Type A - IDACORP, Inc. (IDA) 20261101 Stock Analysis

📅 IDACORP Key Upcoming Events

• November 05, 2026 Quarterly Dividend Ex-Dividend Date (Confirmed)
  • Description: IDACORP’s next quarterly dividend is $0.90 per share, payable on November 30, 2026. The annualized dividend rate of $3.60 provides an approximately 2.48% yield at the latest closing price.
• February 18, 2027 Q4 and Full-Year 2026 Earnings Release (Estimated)
  • Description: This provisional date is based on IDACORP’s historical February annual-results reporting pattern. The company has not confirmed the release date, which may change. Investors should focus on final 2026 EPS relative to management’s $6.40-$6.50 guidance, 2027 earnings expectations, capital expenditure requirements, and financing plans.

🏢 Step 1: IDACORP Company Overview & Business Model

Q1-A1. What is IDACORP?

• Company Name (Ticker): IDACORP, Inc. (IDA)
• Sector: Utilities
• Exchange: NYSE
• Founded: October 01, 1998
• Listing Date: October 01, 1998
• Fiscal Year End: December
• Headquarters: United States, Boise
• CEO: Lisa A. Grow
• Market Cap: $8.56B
• Shares Outstanding: 58.89M
• Current Stock Price: $145.38
• Annual Dividend Yield: 2.48%
• Ex-dividend Date: November 05, 2026 (ET)
• As-of: November 01, 2026 (ET)

Q1-A2. How Does IDACORP Make Money?

• Regulated Electricity Sales: IDACORP earns substantially all its revenue through Idaho Power Company, which generates, purchases, transmits, and distributes electricity to residential, commercial, industrial, and agricultural customers in southern Idaho and eastern Oregon.
• Regulated Revenue Recovery: Idaho Power operates under state-regulated electricity tariffs. Approved rates recover eligible operating expenses and provide an opportunity to earn a regulated return on invested utility capital.
• Customer Growth: Idaho’s population expansion, commercial development, and electricity-intensive industrial projects increase the number of customers and long-term electricity requirements.
• Generation Economics: Seventeen hydropower facilities form an important component of Idaho Power’s generation portfolio. Low-cost hydroelectric generation helps moderate electricity supply costs, although output remains sensitive to water availability.
• Large Contract Customers: Additional electricity demand from large industrial and technology-related customers creates opportunities for contracted revenues and infrastructure investment.
• Secondary Activities: IDACORP Financial holds affordable-housing and other real estate-related investments, while Ida-West Energy operates smaller hydroelectric generation facilities. Neither materially changes the company’s regulated-utility earnings identity.

Q1-A3. IDACORP’s Revenue Segments & Core Income Sources

• Electric Utility Operations: In Q3 2026, electric utility revenue was $607.04M, representing approximately 99.84% of consolidated operating revenue of $608.04M.
  • Residential Customers: Residential electricity demand contributes recurring revenue but varies with temperature, conservation, and household consumption.
  • Commercial and Industrial Customers: Business activity and new industrial loads provide an important incremental growth opportunity.
  • Agricultural Customers: Irrigation demand introduces meaningful weather-related seasonality.
  • Large Contract Customers: New contracted loads increase electricity sales and potentially expand the regulated investment base.
• Other Operating Revenue: Approximately $1.00M, or 0.16% of Q3 2026 consolidated operating revenue, came from other activities.
• Growth Contribution: Q3 2026 utility revenue increased from $523.55M to $607.04M, or approximately 15.9% YoY. Higher approved base rates, customer additions, and large contract customers supported the improvement.
• Economic Concentration: IDACORP remains effectively a single-region regulated electricity business. Diversification across customer classes does not eliminate geographic, regulatory, or hydrological concentration.

Q1-A4. Who Are IDACORP’s Competitors?

• Regulated Utility Structure: Idaho Power serves an exclusive regulated service territory rather than competing directly for every residential or small-business electricity customer.
• Regional Utility Comparables: Avista, Portland General Electric, and PacifiCorp operate electricity businesses in the broader northwestern United States. Their regulatory environments, generation mixes, and service territories differ.
• Capital-Market Competitors: Avista, Portland General Electric, and other publicly traded utilities compete indirectly with IDACORP for investor capital and favorable financing terms.
• Alternative Electricity Sources: Customer-owned solar generation, battery storage, and energy-efficiency investments can reduce grid purchases or change load patterns, although they generally do not replace the utility’s distribution network.
• Competitive Advantages: Idaho Power’s established transmission and distribution infrastructure, customer relationships, regulated service territory, and hydroelectric resources create substantial barriers to direct competition.
• Competitive Limitations: Regulated returns, environmental obligations, infrastructure requirements, and public-utility oversight limit pricing freedom and prevent conventional monopoly economics from translating directly into unrestricted profits.

Q1-A5. IDACORP Key Events: Past 12 Months

• January 01, 2026 New Idaho Base Rates Became Effective
  • Description: The outcome of Idaho Power’s 2025 general rate case increased approved retail rates. The revised tariff structure became a significant contributor to 2026 operating-income growth.
• June 01, 2026 New Large-Customer Contract Revenue Commenced
  • Description: Idaho Power began recognizing revenues under a significant large-customer agreement. The arrangement supported incremental earnings and illustrated the potential value of industrial electricity demand.
• July 30, 2026 Q2 2026 Earnings Release
  • Description: The company updated its annual outlook, including a 2026 EPS guidance range of $6.30-$6.45 and planned Idaho Power capital expenditures of $1.30B-$1.50B, excluding AFUDC.
• October 29, 2026 Q3 2026 Earnings Release and Guidance Increase
  • Description: Q3 net income attributable to IDACORP increased to $160.21M from $124.44M, while diluted EPS rose to $2.73 from $2.26. Management raised full-year EPS guidance to $6.40-$6.50, reflecting stronger operating performance and regulated revenue recovery.
• October 29, 2026 Continued Investment in Generation, Storage, and Transmission
  • Description: Management highlighted battery-storage installations and construction progress on generation and transmission projects. These investments support future system reliability and load growth while increasing financing requirements.

Q1-A6. Step 1 Key Takeaways

• Step 1 Summary: IDACORP is a geographically concentrated but well-established regulated electricity utility with durable infrastructure advantages and growing customer demand. Higher approved rates and new industrial loads strengthened 2026 earnings, although exceptionally heavy capital spending remains central to its investment outlook.

🏰 Step 2: IDACORP’s Economic Moat, Growth & Capital Allocation

Q2-A1. Does IDACORP Have a Durable Economic Moat?

