plans, and data center optionality
Emera extended its 5%–7% average annual adjusted EPS growth target through 2030, while continuing to anchor the outlook to 2024 results. Balfour said the 2025 earnings step-change driven by Tampa Electric new rates is not expected to repeat every year, and the longer horizon aligns better with projected 7%–8% rate base growth through 2030.
On the dividend, management said it supports the existing 1%–2% dividend growth framework through 2027 and reiterated a longer-term view that a 70%–75% payout ratio is appropriate, noting progress as the payout ratio declines.
Green said Emera ended 2025 with Moody’s CFO (pre-working capital) to debt at about 11.6%, improving year over year, and said pro forma for the New Mexico Gas sale the company would exceed Moody’s 12% threshold by roughly 50 basis points. He also said Emera expects to return to hybrid and bond markets in the coming months, with roughly CAD 2 billion of TECO acquisition-related call dates and maturities approaching mid-year, and reiterated the company’s ability to access equity through its ATM program and DRIP.
On potential data center-driven load in Tampa Electric’s territory, management said discussions are ongoing but no signings were announced. Executives said any data center-driven growth would be incremental and is not included in the company’s rate base forecast or EPS guidance. Management also said it has the near-term capacity to serve roughly 300 MW of large-load additions and that the primary benefit would be improved affordability for other customers by reducing rate pressure, with a large-load tariff approach designed to ensure new customers pay incremental costs and contribute to the broader system.
About Emera (TSE:EMA)
Emera is a geographically diverse energy and services company investing in electricity generation, transmission, and distribution as well as gas transmission and utility energy services. Emera has operations throughout North America and the Caribbean countries.
