Emera Incorporated : Annual Report (Emera 2025 Annual Report English)

About this update from Emera Incorporated

2025 Annual Report Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Emera at a Glance Emera is a leading North American provider of energy services headquartered in Halifax, Nova Scotia. Emera delivers safe, clean, and reliable energy to customers through investments in regulated electric and natural gas utilities, and related businesses and assets. $45B total assets $8.8B revenue 6 electric and natural gas utilities (1) 2.7M customers 7,800 employees Our Companies As of March 1, 2026 Tampa Electric Nova Scotia Power Peoples Gas New Mexico Gas (2) Emera Caribbean Emera Newfoundland & Labrador Emera Energy Emera New Brunswick Emera Technologies Data on this page is as of December 31, 2025, unless otherwise indicated. Four electric utilities and two natural gas utilities. In August 2024, Emera entered into an agreement to sell New Mexico Gas. This transaction is expected to close in the first half of 2026. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Why Invest in Emera Emera is at the forefront of a transformative era in energy with robust opportunities to invest on behalf of customers across the portfolio. Our proven strategy and operational excellence enable us to capitalize on this growth. Premium Portfolio of Regulated Utilities Focused in Florida 72% of adjusted net income (1) , excluding Corporate costs, comes from our Florida operations ~80% of capital plan through 2030 is focused in Florida in support of customer growth at Tampa Electric and Peoples Gas respectively Visible Growth Plan $20B capital investment plan through 2030 committed to renewable integration, grid reliability, and modernization 7%-8% annualized, forecasted rate base growth through 2030 (3) Constructive Regulatory Environments 95% of adjusted net income (1) , excluding Corporate costs, derived from our regulated utilities Reliable Earnings and Dividend Growth 19 years of consecutive dividend growth 1-2% annual dividend growth target 5-7% average adjusted EPS (2) growth target through 2030 (3) Based on 2025 adjusted net income attributable to common shareholders ("adjusted net income"), excluding Corporate costs of $380 million. Adjusted net income is a non-GAAP measure, which does not have a standardized meaning under United States Generally Accepted Accounting Principles ("USGAAP" or "GAAP"). For more information and a reconciliation to the nearest GAAP measure, refer to "Non-GAAP Financial Measures and Ratios" in Emera's Q4 2025 MD&A Adjusted earnings per share ("EPS") is a non-GAAP ratio, which does not have standardized meaning under USGAAP. For more information, refer to "Non-GAAP Financial Measures and Ratios" in Emera's Q4 2025 MD&A. Adjusted EPS and rate base growth forecasts use 2024 as base year. EMERA 2025 ANNUAL REPORT 1 Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information 2025 Financial Highlights $3.49 Annual adjusted EPS (1) 72% of adjusted net income (1) , excluding Corporate costs, comes from Florida (2) $3.6B capital invested in 2025, leading to an 8% annual increase in rate base 4.3% dividend yield (3) 2025 Adjusted Net Income (1) Excluding Corporate Costs (2) By Revenue Type 75% Regulated electric 20% Regulated gas 5% Unregulated By Business Segment 59% Florida electric 13% Canadian electric 20% Gas utilities and infrastructure 5% Other 3% Other electric Unless otherwise indicated, all data on this page is as of December 31, 2025, and currency is in Canadian dollars. Adjusted EPS and adjusted net income are a non-GAAP measure and non-GAAP ratio, respectively, which do not have standardized meaning under USGAAP. For more information, refer to "Non-GAAP Financial Measures and Ratios" in Emera's Q4 2025 MD&A Based on 2025 adjusted net income, excluding Corporate costs of $380 million. Based on Dec. 31, 2025 share price of $67.64 2 EMERA 2025 ANNUAL REPORT Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Who We Are Our Strategy We're focused on safely delivering reliable and cleaner energy at a pace that minimizes the cost impacts for customers at our utilities. Through our strategy, we're responding to the fundamental shift that's impacting the energy industry and delivering on the key trends that reflect the changing needs of utility customers: decarbonization, decentralization and digitalization. Our Purpose Energizing modern life and delivering a cleaner energy future for all. Our Vision To be the energy provider of choice for our customers, the employer of choice for our people, and a preferred choice for investors. Our Values We put safety above all else. We put customers at the centre of everything we do. We value candour, respect and collaboration. We care for each other, the environment, and our communities. We set a high bar and take on big things. Emera's Sustainable Energy Approach Proven Record 20+ years of investments Wind in Nova Scotia Solar in Florida Big Bend modernization Maritime Link hydro Real Progress Proactive & Adaptive Disciplined Investment 2026-2030 $20B Reduced CO 2 emissions by nearly half (1) while modernizing grids Replacing coal Integrating renewables Grid upgrades Responding to evolving drivers Severe weather risks & resilience Government policies & targets Electrification & demand Emerging technologies Sustaining momentum through customer-focused capital plan Grid reliability & modernization Renewable integration Technology adoption Initiatives across our core operating jurisdictions (2) - paced with customer affordability in mind Florida: Strengthening reliability and affordability while modernizing the generation fleet via investments in solar, battery storage, fuel switching, long-term use of natural gas, and storm hardening. Nova Scotia: Strengthening reliability while aligning with provincial and federal climate policy (3) through investments in grid resilience, interties, hydro, battery storage, coal retirement, fuel switching, wind, and solar. Our reductions in CO 2 emissions are compared to 2005 levels and include CO 2 scope 1 generation emissions for TEC and NSPI only. Core jurisdictions refer to Emera's primary operating regions where regulated electric and gas utilities operate, including Nova Scotia (NSPI) and Florida (TEC & Peoples Gas Systems, Inc. ("PGS")). Activities in Nova Scotia are aligned with government climate targets of 80% renewable energy and coal-free electricity by 2030 and will be shaped by the decisions of the Nova Scotia Independent Energy System Operator ("IESO Nova Scotia") regarding future generation sources. EMERA 2025 ANNUAL REPORT 3 Letter from the Chair and the CEO Fellow shareholders, 2025 was defined by meaningful progress for Emera, reflecting the benefit of years of disciplined investment, operational excellence, and continual focus on long-term strategy and delivery of value for our stakeholders. We also continued to strengthen our balance sheet and protect our investment grade credit metrics, prioritizing financial resilience alongside disciplined growth in a volatile environment. As a result, Emera's positioning is strong, with a stable and resilient business focused on enduring value creation. We carry this momentum into 2026, while recognizing that discipline and focus have never been more important. Rising demand for energy, geopolitical volatility, government policy and regulatory requirements, rapid technological change, and greater expectations for reliable service at a manageable cost are placing higher demands on energy systems and the companies that operate them. Emera is meeting this moment-modernizing our electric and gas systems and strengthening overall system resilience-to deliver long-term value for customers amid broader economic pressures. In Florida-the largest market Emera serves-population and economic growth are driving demand. In response, we advanced projects focused on system capacity, reliability, and storm resiliency. The addition of solar and storage resources, as well as system expansion investments to serve new electric and gas customers ensure we meet increased energy demand and population growth. In Nova Scotia, we are executing a five-year reliability plan that modernizes infrastructure, strengthens the grid, and supports the continued integration of renewables and other technologies. Each investment we make is sequenced to align with evolving energy requirements and manage customer costs. Karen Sheriff Chair, Board of Directors, Emera Inc. Scott Balfour President and Chief Executive Officer, Emera Inc. 4 EMERA 2025 ANNUAL REPORT Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information 2025 Highlights Emera's momentum throughout 2025 came from consistent execution and commitment to operational excellence. Across our operations we advanced major capital projects, and in turn, hit key milestones. We translated our capital plan into tangible outcomes-strengthening the systems our customers rely on every day and progressing strategic initiatives that position our business for the future. Some of the noteworthy items include: Tampa Electric opened its new headquarters and Bearss Operations Center (BOC) opened their doors in 2025. Engineered to withstand Category 5 hurricane conditions, the BOC is a state-of-the-art, 24/7 facility that enhances day-to-day reliability and enables rapid, safe storm response for Tampa Electric through even the most severe weather conditions. Two of three new 50-MW grid-scale battery sites went into operation in Nova Scotia, boosting system resilience and renewables integration. Developed through a partnership between Nova Scotia Power and all 13 Mi'kmaw communities in Nova Scotia, this project supports mandates to