Emera (TSE:EMA)
TSX:EMA
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Emera
(TSX:EMA)
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Rating:56Neutral
Price Target:
C$74.00
▲(2.82% Upside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak cash-flow quality (persistent negative free cash flow) and elevated leverage, despite solid utility-like profitability. Technicals are mildly positive but not strong, and valuation is demanding (high P/E) even with a ~4% yield. Earnings-call guidance and rate-base investment plan provide support, but near-term cost/regulatory uncertainties temper upside.
Positive Factors
Rate‑base growth / Capital program
A multi‑year $20B capital program and record capex drive predictable, regulator‑backed rate‑base expansion. In regulated jurisdictions this enlarges the asset base that earns an allowed return, creating durable, growth‑oriented earnings and supporting multi‑year EPS and dividend objectives.
Negative Factors
Weak free cash flow
Persistent negative free cash flow indicates capex and payouts outstrip internally generated cash. Over the medium term this necessitates continual external financing, increasing exposure to market funding conditions and interest costs and constraining organic liquidity for contingencies or opportunistic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Rate‑base growth / Capital program
A multi‑year $20B capital program and record capex drive predictable, regulator‑backed rate‑base expansion. In regulated jurisdictions this enlarges the asset base that earns an allowed return, creating durable, growth‑oriented earnings and supporting multi‑year EPS and dividend objectives.
Read all positive factors
Emera (EMA) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$21.57B
Dividend Yield4.33%
Average Volume (3M)1.13M
Price to Earnings (P/E)9.4
Beta (1Y)0.28
Revenue Growth16.86%
EPS Growth11.69%
CountryCA
Employees7,605
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)3.28
Shares Outstanding303,000,000
10 Day Avg. Volume876,285
30 Day Avg. Volume1,131,278
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.51
Price to Sales (P/S)2.44
P/FCF Ratio-11.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$75.78Price Target Upside5.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)3.7
Revenue Forecast (FY)C$8.69B
Emera Business Overview & Revenue Model
Company Description
Emera Incorporated, an energy and services company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity to various customers. The company operates through Florida Electric Utility, Canadian Electric U...
How the Company Makes Money
Emera primarily makes money through regulated utility operations. The largest portion of its revenue is earned by selling electricity and natural gas to residential, commercial, and industrial customers served by its regulated utilities. In these ...
Emera Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call highlights a strong 2025 with record capital deployment, material adjusted earnings and EPS growth, improved operating cash flow and credit metrics, and significant progress on grid modernization and storage. Offsetting items include a weak Q4 quarter, elevated O&M and depreciation pressures at some utilities (notably Canadian operations), higher interest expense, pending regulatory decisions (Nova Scotia and New Mexico) and no near-term data center contracts despite active discussions. On balance, the positives — including record annual results, clear multi-year capital and earnings guidance (5%–7% EPS growth through 2030) and improved financial metrics — outweigh the near-term challenges and uncertainties.Positive Updates
Record Annual Adjusted Earnings and EPS Growth
Full year 2025 adjusted earnings of $1.45 billion versus $849 million in 2024 (approximately +71%), and adjusted EPS of $3.49 versus $2.94 in 2024 (+$0.55 or +19%). This is the first time Emera exceeded $1 billion in annual adjusted net income.
Negative Updates
Fourth Quarter Earnings Weakness
Q4 2025 adjusted earnings were $167 million and adjusted EPS $0.55 versus $246 million and $0.84 in Q4 2024 (Q4 adjusted earnings down ~32% and Q4 EPS down ~34%), driven by higher O&M, increased depreciation and a non-repeating tax recovery in Q4 2024.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Adjusted Earnings and EPS Growth
Full year 2025 adjusted earnings of $1.45 billion versus $849 million in 2024 (approximately +71%), and adjusted EPS of $3.49 versus $2.94 in 2024 (+$0.55 or +19%). This is the first time Emera exceeded $1 billion in annual adjusted net income.