• Regulated Service Territory: Idaho Power’s established utility franchise creates significant legal and economic barriers to competing distribution infrastructure.
• Infrastructure Replacement Costs: Transmission networks, substations, generation facilities, and distribution systems require substantial capital, engineering expertise, permits, and construction time.
• Cost Advantages: Hydroelectric generation offers favorable operating economics when water conditions are supportive, helping reduce dependence on purchased electricity and fossil fuels.
• Customer Switching Costs: Most residential and commercial customers cannot practically replace their local electricity distribution provider.
• Pricing Power: The company can seek regulatory approval to recover eligible investments and operating costs but cannot freely increase rates in response to every change in expenses.
• Moat Conclusion: IDACORP possesses a durable regulated-infrastructure moat, although its economic returns are constrained by regulators, capital intensity, and financing costs.

Q2-A2. Is IDACORP’s Growth Sustainable?

• Industry Structure and Outlook: Electricity demand in Idaho Power’s service territory benefits from population growth, commercial expansion, and large industrial electricity requirements. Unlike mature utilities with stagnant consumption, IDACORP has opportunities to expand both electricity sales and its regulated asset base.
• Growth Sustainability: Customer additions of approximately 15,000, or 2.2%, during the year ended September 2026 demonstrate continuing demand growth. Sustained EPS expansion nevertheless requires timely infrastructure delivery, adequate approved returns, and manageable share issuance.
• Downside Scenarios:
  • 1 Large industrial customers delay projects, reducing expected electricity load growth while planned infrastructure spending remains elevated.
  • 2 Regulatory decisions delay recovery of new plant costs, causing earnings to lag investment and financing requirements.
  • 3 Drought conditions reduce hydroelectric generation, increasing purchased-power costs and potentially weakening earnings or customer affordability.

Q2-A3. How Does IDACORP Allocate Capital & Return Cash?

• Infrastructure Investment: Management’s 2026 capital expenditure guidance for Idaho Power remains $1.30B-$1.50B, excluding AFUDC. Spending supports generation, transmission, storage, and distribution capacity.
• Dividend Policy: The $3.60 annualized dividend represents a roughly 2.48% yield and approximately 55% of trailing earnings per share, suggesting that the accounting-earnings payout remains manageable.
• Capital Funding: The investment program exceeds internally generated cash flow, making additional debt and equity financing necessary.
• Shareholder Dilution: Outstanding shares increased meaningfully during 2026. Equity issuance strengthens funding capacity but distributes future earnings across more shares.
• Capital Allocation Assessment: Reinvestment can create long-term value if regulators recognize the resulting utility assets in customer rates. The current funding burden reduces the attractiveness of the dividend as a stand-alone shareholder-return proposition.

Q2-A4. Step 2 Key Takeaways

• Scoring Rationale:
  • Economic Moat (9/10): Exclusive regulated infrastructure and low-cost hydropower create durable barriers, partially offset by regulated-return limitations.
  • Growth Sustainability (7/8): Customer growth and large-load demand support an attractive expansion outlook, subject to infrastructure execution and regulatory approval.
  • Capital Allocation (5/7): Productive utility reinvestment and consistent dividends are positives, but heavy capital spending and equity issuance reduce per-share efficiency.
• 📊 Step 2 Score: 21/25 pts (Economic Moat 9/10 + Growth Sustainability 7/8 + Capital Allocation 5/7)
• Step 2 Summary: IDACORP’s regulated franchise and growing electricity requirements underpin a strong moat and favorable demand outlook. Capital allocation remains economically rational but requires substantial external financing.

💰 Step 3: Is IDACORP Profitable? Financial Health Analysis

Q3-A1. IDACORP’s Growth & Profitability Trends

• Revenue Growth Accelerated: Q3 2026 consolidated operating revenue increased to $608.04M from $524.42M, up approximately 15.9% YoY. Nine-month revenue rose from $1.41B to $1.48B, approximately 5.2%, indicating that the latest quarter benefited disproportionately from rate and customer-related improvements.
• Operating Profit Expanded Faster Than Sales: Q3 operating income increased from $144.82M to $178.73M, approximately 23.4% YoY. Operating margin improved from 27.6% to 29.4%, demonstrating positive quarterly operating leverage.
• Net Income and EPS Strengthened: Q3 attributable net income increased from $124.44M to $160.21M, approximately 28.7%, while diluted EPS grew from $2.26 to $2.73, approximately 20.8%. EPS growth lagged net-income growth because of the higher diluted share count.
• Nine-Month Earnings: Attributable net income increased from $279.87M to $330.77M for the first nine months of 2026. Diluted EPS rose from $5.13 to $5.76, with equity issuance moderating per-share gains.
• Cash Flow Divergence: Nine-month operating cash flow declined from $464.07M to $378.49M, while net capital additions rose from approximately $825.35M to $1.18B. Simple cash flow after capital additions was therefore approximately -$799.34M, versus -$361.29M one year earlier.
• Margin Assessment: Nine-month operating margin improved from approximately 21.3% to 26.4%, but cash-flow economics weakened as capital spending accelerated. Higher accounting profitability does not yet translate into distributable free cash flow.

Q3-A2. How Profitable Is IDACORP? (Margins & ROIC)

• Net Profitability: Nine-month attributable net margin was approximately 22.3%, compared with 19.9% a year earlier, reflecting stronger regulated revenues and improved operating performance.
• Return on Equity: Using September 2026 shareholders’ equity of $4.08B and approximately $374M of trailing attributable net income produces an indicative trailing ROE near 9.2%. Average-equity methodology would produce a somewhat different result.
• Return on Invested Capital: A consistently comparable, post-tax ROIC calculation requires a reconciled invested-capital base and treatment of regulated deferred taxes. The utility’s equity return and authorized regulatory returns are more informative than a standalone ROIC snapshot.
• Cost of Capital: A reasonable analytical cost-of-equity assumption of approximately 8%-9% places the indicative ROE modestly above its required return, although the spread is sensitive to financing costs and regulatory assumptions.
• Industry Comparison: IDACORP’s profitability is consistent with a functioning regulated utility franchise. Its customer-growth outlook is favorable, but elevated infrastructure funding needs can constrain future returns relative to less capital-intensive utilities.