phase out coal from the generation mix and reach 80 per cent renewables by 2030. The third site is scheduled to come online in August 2026. Tampa Electric installed an additional 150 megawatts of solar generation, bringing their total to 1,505 megawatts. These solar investments continue to reduce exposure to volatile fuel costs and deliver real savings for customers. The Maritime Link remained a critical energy system in Atlantic Canada, delivering two-way underwater energy transmission between Nova Scotia and Newfoundland and Labrador. Continuing excellent operational performance in 2025, it provided 100 per cent monopole availability, delivering 2 TWh of clean hydroelectricity to Nova Scotia, and serving approximately 19 per cent of Nova Scotia Power's energy requirements for the year. We also achieved several strategic milestones and made important progress that strengthened Emera's position this year. We took essential steps toward the sale of New Mexico Gas Company-filing a joint application with proposed purchaser Bernhard Capital Partners and proceeding through the November 14 hearing with the Public Regulation Commission. Closing is anticipated in the first half of 2026. In 2025, Tampa Electric opened its new headquarters and its 24/7 Bearss Operations Centre-strengthening reliability and accelerating storm response. EMERA 2025 ANNUAL REPORT 5 Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information In Florida, Peoples Gas achieved a constructive rate case outcome following collaborative engagement with stakeholders that supports continued investment and regulatory stability for customers. In Nova Scotia, Nova Scotia Power filed a consensus 2026-2027 General Rate Application (GRA), a uniquely customer-focused open-book approach of engaging with customer representatives before a regulatory filing to collectively discuss and agree upon the balance of the pace of critical reliability investments with rate impacts. Following a fulsome hearing process, a decision from the Nova Scotia Energy Board is pending. Last but certainly not least, Emera began trading on the New York Stock Exchange on May 28, 2025, becoming the first Nova Scotia-headquartered company to list on NYSE. This listing broadens our access to U.S. capital and marks a milestone in Emera's journey. Safety and Security Safety remains our highest priority and the standard we hold ourselves to every day. In 2025, we continued to strengthen safety practices across our operating companies-assessing performance, identifying root causes, and implementing corrective actions with precision. Our total recordable injury rate and lost time injury frequency rate decreased by 17 per cent and two per cent respectively. While these results are positive and reflect significant effort across the organization to ensure everyone goes home safely every day, a workplace fatality at Tampa Electric in 2025 reinforces that we have more work to do. Our focus and efforts in this most critical aspect of our work needs to be relentless, as we work to achieve our goal of truly world class safety culture and performance. Our responsibility to protect people also includes safeguarding the systems and information that support safe, reliable operations across our business. Cyber threats are becoming increasingly prevalent and sophisticated, targeting businesses of all types, including critical infrastructure. Unfortunately, in 2025, Nova Scotia Power experienced a cyber incident. The incident was managed through established response protocols in conjunction with relevant authorities, and the teams have worked tirelessly to restore the impacted systems. This incident has sharpened our focus on cybersecurity, informing ongoing improvements across the enterprise. Emera's 19th consecutive year of dividend growth in 2025 reflects the strength of our strategy and enduring commitment to responsible, long-term value creation. 6 EMERA 2025 ANNUAL REPORT Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Financial Results Emera made company history this year by reporting annual adjusted net income (1) in excess of $1 billion and adjusted EPS (1) of $3.49-a 19 per cent increase over 2024. This was supported by strong performance at Tampa Electric, along with Emera Energy where favourable market conditions in the first and fourth quarters drove exceptional performance. We extended our $20 billion capital plan through 2030 and advanced our largest annual capital program to date-roughly $3.6 billion-focused on reinforcing reliability and resilience, advancing transmission upgrades, and integrating more renewables. We paced this investment to balance system needs with affordability impacts for customers-prioritizing reliability-driven projects, sequencing work to avoid cost spikes, and leveraging scale to lower long-term system costs. This year, we also extended our adjusted EPS growth target of 5-7 per cent through 2030 (2) , in line with our 7-8 per cent rate (2) outlook over the same period. This reflects our confidence in the strength of our business, the resilience of our regulated portfolio, and sustained drivers of rate base growth. We continued to make progress on strengthening our balance sheet, with S&P and Fitch returning our investment grade credit ratings to stable in 2025. The Board also marked our 19 th consecutive year of dividend growth, underscoring the strength of our business model and confidence in Emera's long-term earnings profile. Strong execution also translated into strong shareholder returns. Emera's total shareholder return (TSR) was among the best in the industry at 31.9 per cent in 2025. Since March 29, 2018 (3) through December 31 st 2025, Emera has delivered an average annual 12.1 per cent TSR-outperforming the S&P/TSX Capped Utilities Index (10.1 per cent) and the S&P US Utilities Index (11.2 per cent)-demonstrating our ability to deliver consistent shareholder value through multiple market cycles. Adjusted net income and adjusted EPS are a non-GAAP measure and non-GAAP ratio, respectively, which do not have standardized meaning under USGAAP. For more information and a reconciliation to the nearest GAAP measure, refer to "Non-GAAP Financial Measures and Ratios" in Emera's Q4 2025 MD&A. Uses 2024 as a base year. Date Scott Balfour became CEO. Emera's NYSE listing-a first for a Nova Scotia headquartered company-expands our access to global capital and marks a milestone in Emera's journey. EMERA 2025 ANNUAL REPORT 7 Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Board Governance The Board's disciplined oversight helped keep Emera focused on creating and delivering long-term value, balance sheet strength, and responsible growth as we advanced major investments. In a year marked by record performance and meaningful investment in reliability and clean energy, the Board remained actively engaged on strategy, enterprise risk, and capital allocation. We welcomed Isabelle Courville to the Board in September 2025, who brings extensive director experience in both public and private sectors, along with a strong executive leadership track record. We would like to recognize that Brian Porter will not be standing for re-election at the 2026 AGM and would like to thank him for his service and contributions. We are also grateful for the service and dedication provided by Jackie Sheppard, who completed her transition from the Board in January 2026 after more than a decade of leadership. Cybersecurity and digital resilience continued to be areas of focus for the Board this year. These types of threats-like the one at Nova Scotia Power-are becoming increasingly complex and challenging for organizations everywhere. Emera's Board continues to oversee cybersecurity practices across all operating companies, and this event reinforces the importance of vigilance in this matter. As Emera implements broader digital transformation efforts, including rapidly evolving areas such as AI governance and cybersecurity risk, the Board remains committed to thorough oversight to help guide these efforts and support system reliability, operational efficiency, and long-term resilience. Thank You The progress we achieved this year reflects the hard work, expertise, and discipline of teams across our business. Together, we delivered record financial results, advanced major investments in reliability and clean energy, strengthened our balance sheet, and maintained a sharp focus on providing value for customers. With a strong foundation, a disciplined capital plan, and a premium portfolio of regulated utilities in high-quality jurisdictions, Emera is well-positioned for the opportunities ahead. We continue through 2026 with enduring momentum, a clear strategy, and confidence in our ability to continue delivering for our customers and our shareholders. To the Board of Directors and the entire team at Emera, thank you for your dedication and focus throughout the year. Your commitment to serving customers and supporting shareholder value has been instrumental in achieving a landmark year, and we look forward to building on this momentum in the coming months. To our valued shareholders, thank you for your continued confidence in Emera. Karen Sheriff Chair, Board of Directors, Emera Inc. Scott Balfour President and Chief Executive Officer, Emera Inc. 8 EMERA 2025 ANNUAL REPORT Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Financial Review EMERA 2025 ANNUAL REPORT 9 10 11 11 12 14 14 15 17 19 19 20 21 22 23 24 25 26 26 28 30 33 34 36 37 38 38 39 39 41 41 42 Management's Discussion & Analysis Forward-Looking Inf ormation Introduction and Strategic Overview Non-GAAP Financial Measures and Ratio s Consolidated Financial Review Significant Items Affecting E arnings