SPOKANE, Wash., Aug. 03, 2026 (GLOBE NEWSWIRE) — Avista Corp. (NYSE: AVA) reported results for the second quarter and six months ended June 30, 2026, with net income increasing compared to the respective periods in 2025. The company also confirmed its 2026 non-GAAP utility earnings guidance range of $2.52 to $2.72 per diluted share.

CEO Commentary

"Strong execution of our operational priorities and disciplined cost management reinforce confidence in our outlook and long-term strategy. Results for the quarter also benefited from the recovery of non-utility investment losses recognized in 2025. By maintaining a balanced approach to investments in our system and affordability, we continue to position the company to deliver value for both our customers and shareholders," said Heather Rosentrater, President and CEO of Avista.

Analysis of 2026 GAAP Earnings

Net income for the three and six months ended June 30, 2026 rose compared to the same periods in 2025, driven primarily by investment performance in the company's other businesses. Avista recognized net investment gains in 2026 versus net investment losses in 2025. For the six-month period, net income also benefited from the effects of general rate cases.

Avista noted it is unable to provide GAAP earnings guidance or a quantitative reconciliation of forward-looking non-GAAP utility earnings without unreasonable effort, as certain reconciling items — particularly investment gains and losses — are not reliably estimable.

Analysis of 2026 Non-GAAP Utility Earnings

The company outlined after-tax factors contributing to changes in non-GAAP utility earnings compared to the same periods in 2025. The tax impact for each line item was calculated using Avista's federal statutory tax rate of 21 percent.

• Electric revenues decreased year-to-date due to lower wholesale revenues, the removal of revenues tied to Colstrip cost recovery, and reduced industrial sales volumes following the departure of a large industrial customer. Colstrip is a coal-fired power plant in Montana whose ownership interests have been subject to phased retirement agreements among several Pacific Northwest utilities. Avista completed its exit from Colstrip in 2026, marking a notable step in the company's resource portfolio transition. These revenue declines were partially offset by general rate case effects.
• Natural gas revenues declined year-to-date due to purchased gas adjustments (PGAs) and Climate Commitment Act (CCA)-related revenues, with corresponding decreases to natural gas resource costs. Washington's CCA, a statewide cap-and-invest program that took effect in 2023, has introduced compliance costs for natural gas utilities operating in the state.
• Electric resource costs fell due to decreased fuel costs aligned with lower thermal generation and reduced expense under the Energy Recovery Mechanism (ERM), a regulatory mechanism that allows Avista to defer or recover differences between actual and forecasted energy supply costs. The ERM produced a $6 million pre-tax expense in Q2 2026 versus $1 million in Q2 2025. For the first half of 2026, the ERM expense was $7 million compared to $9 million in the prior-year period.
• Natural gas resource costs declined on lower volumes purchased, reduced net deferrals and amortizations under PGAs, and lower CCA-related costs.
• Other operating expenses rose, driven mainly by higher employee salaries and benefit costs, partially offset by the removal of Colstrip-related costs.
• Depreciation and amortization decreased, primarily from Avista's exit from Colstrip in 2026, partially offset by additions to plant.
• Other earnings contributors included higher interest income year-over-year and lower taxes other than income taxes.
• The effective tax rate for the first half of 2026 was 12%, compared to 14% in the same period of 2025.

Non-Regulated Other Business Income

Non-regulated other business income was $13 million in the first half of 2026, compared to losses of $12 million in the first half of 2025. The swing was primarily attributable to net investment gains in Q2 2026 from equity method investments, versus net investment losses in Q2 2025.

In June 2026, an underlying investment held by one of the funds in which Avista is invested completed an initial public offering and is now publicly traded. The company estimates its share of the fair value increase at approximately $17 million for Q2 2026, which will be recognized in Q3 due to a one-quarter reporting lag. While actual Q4 results will reflect fair value as of September 30, the company estimates a loss of $13 million based on the fair value as of July 31.

Liquidity and Capital Resources

As of June 30, 2026, Avista had $199 million in available liquidity under its committed line of credit and $59 million under its letter of credit facility.

The company expects to issue up to $90 million of common stock in 2026, including $58 million already issued in the first half. It also plans to issue $230 million of long-term debt during the year, including $160 million issued in the first half. Due to increased regulatory deferrals and delayed recovery, Avista is evaluating the need for up to $100 million in additional short-term liquidity by the end of Q4 2026.