Q3-A3. What Drives IDACORP’s Returns? (ROIC Breakdown)

• Selected Efficiency Indicators: Customer Growth, Regulated Rate Recovery, and Capital Investment Productivity are the most relevant indicators because IDACORP earns returns through a regulated electricity network.
  • Customer Growth: Approximately 15,000 additional customers, or 2.2% annual growth, expanded the demand base through September 2026.
  • Regulated Rate Recovery: Higher retail revenues per MWh, net of applicable adjustments, contributed approximately $75.7M to nine-month operating-income improvement.
  • Capital Investment Productivity: Approximately $1.18B of nine-month net capital additions materially exceeded operating cash generation; investment value depends on placing assets into service and obtaining appropriate regulatory recovery.
• Operational Driver: Customer and industrial-load growth support new utility infrastructure, while approved rates determine how effectively investment becomes recurring earnings.
• Return Driver Conclusion: Long-term shareholder returns depend primarily on the relationship between regulated asset growth, authorized returns, debt costs, and the amount of equity required to fund expansion.

Q3-A4. Are IDACORP’s Earnings High Quality?

• Earnings-to-Cash Conversion: Nine-month 2026 operating cash flow of $378.49M divided by attributable net income of $330.77M yields approximately 1.14x, down from approximately 1.66x in the comparable 2025 period.
• Cash Flow Quality: Operating earnings remain cash-generative, but cash conversion weakened during 2026. Regulatory asset and liability movements, working-capital timing, and utility-specific noncash items contribute to differences between earnings and operating cash flow.
• Capital Expenditure Burden: Free cash flow calculated as operating cash flow minus net property and plant additions was approximately -$799.34M for the nine-month period.
• Quality Conclusion: Reported earnings appear supported by the regulated operating business, but they substantially overstate currently distributable cash because IDACORP is undertaking an intensive infrastructure investment program.

Q3-A5. Is IDACORP’s Balance Sheet Healthy? (Debt & Leverage)

• Debt Position: Long-term debt totaled approximately $3.86B at September 30, 2026, up from $3.33B at December 31, 2025.
• Cash Position: Cash and equivalents were approximately $187.83M at September 30, 2026, compared with $215.72M at year-end 2025.
• Net Debt: Using reported long-term debt less cash gives approximately $3.68B. This excludes finance leases and any other debt-like obligations.
• Leverage: Standardized total-debt-to-EBITDA was approximately 5.68x, reflecting the capital-intensive regulated-utility business model.
• Interest Coverage: EBIT-to-interest expense coverage near 1.93x indicates limited flexibility relative to less-leveraged businesses, although regulated revenue recovery improves financing predictability.
• Liquidity and Refinancing: The elimination of current long-term debt maturities from the September balance sheet reduces immediate maturity pressure. Nevertheless, continued construction spending requires reliable access to capital markets.
• Financial Health Conclusion: IDACORP has substantial regulated assets supporting its financing capacity, but leverage and negative free cash flow make future debt costs, regulatory recovery, and equity funding important investment considerations.

Q3-A6. Step 3 Key Takeaways

• Scoring Rationale:
  • Profitability·Capital Efficiency (8/10): Strong operating-income growth and improving margins demonstrate earning power, while regulated returns and dilution limit exceptional capital efficiency.
  • Cash Flow·Profit Quality (5/8): Operating cash flow exceeds net income but has declined, and free cash flow remains deeply negative because of infrastructure investment.
  • Financial Soundness·Debt Management (5/7): Regulated assets and operating stability support creditworthiness, although elevated leverage and financing requirements reduce flexibility.
• 📊 Step 3 Score: 18/25 pts (Profitability·Capital Efficiency 8/10 + Cash Flow·Profit Quality 5/8 + Financial Soundness·Debt Management 5/7)
• Step 3 Summary: IDACORP demonstrates improving profitability and favorable operating leverage. High leverage, declining cash conversion, and a large construction program prevent earnings growth from translating into equally strong financial flexibility.

🔎 Step 4: IDACORP Forensic Accounting & Dilution Review

Q4-A1. Does IDACORP Have Accounting Red Flags?

• Revenue recognition: not found
  • Evidence: Electricity sales are principally recognized through regulated utility operations. The Q3 2026 revenue increase is consistent with disclosed rate changes and customer-related growth, without an identified unsupported revenue-recognition adjustment.
• Cost capitalization: not found
  • Evidence: The utility capitalizes qualifying construction costs and recognizes depreciation as assets enter service. These practices are inherent to the regulated-utility model, although continued scrutiny of construction work in progress and AFUDC is warranted.
• Sharp increase in accounts receivable and inventory: discovered
  • Evidence: Customer receivables increased from $97.72M at December 2025 to $166.09M at September 2026, while accrued unbilled receivables increased from $79.93M to $118.63M. Higher seasonal activity and revenues may contribute, but collection and working-capital trends merit monitoring.
• Non-recurring adjustment (normalization): discovered
  • Evidence: Regulatory tax-credit amortization and timing-related power cost adjustments influence reported earnings. Additional ADITC amortization was $6.3M during the first nine months of 2026 versus $39.0M in the comparable 2025 period, requiring care when normalizing year-over-year performance.

Q4-A2. Is IDACORP Overspending? (Capex & Capital Cycle)

• Capital Expenditure Expansion: Nine-month 2026 net property and plant additions increased approximately 43% YoY to $1.18B. The full-year utility capital expenditure plan of $1.30B-$1.50B is substantial relative to operating cash generation.
• Oversupply Risk: The relevant risk is not commodity-style oversupply but building infrastructure before the expected customer loads materialize. Delays in large-customer demand can create underutilized assets and pressure recovery economics.
• Regulatory Investment Discipline: Projects must satisfy system needs and recovery requirements. Transmission and generation investments may create long-lived regulated value, but construction delays or unfavorable cost treatment can weaken returns.

Q4-A3. How Sound Is IDACORP’s Cash Flow?

• Operating Cash Generation: Nine-month operating cash flow remained positive at $378.49M, down approximately 18.4% YoY.
• Funding Gap: Net capital additions of $1.18B substantially exceeded operating cash generation, creating a negative simple free-cash-flow balance near $799M.
• External Financing: Nine-month financing cash inflows included $550M of long-term debt issuance and approximately $318M of common-equity proceeds, highlighting the importance of external capital.
• Warning Assessment: Negative free cash flow is driven primarily by a planned utility investment program rather than an unprofitable operating business. Nonetheless, persistent funding deficits create meaningful sensitivity to borrowing costs and capital-market access.

Q4-A4. Is IDACORP Diluting Shareholders?

• ⏪ Confirmed (Past) Dilution: Common shares outstanding increased from approximately 54.86M at December 2025 to 57.86M at September 2026, an increase of approximately 5.5%. Nine-month equity issuance proceeds were approximately $318.03M, and diluted EPS growth consequently trailed net-income growth.
• ⏩ Potential (Future) Dilution & Overhang: The continuing infrastructure program and negative free cash flow create the possibility of additional common-equity issuance. Future dilution depends on capital expenditure timing, internally generated cash flow, debt capacity, and financing-market conditions.