Consolidated Financial Highlight s Consolidated Income Statement Highlights Business Overview and Outloo k Florida Electric Utilit y Canadian Electric Utilities Gas Utilities and Infrastructur e Other Electric Utilities Other Consolidated Balance Sheet Highlight s Other Developments Financial Highlights Florida Electric Utilit y Canadian Electric Utilities Gas Utilities and Infrastructure Other Electric Utilities Other Liquidity and Capital Resources Consolidated Cash Flow Highlights Working Capital Contractual Obligations Forecasted Consolidated Capital Investments Debt Management Credit Ratings Guaranteed Debt Outstanding Stock Data 43 Pension Funding Off-Balance Sheet Arrangements Dividend Payout Ratio Transactions with Related Parties 45 Enterprise Risk and Risk Management Risk Management Including Financial Instruments Disclosure and Internal Controls Critical Accounting Estimates 60 Changes in Accounting Policies and Practices Future Accounting Pronouncements Summary of Quarterly Results 62 63 64 67 73 Consolidated Financial Statements Management Report Report of Independent Registered Public Accounting Firm Consolidated Financial Statements Notes to the Consolidated Financial Statements Emera Leadership and Board Shareholder Information ‌Management's Discussion & Analysis As at February 23, 2026 Management's Discussion & Analysis ("MD&A") provides a review of the results of operations of Emera Incorporated and its consolidated subsidiaries and investments (collectively referred to as "Emera" or the "Company") during the fourth quarter of, and for the full year of, 2025 relative to the same periods in 2024 and selected financial information for 2023; and its financial position as at December 31, 2025 relative to December 31, 2024. The Company's activities are carried out through five reportable segments: Florida Electric Utility, Canadian Electric Utilities, Gas Utilities and Infrastructure, Other Electric Utilities, and Other. This MD&A should be read in conjunction with the Emera annual audited consolidated financial statements and supporting notes as at and for the year ended December 31, 2025. Emera follows United States Generally Accepted Accounting Principles ("USGAAP" or "GAAP"). Additional information related to Emera, including the Company's Annual Information Form, can be found on SEDAR+ at https://www.sedarplus.ca and on EDGAR at https://www.sec.gov . The accounting policies used by Emera's rate-regulated entities may differ from those used by Emera's non-rate-regulated businesses with respect to the timing of recognition of certain assets, liabilities, revenues and expenses. At December 31, 2025, Emera's rate-regulated subsidiaries and investments include: Rate-Regulated Subsidiary or Equity Investment Accounting Policies Approved/Examined By Subsidiary Tampa Electric Company ("TEC") Florida Public Service Commission ("FPSC") and the Federal Energy Regulatory Commission ("FERC") Nova Scotia Power Inc. ("NSPI") Nova Scotia Energy Board ("NSEB"), formerly Nova Scotia Utility and Review Board Peoples Gas System, Inc. ("PGS") FPSC New Mexico Gas Company, Inc. ("NMGC") New Mexico Public Regulation Commission ("NMPRC") SeaCoast Gas Transmission, LLC ("SeaCoast") FPSC Emera Brunswick Pipeline Company Limited ("Brunswick Pipeline") Canadian Energy Regulator ("CER") Barbados Light & Power Company Limited ("BLPC") Fair Trading Commission, Barbados ("FTC") Grand Bahama Power Company Limited ("GBPC") The Grand Bahama Port Authority ("GBPA") Equity Investments NSP Maritime Link Inc. ("NSPML") NSEB Maritimes & Northeast Pipeline Limited Partnership and Maritimes & Northeast Pipeline, LLC ("M&NP") CER and FERC St. Lucia Electricity Services Limited ("Lucelec") National Utility Regulatory Commission Wasoqonatl Transmission Incorporated ("WTI") NSEB All amounts are in Canadian dollars ("CAD"), except for the Florida Electric Utility, Gas Utilities and Infrastructure, and Other Electric Utilities sections of the MD&A, which are reported in United States dollars ("USD") unless otherwise stated. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌Forward-Looking Information This MD&A contains "forward-looking information" and "forward-looking statements" (collectively, "FLI") within the meaning of applicable Canadian and US securities laws, including the United States Private Securities Litigation Reform Act of 1995, which reflect the current view with respect to the Company's expectations regarding future growth, results of operations, performance, earnings, capital investment, sales volumes, recovery of costs, timing of regulatory decisions, the expected timing and outcome of the pending sale of NMGC, the expected impact of Cybersecurity Incident (as defined herein) on the Company's financial position and results of operations, information technology ("IT") systems restoration, insurance recoveries, and business continuity processes as well as other matters relating to the Cybersecurity Incident, business prospects and opportunities, and may not be appropriate for other purposes. All such information and statements are made pursuant to safe harbour provisions contained in applicable securities legislation. The words "anticipates", "believes", "budget", "could", "estimates", "expects", "forecast", "intends", "may", "might", "plans", "projects", "schedule", "should", "targets", "will", "would" and similar expressions are often intended to identify FLI, although not all FLI contains these identifying words. The FLI reflects management's current beliefs and is based on information currently available to Emera's management and should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the time at which, such events, performance or results will be achieved. FLI is based on reasonable assumptions and is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the FLI. Factors that could cause results or events to differ from current expectations include, without limitation: regulatory and political risk; change in law risk; system operating and maintenance risks; changes in economic conditions; commodity price and availability risk; liquidity and capital markets risk; changes in credit ratings; future dividend growth, rate base growth, and adjusted earnings per common share ("EPS") growth; timing and costs associated with certain capital investments; expected impacts on Emera of challenges in the global economy; potential impacts of trade disputes and tariffs; estimated energy consumption rates; maintenance of adequate insurance coverage and receipt of proceeds; changes in customer energy usage patterns; developments in technology that could impact demand for electricity; climate risk; weather risk, including higher frequency and severity of weather events; risk of wildfires; unanticipated maintenance and other expenditures; derivative financial instruments and hedging; interest rate risk; inflation risk; counterparty risk; disruption of fuel supply; supply chain risk; environmental risks; foreign exchange ("FX"); regulatory and government decisions, including changes to environmental legislation, financial reporting and tax legislation; risks associated with pension plan performance and funding requirements; loss of service area; risks and costs associated with failure of IT infrastructure and cybersecurity incidents including IT systems restoration and business continuity processes; uncertainties associated with infectious diseases, pandemics and similar public health threats; risks associated with health and safety; market energy sales prices; labour relations; and availability of labour and management resources. Readers are cautioned not to place undue reliance on FLI, as actual results could differ materially from the plans, expectations, estimates or intentions and statements expressed in the FLI. All FLI in this MD&A is qualified in its entirety by the above cautionary statements and, except as required by law, Emera undertakes no obligation to revise or update any FLI as a result of new information, future events or otherwise. Introduction and Strategic Overview Emera (TSX/NYSE: EMA) is a North American provider of energy services, owning and operating a portfolio of cost-of-service, rate-regulated electric and gas utilities. Its largest operations are in Florida, with additional operations in Atlantic Canada, New Mexico, and the Caribbean. Emera is headquartered in Halifax, Nova Scotia, Canada. Emera's business strategy is centred on continued investment in its regulated utilities, combined with a focus on operational excellence and efficiency, to safely and reliably deliver energy to its 2.7 million customers. Effective execution of these priorities supports predictable and growing earnings, cash flow, and dividends for shareholders. Earnings opportunities in regulated utilities are a function of the magnitude of net investment in the utility (known as "rate base"), the amount of equity in the capital structure, and the targeted return on that equity ("ROE"), all as established and approved through regulation. Earnings are also affected by sales volumes and operating expenses. In 2025, Emera's regulated cost-of-service utilities in Florida accounted for 67 per cent of average consolidated rate base, with Atlantic Canada comprising 25 per cent, and the Caribbean and New Mexico at four per cent each. Emera's capital investment plan is forecasted to be approximately $20 billion from 2026 through 2030 and is focused on delivering value for customers through prudent investments in reliability and system resiliency, infrastructure modernization, expansion to address customer growth, integration of renewables, and technological innovations to deliver better customer experiences. It is anticipated that approximately 80 per cent of this capital investment will be made in Emera's Florida utilities, necessitated by customer growth and system requirements at both TEC and PGS. