Updated 5/16/25
IDACORP, Inc. (IDA), the parent company of Idaho Power, delivers electricity to more than 600,000 customers across Idaho and Oregon. With roots in regulated utility operations, the company has steadily grown its earnings and customer base, recently reporting a strong first quarter for 2025. Earnings per share rose to \$1.10, backed by increased customer demand and operational efficiency.
Under the leadership of CEO Lisa Grow, IDACORP has focused on sustainable infrastructure investment and long-term energy reliability. With consistent dividend growth, a forward yield around 3%, and supportive analyst sentiment, the company continues to attract income-focused investors looking for stability and dependable performance.
Recent Events
In its latest earnings release, IDACORP posted a 23.8% year-over-year jump in earnings, despite a 3.7% dip in revenue. That’s a noteworthy performance in a sector where most companies are just trying to hold the line. It suggests management has found ways to drive operational efficiency and manage costs effectively, which bodes well for sustaining profits even if revenue wobbles a bit.
The balance sheet looks sound. With over $634 million in cash and a current ratio of 1.81, IDACORP is comfortably positioned to handle its short-term obligations. Its book value per share stands at $61.95—offering some cushion given where the stock is currently priced.
What’s also impressive is how the stock has moved over the past year. Up around 16%, IDA has outperformed the broader market, all while maintaining a low beta of 0.58. That tells you this is a defensive name that has quietly delivered for shareholders without much drama.
Key Dividend Metrics
💸 Forward Dividend Yield: 3.01%
📈 5-Year Average Yield: 2.99%
📆 Next Dividend Date: May 30, 2025
🪙 Payout Ratio: 59.82%
🔁 Dividend Growth (5-Year CAGR): Steady and consistent
📊 Cash Flow Coverage: Under pressure from capital investment
🧱 Balance Sheet Debt Load: Debt/Equity at 102.79%
Dividend Overview
At a 3.01% forward yield, IDACORP offers an attractive income stream without stretching too far into risk. It’s not a yield trap, and it’s not stingy either—it sits in a sweet spot that many dividend investors will appreciate. Over the past five years, the yield has averaged just under 3%, so the current rate is right in line with that trend.
The company currently pays a quarterly dividend of $0.86 per share, which amounts to $3.44 annually. That’s up from $2.52 just five years ago. The growth has been steady, not aggressive, and clearly aligned with earnings growth and cash flow strength. It’s the kind of increase pattern that doesn’t leave you worrying about sustainability.
Importantly, with a payout ratio just below 60%, IDACORP retains enough of its earnings to invest back into operations or weather the occasional storm. That balance is key. A lot of companies either hold back too much or pay out too much. IDACORP seems to be walking the line well.
And the market has taken notice—institutions own nearly 90% of the stock’s float. That kind of backing from professional investors tends to signal confidence in both the income stream and the underlying fundamentals.
Dividend Growth and Safety
One of the more appealing traits of IDACORP is its track record of dividend growth. The company has been increasing its payout every year for the past decade. While the size of the increases hasn’t been dramatic, they’ve been dependable. Management appears to have a clear plan: grow earnings, then share the gains with shareholders through higher dividends. It’s a conservative approach, but it’s worked.
There is one area to keep an eye on—free cash flow. Despite solid operating cash flow of $609 million, levered free cash flow has been negative, coming in at -$352 million. That’s a reflection of heavy capital expenditures, which aren’t unusual for utilities. Whether it’s grid upgrades or renewable energy investments, the sector requires a lot of ongoing investment.
As long as IDACORP maintains steady earnings and its regulated cash flow continues to roll in, this isn’t an immediate red flag. However, if the capex spending continues at this level, investors should at least be aware of the potential impact on future dividend flexibility.
Debt is also worth noting. The company’s debt-to-equity ratio is slightly above 100%, which is typical for the sector, but still high enough that it deserves monitoring. The good news is that utility revenues tend to be predictable, and interest rates, while elevated from their lows, remain manageable.
In the end, this isn’t a company trying to reinvent the wheel—it’s delivering power, collecting revenue, and paying out dividends with a steady hand. That’s a formula that tends to work well for income investors. The dividend looks safe for now, with enough of a margin to keep modest annual increases coming. And for those looking to build a reliable stream of income without chasing risk, IDACORP offers a lot to like.
Cash Flow Statement
Over the trailing twelve months, IDACORP has generated $609 million in operating cash flow, showing a solid improvement over previous years. This uptick signals improved efficiency in its core utility operations, especially when compared to the more modest $267 million recorded just two years ago. However, this strength hasn’t been enough to offset the heavy spending required to maintain and expand infrastructure.
Capital expenditures have remained consistently high, with over $950 million spent in the TTM period. As a result, free cash flow has been negative at around -$341 million, continuing a trend from the past few years. To fund these investments, the company issued $700 million in debt and nearly $300 million in new stock, bringing in substantial financing cash flow. Despite the cash burn from investing, IDACORP ended the period with a strong $634 million in cash—its highest position in five years. This shows that while cash generation isn’t keeping pace with capex, the company is managing its liquidity through external funding.