Q4-A5. Data Integrity Check

• Period: Q3 and nine-month 2026 results are separated from FY2025 and trailing valuation metrics; stale earlier-quarter ratios are not treated as current results ➡ (Pass)
• Definition: GAAP attributable net income and EPS are distinguished from regulatory adjustments; free cash flow is defined as operating cash flow less net property and plant additions ➡ (Pass)
• Number of Shares: September 2026 period-end shares are distinguished from weighted-average diluted shares and the subsequent market-data share-count estimate ➡ (Pass)
• Unit: Consolidated financial data and market valuation are expressed in USD, with millions and billions converted consistently ➡ (Pass)
• Single Value Confirmation: The analysis uses September 2026 reported results for operating facts and October 30, 2026 pricing for current market valuation, with distinct share-count dates identified ➡ (Pass)

Q4-A6. Step 4 Key Takeaways

• Scoring Rationale:
  • Accounting anomalies·distortion signals (6/8): Core revenue is economically understandable, but receivable growth, regulatory adjustments, and construction capitalization warrant monitoring.
  • Cash flow warning signals (6/7): Operating cash flow remains positive, although the sizable investment-related cash deficit is a recurring financing consideration.
  • Dilution factors (4/5): Equity issuance is material but tied to regulated infrastructure financing rather than excessive stock compensation.
• 📊 Step 4 Score: 16/20 pts (Accounting anomalies·distortion signals 6/8 + Cash flow warning signals 6/7 + Dilution factors 4/5)
• Step 4 Summary: There is no identified evidence of a fundamental accounting breakdown, but receivables, regulatory adjustments, and construction spending deserve continued scrutiny. Equity dilution is a measurable consequence of the capital-intensive growth strategy.

👔 Step 5: IDACORP Management & Shareholder Alignment

Q5-A1. Can You Trust IDACORP’s Management? (Guidance Track Record)

• Guidance Discipline: Management raised 2026 diluted EPS guidance from $6.30-$6.45 to $6.40-$6.50 following Q3 results, indicating improved confidence in full-year earnings.
• Operating Execution: Q3 EPS growth reflected higher approved base rates, customer additions, and large-customer revenues, providing identifiable operating explanations for the guidance increase.
• Disclosure Transparency: The company provides detailed earnings bridges, regulatory-mechanism information, and capital expenditure guidance.
• Execution Concerns: Full-year operating and maintenance expense guidance increased to $535M-$545M from $525M-$535M. Higher wildfire mitigation and generation-conversion costs remain important cost pressures.
• Management Assessment: Guidance performance and disclosure detail support management credibility, although successful execution of large construction programs and financing plans remains critical.

Q5-A2. What Are IDACORP Insiders Doing?

• CEO Transactions: Lisa A. Grow appears in January and February 2026 Form 4 ownership filings. The available records establish insider reporting activity, but do not provide a sufficiently reconciled transaction-code and share-count history to classify those filings as discretionary purchases or sales.
• Open-Market Sales: A dedicated insider-trading record indicates no CEO open-market sales during the trailing twelve months.
• Net Insider Flow: A complete, share-counted twelve-month net open-market purchase/sale figure could not be established from the accessible transaction records.
• Management Sentiment: The absence of confirmed CEO open-market sales is not evidence of a buying signal. No verified cluster of discretionary insider purchases was established.

Q5-A3. Is IDACORP’s Management Aligned With Shareholders?

• Voting Structure: IDACORP operates with conventional publicly traded common equity rather than a founder-controlled dual-class voting arrangement.
• Board Oversight: Public-utility regulation, independent directors, compensation disclosure, and ordinary shareholder voting provide meaningful governance oversight.
• Management Incentives: Executive compensation includes equity-based incentives, creating exposure to per-share outcomes. The exact contribution of long-term return measures to current incentive awards was not independently quantified.
• Shareholder Alignment: Dividend continuity and increased earnings guidance support management credibility, but equity issuance requires attention because aggregate earnings growth can conceal slower per-share value creation.
• Governance Conclusion: Alignment appears generally sound, with the primary concern centered on capital efficiency rather than an identified governance conflict.

Q5-A4. Step 5 Key Takeaways

• Scoring Rationale:
  • Management Trust (4/5): Improved guidance, clear operating disclosures, and tangible customer-growth execution support credibility.
  • Insider Trends (3/5): No verified CEO open-market selling signal was found, but transaction-level evidence is insufficient to establish strong insider accumulation.
  • Governance·Compensation System (5/5): Conventional voting rights, public-utility oversight, and equity-based incentives provide generally appropriate shareholder alignment.
• 📊 Step 5 Score: 12/15 pts (Management Trust 4/5 + Insider Trends 3/5 + Governance·Compensation System 5/5)
• Step 5 Summary: Management’s guidance execution and financial communication are favorable. The central governance question is whether future regulated-asset growth delivers adequate returns after financing costs and dilution.

⛵ Step 6: IDACORP Market Flow & Sentiment

Q6-A1. Analyst Consensus vs IDACORP Guidance

• 2026 Guidance: Following Q3 results, IDACORP expects diluted EPS of $6.40-$6.50, implying a midpoint of $6.45.
• Consensus Comparison: An available pre-update compiled 2026 EPS estimate of approximately $6.39 is below the revised management midpoint by $0.06, or roughly 0.9%. The estimate may not fully incorporate the October 29 guidance increase.
• 2027 Earnings Expectations: Available compiled estimates indicate EPS around $6.94-$6.96, suggesting high-single-digit growth over 2026 guidance.
• Analyst Sentiment: The compiled rating distribution remains broadly constructive, with five strong-buy, two buy, and two hold ratings in the available October snapshot.
• Revision Context: Several individual price targets were reduced during October despite continued constructive recommendations, indicating that valuation expectations and earnings expectations are not moving identically.
• Conclusion: Management guidance is marginally above the available pre-update EPS estimate, but a fully updated post-results consensus comparison is not established.

Q6-A2. What Is IDACORP’s Short Interest?

• Institutional Ownership: Compiled institutional holdings exceed 100% of a point-in-time share-count denominator, reflecting reporting-date differences, overlapping positions, and securities-lending effects rather than literal ownership of more than all outstanding shares.
• Short Interest: Approximately 4.90M shares were sold short as of October 15, 2026, representing approximately 8.5% of the reported public float.
• Short Interest Trend: Short positioning declined from approximately 6.33M shares at September 30 to 4.90M at October 15, a reduction of roughly 22.6%.
• Days-to-Cover: Approximately 7.3 days, indicating meaningful short positioning relative to average trading liquidity.
• Sentiment Interpretation: The reduction in short interest suggests easing bearish positioning. Nevertheless, short selling remains significant for a defensive regulated utility and may reflect concerns about valuation or financing needs.

