Emera Q2 Earnings Call Highlights

Emera reported Q2 adjusted earnings of C$212 million, or C$0.69 per share, with year-to-date earnings up modestly to C$627 million. Management remains on track for more than 5%–7% compound adjusted EPS growth through 2026 and growth within that range through 2030. The sale of New Mexico Gas received regulatory approval and is expected to close in August, generating approximately C$650 million–C$700 million in after-tax proceeds. Emera plans to use the funds to reduce holding-company debt and strengthen its balance sheet, while the transaction is expected to improve its operating cash flow-to-debt ratio. Emera deployed more than C$1.7 billion in the first half and remains on pace for its approximately C$4 billion 2026 capital plan, focused on regulated utility growth. The company is also evaluating transmission opportunities in Atlantic Canada and Ontario, including projects supporting renewable generation and grid reliability.

Emera TSE: EMA reported second-quarter adjusted earnings of C$212 million, or C$0.69 per share, as the utility advanced asset sales designed to strengthen its balance sheet and concentrate investment on its regulated businesses. Year-to-date adjusted earnings totaled C$627 million, up C$12 million from the prior-year period, while adjusted earnings per share of C$2.06 were effectively unchanged from a year earlier. The company 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.

“Overall, the first half of 2026 reflects continued progress in executing our strategy and positioning Emera for long-term success,” President and Chief Executive Officer Scott Balfour said on the company’s Aug. 7 earnings call.

New Mexico Gas Sale Expected to Close This Month A key development was the New Mexico Public Regulation Commission’s July 30 approval of Emera’s sale of New Mexico Gas to Bernhard Capital Partners. Balfour said the transaction is expected to close later in August. Emera expects after-tax proceeds of approximately C$650 million to C$700 million from the sale, which it expects to record in its third-quarter results. The company plans to use the funds to reduce holding-company debt and improve financial flexibility, supporting capital investment at its regulated utilities. Balfour said the sale of New Mexico Gas, along with the completed sale of Grand Bahama Power Company on May 12, advances the company’s portfolio-optimization strategy. Grand Bahama Power’s sale was reflected in second-quarter financial results.

Chief Financial Officer Jared Green said the New Mexico Gas sale is expected to provide a sustained benefit of about 50 basis points to Emera’s operating cash flow-to-debt ratio. The company expects to exceed Moody’s 12% operating cash flow before working capital-to-debt threshold during calendar 2026. “Probably the mid-12s is a good place,” Green said in response to an analyst question regarding the desired cushion above Moody’s threshold. “Being able to get to the higher 12s over the longer term would be a much better place to be.” Moody’s revised Emera’s credit outlook to stable during the quarter. Green said the revised outlook and expected New Mexico Gas closing reflect progress in strengthening the company’s financial position.

Capital Program and Regulated Growth Emera deployed more than C$1.7 billion of capital during the first half of 2026 and remains on pace to execute its approximately C$4 billion capital plan for the full year, its largest to date. The company is targeting annual rate-base growth of 7% to 8% through 2030 and plans to provide an updated capital plan with third-quarter results. The company