Avista Utilities' capital expenditures totaled $314 million in the first half of 2026. The company's base capital expenditure projections through 2030 include expenditures for projects selected through its 2025 request for proposal but exclude incremental transmission projects, additional generation, and potential spending tied to new large-load customer integration. The exclusion of large-load customer integration spending is notable given growing demand for electricity from data centers and industrial electrification across the Pacific Northwest, which has prompted several regional utilities to revisit load forecasts and capital plans.

2026 Utility Earnings Guidance and Outlook

Avista confirmed its 2026 non-GAAP utility earnings guidance of $2.52 to $2.72 per diluted share, based on the following assumptions:

• Normal weather for the remainder of the year
• A negative ERM impact of ($0.10) per diluted share within the 90% customer / 10% company sharing band
• An effective tax rate of 12 percent
• Capital expenditures of $615 million for the year

Over the long term, Avista expects non-GAAP utility earnings to grow 4 to 6 percent from the midpoint of its 2025 earnings guidance.

Non-GAAP Financial Measures

Avista presents non-GAAP utility earnings and utility earnings per diluted share to facilitate evaluation of operating performance across periods. These measures exclude non-regulated other business activity, primarily realized and unrealized investment gains and losses, and are supplementary to GAAP-reported information.

Conference Call

Avista will host a conference call with financial analysts and investors on August 3, 2026, at 10:30 a.m. ET. The call is accessible at investor.avistacorp.com, where registration is required for call-in details. A replay will be available for one year on the same site.

About Avista Corp.

Avista Corp. is an energy company engaged in the production, transmission, and distribution of energy and other energy-related businesses. Avista Utilities provides electric service to approximately 429,000 customers and natural gas to 386,000 customers across a 34,000-square-mile service territory in eastern Washington, northern Idaho, and parts of southern and eastern Oregon, serving a population of 1.5 million. AERC, an Avista subsidiary, through its subsidiary AEL&P, provides retail electric service to 18,000 customers in Juneau, Alaska. Avista's stock trades under the ticker symbol "AVA." For more information, visit avistacorp.com.

Forward-Looking Statements and Risk Factors

This press release contains forward-looking statements subject to a variety of risks and uncertainties. Key risk categories include:

• Utility Regulatory Risk: Regulatory or judicial decisions affecting cost recovery and allowed returns; potential loss of regulatory accounting treatment.
• Operational Risk: Weather impacts on demand and generation; wildfire liability; severe weather and natural disasters; geopolitical disruptions; equipment failures; natural gas supply interruptions; dam failure; grid disruptions; cyber and physical security threats; pandemics; workforce issues; fuel and power price changes; insurance cost and coverage challenges; construction delays and cost changes; healthcare cost inflation; supply chain disruptions; risks to AEL&P from hydroelectric outages; and upstream hydroelectric operational changes.
• Climate Change Risk: Increased frequency and intensity of severe weather; changes in water resource availability; long-term climate effects on demand, hydroelectric streamflows, and costs.
• Cybersecurity Risk: Cyberattacks on operational and administrative systems, including those of interconnected companies and vendors.
• Technology Risk: Technological obsolescence; risks associated with generative artificial intelligence adoption, regulation, and intellectual property; barriers to implementing or maintaining IT systems.
• Strategic Risk: Customer base growth or decline; reputational risks; business plan changes; wholesale and retail competition; earnings volatility from non-regulated activities; municipalization or service territory reduction.
• External Mandates Risk: Environmental law and policy changes; climate-related regulatory initiatives; potential restrictions on natural gas usage; changes in government grant programs; tariff increases on energy commodities and equipment.
• Financial Risk: Access to financing affected by credit ratings and market conditions; interest rate changes; energy commodity market volatility; carbon allowance market volatility; pension and postretirement benefit obligations; litigation outcomes; economic conditions affecting demand and investment valuations; declining demand from efficiency and electrification trends; credit concentration risks; activist shareholder actions.
• Energy Commodity Risk: Wholesale market volatility; counterparty default risk; environmental regulations affecting power supply resources; supply-disrupting incidents.
• Compliance Risk: Changes in laws and regulations affecting electric and gas operations; ability to comply with hydroelectric and thermal facility licenses and permits.
• Resource Adequacy Risk: Ability to source and deliver adequate energy during high-demand periods or unplanned events; regional wholesale market strains during extreme weather.

For further discussion of these factors, Avista refers readers to its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Forward-looking statements speak only as of the date of this release, and Avista undertakes no obligation to update them.

Contacts:

• Investors: Stacey Walters, (509) 495-2046, [email protected]
• Media: Lena Funston, (509) 495-8090, [email protected]
• Avista 24/7 Media Access: (509) 495-4174

Issued by: Avista Corporation