Q6-A3. Step 6 Key Takeaways

• Scoring Rationale:
  • Consensus vs Guidance (2/3): Revised management guidance exceeds the available prior EPS estimate, but subsequent estimate revisions remain incompletely established.
  • Supply·Short Interest (1/2): Short interest declined materially, although remaining positioning is elevated relative to the stock’s trading volume.
• 📊 Step 6 Score: 3/5 pts (Consensus vs Guidance 2/3 + Supply·Short Interest 1/2)
• Step 6 Summary: Earnings guidance supports sentiment, while declining short interest reduces some positioning pressure. Valuation expectations remain more restrained than the company’s operating narrative.

🚀 Step 7: IDACORP Catalysts & Price Triggers

Q7-A1. What Could Move IDACORP Stock? (Top 3 Catalysts)

• 1 Continued Growth From Large Electricity Customers
  • Timing: Next 6-12 months, particularly during 2027 earnings updates.
  • Success Conditions: Large customers increase contracted electricity consumption, supporting revenue and improved utilization of new generating and transmission infrastructure.
  • Failure Risk: Industrial development slows or customer ramp-up schedules slip, weakening expected load growth.
• 2 Completion and Regulatory Recovery of Utility Infrastructure
  • Timing: Throughout 2027 as projects enter service and regulatory recovery progresses.
  • Success Conditions: Generation, storage, and transmission investments remain on schedule and achieve economically appropriate regulated returns.
  • Failure Risk: Construction inflation, project delays, or disallowed costs reduce earnings contributions relative to invested capital.
• 3 Full-Year 2026 Results and 2027 Earnings Outlook
  • Timing: Estimated February 2027 annual-results release.
  • Success Conditions: Final 2026 EPS meets or exceeds the $6.40-$6.50 guidance range and the 2027 outlook demonstrates sustainable earnings expansion.
  • Failure Risk: Higher financing, depreciation, or operating costs offset revenue growth and lower forward EPS expectations.

Q7-A2. IDACORP’s Earnings Revision Trend

• Current Direction: The October 29 increase in 2026 management EPS guidance is a positive company-specific earnings signal.
• Forward Earnings: Compiled 2027 EPS estimates near $6.95 imply continued growth. A complete 90-day series of comparable estimate snapshots was unavailable, preventing a precise cumulative upward-revision calculation.
• Market Interpretation: Recent price-target reductions indicate that investors can simultaneously receive favorable operating news and face a lower justified equity valuation.
• Revision Conclusion: The operating-earnings outlook improved, but the magnitude of subsequent consensus revisions remains uncertain.

Q7-A3. Step 7 Key Takeaways

• Scoring Rationale:
  • Catalyst (6/7): Large customer loads, new infrastructure, and improving earnings provide credible catalysts, although realization depends on project and regulatory execution.
  • EPS Trend (2/3): Management raised guidance and forward growth remains constructive, but a complete post-results estimate-revision series is unavailable.
• 📊 Step 7 Score: 8/10 pts (Catalyst 6/7 + EPS Trend 2/3)
• Step 7 Summary: IDACORP has credible growth catalysts supported by customer additions and infrastructure investment. Their investment value will depend on per-share earnings growth rather than aggregate revenue expansion alone.

⚖️ Step 8: Is IDACORP Fairly Valued? Valuation Analysis

Q8-A1. IDACORP’s Key Valuation Multiples

• PE Ratio: 22.13x (overvalued)
• PS Ratio: 4.54x (overvalued)
• PB Ratio: 2.06x (fairly valued)
• P/TBV Ratio: 2.10x (fairly valued)
• P/FCF Ratio: N/A (not applicable) — the recent intensive construction program produces negative conventional free cash flow.
• P/OCF Ratio: 16.58x (overvalued)
• EV/Sales Ratio: 6.60x (overvalued)
• EV/EBITDA Ratio: 17.36x (overvalued)
• EV/EBIT Ratio: 28.42x (overvalued)
• EV/FCF Ratio: N/A (not applicable) — negative free cash flow makes the multiple unsuitable.
• Forward PE Ratio: 21.38x (overvalued)
• PEG Ratio: 2.16x (overvalued)
• Scoring Rationale: At $145.38, the stock trades around 22.5x the $6.45 midpoint of 2026 management EPS guidance. Regulated earnings stability and customer growth justify some premium, but the valuation is demanding relative to high-single-digit expected EPS growth and substantial funding needs.
• 📌 (1) Axis Q8-A1 Score: -2

Q8-A2. IDACORP vs Peers: Valuation Comparison

• Multiple selection based on peer comparison: Forward P/E is the preferred metric because IDACORP, Avista, and Portland General Electric are regulated electricity businesses whose equity valuations depend on normalized earnings, growth, and financing costs.
• Calculation of peer-to-peer deviation rate: N/A — a sufficiently synchronized peer set with verified identical forward earnings periods and definitions could not be established.
  • 🧮 Calculation Formula: ((IDACORP forward P/E - arithmetic mean of comparable peer forward P/E ratios) / comparable peer mean) × 100; numerical deviation unavailable.
• Scoring Rationale: IDACORP’s favorable customer growth could support a premium to slower-growing regional utilities, while substantial capital spending could offset that advantage. Without a reconciled current peer average, the relative valuation deviation is not established.
• 📌 (2) Axis Q8-A2 Score: 0

Q8-A3. Is IDACORP Cheap or Expensive vs Its History?

• Comparison Indicators: Historical P/E based on five consecutive fiscal-year-end observations from FY2021 through FY2025, using the corresponding trailing earnings basis.
  • Historical Observations: FY2021 23.31x; FY2022 21.06x; FY2023 19.05x; FY2024 20.13x; FY2025 21.15x.
  • Observed Minimum: 19.05x.
  • Observed Maximum: 23.31x.
  • Current Multiple: 22.13x, using the latest available trailing P/E.
  • Range Position: (22.13 - 19.05) / (23.31 - 19.05) × 100 = 72.3%.
• Scoring Rationale: IDACORP trades in the upper portion of its five-observation historical trailing P/E range, indicating an overvalued historical position. This annual-endpoint comparison does not represent the full range of quarterly or daily historical valuations.
• 📌 (3) Axis Q8-A3 Score: -2

Q8-A4. What Growth Is Priced Into IDACORP? (Reverse DCF)