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌As at millions of dollars 2026 2027 2028 2029 2030 Total Capital investment plan* Average consolidated rate base US operations $ 4,020 $ 23,180 $ 3,730 $ 25,100 $ 4,140 $ 27,140 $ 4,180 $ 29,300 $ 4,330 $ 31,480 $ 20,400 Canadian operations 7,340 7,660 7,990 8,320 8,580 Total $ 30,520 $ 32,760 $ 35,130 $ 37,620 $ 40,060 *Capital investment plan and average consolidated rate base exclude NMGC. For more information on the pending sale of NMGC, refer to "Other Developments" section. Emera's capital investment plan will be funded primarily through internally generated cash flows, debt raised at the operating company level consistent with regulated capital structures, equity issuances, and proceeds from the anticipated close of the NMGC transaction. Generally, Emera's equity requirements are expected to be funded through the issuance of hybrid securities, and the issuance of common equity through Emera's dividend reinvestment plan ("DRIP") and its at-the-market program ("ATM program"). Maintaining investment-grade credit ratings is a core strategic priority of the Company. Emera has increased dividends per common share paid for 19 consecutive years and has provided annual dividend growth guidance of one to two per cent. Emera anticipates average adjusted EPS growth of five to seven per cent through 2030, using 2024 as the base year, which will support continued reduction in the ratio of dividend payout to adjusted net income over time. For further information on the non-GAAP ratios "Adjusted EPS" and "Dividend Payout Ratio of Adjusted Net Income", refer to the "Non-GAAP Financial Measures and Ratios" section. Non-GAAP Financial Measures and Ratios Emera uses financial measures and ratios that do not have standardized meaning under USGAAP and are calculated by adjusting certain GAAP measures for specific items. They may not be comparable to similar measures presented by other entities. These measures and ratios are discussed and reconciled below. Adjusted Net Income, Adjusted EPS - Basic, and Dividend Payout Ratio of Adjusted Net Income Emera calculates an adjusted net income attributable to common shareholders ("adjusted net income") measure by excluding items below from net income attributable to common shareholders. Management believes excluding these items better distinguish ongoing operations of the business and allow investors to better understand and evaluate the business. Emera calculates adjusted net income for the Florida Electric Utility, Gas Utilities and Infrastructure, Other Electric Utilities, and Other segments. Reconciliation to the nearest GAAP measure is included in each segment. For more information refer to the Financial Highlights section for each of Florida Electric Utility, Gas Utilities and Infrastructure, Other Electric Utilities, and Other. Adjusted EPS - basic and dividend payout ratio of adjusted net income are non-GAAP ratios that are calculated using adjusted net income, as described above. For further details on dividend payout ratio of adjusted net income, refer to the "Dividend Payout Ratio" section. Adjusting Items Impacting All Periods Mark-to-market ("MTM") Adjustments: Management believes excluding from net income the effect of MTM valuations and changes thereto, until settlement, better aligns the intent and financial effect of these contracts with the underlying cash flows, and therefore excludes MTM adjustments for evaluation of performance and incentive compensation. The MTM adjustments are related to the following: held-for-trading ("HFT") commodity derivative instruments, including adjustments related to the price differential between the point where natural gas is sourced and where it is delivered, and the related amortization of transportation capacity recognized as a result of certain Emera Energy marketing and trading transactions; the business activities of Bear Swamp Power Company LLC ("Bear Swamp") included in Emera's equity income; equity securities held in BLPC and Emera Energy; and FX hedges entered into to hedge USD denominated operating unit earnings exposure. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Adjusting Items Impacting 2025 and 2024 Charges Related to the Pending Sale of NMGC: On August 5, 2024, Emera entered into an agreement to sell NMGC. In Q2 2025, the Company recognized a $71 million non-cash impairment charge, after-tax, and an additional loss of $1 million in estimated transaction costs, after-tax, related to the pending sale. In Q3 2024, the Company recognized $206 million in non-cash goodwill and other impairment charges, after-tax, and an additional loss of $19 million in estimated transaction costs, after-tax, related to the pending sale. For further details, refer to the "Significant Items Affecting Earnings" and "Other Developments" sections. Adjusting Items Impacting 2024 Gain on Sale of Emera's Indirect Minority Interest in the Labrador Island Link ("Gain on sale of LIL"): In Q2 2024, Emera recognized a $107 million gain, after tax and transaction costs, on the sale of LIL. In Q4 2024, Emera recognized a $22 million tax benefit related to the reversal of a prior year valuation allowance. A portion of the taxable capital gain on sale of LIL was offset by prior year loss carryforwards, of which the tax benefit was subject to a valuation allowance as at December 31, 2023. For further details refer to the "Significant Items Affecting Earnings" section. Financing Structure Wind-Up: In Q4 2024, Emera recognized a $58 million tax benefit related to denied interest and financing expenses and the wind-up of a specific financing structure. For further details, refer to the "Significant Items Affecting Earnings" section. Charges Related to Wind-Down Costs and Certain Asset Impairments: In Q4 2024, the Company recognized $26 million, after-tax, in wind-down costs and certain asset impairments, primarily at Block Energy LLC ("Block Energy"). For further details, refer to the "Significant Items Affecting Earnings" section. For the millions of dollars (except per share amounts) Three months ended December 31 2025 2024 2025 Year ended December 31 2024 2023 Reconciliation of Net Income Attributable to Common Shareholders to Adjusted Net Income Net income attributable to common shareholders $ 68 $ 154 $ 1,014 $ 494 $ 978 MTM (loss) gain, after-tax (1) (99) (146) 41 (291) 169 Charges related to the pending sale of NMGC, after-tax (2)(3) - - (72) (225) - Gain on sale of LIL, after-tax (4) - 22 - 129 - Financing structure wind-up - 58 - 58 - Charges related to wind-down costs and certain asset - (26) - (26) - impairments, after-tax (5) Adjusted net income $ 167 $ 246 $ 1,045 $ 849 $ 809 EPS - basic $ 0.23 $ 0.52 $ 3.39 $ 1.71 $ 3.57 Adjusted EPS - basic $ 0.55 $ 0.84 $ 3.49 $ 2.94 $ 2.96 Net of income tax recovery of $39 million for the three months ended December 31, 2025 (2024 - $57 million recovery) and $17 million expense for the year ended December 31, 2025 (2024 - $117 million recovery) (2023 - $68 million expense). Represents (i) $71 million non-cash impairment charge, after-tax and $1 million in transaction costs, after-tax for the year ended December 31, 2025 and (ii) $206 million in non-cash goodwill and other impairment charges, after-tax and $19 million in transaction costs, after-tax for the year ended December 31, 2024. Net of income tax recovery of $5 million for the year ended December 31, 2025 (2024 - $21 million). Includes an income tax recovery of $22 million for the three months ended December 31, 2024 and net of income tax expense of $53 million for the year ended December 31, 2024. Net of income tax recovery of $6 million for the three months and year ended December 31, 2024. EBITDA and Adjusted EBITDA Earnings before interest, income taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA are non-GAAP financial measures used by Emera. These financial measures are used by numerous investors and lenders to better understand cash flows and credit quality. EBITDA is useful to assess Emera's operating performance and indicates the Company's ability to service or incur debt, invest in capital, and finance working capital requirements. Adjusted EBITDA represents EBITDA absent the income effect of MTM adjustments, charges related to the pending sale of NMGC, the 2024 gain on sale of LIL, and the 2024 charges related to wind-down costs and certain asset impairments. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information For the millions of dollars Three months ended December 31 2025 2024 2025 Year ended December 31 2024 2023 ‌Reconciliation of Net Income to EBITDA and Adjusted EBITDA Net income (1) $ 87 $ 173 $ 1,090 $ 568 $ 1,045 Interest expense, net 268 248 1,032 973 925 Income tax (recovery) expense (35) (199) 81 (159) 128 Depreciation and amortization 335 296 1,294 1,162 1,049 EBITDA $ 655 $ 518 $ 3,497 $ 2,544 $ 3,147 MTM (loss) gain, excluding income tax (138) (203) 58 (408) 237 Charges related to the pending sale of NMGC, excluding income tax - - (77) (246) - Gain on sale of LIL, excluding income tax - - - 182 - Charges related to wind-down costs and certain asset impairments, excluding income tax - (32) - (32) - Adjusted EBITDA $ 793 $ 753 $ 3,516 $ 3,048 $ 2,910 Net income is before Non-controlling interest in subsidiaries and Preferred stock dividends. Consolidated Financial Review Significant Items Affecting Earnings The items detailed below have had a significant impact on net income attributable to common shareholders but have been excluded from adjusted net income as described in the section entitled "Non-GAAP Financial Measures and Ratios". Earnings Impact of MTM (Loss) Gain, After-Tax For Q4 2025, MTM loss, after-tax, decreased $47 million to $99 million compared to $146 million in Q4 2024, primarily due to a gain on Corporate FX hedges compared to a loss in the prior year. For the year ended 2025, the 2024 MTM loss, after-tax, of $291 million decreased $332 million to a $41 million MTM gain, after-tax, primarily due to changes in existing positions and lower amortization of gas transportation assets at Emera Energy Services ("EES") and a gain on Corporate FX hedges compared to a loss in the prior year. Charges Related to the Pending Sale of NMGC 2025: In Q2 2025, Emera recognized a non-cash impairment charge of $75 million ($71 million after-tax, or $0.24 per common share) related to the remeasurement of the NMGC disposal group to fair value ("FV") less costs to sell. This was recorded in "Impairment charges" on the Consolidated Statements of Income and included in the Other Segment. 