On Tuesday, Portland General Electric Company (NYSE:POR) announced a significant acquisition agreement with PacifiCorp, involving the purchase of specific generation, transmission, and utility operations in Washington state.
This company announcement is valued at $1.9 billion and is expected to enhance Portland General Electric’s long-term earnings per share (EPS) and dividend growth.
The acquisition includes three key generation facilities: the Chehalis natural-gas plant (477 MW), the Goodnoe Hills wind facility (94 MW), and the Marengo I and II wind facilities (234 MW), along with 4,500 miles of transmission and distribution lines across 2,700 square miles. Portland General Electric aims to manage these operations through a new subsidiary regulated by the Washington Utilities and Transportation Commission.
Leadership Commentary
Maria Pope, president and CEO of Portland General Electric, expressed enthusiasm about the expansion into Washington, emphasizing the company’s commitment to operational excellence and customer service. The partnership with Manulife Investment Management, which will hold a minority stake, is expected to bolster the company’s strategic goals.
The acquisition is anticipated to be accretive in the first full year following its completion. PGE said the $1.9 billion purchase price represents a 1.4x multiple of the estimated 2026 rate base, and expects state and federal regulatory reviews to conclude around 12 months after regulatory filings are submitted.
Financial Performance
In terms of financial performance, Portland General Electric reported a GAAP net income of $306 million for 2025, translating to $2.77 per diluted share. Adjusted for transformation expenses, the non-GAAP net income stood at $336 million, or $3.05 per diluted share.
PGE also shared fourth-quarter results, reporting GAAP net income of $41 million, or 36 cents per diluted share. After adjusting for business transformation and optimization expenses, fourth-quarter non-GAAP net income was $53 million, or 47 cents per diluted share, compared with GAAP net income of $39 million, or 36 cents per diluted share, in the fourth quarter of 2024. The adjusted result missed analysts’ estimates of 66 cents per share.
Management said 2025 results reflected 14% year-over-year growth in industrial demand, but noted that historic fourth-quarter weather reduced earnings by 17 cents.
Cash and cash equivalents at the end of 2025 totaled $76 million, compared with $12 million at the end of 2024.
2026 Earnings Guidance And Operational Assumptions
For 2026, Portland General Electric is projecting adjusted earnings of $3.33 to $3.53 per share, compared with the current Wall Street estimate of $3.39 per share.
The outlook assumes energy deliveries rise between 2.5% and 3.5% on a weather-adjusted basis, along with continued execution of cost controls and power cost and financing plans. PGE also expects normal temperatures, hydro conditions consistent with current estimates, and operating and maintenance expenses of $820 million to $840 million.
POR Price Action: Portland General Electric shares closed up 2.88% at $54.00 on Friday, according to Benzinga Pro.
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