• Implied Growth Rate: N/A
  • 1 Methodology: An equity cash-flow reverse DCF would require a normalized cash-flow-to-equity base after sustainable regulated capital investment and financing requirements.
  • 2 Core assumptions: IDACORP’s current investment cycle produces substantially negative free cash flow, while future regulated cash generation depends on project completion, allowed returns, customer-funded contributions, and future debt/equity financing.
• Achievable Growth Rate: N/A
  • Basis: Management’s EPS guidance and expected customer growth support an earnings-growth assessment but do not establish a comparable sustainable equity free-cash-flow growth rate.
• Growth gap and difficulty assessment:
  • 🧮 Formula: Achievable cash-flow growth less implied cash-flow growth cannot be calculated on a defensible common basis.
• Scoring Rationale: The construction-related cash deficit and financing-dependent transition to a larger regulated asset base make a single-stage or simplified steady-state equity cash-flow model unreliable without substantial assumptions about future regulatory recovery and equity issuance. The alternative earnings-multiple growth-hurdle assessment is therefore more appropriate.
• 📌 (4) Axis Q8-A4 Score: ➖

Q8-A4-1. What Growth Hurdle Does the Market Demand From IDACORP? (Reverse DCF Alternative)

• Scoring Rationale: At approximately 22.5x management’s 2026 guidance midpoint, IDACORP requires persistent earnings growth and favorable regulatory recovery to justify its price. A 2027 EPS expectation near $6.95 implies roughly 7.8% growth over the guidance midpoint, which is constructive but leaves limited valuation protection given high capital requirements.
• 📌 (4) Axis Q8-A4-1 Score: -2

Q8-A5. IDACORP’s Hidden Asset & Stake Valuation

• Scoring Rationale: Not applicable — IDACORP holds ancillary affordable-housing investments and small hydroelectric interests, but independently supportable values exceeding 10% of market capitalization have not been established; its principal utility infrastructure is operating property rather than a separable hidden asset.
• 📌 (5) Axis Q8-A5 Score: ➖

Q8-A6. Final Valuation Adjustment

• Scoring Rationale: IDACORP’s hydropower resources, regional customer growth, and regulatory franchise are already reflected in the primary valuation assessments. No sufficiently distinct, uncounted factor justifies an additional valuation adjustment.
• 📌 (6) Axis Q8-A6 Score: 0

Q8-A7. Valuation Adjustment Score Calculation

• Calculation Process:
  • (1) Axis (Key Valuation Indicators): -2 pts (Overvalued)
  • (2) Axis (Peer-to-peer deviation rate): 0 pts (Comparable peer deviation unavailable)
  • (3) Axis (Historical Band Position): -2 pts (observed-range position p = 72.3%; Overvalued)
  • (4) Axis (Justification for Growth): -2 pts (Forward earnings growth requires continued regulated investment execution)
  • (5) Axis (Held assets·Share Valuation): 0 pts (Not applicable)
  • (6) Axis (Final adjustment): 0 pts (No distinct additional valuation factor)
• 📊 Valuation Adjustment Score: A1 (-2) + A2 (0) + A3 (-2) + A4 (-2) + A5 (0) + A6 (0) = -6 pts
• Commentary: The valuation adjustment reflects a relatively expensive earnings multiple, an upper-range historical valuation, and a meaningful growth hurdle associated with future regulated returns. Incomplete peer comparability does not create an additional valuation penalty.
• Step 8 Summary: IDACORP’s operating fundamentals are improving, but its market valuation already reflects much of the benefit expected from customer growth and new infrastructure. The current price offers limited protection if projected earnings growth or regulatory recovery disappoints.

💀 Step 9: What Are the Risks of IDACORP? Fatal Risks & Pre-Mortem

Q9-A1. What Are the Biggest Risks to IDACORP?

• 1 Heavy capital spending and external financing dependence:
  • Cause: Major generation, transmission, storage, and distribution investments exceed operating cash generation.
  • Impact: Debt accumulation, interest expense, and common-equity issuance can reduce per-share earnings growth and pressure financial flexibility.
  • Mitigation/Monitoring Indicators: Monitor annual capital expenditures, debt issuance, credit ratings, financing costs, equity issuance, and the timing of regulated recovery.
• 2 Regulatory recovery and construction-execution risk:
  • Cause: Large projects require timely completion and favorable regulatory treatment to earn expected returns.
  • Impact: Cost disallowances, delays, or lower allowed returns could weaken earnings and prolong negative cash flow.
  • Mitigation/Monitoring Indicators: Track Idaho and Oregon rate proceedings, construction budgets, project-service dates, and recovery of wildfire mitigation and plant-conversion costs.
• 3 Hydrology, wildfire, and electricity supply exposure:
  • Cause: Hydroelectric output depends on water availability, while wildfire and generation-transition costs affect system operations.
  • Impact: Lower hydro generation may increase purchased-power requirements, and wildfire events can create operational disruption and unplanned costs.
  • Mitigation/Monitoring Indicators: Track reservoir conditions, hydroelectric production, purchased-power costs, wildfire expenditures, insurance, and approved cost-recovery mechanisms.

Q9-A2. How Sensitive Is IDACORP to the Economy?

• 1 Higher Interest Rates (Negative Impact ⬇): Higher refinancing and new-issuance costs can increase financing expenses and reduce the earnings benefit from regulated infrastructure growth.
• 2 Lower Hydroelectric Water Availability (Negative Impact ⬇): Reduced hydro output can raise purchased-power and fuel requirements, pressuring margins where cost recovery is delayed or incomplete.
• 3 More Favorable Regulated Cost Recovery (Positive Impact ⬆): Regulatory approval of timely investment recovery and appropriate authorized returns can improve earnings predictability and support future utility investment.

Q9-A3. IDACORP Pre-Mortem: What Could Go Wrong?

• 1 A prolonged construction and funding imbalance: Major projects require substantially more capital than planned while operating cash generation remains weak, forcing expensive financing and sustained dilution.
  • Early Warning Signal: Capital expenditure forecasts rise repeatedly without corresponding increases in approved rates or projected per-share earnings.
• 2 Large-customer electricity demand fails to materialize: Expected industrial loads are delayed or reduced, leaving expensive infrastructure underutilized and reducing the anticipated earnings contribution.
  • Early Warning Signal: Large-customer demand forecasts and contractual ramp-up schedules are repeatedly revised downward.
• 3 A regulatory and environmental cost shock: Major wildfire, hydroelectric, or generation-transition costs are incurred without timely recovery through approved tariffs.
  • Early Warning Signal: Regulatory filings disclose material unrecovered expenditures, disallowances, or a sustained decline in allowed returns.

