Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 15 Dec, 25 | EMA | Buy | CAD 65.96 | CAD 69.4 | CAD 70.8 | 60 days | Closed |
6.34%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Emera Incorporated, an energy and services company, invests in generation, transmission, and distribution of electricity in the United States, Canada, Barbados, and the Bahamas. The company operates through Florida Electric Utility, Canadian Electric Utilities, Gas Utilities and Infrastructure, Other Electric Utilities, and Other segments. It is involved in the purchase, transmission, distribution, and sale of natural gas; and physical energy marketing, trading, and other energy asset management activities. The company was incorporated in 1998 and is headquartered in Halifax, Canada.
Increase in Adjusted Net Income: Adjusted net income rose to CAD 263 million in Q3 FY2025, compared with CAD 236 million in Q3 FY2024, reflecting an increase of 11% year-on-year
Growth in Adjusted Earnings Per Share: Emera delivered a notable improvement in profitability during Q3 FY2025, with adjusted earnings per share increasing to CAD 0.88 from CAD 0.81 in Q3 FY2024, representing a 9% year-on-year increase
Lower Contribution from Gas Utilities and Infrastructure: The Gas Utilities and Infrastructure segment reported adjusted net income of CAD 32 million in Q3 FY2025, down from CAD 38 million in Q3 FY2024, reflecting a CAD 6 million decline
Decline in Canadian Electric Utility Earnings: Earnings from Canadian Electric Utilities declined materially in Q3 FY2025, with adjusted net income falling to CAD 13 million from CAD 26 million in Q3 FY2024, representing a 50% year-on-year decrease
Emera remains exposed to regulatory and cost-recovery risk, particularly in Canadian jurisdictions, where higher operating and capital costs may not be fully or timely reflected in approved rates, potentially pressuring near-term earnings despite a predominantly regulated asset base
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 65.96 | 62.0 | 69.4 | 70.8 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Sustained Earnings Growth and Improved Profitability: Emera Inc. delivered a strong financial performance in Q3 FY2025, reporting adjusted net income of CAD 263 million and adjusted earnings per share (EPS) of CAD 0.88, compared with CAD 236 million and CAD 0.81, respectively, in Q3 FY2024. This represents a 9% year-on-year increase in adjusted EPS, marking the company’s fifth consecutive quarter of adjusted earnings growth, supported primarily by improved contributions from its Florida operations.
Year-to-Date Earnings Momentum: On a year-to-date basis (9M FY2025), Emera recorded adjusted net income of CAD 878 million and adjusted EPS of CAD 2.94, compared with CAD 603 million and CAD 2.10 in the corresponding period of FY2024. The increase was largely driven by higher earnings at Tampa Electric, improved performance at Emera Energy Services, and lower corporate costs, partially offset by the absence of equity earnings from the Labrador Island Link following its divestment in FY2024.
Operating Cash Flow and Balance Sheet Strengthening: Operating cash flow increased by 23% year-on-year during FY2025 on a normalized basis, reflecting stronger earnings and effective working capital management. This improvement, combined with disciplined financing actions—including the issuance of hybrid capital—supported a 150 basis-point improvement in cash flow-to-debt metrics on a trailing twelve-month basis, reinforcing Emera’s credit profile and liquidity position.
Operational Performance Across Business Segments: Operationally, Tampa Electric continued to be the primary earnings driver, benefiting from new base rates, customer growth, and favourable weather conditions. In contrast, Canadian electric utilities experienced a modest decline in quarterly earnings due to higher operating, maintenance, and depreciation expenses. Gas utilities and infrastructure contributions declined slightly year-on-year, reflecting lower earnings at New Mexico Gas Company and People’s Gas during the quarter.
Capital Deployment and Investment Execution: Emera deployed over CAD 2.6 billion in capital year-to-date and remains on track to complete its CAD 3.6 billion capital program for FY2025. The company also unveiled a CAD 20 billion capital plan for 2026–2030, extending its 7%–8% rate base growth outlook through 2030, with nearly 80% of planned investments directed toward Florida, primarily focused on grid modernization, reliability enhancement, and renewable integration.
Regulatory Progress and Strategic Positioning: During the quarter, Emera achieved meaningful regulatory milestones, including the completion of the People’s Gas rate case, providing rate certainty through 2028, and the filing of a consensus general rate application for Nova Scotia Power. These developments enhance visibility on future returns and support the company’s long-term earnings and rate base growth objectives.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Emera Incorporated (TSX: EMA) at the closing market price of CAD 65.96, as on Dec 12, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Utilities Industry: Utilities - Regulated Electric
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| EMA Emera Inc. |
0.04 0.05% | 73.25 | 20.94 | 19.96 | 2.47 | 1.81 | 5.04 | 12.69 |
| FTS Fortis Inc |
-0.13 0.16% | 79.14 | 22.48 | 21.19 | 3.20 | 1.77 | 6.17 | 12.75 |
| H Hydro One Ltd |
-0.78 1.37% | 56.00 | 26.12 | 25.77 | 3.81 | 2.77 | 5.93 | 16.72 |
| FTS-PI Fortis Inc Pref I |
-0.2 0.99% | 19.90 | 6.08 | - | 2.43 | - | ||
| FTS-PM Fortis Inc Pref M |
0.14 0.56% | 25.27 | 7.08 | - | 2.16 | - |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on December 15, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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