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Emera Inc (EMA) (Q2 2026) Earnings Call Highlights: Strategic Divestitures and Strong ...

This article first appeared on GuruFocus. Adjusted Earnings Per Share (EPS): $0.69 for Q2 2026, a $0.10 decrease year-over-year; year-to-date adjusted EPS of $2.06, consistent with last year. Adjusted Earnings: Year-to-date adjusted earnings of $627 million, up $12 million over last year; Q2 adjusted earnings of $212 million. Operating Cash Flow: Increased 8% in the first half of the year, excluding working capital, compared to the same period last year. Capital Expenditures: Deployed more than $1.7 billion of capital in the first half of 2026, on track for approximately $4 billion capital plan this year. Peoples Gas Earnings: Q2 earnings increased by more than $14 million year-over-year, driven by new base rates and higher off-system sales. Emera Energy Earnings: Year-to-date earnings more than $40 million higher than the same period last year, building on a record first quarter. New Mexico Gas Earnings: Lower year-to-date earnings due to higher operating and maintenance and depreciation expenses; Q2 affected by higher operating costs, depreciation, and lower revenue. Tampa Electric Earnings: Year-to-date benefited from new rates, colder-than-normal weather, and strong operational performance, partially offset by increased depreciation, O&M, and interest expense. Canadian Electric Segment Earnings: Lower year-over-year, driven by a lower income tax recovery and increased regulatory lag from delayed rate implementation until May 1. Other Electric Segment Earnings: Generally consistent with prior year; lower income tax expense at Caribbean Utilities offset by lower revenues and loss of earnings from Grand Bahama Power Company sale. Foreign Exchange Impact: Stronger weighted average Canadian dollar reduced year-to-date EPS by $0.05; weaker Canadian dollar in Q2 contributed $0.01 to adjusted EPS. Share Count Impact: Higher average share count reduced year-to-date adjusted EPS by $0.05 and Q2 adjusted EPS by $0.02. Warning! GuruFocus has detected 13 Warning Signs with EMA. Is EMA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Approval of New Mexico Gas sale to Bernhard Capital Partners, expected to close later this month, with after-tax proceeds of approximately USD650-700 million to reduce debt and enhance financial flexibility. Year-to-date adjusted EPS of $2.06, consistent with last year's strong performance, and on track to deliver compound annual adjusted EPS growth above the 5-7% target range through 2026. Strong operational performance at Peoples Gas and Tampa Electric, driven by new rates, customer growth, and favorable market conditions, supporting long-term rate base growth. Encouraging progress on securitization of Nova Scotia Power's retiring thermal assets, expected to deliver meaningful long-term savings for customers and support coal phase-out objectives. Moody's revised credit outlook to stable, reflecting improved financial position, and the company is on track to achieve the 12% operating cash flow to debt target in 2026. Emera Energy delivered year-to-date earnings more than $40 million higher than last year, driven by favorable market conditions and disciplined execution. Story Continues Negative Points Second quarter adjusted EPS decreased by $0.10 year-over-year, impacted by higher interest expense, regulatory lag, and lower earnings at New Mexico Gas. New Mexico Gas earnings were negatively affected by higher operating and maintenance costs, depreciation, and less favorable weather compared to the prior year. Canadian Electric segment earnings declined due to a lower income tax recovery and regulatory lag from delayed rate implementation until May 1. Year-to-date EPS was reduced by $0.05 due to a stronger weighted average Canadian dollar and another $0.05 from a higher average share count. Corporate costs increased due to higher interest expense fro