Q9-A4. Risk Adjustment Score

• Reason for Scoring: IDACORP’s continuing investment program creates a substantial financing burden: nine-month 2026 operating cash flow of $378.49M was far below approximately $1.18B in net capital additions, and common-equity issuance was material. The business retains a stable regulated revenue base, viable debt financing access, and opportunities to recover investments through rates, limiting the likelihood of severe financial disruption. The deduction reflects the continuing operating and financing exposure rather than valuation multiples.
• 📊 Risk Adjustment Score: -4 pts
• Step 9 Summary: IDACORP’s principal downside risks involve infrastructure execution, financing, and regulatory recovery rather than competitive displacement. These risks are meaningful but moderated by the company’s established utility franchise.

🎯 Step 10: IDACORP Final Verdict: Score & Rating

Q10-A1. Investment Score & Rating

• Investment Score Calculation Formula:
  • Step breakdown: S2 (21) + S3 (18) + S4 (16) + S5 (12) + S6 (3) + S7 (8) = 78 pts
  • Steps 2-7 Sum (78 pts) + Valuation Adjustment (-6 pts) + Risk Adjustment (-4 pts) = Investment Score 68 pts
• Investment Score & Rating: 68 pts (B Rating ⭐⭐⭐)
  • Commentary: IDACORP’s regulated service territory, customer growth, improving operating earnings, and established management execution produce a solid fundamental assessment. A demanding valuation and the continuing financing requirements of its capital investment program reduce the stock’s overall attractiveness.

Q10-A2. Should You Buy IDACORP? (Recommendation)

• Recommendation: Hold
  • Commentary: IDACORP remains a credible long-term regulated-utility investment, supported by growing electricity demand and improving earnings. However, the current share price already discounts substantial operating success, while financing costs and dilution constrain prospective returns. Existing positions may be retained, but a lower entry valuation would offer a more attractive balance of opportunity and risk.

Q10-A3. Investment Thesis in One Line

• IDACORP benefits from a protected regulated utility franchise and expanding Idaho electricity demand, but heavy capital expenditures, financing-related dilution, and an elevated earnings multiple limit near-term upside.

Q10-A4. IDACORP’s Price Trend & Key Drivers

• Stock Price Trend Over the Past 12 Months: Moderately Upward 📈 — IDACORP closed at $145.38 on October 30, 2026, approximately 10.9% above its level twelve months earlier. The stock traded between $124.12 and $154.91 over the preceding 52 weeks.
• October 29, 2026 Q3 Earnings Release and Increased Full-Year Guidance
  • Description: Higher Q3 net income and the increase in 2026 EPS guidance reinforced expectations for regulated earnings growth.
  • Stock Price Reaction: Positive 📈 — Shares rose approximately 2.8% on October 29, closing at $143.61 versus $139.73 on October 28.
• October 30, 2026 Continued Trading Following the Earnings Release
  • Description: Investors continued assessing the stronger earnings outlook against utility capital spending and financing requirements.
  • Stock Price Reaction: Further Advance 📈 — Shares gained approximately 1.2% during the next session, closing at $145.38. The two-session price increase coincided with the positive earnings announcement.

Q10-A5. Action Plan

• Current Price: $145.38
• Buy Zone: $124.00 ($120.00–$128.00)
  • (1) Calculation of Fundamental Value: A conservative entry range is established below the current trading price, corresponding to approximately 17.3x-18.4x the $6.96 forward 2027 EPS reference. This provides a margin below the current premium multiple while recognizing the company’s regulated earnings stability.
  • (2) Momentum Premium/Discount Application: The improving earnings outlook supports avoiding an excessively deep discount requirement. However, financing needs and elevated valuation argue against paying an additional momentum premium.
  • (3) Conclusion: The preferred entry range is $120.00-$128.00, with a midpoint of $124.00, balancing the utility’s growth prospects against capital intensity and valuation risk.
• Price Target: $142.00
• Expected Return: -2.3% (vs. current price)
  • 📍 Selected Valuation Metric: Forward normalized P/E — a 20.0x multiple applied to analyst-estimated 2027 diluted EPS of $7.10, reflecting modest earnings improvement beyond the currently available compiled estimate.
  • 🧮 Price Target Calculation Formula: $7.10 normalized 2027 diluted EPS × 20.0x forward P/E = $142.00
  • ⚓ Valuation Basis and Key Assumptions: The model assumes 2027 normalized EPS of $7.10, slightly above compiled estimates near $6.95, based on continued customer growth and revenue contributions from regulated investments. The 20.0x forward multiple is an analytical judgment within the company’s observed historical trailing P/E range, allowing for stable utility earnings but discounting financing intensity, dilution, and regulatory execution risk. The historical comparison uses trailing earnings, whereas the target uses prospective normalized earnings; the lower forward multiple reflects the need for future earnings to compensate investors for continuing capital demands. Changes in 2027 EPS, equity issuance, or the justified discount rate could materially affect the target.
• Conditions and timing for reaching price target: Over the next 6-12 months, annual-results guidance and subsequent 2027 quarterly disclosures must establish sustainable EPS expansion, successful large-customer load growth, and disciplined financing. Progress on generation and transmission projects should support earnings without disproportionate dilution.
• Stop Loss: $109.00 ($106.00–$112.00)
• Action trigger upon catalyst achievement:
  • 1 If 2027 earnings guidance confirms stronger per-share growth
    • Description: Improved earnings visibility supports maintaining exposure, but further purchases require an attractive valuation relative to the updated earnings base. 👉 Maintain Holdings (Hold)
  • 2 If large-customer loads increase faster than expected
    • Description: Stronger electricity demand improves the investment outlook if regulatory recovery and capital requirements remain favorable. 👉 Maintain Holdings (Hold)
  • 3 If IDACORP reaches the preferred Buy Zone without fundamental deterioration
    • Description: A lower entry valuation would improve prospective returns while preserving exposure to the company’s regulated growth opportunities. 👉 Consider Accumulation (Buy)
• Action trigger upon risk realization:
  • 1 If repeated equity issuance materially reduces projected per-share growth
    • Description: Persistent dilution without adequate incremental earnings would weaken the investment case and justify reducing exposure. 👉 Reduce Holdings (Sell)
  • 2 If major utility projects experience significant unrecoverable cost overruns
    • Description: Material disallowances or delays would undermine expected regulated returns and weaken the valuation foundation. 👉 Reduce Holdings (Sell)
  • 3 If hydroelectric shortfalls increase operating costs but regulatory recovery remains effective
    • Description: Temporary cost pressure does not necessarily invalidate the long-term thesis when cost-recovery mechanisms and liquidity remain intact. 👉 Maintain Holdings (Hold)
• Customized Strategy Guide by Investment Preference:
  • Defensive Investors: Favor existing income-oriented positions or new purchases near the lower end of the Buy Zone. Avoid chasing a premium valuation while the funding cycle remains intense.
  • Neutral Investors: Maintain moderate exposure and consider additional purchases within the $120.00-$128.00 range, contingent on stable earnings guidance and manageable financing conditions.
  • Aggressive Investors: Consider staged accumulation when valuation becomes attractive and large-customer demand or infrastructure execution strengthens the forward earnings outlook. Monitor dilution and regulatory developments closely.