Read all positive updates
Company Guidance
Emera extended its average adjusted EPS growth target of 5%–7% through 2030 (anchored to 2024) after reporting record 2025 results—adjusted earnings $1.45B and adjusted EPS $3.49 (up 19% or $0.55 vs. 2024’s $2.94), Q4 adj. earnings $167M (adj. EPS $0.55 vs. $246M/$0.84 prior year)—driven by a record $3.6B of 2025 capex (≈8% rate base growth vs. 2024) and plans for ~ $4B capex in 2026 as part of a 5‑year $20B program supporting 7%–8% rate base growth through 2030; other notable metrics: Tampa Electric ~59% of operating earnings, 150 MW solar added in 2025 (total 1,505 MW; ~170 MW expected in 2026) and 77 miles undergrounded (54%+ underground), Nova Scotia added two 250‑MW 4‑hour batteries (third due this summer) and executed >$200M of a $1.3B 5‑year Reliability Plan, operating cash flow rose 19% (~$386M), Moody’s CFO pre‑working capital/debt improved ~130 bps to ~11.6% (pro forma New Mexico sale >12%), payout ratio improved to 83% (targeting ~80% by 2027), FX sensitivity ≈$0.02 adj. EPS per C$0.01 USD, and roughly US$2B of TECO‑related maturities/calls approaching midyear with planned hybrid/bond refinancings; Emera Energy maintains its normal guidance range (15%–30%) and expects 2026 closer to 2025 levels.Emera Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
54
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.11B | 8.31B | 7.20B | 7.56B | 7.59B | 5.76B |
| Gross Profit | 1.43B | 2.04B | 2.90B | 3.28B | 3.03B | 2.17B |
| EBITDA | 2.23B | 2.85B | 2.50B | 2.89B | 2.69B | 1.85B |
| Net Income | 1.07B | 1.09B | 567.00M | 1.04B | 1.01B | 560.00M |
Balance Sheet | ||||||
| Total Assets | 48.06B | 44.82B | 42.95B | 39.48B | 39.74B | 34.24B |
| Cash, Cash Equivalents and Short-Term Investments | 2.47B | 365.00M | 196.00M | 588.00M | 310.00M | 394.00M |
| Total Debt | 23.96B | 21.64B | 19.81B | 19.86B | 19.04B | 16.40B |
| Total Liabilities | 33.86B | 31.42B | 29.66B | 27.39B | 28.30B | 24.09B |
| Stockholders Equity | 14.19B | 13.38B | 13.28B | 12.07B | 11.43B | 10.12B |
Cash Flow | ||||||
| Free Cash Flow | -1.85B | -1.73B | -505.00M | -696.00M | -1.68B | -1.17B |
| Operating Cash Flow | 1.84B | 1.80B | 2.65B | 2.24B | 913.00M | 1.19B |
| Investing Cash Flow | -3.65B | -3.48B | -2.22B | -2.92B | -2.57B | -2.33B |
| Financing Cash Flow | 3.93B | 1.84B | -818.00M | 939.00M | 1.55B | 1.31B |
Emera Technical Analysis
Neutral
71.97
Price Trends
71.03
Positive
68.86
Positive
66.53
Positive
Market Momentum
0.38
Positive
49.86
Neutral
20.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EMA, the sentiment is Neutral. The current price of 71.97 is below the 20-day moving average (MA) of 72.05, above the 50-day MA of 71.03, and above the 200-day MA of 66.53, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 20.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:EMA.
Emera Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | C$38.18B | 18.85 | 7.51% | 3.50% | 4.14% | 2.58% | |
64 Neutral | C$13.14B | 14.84 | 1.59% | 4.33% | -1.26% | -92.43% | |
64 Neutral | C$34.55B | 22.03 | 10.87% | 2.43% | 6.36% | 12.30% | |
59 Neutral | C$6.97B | 12.59 | 3.39% | 3.62% | 2.57% | -63.07% | |
56 Neutral | C$21.57B | 9.39 | 7.90% | 4.33% | 16.86% | 11.69% | |
53 Neutral | C$6.10B | 13.89 | 3.63% | 4.32% | 1.84% | ― |
* Utilities Sector Average
TSE:EMA
Emera
71.19
13.44
23.28%
TSE:ACO.X
ATCO Ltd Cl I NV
69.14
20.30
41.56%
TSE:CU
Canadian Utilities A
48.29
12.74
35.85%
TSE:H
Hydro One
57.60
9.19
18.99%
TSE:AQN
Algonquin Power & Utilities
7.94
0.47
6.32%
TSE:FTS
Fortis
75.25
11.57
18.16%
Emera Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Emera Raises US$750 Million in U.S. Senior Notes to Refinance Debt
Positive
Mar 27, 2026
Emera Inc. has raised US$750 million through its subsidiary Emera US Finance, LLC via a private offering of U.S. dollar-denominated senior notes, split between US$450 million of 4.500% notes due 2029 and US$300 million of 5.200% notes due 2033, fu...
Business Operations and StrategyFinancial Disclosures
Emera Hits Record 2025 Earnings, Extends Long-Term Growth Target to 2030
Positive
Feb 23, 2026
Emera reported a record 2025 performance, delivering adjusted earnings per share of $3.49, up 19% year over year, and surpassing $1 billion in annual adjusted net income for the first time, supported by strong contributions from Tampa Electric, Em...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.