On August 12, Emera (NYSE:EMA) finished selling New Mexico Gas Company, an Albuquerque-based regulated gas utility, to Bernhard Capital Partners. The deal was first announced on August 5, 2024, so the finish line arrived just over two years later. Emera’s second quarter report, released on August 7, shows what the company looks like now. It is simpler and it is spending heavily. But the earnings line has not caught up yet.
A Leaner, Busier Emera
Start with what got cut. The New Mexico sale was the last piece of a clean-up that also included selling Grand Bahama Power Company in May, and management says the exercise is now finished. What remains is a group of regulated utilities, and that is where the company is putting its money. Its utilities invested more than $1.7 billion in the first half of 2026, and Emera says it is on track for a $4 billion capital plan this year. Meanwhile, operating cash flow before working capital climbed 8% in the first half of 2026 versus a year earlier, so the business is producing more cash while it builds.
Florida is carrying much of the load. The Florida electric utility earned $441 million in adjusted profit during the first six months of 2026, up from $424 million a year earlier, helped by new base rates and stronger off-system sales. Management also says it is positioned to beat its 5% to 7% annual target range for adjusted EPS growth in 2026, and it stays committed to that range through 2030.
Where the Profit Leaks
The second quarter was a step backward. Adjusted EPS came in at $0.69, down from $0.79 in the second quarter of 2025, and adjusted net income fell to $212 million from $236 million. Higher interest expense on long-term debt took $21 million out of the quarter, and currency losses on US dollar short-term debt added to the drag. New Mexico Gas itself earned $12 million less because of higher operating costs, so the unit that was sold had already started to slip.
Reported results looked worse. Earnings per share were $0.34 against $0.45 a year earlier, as mark-to-market losses grew and the Grand Bahama sale booked a $19 million loss. A $72 million charge tied to the pending New Mexico sale had already dented the 2025 quarter, which flatters that comparison.
The six-month view offers little cover. Adjusted EPS of $2.06 is essentially flat against $2.07 in 2025, which sits awkwardly beside management’s above-range growth message for 2026. Corporate costs tied partly to the New York Stock Exchange listing took $13 million off the first half. The Canadian electric utilities segment also slipped, to $102 million from $138 million.
A Slight Cooling Among Funds
13 hedge funds held Emera in the latest count, down from 15 in the prior quarter. That is a small trim, not an exodus, but it comes as management says it is positioned to beat its 2026 growth target. At 18.94 times forward earnings, as of September 18, the market is paying for steady growth, not fireworks.
Cleaner Books, Open Question
Emera now looks like a cleaner company with a messier income statement. Selling New Mexico Gas removes a unit that was slipping, but the interest and currency costs that weighed on the second quarter sit at the corporate level, not in the piece that left. The optimists are counting on new rates and heavy spending to show up per share eventually, while skeptics are watching for financing costs to keep outrunning utility gains.
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