About Emera Incorporated

Company Overview

Emera Inc. (TSX: EMA) is a prominent North American provider of energy services, owning and operating a diversified portfolio of cost-of-service and rate-regulated electric and gas utilities. Established in 1998, the company is headquartered in Halifax, Canada. Its operations are strategically spread across key regions, with its largest presence in Florida, complemented by additional operations in Atlantic Canada, New Mexico, and the Caribbean.

Business Operations

Emera Incorporated functions as an integrated energy and services company, actively investing in the generation, transmission, and distribution of electricity across the United States, Canada, Barbados, and the Bahamas. The company's operational structure is segmented into Florida Electric Utility, Canadian Electric Utilities, Gas Utilities and Infrastructure, Other Electric Utilities, and Other segments. Beyond core utility services, Emera is also engaged in the purchase, transmission, distribution, and sale of natural gas, as well as physical energy marketing, trading, and other energy asset management activities.

Emera's core business strategy revolves around consistent investment in its regulated utility assets, coupled with a strong emphasis on operational excellence and efficiency. This approach ensures the safe and reliable delivery of energy to its substantial customer base of 2.6 million. The company is predominantly a U.S. utility, deriving the majority of its earnings and growth from its Florida operations. While its Canadian utilities operate under a stable, constructive regulatory framework, the U.S. utilities, particularly in Florida, present greater growth opportunities, higher allowed returns, and an industry-leading regulatory environment.

Financial Performance

Market Metrics (as of August 26, 2025)

Emera Inc. boasts a significant market capitalization of CAD 19.73 billion. Key financial indicators include:

• Market Capitalization: CAD 19.73 Billion

• Shares Outstanding: 299.30 million

• Trailing PE Ratio: 22.20

• Forward PE Ratio: 20.43

• Beta: 0.42 (Indicating lower price volatility than the market average)

• 52-Week Stock Price Change: +30.83%

Revenue and Profitability

Over the last 12 months, Emera reported revenue of CAD 8.23 billion and achieved profits totaling 875.60 million.

• Revenue (Last 12 Months): CAD 8.23 Billion

• Profit (Last 12 Months): CAD 875.60 Million

• Earnings Per Share (EPS): 2.97

• Return on Equity (ROE): 7.39%

• Return on Invested Capital (ROIC): 3.83%

Dividend Information

Emera offers an attractive dividend yield, with the forward dividend at 1.44 (5.95%). The ex-dividend date was August 1, 2025.

Recent Earnings Performance

Q1 2025 Results

Emera reported its strongest first-quarter performance in company history, with quarterly adjusted earnings per share ("EPS") growing by 68% to $1.28 in Q1 2025, up from $0.76 in Q1 2024.

• Q1 2025 Adjusted Net Income: $379 million (or $1.28 per common share)

• Q1 2024 Adjusted Net Income: $216 million (or $0.76 per common share)

Key drivers for this robust Q1 2025 performance included:

• Strong results from regulated utilities like Tampa Electric and New Mexico Gas, attributed to new rates reflecting capital investments.

• Favorable winter weather significantly boosting Nova Scotia Power's performance.

• Record results from Emera Energy, which benefited from market volatility induced by cold weather.

Capital Investment

Emera is on track to deploy $3.4 billion in capital investments throughout 2025. More than $700 million was invested in the first quarter of 2025, primarily directed towards customer-focused capital projects as part of the $3.4 billion annual capital plan.

Growth Outlook

Emera anticipates exceeding its target of 5% to 7% earnings per share growth for 2025. This positive outlook is supported by a solid operating foundation established in 2024, which included successful asset sales and disciplined dividend growth. The company's strategic shift towards regulated operations is expected to drive consistent rate base and earnings growth certainty.

Balance Sheet Position

The company maintains a cash position of 200.00 million with total debt amounting to 20.16 billion, resulting in a net debt position of -19.96 billion (or -66.68 per share).

• Current Ratio: 0.68

• Debt / Equity Ratio: 1.53

Emera's strong regulatory framework, diverse geographic footprint, and strategic focus on rate-regulated utilities position it as a stable investment choice within the utility sector. The company offers consistent earnings potential and an attractive dividend yield, making it a suitable option for income-focused investors.