Abstract

Emera Inc. will report its quarterly results on February 23, 2026 Pre-Market; this preview compiles the latest quarter’s performance, segment dynamics, and a consensus-aligned outlook for revenue, margins, net income, and adjusted EPS alongside recent institutional commentary.

Market Forecast

Based on the company’s latest forecast dataset, Emera Inc.’s current quarter revenue estimate is $965.93 million with a year-over-year change of -52.39%, while EBIT is estimated at $210.66 million with a -72.86% year-over-year change and forecast EPS at $0.56 with a -27.14% year-over-year change. Taken together, market expectations imply a softer top line and earnings profile versus the prior-year quarter, suggesting a temporary compression in operating leverage; company-level margin guidance for the current quarter was not specified, so consensus focuses on revenue and EPS trajectories.

The company’s core operations remain anchored in regulated electricity and natural gas distribution, with electricity as the dominant revenue driver and a stable earnings base expected to underpin cash flow resilience through the quarter. Within this mix, electricity shows the strongest near-term visibility due to regulation and contracted revenue, contributing $1.83 billion last quarter; however, year-over-year performance by segment for the current quarter is not provided, and investors will watch for incremental contributions from rate-case outcomes and customer growth in these regulated businesses.

Last Quarter Review

Emera Inc.’s most recent quarter delivered $2.11 billion in revenue, a gross profit margin of 44.06%, net profit attributable to shareholders of $247.00 million, a net profit margin of 11.73%, and adjusted EPS of $0.88, with year-over-year adjusted EPS growth of 8.64% and revenue up 16.87%. Sequentially, net profit increased by 60.39%, reflecting both operating improvements and mix effects that helped offset cost pressures.

By business line, electricity contributed $1.83 billion and natural gas contributed $319.00 million, while intersegment eliminations were -$15.00 million and other items netted -$31.00 million; electricity remained the primary earnings engine as regulated operations continued to support steady margin realization.

Current Quarter Outlook (with major analytical insights)

Core Regulated Electricity and Gas as the Main Business

Emera Inc.’s regulated electricity and natural gas businesses form the centerpiece of its quarterly earnings profile. With electricity contributing $1.83 billion last quarter, the scale and predictability of regulated returns underpin cash flows, anchoring both the top line and EPS durability. For the current quarter, the revenue estimate of $965.93 million implies a steep year-over-year decline of 52.39%, which likely reflects seasonal normalization from a particularly strong prior-year comparator, potential resets in fuel cost recovery, and timing factors in recognizing pass-through items across jurisdictions. While EBIT is estimated at $210.66 million and EPS at $0.56, with year-over-year changes of -72.86% and -27.14% respectively, these modeled contractions often occur in winter-shoulder quarters when usage, fuel costs, and deferral accounting intersect to create volatility in reported numbers. Investors should focus on regulatory mechanisms and cost trackers that typically align revenues with costs over time, thereby smoothing earnings across future periods despite quarterly lumpiness. As such, near-term margin and EBIT shifts do not necessarily alter the long-term cash flow path, especially where rate cases and cost recovery riders are in place.

Electricity as the Most Visible and Promising Segment

Electricity remains Emera Inc.’s most visible and capital-attractive segment. With $1.83 billion in last quarter revenue, electricity benefits from regulated frameworks that allow recovery on prudently incurred capital expenditures, creating clarity around rate base growth and earnings accretion. The absence of explicit year-over-year guidance by segment for the current quarter limits precision on growth allocation, but electricity’s weight in the portfolio suggests it will drive the majority of the quarter’s earnings power even as consolidated revenue is forecast to decline year over year. The key to upside in this segment lies in timely regulatory outcomes, ongoing grid investments, and customer additions in service territories, which together can offset weather variability and cost cycles. In the present setup, investors will monitor how electricity margins track against last quarter’s 44.06% gross margin and 11.73% net margin at the consolidated level, aware that the quarter’s forecast points to temporary compression yet with the potential for normalization as fuel and power procurement pass-throughs settle.

Stock Price Drivers This Quarter: Margin Trajectory, Rate Case Visibility, and EPS Delivery

The core stock driver into the print is the balance between compressed near-term revenue/EBIT and the cadence of adjusted EPS delivery versus guidance. The current quarter’s EPS estimate of $0.56 indicates a 27.14% year-over-year decline, and any deviation—positive or negative—could lead to outsized share-price moves given the defensive label of regulated utilities. Second, margin trajectory will be scrutinized: last quarter’s gross margin of 44.06% and net margin of 11.73% may not be a clean read-through to this quarter due to seasonality, but investors will look for signals that cost recovery mechanisms are functioning as designed, limiting sustained margin erosion. Third, regulatory visibility—such as progress on pending rate cases, approved capital plans, and cost trackers—can re-anchor valuation if the headline revenue decline of 52.39% is perceived as a pass-through dynamic rather than a structural contraction. Clear communication around the timing of true-ups and deferrals may therefore be as important as the headline figures in framing near-term sentiment.

Analyst Opinions

Among the most recent institutional views published from January 1, 2026 to February 16, 2026, the majority stance is neutral-to-cautious. One recent note maintained a Hold rating with a price target of C$68.00, highlighting balanced risk-reward into the print given forecasted year-over-year declines in revenue and EBIT for the current quarter. This Hold perspective reflects an expectation that regulated cash flows remain intact while near-term reported metrics are pressured by seasonal and pass-through dynamics, as indicated by the forecast revenue change of -52.39% and EBIT change of -72.86%.

Under this view, the core debate centers on whether the expected compression in the current quarter meaningfully impairs the company’s rate base growth thesis or simply marks a temporary trough before normalization through regulatory true-ups. The Hold camp expects management to reaffirm visibility on cost recovery and capital programs, which would support EPS stabilization after the quarter. They also anticipate that adjusted EPS remains resilient relative to the larger swings in revenue and EBIT, with the $0.56 estimate serving as a pivotal benchmark for sentiment. In short, the prevailing institutional opinion is that while near-term headline numbers may appear weak, the underlying regulated model remains intact, and investors are likely to focus on trajectory and messaging rather than the one-quarter dip in year-over-year comparisons.