Analyst Ratings
IDACORP has recently seen a wave of analyst upgrades, reflecting renewed optimism about its earnings stability and operational strength. Jefferies shifted its stance from Hold to Buy and raised its price target from $118 to $133, citing strong earnings momentum and efficient cost control. UBS nudged its price target up to $122 from $117 while maintaining a Neutral rating, and Guggenheim moved the stock to Buy from Neutral with an updated target of $121, up from $100. BofA Securities also took a more bullish stance, upgrading the stock to Buy from Neutral and adjusting its target to $117 from $113. Mizuho joined the group as well, bumping its rating to Outperform from Neutral and raising its price target to $116, up from $102.
📈 These upgrades are being driven by IDACORP’s steady earnings trajectory and its disciplined approach to financial management. The company’s ability to navigate regulatory hurdles, while sustaining its dividend and infrastructure investments, has impressed analysts. It’s a name that keeps delivering, even without much fanfare. 💼 The consensus 12-month price target across covering analysts now stands around $126.86, which suggests some room for further upside from current levels.
Earning Report Summary
Strong Start to the Year
IDACORP kicked off 2025 with a solid first quarter, reporting earnings of $1.10 per share. That’s a nice jump from $0.95 this time last year and reflects steady momentum in both operations and customer growth. Net income came in at $59.6 million, showing an increase of over $11 million year-over-year.
What fueled the performance? For one, retail revenues rose on a per-megawatt-hour basis, and the company added around 16,500 new customers—a 2.6% bump in its base. That kind of growth is meaningful in a regulated utility environment. They also leaned on some additional deferred investment tax credits, which provided a bit of a boost.
Cost Pressures Still Present
Not everything was smooth sailing. Costs crept higher, particularly in operations and maintenance. IDACORP faced some inflation-driven labor expenses and increased spending on wildfire mitigation, which isn’t surprising given the broader climate concerns across the region. Depreciation costs also edged up as a result of their ongoing infrastructure investments.
Despite those pressures, the company’s efficiency and rate adjustments helped keep the bottom line moving in the right direction.
Staying Focused on Growth and Reliability
Leadership sounds confident about the path ahead. The full-year 2025 earnings guidance remains unchanged, sitting between $5.65 and $5.85 per share. That shows they’re not just coasting on a strong quarter—they’re expecting continued progress throughout the year.
CEO Lisa Grow emphasized their focus on long-term projects, especially those tied to transmission infrastructure and clean energy development. She highlighted that construction on major transmission lines is about to begin and that they’re actively planning for new power generation resources to meet demand.
There’s also an expected use of $60 million to $77 million in additional tax credits under Idaho’s regulatory mechanisms. It’s a strategic move to support the balance between investment and customer rate stability.
IDACORP is clearly doubling down on growth and reliability, and the tone from leadership suggests they feel well-prepared to meet the demands of a growing customer base—without compromising on service or sustainability.
Management Team
At the helm of IDACORP is Lisa A. Grow, who has served as President and CEO since June 2020. Her journey with the company began in 1987 as Idaho Power’s first female engineer. Over the years, she has held various leadership roles, including Senior Vice President of Operations and Chief Operating Officer. Her extensive experience across engineering and operations provides her with a comprehensive understanding of the utility’s inner workings. Beyond her corporate responsibilities, Grow contributes to the broader community through board roles in healthcare and regional economic institutions.
Under Grow’s leadership, IDACORP has maintained a steady course, focusing on operational excellence and strategic investments to meet the evolving energy needs of its customers. Her commitment to reliability and sustainability has positioned the company to navigate the challenges of a rapidly changing energy landscape.
Valuation and Stock Performance
As of mid-May 2025, IDACORP’s stock trades around $114 per share, with a market capitalization of approximately $6.14 billion. The stock has experienced a modest pullback from its recent high of $119.72 reached in early March. Still, its year-to-date performance reflects investor confidence, supported by steady earnings growth and a dependable dividend.
The consensus 12-month price target sits near $126.86, suggesting there may be room for additional upside. IDACORP’s forward price-to-earnings ratio of 19.46 positions it reasonably within the utility sector. Its valuation, coupled with a consistent dividend payout and stable fundamentals, continues to appeal to income-focused investors looking for lower volatility and dependable cash flows.
Risks and Considerations
IDACORP operates in a relatively stable sector, but that doesn’t mean it’s without risk. The company is heavily invested in infrastructure and modernization projects—many of which require substantial capital outlays. As a result, the debt-to-equity ratio has pushed above 100%, raising some questions about long-term financial flexibility if borrowing costs continue to rise.
The joint ownership structure of certain power generation and transmission assets adds another layer of complexity. Differences in strategy or funding timelines between co-owners can slow down project progress or introduce unexpected hurdles. On the environmental side, the threat of wildfires and ongoing regulatory evolution around emissions and clean energy mandates add pressure, both operationally and financially.
Final Thoughts
IDACORP has carved out a place as a utility that prioritizes consistency, customer service, and forward-thinking infrastructure. With Lisa Grow at the helm, the company has leaned into its engineering roots while embracing the demands of a modern energy economy. It’s not trying to reinvent the wheel—but it’s quietly upgrading it, year after year.
For investors who value predictability and income, this stock continues to offer a compelling combination of steady dividends and strategic execution. While there are always risks to consider, especially around debt levels and regulatory dynamics, the fundamentals remain strong. It’s a company built on solid ground, planning carefully for a future where reliability and sustainability need to go hand in hand.