Emera Incorporated Q2 FY26 Earnings Analysis

- Emera anticipates customer growth across its portfolio supporting affordable utility investments (Page 2). - Significant interest from multiple data center developers in Tampa Electric’s service territory, with about 1,300 MW of data center interest in West Central Florida that could drive ~2% annual load growth per 100 MW (Pages 2, 6). - Expected sustained EPS growth guidance of 5% to 7% through 2030 (Page 2). - Rate clarity established through 2027 for Nova Scotia Power, Tampa Electric, and Peoples Gas supports predictable earnings and cash flow growth (Page 2). - Capital investments of $4 billion planned in 2026 to support targeted 7%-8% rate base growth, enhancing system reliability and capacity for growth (Page 2). - Emera Energy expects earnings between USD 60M-80M in 2026, significantly above prior ranges, reflecting favorable market conditions and growth (Page 3).

- Emera expects adjusted earnings per share (EPS) growth of 5% to 7% compound annual growth rate (CAGR) through 2030. - First quarter 2026 EPS was a record $1.37, up 7% year-over-year, positioning the company well to exceed the 5-7% growth target for the full year. - Operating cash flow (pre-working capital to debt) target of 12% by 2026 is on track, supporting financial strength. - Emera Energy’s earnings are expected between USD 60 million to USD 80 million for 2026, significantly above its historical range of USD 15-30 million. - Solid performance across regulated utilities and ongoing capital investments support continued growth. - Regulatory clarity through 2027 at major utilities enhances predictability of earnings and cash flow growth. - Customer growth and infrastructure investments are expected to support long-term profit expansion.

- Emera executed more than $870 million of customer-focused capital investment in Q1 2026, on track for a $4 billion capital plan in 2026. - Capital investments focus on solar, grid modernization, reliability upgrades at Tampa Electric. - Investments in energy storage, transmission, and system reliability in Nova Scotia. - Infrastructure expansion at Peoples Gas supporting strong customer growth. - Developer-funded system impact studies and construction underway for data centers in Tampa Electric’s service area, supporting potential 300-500 MW growth. - Continued investments in poles, wires, and transmission for Nova Scotia Power, including major projects like the New Brunswick-Nova Scotia intertie and synchronous condenser work to support renewables. - Emera remains disciplined in capital execution to balance customer rate impacts and maintain long-term system value. - No current plans for adjustments to rate base growth profiles; updates expected in fall.

- Emera issued USD 750 million of hybrid securities in Q1 2026 and plans to redeem USD 1.2 billion of existing hybrid securities in June, resulting in an incremental USD 300 million of hybrid capital, benefiting credit metrics by about 10 basis points. Hybrid capital remains part of their long-term growth funding strategy. - They also issued USD 750 million of senior notes in Q1 to refinance USD 750 million maturing in June. - The proceeds from the recently agreed sale of Grand Bahama Power will be used for normal corporate funding, primarily debt repayment; this sale is not expected to materially affect the overall funding or reduce equity needs. - If the New Mexico Gas sale or Nova Scotia securitization do not proceed, alternatives may include applying for conventional rate recovery or potentially equity issuance or sale of noncore assets. - No material changes to the overall funding plan are expected at this time.

- Emera has about 1,300 megawatts of interested data center counterparties in Florida's Tampa Electric service territory. - Discussions with multiple parties are much further advanced, with land acquisition, permits, and developer-funded system impact studies underway. - The utility is well positioned in the short term to serve approximately 300 to 500 megawatts of data center demand over the next couple of years. - Developer-funded construction work is also underway to meet interconnection timelines and ramp rates. - No explicit mention of other pending orders or backlog beyond these data center-related interests and ongoing capital investment projects totaling over $870 million in Q1 2026.