🕵️‍♂️ Deep Dive Analysis

Q1: Is IDACORP’s Heavy Capital Expenditure Program Its Biggest Investment Weakness?

• Analysis: IDACORP’s nine-month 2026 capital additions of approximately $1.18B far exceeded operating cash flow of $378M, producing a substantial financing gap. The company issued both debt and common equity to fund investment. Although regulated utility infrastructure can generate returns over decades, near-term shareholder economics depend on whether assets enter service, receive approved cost recovery, and produce sufficient earnings to offset financing costs and dilution.
• Judgment: Negative — The funding burden is manageable within the regulated-utility model but represents the most important obstacle to strong free cash flow and rapid per-share compounding.

Q2: Can IDACORP’s 22x Earnings Multiple Be Justified by Its Regulated Utility Growth?

• Analysis: IDACORP trades at approximately 22.5x the midpoint of management’s 2026 EPS guidance. The premium reflects customer growth, improved regulated rates, and opportunities from larger industrial electricity loads. However, projected 2027 EPS growth remains in the high-single-digit range, while investment requirements exceed internally generated funds. A normalized 20.0x forward multiple appears more appropriate for a company with stable but capital-intensive growth.
• Judgment: Overvalued — The current multiple is demanding relative to anticipated per-share earnings growth and the continuing financing burden.

Q3: Could Large Industrial Electricity Customers Transform IDACORP’s Long-Term Growth Rate?

• Analysis: Large contract customers contributed approximately $20.1M of incremental operating-income benefit during the first nine months of 2026, after the relevant associated power supply and regulatory adjustments. This demonstrates that industrial loads can become an important earnings contributor. However, the value created for shareholders depends on incremental generation and transmission investments, customer commitments, and regulatory treatment. Higher electricity sales alone do not establish proportionate EPS growth.
• Judgment: Positive — Industrial electricity demand creates an attractive structural opportunity, provided project economics and customer commitments remain favorable.

Q4: Does IDACORP’s Hydroelectric Portfolio Provide a Sustainable Competitive Advantage?

• Analysis: Idaho Power operates 17 hydroelectric facilities, providing a comparatively low-cost electricity supply under normal water conditions. This helps moderate supply expenses and supports regional competitiveness. The advantage is partly offset by weather-dependent production, environmental obligations, and the need to purchase additional electricity when hydroelectric output is insufficient. Regulatory cost-recovery mechanisms further influence how much of the benefit accrues to shareholders.
• Judgment: Positive — Hydroelectric resources strengthen the company’s utility economics, though they do not eliminate exposure to drought or purchased-power costs.

Q5: Will IDACORP’s Equity Issuance Undermine Its Earnings Growth?

• Analysis: Common shares outstanding increased approximately 5.5% during the first nine months of 2026, while the company raised roughly $318M through equity issuance. This illustrates the difference between growth in total regulated earnings and growth attributable to each share. If incremental utility investments earn suitable returns, issuance can finance value-creating expansion. If regulated returns or project utilization disappoint, the increased share count may permanently dilute per-share economics.
• Judgment: Neutral — Equity issuance is not intrinsically destructive, but future dilution must be justified by corresponding earnings growth and acceptable returns on new assets.

Q6: How Important Are Idaho Regulators to IDACORP’s Future Profitability?

• Analysis: The January 2026 base-rate increase substantially supported operating earnings, with higher net retail revenues per MWh contributing approximately $75.7M during the first nine months of 2026. Regulatory approval determines how much invested capital becomes earnings-producing rate base and how quickly certain operating expenses are recovered. Unfavorable outcomes could reduce the economic benefit of planned infrastructure spending even if electricity demand remains robust.
• Judgment: Neutral — Regulation provides both a significant barrier to entry and a binding constraint on profitability.

Q7: Could Rising Interest Rates Become a Major Headwind for IDACORP?

• Analysis: IDACORP had approximately $3.86B in long-term debt at September 2026 and continues to require substantial capital investment. Higher interest rates increase the cost of refinancing and future borrowing, potentially reducing earnings available to shareholders. Regulatory mechanisms may compensate for higher financing costs over time, but there can be delays between capital spending and updated authorized returns.
• Judgment: Negative — Financing costs are a material sensitivity during the investment cycle, particularly if borrowing rates remain elevated while construction spending continues.

Q8: Is IDACORP’s Dividend Attractive Enough to Offset Its Valuation Risks?

• Analysis: The annualized dividend of $3.60 represents approximately a 2.48% yield at $145.38. The accounting payout ratio is manageable, supported by a stable regulated customer base and improving earnings. However, free cash flow remains negative because of construction spending, meaning dividend funding must be considered alongside debt and equity issuance. Investors purchasing primarily for income receive a relatively modest current yield compared with the company’s funding requirements.
• Judgment: Neutral — The dividend supports total returns but does not independently compensate for an elevated valuation or substantial capital spending.

Q9: What Could Cause IDACORP’s 2027 Earnings Outlook to Disappoint?

• Analysis: The major threats are slower industrial load growth, higher operating and maintenance expenses, project delays, rising financing costs, and increased dilution. Management’s revised 2026 guidance establishes a stronger earnings starting point, but delivering expected 2027 growth requires the benefits of new customers and regulated investments to exceed additional depreciation, interest expense, and operating costs. An unfavorable combination could reduce EPS even if total revenue continues expanding.
• Judgment: Neutral — Moderate EPS growth is achievable, but execution and financing assumptions leave meaningful downside sensitivity.

Q10: What Would Make IDACORP a More Attractive Long-Term Investment?

• Analysis: A more attractive investment case would combine a lower forward P/E with continued customer growth, reliable regulatory recovery, and better visibility into the long-term financing plan. Evidence that large-customer revenues are producing sufficient incremental returns, while share issuance moderates, would support greater confidence in per-share compounding. Conversely, a rising stock price unsupported by stronger earnings would further reduce the expected return.
• Judgment: Positive — IDACORP’s underlying business can support long-term ownership, but disciplined entry valuation and improving capital efficiency are necessary for an attractive risk-adjusted outcome.