Emera (TSE:EMA) reported third-quarter adjusted earnings of C$260 million and outlined a C$21.5 billion, five-year capital plan, with most of the investment directed to its Florida utilities.
Adjusted earnings were C$0.85 per share in the quarter, a modest 3% decrease from a year earlier, Chief Financial Officer Jared Green said. For the first nine months of 2026, adjusted earnings rose C$9 million to C$887 million, or C$2.90 per share. Operating cash flow excluding working capital increased 7% over the same period.
President and CEO Scott Balfour said Emera remains on track to deliver compound adjusted earnings-per-share growth above its 5% to 7% target range in 2026 and remains committed to its longer-term guidance through 2030. The board also approved a 1% dividend increase, the company’s 20th consecutive annual increase.
Capital Plan Centers on Florida
The new capital plan is approximately C$1.1 billion, or 5%, larger than the plan Emera presented last year. It is a standalone plan and excludes the proposed merger with Canadian Utilities, Balfour said.
Emera expects the spending to support annual rate base growth of 7.5% to 8.5% through 2031, compared with 7% to 8% under its previous plan. About three-quarters of the investment is intended for reliability and resiliency, while approximately 82% is earmarked for Florida. The Florida utility’s rate base is expected to grow closer to 9%, Balfour said.
Projects include the modernization of Tampa Electric’s Big Bend Unit 4, which is expected to add approximately 720 megawatts of generation capacity. Construction is scheduled to begin in 2027, with the facility targeted to be fully operational in 2032. Peoples Gas plans approximately C$1 billion of investment through 2031 to support customer growth.
Asked how Emera could reach the high end of its rate base growth range and translate that growth into earnings, Green pointed to project execution and regulatory outcomes, including limiting delays in recovering investment costs. Balfour said the company was balancing investment opportunities against the effect on customer affordability.
Data Center Discussions Advance
Tampa Electric filed a proposed large-load tariff on September 30 to accommodate up to 1,000 megawatts of demand, alongside a proposed formula rate for additional demand. Balfour said the framework is intended to ensure new large-load customers pay the costs of serving them while protecting existing customers. A regulatory decision is expected early next year.
The utility has completed system impact studies for approximately 1,300 megawatts of potential data center demand and is working toward a year-end contract for the first 350 megawatts at the Auburndale Technology Center announced by Hillwood Corporation, Balfour said.
Tampa Electric President and CEO Archie Collins said the five-year capital plan already contemplates serving 350 megawatts of large load. He said the utility is confident it could deliver up to 700 megawatts at Auburndale and is discussing whether the site could reach 1,000 megawatts, though that remains premature. Green said connecting the initial 350 megawatts would require incremental infrastructure investment in the tens of millions of dollars.
Merger and Funding Plans
Emera expects its proposed merger with Canadian Utilities to close in the third or fourth quarter of 2027, or earlier, Balfour said. The companies submitted their application to the Alberta Utilities Commission on October 27 and requested a decision by the end of April 2027. Special shareholder meetings are expected in early 2027.
Balfour said the combination would bring together growth opportunities in Florida and Alberta and is expected to strengthen the combined company’s credit profile and lower its cost of capital. During the question-and-answer session, he said it was too soon to identify specific Western Canadian projects that might move forward sooner.
For its standalone capital plan, Emera expects operating cash flow to fund 45% to 50% of requirements and operating-company debt to provide 30% to 35%. Its dividend reinvestment and at-the-market equity programs are expected to provide 10% to 15%, averaging approximately C$600 million annually, while hybrid capital is expected to fund 5% to 7%.
Green said the plan no longer forecasts asset-sale proceeds. Asked about the potential effect of equity issuance on earnings-per-share growth, he declined to provide a new forecast, saying Emera would update its guidance with fourth-quarter results in February.
In Nova Scotia, the company has applied to securitize approximately C$1 billion of costs, including costs associated with certain thermal assets being retired during the energy transition. Subject to regulatory approval, Balfour said the financing is expected to save customers approximately C$265 million over a 30-year repayment period. Green said Emera’s rate base growth forecast assumes the securitization is completed and the affected thermal assets are excluded from rate base.
About Emera (TSE:EMA)
Emera (TSX/NYSE: EMA) is a leading North American provider of energy services headquartered in Halifax, Nova Scotia, with investments in regulated electric and natural gas utilities, and related businesses and assets. The Emera family of companies delivers safe, reliable energy to approximately 2.7 million customers in the United States, Canada and the Caribbean. Our team of 7,800 employees is committed to our purpose of energizing modern life and delivering a cleaner energy future for all. Emera’s common and preferred shares are listed and trade on the Toronto Stock Exchange and its common shares are listed and trade on the New York Stock Exchange.