2024: In Q3 2024, Emera recognized non-cash goodwill and other impairment charges of $221 million ($206 million after-tax, or $0.72 per common share) related to the NMGC reporting unit. These charges were recorded in "Impairment charges" on the Consolidated Statements of Income and included in the Other and Gas Utilities and Infrastructure segments. Additionally, in Q3 2024, Emera recorded a loss of $24 million ($19 million after-tax, or $0.06 per common share) in estimated transaction costs related to the pending sale. These transaction costs were included in "Other income, net" on the Consolidated Statements of Income and included in the Other segment. For further details on the pending sale of NMGC, refer to the "Other Developments" section. For further details on the non-cash impairment and goodwill charges, refer to note 4 in the consolidated financial statements. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌Gain on Sale of LIL On June 4, 2024, Emera completed the sale of its LIL equity interest. A gain on sale of $182 million after transaction costs ($107 million, after tax and transaction costs, or $0.37 per common share), was recognized in "Other Income, net" on the Consolidated Statements of Income in Q2 2024 and included in the Other segment. In Q4 2024, Emera recognized a $22 million ($0.08 per common share) tax benefit related to the reversal of a prior year valuation allowance. A portion of the taxable capital gain on the sale of the LIL equity interest was offset by prior year loss carryforwards, of which the tax benefit had been subject to a valuation allowance as at December 31, 2023. This tax benefit was recorded in "Income tax expense (recovery)" on the Consolidated Statements of Income in Q4 2024 and included in the Other segment. For further details on the transaction, refer to note 4 in the consolidated financial statements. Financing Structure Wind-Up During 2024, the Company incurred $185 million of interest and financing expenses in connection with a specific financing structure. The current and future interest and financing expenses were expected to be denied under the Excessive Interest and Financing Expenses Limitation ("EIFEL") legislation and, as a result, the financing structure was wound up. It was determined that Emera was more likely than not to realize the benefit of the current denied interest and financing expenses in future periods and therefore, a $54 million deferred income tax asset and related income tax benefit ($0.19 per common share) was recorded during Q4 2024. In addition, Emera recognized a $4 million income tax benefit ($0.01 per common share) related to the reversal of a deferred income tax liability on the wind-up of the financing structure. The total tax benefit of $58 million was recorded in "Income tax expense (recovery)" on the Consolidated Statements of Income and included in the Other segment during 2024. Charges Related to Wind-Down Costs and Certain Asset Impairments In Q4 2024, Emera recognized $32 million ($26 million after-tax, or $0.09 per common share) in wind-down costs and certain asset impairments, primarily at Block Energy. These were recorded in "Other income, net" and "Impairment charges" on the Consolidated Statements of Income and included mainly in the Other segment. For the millions of dollars Three months ended December 31 Year ended December 31 Consolidated Financial Highlights Adjusted net income 2025 2024 2025 2024 2023 Florida Electric Utility $ 119 $ 120 $ 845 $ 644 $ 627 Canadian Electric Utilities 31 77 182 232 247 Gas Utilities and Infrastructure 76 87 276 267 214 Other Electric Utilities 15 21 43 48 35 Other (74) (59) (301) (342) (314) Adjusted net income $ 167 $ 246 $ 1,045 $ 849 $ 809 MTM (loss) gain, after-tax (99) (146) 41 (291) 169 Charges related to the pending sale of NMGC, after-tax - - (72) (225) - Gain on sale of LIL, after-tax - 22 - 129 - Financing structure wind-up - 58 - 58 - Charges related to wind-down costs and certain asset impairments, after-tax - (26) - (26) - Net income attributable to common shareholders $ 68 $ 154 $ 1,014 $ 494 $ 978 Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information The following table highlights significant changes in adjusted net income from 2024 to 2025: For the Three months ended Year ended millions of dollars December 31 December 31 Adjusted net income - 2024 $ 246 $ 849 Operating Unit Performance Increased earnings at TEC year-over-year due to higher revenue from new base rates, customer growth, (1) 201 favourable weather, and the impact of a weaker CAD. These were partially offset by higher operating, maintenance and general expenses ("OM&G"), depreciation, interest expense, and income tax expense Increased earnings at EES due to favourable weather conditions that led to higher natural gas prices and increased volatility that created profitable opportunities Decreased earnings at NMGC quarter-over-quarter due to higher OM&G. Increased earnings year-over-year due to higher revenue from new base rates, partially offset by higher OM&G and depreciation expense 17 50 (12) 10 Decreased income from equity investments due to the sale of LIL in Q2 2024 - (28) Decreased earnings at NSPI quarter-over-quarter primarily due to lower income tax recovery due to the utilization of tax loss carryforwards recognized as a deferred income tax regulatory liability in 2024. For both quarter-over-quarter and year-over-year, decreased earnings due to higher OM&G and higher depreciation expense, partially offset by higher revenue due to favourable weather Corporate For the millions of dollars 2025 Year ended December 31 2024 2023 Increased interest expense due to increased Corporate debt and the impact of a weaker CAD on USD interest expense, partially offset by lower interest rates (49) (19) (4) (14) Decreased income tax recovery due to decreased deferred income tax asset valuation allowance adjustment (27) (9) Other Variances (3) 5 Adjusted net income - 2025 $ 167 $ 1,045 Operating cash flow before changes in working capital $ 2,559 $ 2,194 $ 2,336 Change in working capital (757) 452 (95) Operating cash flow $ 1,802 $ 2,646 $ 2,241 Investing cash flow $ (3,482) $ (2,218) $ (2,917) Financing cash flow $ 1,841 $ (818) $ 939 As at millions of dollars 2025 December 31 2024 2023 For further discussion of cash flow, refer to the "Consolidated Cash Flow Highlights" section. Total assets $ 44,817 $ 42,951 $ 39,480 Total long-term debt (including current portion) (1) $ 19,654 $ 18,407 $ 18,365 Excludes NMGC balances classified as held for sale at December 31, 2025 and December 31, 2024. For further details, refer to the "Other Developments" section and note 4 in the consolidated financial statements. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information For the millions of dollars (except per share amounts) Three months ended December 31 Year ended December 31 2025 2024 Variance 2025 2024 Variance Year ended December 31 2023 ‌Consolidated Income Statement Highlights Operating revenues $ 2,006 $ 1,763 $ 243 $ 8,776 $ 7,200 $ 1,576 $ 7,563 Operating expenses 1,731 1,524 (207) 6,801 6,120 (681) 5,769 Income from operations $ 275 $ 239 $ 36 $ 1,975 $ 1,080 $ 895 $ 1,794 Other income (expense), net $ 30 $ (29) $ 59 $ 165 $ 203 $ (38) $ 158 Income tax (recovery) expense $ (35) $ (199) $ (164) $ 81 $ (159) $ (240) $ 128 Net income attributable to common shareholders $ 68 $ 154 $ (86) $ 1,014 $ 494 $ 520 $ 978 Adjusted net income $ 167 $ 246 $ (79) $ 1,045 $ 849 $ 196 $ 809 Weighted average shares of common stock outstanding (in millions) 301.2 294.1 7.1 299.2 289.1 10.1 273.6 EPS - basic $ 0.23 $ 0.52 $ (0.29) $ 3.39 $ 1.71 $ 1.68 $ 3.57 EPS - diluted $ 0.25 $ 0.52 $ (0.27) $ 3.38 $ 1.71 $ 1.67 $ 3.57 Adjusted EPS - basic $ 0.55 $ 0.84 $ (0.29) $ 3.49 $ 2.94 $ 0.55 $ 2.96 Adjusted EBITDA $ 793 $ 753 $ 40 $ 3,516 $ 3,048 $ 468 $ 2,910 Dividends per common share declared $ 0.7325 $ 0.7250 $ 0.0075 $ 2.9075 $ 2.8775 $ 0.0300 $ 2.7875 Dividends per first preferred shares declared: Series A $ 0.7186 $ 0.5456 $ 0.1730 $ 0.5456 Series B $ 0.9451 $ 1.6966 $ (0.7515) $ 1.5583 Series C $ 1.6085 $ 1.6085 $ - $ 1.2873 Series E $ 1.1250 $ 1.1250 $ - $ 1.1250 Series F $ 1.3406 $ 1.0505 $ 0.2900 $ 1.0505 Series H $ 1.5810 $ 1.5810 $ - $ 1.3140 Series J $ 1.0625 $ 1.0625 $ - $ 1.0625 Series L $ 1.1500 $ 1.1500 $ - $ 1.1500 Trade Disputes and Tariffs The extent of the future impact of trade disputes and tariffs on the Company's financial results and business operations continues to evolve, cannot be predicted at this time and will depend on future developments. To date, there has been no material financial impact on the Company. For information on risks associated with trade disputes and the imposition of tariffs, refer to the "Enterprise Risk and Risk Management" section. Operating Revenues For Q4 2025, operating revenues increased $243 million compared to Q4 2024 and, excluding decreased MTM losses of $19 million, increased $224 million. The increase was due to higher storm cost recoveries at TEC and NSPI (offset in OM&G); new base rates at TEC; and higher marketing and trading margin at EES. For the year ended December 31, 2025, operating revenues increased $1,576 million compared to 2024 and, excluding increased MTM gains of $369 million, increased $1,207 million. The increase was due to higher storm cost recoveries at TEC and NSPI (offset in OM&G); new base rates at TEC and NMGC; the impact of a weaker CAD; higher fuel cost recoveries at TEC, NSPI and NMGC; higher marketing and trading margin at EES; and favourable weather at NSPI and TEC. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Operating Expenses For Q4 2025, operating expenses increased $207 million compared to Q4 2024. Excluding charges related to wind-down costs and certain asset impairments of $4 million recognized in 2024, operating expenses increased $211 million. For the year ended December 31, 2025, operating expenses increased $681 million compared to 2024. Excluding the change in the charges related to the pending sale of NMGC of $146 million and charges related to wind-down costs and certain asset impairments of $4 million recognized in 2024, operating expenses increased $831 million. These increases were primarily due to higher storm cost recognition of $97 million quarter-over-quarter and $350 million year-over-year at TEC and NSPI (offset in revenue); higher OM&G at NMGC and NSPI; and increased depreciation expense at TEC, PGS and NMGC. The year-over-year increase was also due to higher natural gas prices at TEC, PGS and NMGC; higher regulated fuel for generation and purchase power at NSPI; and the impact of a weaker CAD. Other Income, net For Q4 2025, other income, net increased $59 million compared to Q4 2024, due to decreased FX losses and the 2024 charges related to wind-down costs and certain asset impairments. For the year ended December 31, 2025, other income, net decreased $38 million compared to 2024 due to the gain on sale of LIL in 2024, partially offset by higher FX gains in 2025, the 2024 charges related to wind-down costs and certain asset impairments and the 2024 transaction costs related to the pending sale of NMGC. Income Tax Expense (Recovery) For Q4 2025, income tax recovery decreased $164 million compared to Q4 2024 due to the recognition of tax benefits associated with denied interest and financing expenses in the prior year, decreased deferred income tax asset valuation allowance adjustment and increased income before provision for income taxes. For the year ended December 31, 2025, income tax expense increased $240 million compared to 2024 due to increased income before provision for income taxes (excluding the gain on sale of LIL recognized in 2024 and the charges related to the pending sale of NMGC), recognition of tax benefits associated with denied interest and financing expenses in the prior year, and decreased deferred income tax asset valuation allowance adjustment. These were partially offset by the tax impact on the gain on sale of LIL recognized in 2024 and increased tax credits recognized at NSPI and TEC. Net Income and Adjusted Net Income Net income attributable to common shareholders for Q4 2025, compared to Q4 2024, was favourably impacted by the $47 million decrease in MTM losses, the $26 million charges related to wind-down costs and certain asset impairments in 2024, and unfavourably impacted by the $58 million tax benefit related to a specific financing structure and its wind-up recognized in 2024 and the $22 million valuation allowance reversal related to the gain on sale of LIL recognized in 2024. Excluding these changes, adjusted net income decreased $69 million due to decreased earnings at NSPI and NMGC; and increased Corporate costs. These were partially offset by increased earnings at EES. Net income attributable to common shareholders for the year ended 2025, as compared to the same period in 2024, was favourably impacted by the $332 million decrease in MTM losses, the $153 million change in the charges related to the pending sale of NMGC, and the $26 million in charges related to wind-down costs and certain asset impairments and unfavourably impacted by the $129 million gain on sale of LIL recognized in 2024 and the $58 million tax benefit related to a specific financing structure and its wind-up recognized in 2024. Excluding these changes, adjusted net income increased $206 million. The increase was primarily due to increased earnings at TEC, EES and NMGC. These were partially offset by lower equity earnings from LIL; higher Corporate costs; and lower earnings at NSPI. EPS and Adjusted EPS - Basic For Q4 2025, EPS - basic and adjusted EPS were lower than Q4 2024 due to the impact of lower earnings as discussed above and the impact of an increase in weighted average shares outstanding. For the year ended December 31, 2025, EPS - basic and adjusted EPS were higher than 2024 due to the impact of higher earnings as discussed above, partially offset by the impact of an increase in weighted average shares outstanding. Effect of Foreign Currency Translation Emera operates in the United States ("US"), Canada and various Caribbean countries and, as such, generates revenues and incurs expenses denominated in local currencies which are translated into CAD for financial reporting. Changes in translation rates, particularly the value of the USD against the CAD, can positively or adversely affect results. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Three months ended December 31 Year ended December 31 ‌Results of foreign operations are translated at the weighted average rate of exchange, and assets and liabilities of foreign operations are translated at period end rates. The relevant CAD/USD exchange rates on net income attributable to common shareholders for 2025 and 2024 are as follows: 2025 2024 2025 2024 Weighted average CAD/USD $ 1.36 $ 1.37 $ 1.41 $ 1.36 Period end CAD/USD exchange rate $ 1.37 $ 1.44 $ 1.37 $ 1.44 For the millions of USD Three months ended December 31 2025 2024 Year ended December 31 2025 2024 The table below includes Emera's significant segments whose contributions to adjusted net income are recorded in USD currency: Florida Electric Utility $ 85 $ 85 $ 607 $ 470 Gas Utilities and Infrastructure (1)(2) 50 56 179 178 Other Electric Utilities 11 15 31 35 Other segment (3) (26) (33) (123) (131) Total (2)(4) $ 120 $ 123 $ 694 $ 552 Includes USD net income from PGS, NMGC, SeaCoast and M&NP. Excludes $6 million USD, after-tax, in other impairment charges associated with the pending sale of NMGC for the year ended December 31, 2024. Includes Emera Energy's USD adjusted net income from EES, Bear Swamp and interest expense on Emera Inc.'s USD denominated debt. Excludes $73 million USD in MTM losses, after-tax, for the three months ended December 31, 2025 (2024 - $84 million USD MTM losses, after-tax) and $5 million in USD MTM gain, after-tax, for the year ended December 31, 2025 (2024 - $189 million USD MTM losses, after-tax). In Q4 2025, the translation impact of a stronger CAD on USD denominated earnings decreased adjusted net income by $3 million and decreased net income attributable to common shareholders by $3 million, compared to the same period in 2024. For the year ended December 31, 2025, the impact of a weaker CAD on US denominated earnings increased adjusted net income by $13 million and increased net income attributable to common shareholders by $49 million, compared to 2024. Impacts of the changes in the translation of the CAD include the impacts of Corporate FX hedges used to mitigate translation risk of USD earnings in the Other segment. Business Overview and Outlook Florida Electric Utility The Florida Electric Utility segment consists of TEC, a vertically integrated regulated electric utility engaged in the generation, transmission and distribution of electricity, serving customers in West Central Florida. With $14.5 billion USD of assets and approximately 866,000 customers at December 31, 2025, TEC owns 6,771 megawatts ("MW") of generating capacity, of which 78 per cent is natural gas fired, 21 per cent is solar and 1 per cent is energy storage. TEC owns approximately 2,200 kilometres of transmission facilities and 21,100 kilometres of distribution facilities. TEC meets the planning criteria for reserve capacity established by the FPSC, which is a 20 per cent reserve margin over firm peak demand. TEC's approved regulated ROE range is 9.50 per cent to 11.50 per cent based on an allowed equity capital structure of 54 per cent. An ROE of 10.50 per cent is used for the calculation of the return on investments for clauses. TEC anticipates earning within its allowed ROE range in 2026. USD earnings are expected to be higher in 2026 than 2025 as a result of new base rates effective January 1, 2026, and continued customer growth. On September 4, 2025, TEC petitioned the FPSC to increase base revenue by $88 million USD to reflect the 2026 adjustment in accordance with its 2024 rate case decision. On November 4, 2025, the FPSC approved the adjustment, with new rates effective January 1, 2026. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌On February 3, 2025, the FPSC issued the final order approving the 2024 rate case decision, effective January 1, 2025. For additional details on the 2024 rate case, refer to note 7 in Emera's consolidated financial statements. In February 2025, a motion for reconsideration on certain aspects of the final order was filed by an intervening party with the FPSC. On May 6, 2025, the FPSC denied the motion for reconsideration, except with respect to immaterial calculation corrections, and the final order was issued on June 11, 2025. In March 2025, two intervening parties each filed a notice of appeal to the Florida Supreme Court regarding the outcome of TEC's 2024 base rate proceeding. On January 12, 2026, the intervening parties filed their briefs related to the appeal. To date, the FPSC has not responded to the briefs. On February 4, 2025, the FPSC approved TEC's petition for the recovery of $466 million USD of costs associated with Hurricane Idalia, Hurricane Debby, Hurricane Helene and Hurricane Milton, and the associated interest to replenish the storm reserve over an 18-month recovery period, which began in March 2025. The amount of cost-recovery is subject to a true-up mechanism with the FPSC. For additional details on the storm reserve, refer to note 7 in Emera's consolidated financial statements. In 2026, capital investment in the Florida Electric Utility segment is expected to be $1.8 billion USD (2025 - $1.6 billion USD), including allowance for funds used during construction ("AFUDC"). Capital projects include investment in generation reliability projects and storm hardening, grid modernization, and transmission expansion. Canadian Electric Utilities The Canadian Electric Utilities segment includes NSPI and NSPML. NSPI is a vertically integrated regulated electric utility engaged in the generation, transmission and distribution of electricity and the primary electricity supplier to customers in Nova Scotia. NSPML is a 100 per cent equity interest in the Maritime Link Project ("Maritime Link"), a transmission project between the island of Newfoundland and Nova Scotia. NSPI With $8.1 billion of assets and approximately 565,000 customers at December 31, 2025, NSPI owns 2,422 MW of generating capacity, of which 44 per cent is coal and/or oil-fired; 28 per cent is natural gas and/or oil; 19 per cent is hydro, wind, or solar; seven per cent is petroleum coke ("petcoke") and 2 per cent is biomass-fueled generation. In 2025, NSPI began operations of two 50 MW grid-scale battery facilities to enhance reliability. In addition, NSPI has contracts to purchase renewable energy from independent power producers ("IPPs") and community feed-in tariff ("COMFIT") participants, which own 573 MW of capacity. NSPI also has rights to 153 MW of Maritime Link capacity, representing Newfoundland and Labrador Hydro's ("NLH") Nova Scotia Block ("NS Block") delivery obligations, as discussed below. NSPI owns approximately 5,400 kilometres of transmission facilities and 28,700 kilometres of distribution facilities. NLH is obligated to provide NSPI with approximately 900 Gigawatt hours ("GWh") of energy annually over 35 years. In addition, until March 31, 2026, NLH is obligated to provide approximately 240 GWh of additional energy from the Supplemental Energy Block transmitted through the Maritime Link. NSPI has the option of purchasing additional market-priced energy from NLH through the Energy Access Agreement. The Energy Access Agreement enables NSPI to access a market-priced bid from NLH for up to 1.8 Terawatt hours ("TWh") of energy in any given year and, on average, 1.2 TWh of energy per year through August 31, 2041. NSPI's approved regulated ROE range is 8.75 per cent to 9.25 per cent, based on an actual five-quarter average regulated common equity component of up to 40 per cent of approved rate base. Assuming new base rates are approved by the NSEB in the general rate application ("GRA") and are generally consistent with the settlement agreement, NSPI anticipates earning at the low end of its allowed ROE in 2026 and expects earnings in 2026 to be higher than 2025. Sales volumes are expected to be higher in 2026 than 2025. On September 18, 2025, NSPI filed a consensus GRA with the NSEB, reflecting a settlement agreement reached with customer representatives. The GRA proposes average annual rate increases of 1.8 per cent in 2026 and 2.4 per cent in 2027. The proposed rates would result in annual revenue (fuel and non-fuel) increases of $62 million in 2026 and $108 million in 2027. The hearing for the matter concluded in January 2026 and a decision by the NSEB is expected by early Q2 2026. On March 5, 2025, NSPI, the Canada Infrastructure Bank ("CIB") and the Wskijinu'k Mtmo'taqnuow Agency ("WMA") announced the Wasoqonatl transmission line project to create a reliability intertie between Nova Scotia and New Brunswick. The project is owned by a new regulated utility, WTI, which is wholly-owned by a newly formed limited partnership between NSPI, CIB and WMA. NSPI is responsible for providing construction, operation, maintenance and administrative services to WTI. NSPI has a 50 per cent indirect voting interest in WTI which is recorded as an "Investments subject to significant influence" on Emera's Consolidated Balance Sheets. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌In 2026, capital investment is expected to be $720 million (2025 - $712 million), including AFUDC. NSPI is primarily investing in capital projects required to support power system reliability and reliable service for customers. Environmental Legislation and Regulations NSPI is subject to environmental laws and regulations set by both the Government of Canada and the Province of Nova Scotia (the "Province"). NSPI continues to work with both levels of government to comply with these laws and regulations to maximize efficiency of emission control measures and minimize customer cost. NSPI anticipates that costs prudently incurred to achieve legislated compliance will be recoverable under NSPI's regulatory framework. NSPI faces risks associated with achieving climate-related and environmental legislative requirements, including the risk of non-compliance, which could adversely affect NSPI's operations and financial performance. For further discussion on these risks and environmental legislation and regulations, refer to the "Enterprise Risk and Risk Management" section. Recent developments related to provincial and federal environmental laws and regulations are outlined below. Nova Scotia Energy Reform Act : On October 15, 2025, the Nova Scotia Independent Energy System Operator ("IESO Nova Scotia") announced that the organization will be phased in over two phases during an 18-month period. On December 1, 2025, the first phase was complete following the transfer of system planning and interconnection functions. The second phase is expected to be complete in 2027 as IESO Nova Scotia assumes responsibility for system operations. The establishment of IESO Nova Scotia follows Bill 404 - Energy Reform (2024) Act enacted in April 2024, which established the NSEB, and phased transition to IESO Nova Scotia. Renewable Energy Regulations ("RER"): On May 26, 2023, NSPI initiated an appeal, through a proceeding with the NSEB, of the $10 million penalty levied on NSPI by the Province for non-compliance with the RER compliance period ending in 2022. The hearing concluded in 2025 and NSPI is awaiting a decision. NSPML Equity earnings from the Maritime Link are dependent on the approved ROE and operational performance of NSPML. NSPML's approved regulated ROE range is 8.75 per cent to 9.25 per cent, based on an actual five-quarter average regulated common equity component of up to 30 per cent. Equity earnings from NSPML in 2026 are expected to be consistent with 2025. The NSPML investment is recorded as "Investments subject to significant influence" on Emera's Consolidated Balance Sheets. The Maritime Link assets entered service on January 15, 2018, enabling the transmission of energy between Newfoundland and Nova Scotia, improved reliability and ancillary benefits, supporting the efficiency and reliability of energy in both provinces. NLH's NS Block delivery obligations commenced on August 15, 2021 and will be delivered over the next 35 years pursuant to the project agreements. On December 23, 2025, NSPML received an interim order from the NSEB to collect up to $199 million from NSPI for the recovery of costs associated with the Maritime Link in 2026, subject to a monthly holdback of up to $4 million. A final decision from the NSEB is pending. There was no holdback recorded for the year ended December 31, 2025. On February 4, 2026, NSPML submitted an application with the NSEB requesting the termination of the holdback mechanism. A decision is anticipated in Q3 2026. In 2026, the capital investment at NSPML is expected to be approximately $40 million (2025 - $7 million). Gas Utilities and Infrastructure The Gas Utilities and Infrastructure segment includes PGS, NMGC, SeaCoast, Brunswick Pipeline and Emera's equity investment in M&NP. PGS is a regulated gas distribution utility engaged in the purchase, distribution and sale of natural gas serving customers in Florida. NMGC is an intrastate regulated gas distribution utility engaged in the purchase, transmission, distribution and sale of natural gas serving customers in New Mexico. SeaCoast is a regulated intrastate natural gas transmission company offering services in Florida. Brunswick Pipeline is a regulated 145-kilometre pipeline delivering re-gasified liquefied natural gas from Saint John, New Brunswick, to markets in the northeastern US. On August 5, 2024, Emera announced an agreement to sell NMGC. As a result of the pending sale, NMGC's assets and liabilities were classified as held for sale as of Q3 2024. The public hearing was held in November 2025. The transaction is expected to close in the first half of 2026. For more information on the pending transaction, refer to the "Other Developments" section. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌PGS With $3.3 billion USD of assets and approximately 523,000 customers, the PGS system includes approximately 25,600 kilometres of natural gas mains and 14,800 kilometres of service lines. Natural gas throughput (the amount of gas delivered to its customers, including transportation-only service) was 2 billion therms in 2025. Beginning in 2026, the approved ROE range for PGS is 9.30 per cent to 11.30 per cent (2025 - 9.15 per cent to 11.15 per cent) based on an allowed equity capital structure of 54.7 per cent (2025 - 54.7 per cent). An ROE of 10.30 per cent (2025 - 10.15 per cent) is used for the calculation of return on investments for clauses. PGS anticipates earning within its allowed ROE range in 2026. USD earnings are expected to be higher in 2026 than 2025, as a result of new base rates effective January 1, 2026, and continued customer growth. On March 31, 2025, PGS filed a rate case with the FPSC for new rates to become effective January 1, 2026. On August 13, 2025, PGS and the intervening parties filed a settlement agreement with the FPSC for a $67 million USD increase in 2026 annual base rates, which includes $7 million USD from the cast iron and bare steel replacement rider, and additional adjustments of $25 million USD in 2027 and up to $5 million USD in 2028 (subject to FPSC approval). This reflects a 10.30 per cent midpoint ROE and 54.7 per cent equity thickness. On October 31, 2025, the FPSC issued the final order approving the settlement. In 2026, capital investment is expected to be approximately $445 million USD (2025 - $323 million USD), including AFUDC. PGS will make investments to maintain the reliability of their systems and support customer growth. NMGC With $1.6 billion USD of assets and approximately 553,000 customers, NMGC's system includes approximately 2,300 kilometres of transmission pipelines and 18,200 kilometres of distribution pipelines. Annual natural gas throughput was approximately one billion therms in 2025. The approved ROE for NMGC is 9.375 per cent, on an allowed equity capital structure of 52 per cent. NMGC's USD earnings contribution to Emera in 2026 are expected to be lower than in 2025 as a result of the pending sale of NMGC, which is expected to close in the first half of 2026. Other Electric Utilities Other Electric Utilities includes Emera (Caribbean) Incorporated ("ECI"), a holding company with regulated electric utilities. ECI's regulated utilities include vertically integrated regulated electric utilities of BLPC on the island of Barbados, GBPC on Grand Bahama Island, and an equity investment in Lucelec on the island of St. Lucia. Other Electric Utilities' USD earnings in 2026 are expected to be consistent with the prior year. In 2026, capital investment in the Other Electric Utilities segment is expected to be approximately $110 million USD (2025 - $67 million USD), including AFUDC, primarily in more efficient and cleaner sources of generation, including renewables and battery storage. BLPC With $547 million USD of assets and approximately 137,000 customers, BLPC owns 243 MW of generating capacity, of which 96 per cent is oil-fired and 4 per cent is solar. BLPC owns approximately 200 kilometres of transmission facilities and 4,000 kilometres of distribution facilities. BLPC's approved regulated return on rate base is 10 per cent. In 2021, BLPC submitted a general rate review application to the FTC. In September 2022, the FTC granted BLPC interim rate relief, allowing an increase in base rates of approximately $1 million USD per month. On February 15, 2023, the FTC issued a decision on the application that included the following significant items: an allowed regulatory ROE of 11.75 per cent, an equity capital structure of 55 per cent, a directive to update the major components of rate base to September 16, 2022, and a directive to establish regulatory liabilities totalling approximately $71 million USD. On March 7, 2023, BLPC filed a Motion for Review and Variation (the "Motion") and applied for a stay of the FTC's decision, which was subsequently granted. On November 20, 2023, the FTC issued their decision dismissing the Motion. Interim rates continue to be in effect through to a date to be determined in a final decision and order. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌On December 1, 2023, BLPC appealed certain aspects of the FTC's February 15 and November 20, 2023 decisions to the Supreme Court of Barbados in the High Court of Justice (the "Court") and requested they be stayed. On December 11, 2023, the Court granted the stay. BLPC's position is that the FTC made errors of law and jurisdiction in their decisions and believes the success of the appeal is probable, and as a result, the adjustments to BLPC's final rates and rate base, including any adjustments to regulatory assets and liabilities, have not been recorded at this time. The appeal was heard in December 2025, and will continue in early 2026. A decision is expected in 2026. BLPC currently operates pursuant to a single integrated licence to generate, transmit and distribute electricity on the island of Barbados until 2028. In 2019, the Government of Barbados passed legislation requiring multiple licences for the supply of electricity. In November 2025, the Government of Barbados and BLPC agreed to new Transmission, Distribution, Sales and Dispatch ("T&D") and Generation and Energy Storage ("G&S") licences. The G&S licence will be valid until 2047, unless otherwise extended. The T&DLicence will be valid for 30 years. These new non-exclusive licences have since been signed and will become effective upon the repeal of the existing license. BLPC continues to operate under its current statutory authority while preparing for the transition to the new licensing framework. GBPC With $378 million USD of assets and approximately 20,000 customers, GBPC owns 98 MW of oil-fired generation, approximately 100 kilometres of transmission facilities and 1,000 kilometres of distribution facilities. GBPC's approved regulatory return on rate base is 8.52 per cent. On August 1, 2024, as required by the GBPA Operating Protocol and Regulatory Framework Agreement, GBPC filed a rate plan proposal. A review of the proposal by the GBPA is expected to commence in the first half of 2026. On June 1, 2024, the Electricity Act, 2024 took effect. The legislation purports to remove the jurisdiction of the GBPA over GBPC and to have the Utilities Regulation and Competition Authority ("URCA"), another Bahamian regulator, regulate GBPC. In 2024, URCA filed a claim in the Supreme Court of the Bahamas, seeking an order that the GBPA be prohibited and restrained from considering and/or approving any adjustment to rates sought by GBPC. URCA contends that it has regulatory authority over electricity provision on Grand Bahama pursuant to the Electricity Act . Management does not expect that the outcome of the proceedings will have a material impact to Emera. Other The Other segment includes business operations that in a normal year are below the required threshold for reporting as separate segments; and corporate expense and revenue items that are not directly allocated to Emera's subsidiaries and investments. Business operations in the Other segment include Corporate; Emera Energy Services ("EES"), a physical energy marketing and trading business; and a 50 per cent joint venture interest in Bear Swamp, a 660 MW pumped storage hydroelectric facility in northwestern Massachusetts. Corporate includes certain corporate-wide functions including executive management, strategic planning, treasury services, legal, financial reporting, tax planning, corporate business development, corporate governance, investor relations, risk management, insurance, acquisition and disposition related costs, gains or losses on select assets sales, and corporate human resource activities. It includes interest revenue on intercompany financings and interest expense on corporate debt in both Canada and the US. Earnings from EES are generally dependent on market conditions. In particular, volatility in natural gas and electricity markets, which can be influenced by weather, local supply constraints and other supply and demand factors, can provide higher levels of margin opportunity. The business is seasonal, with Q1 and Q4 usually providing the greatest opportunity for earnings. EES is generally expected to deliver annual adjusted net income of $15 million USD to $30 million USD. In light of strong market conditions in early 2026, EES expects USD adjusted net income for 2026 to be in line with 2025 results. The adjusted net loss from the Other segment in 2026 is expected to be consistent with 2025. In 2026, capital investment is expected to be approximately $10 million (2025 - $6 million). Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌Consolidated Balance Sheet Highlights Significant changes in the Consolidated Balance Sheets between December 31, 2024 and December 31, 2025 include: millions of dollars Total Increase (Decrease) Explanation of Other Increase (Decrease) Assets Cash and cash equivalents $ 153 Increased due to higher cash from operations, increased proceeds under committed credit facilities at TEC, proceeds from debt issuances at TEC, and proceeds from common shares issued. These were partially offset by investment in property, plant and equipment ("PP&E"), repayment of committed credit facilities at TECO Finance, Inc. ("TECO Finance") and Emera, and dividends paid on Emera common stock Regulatory assets (current and longterm) (229) Decreased due to lower storm cost recovery assets at TEC and NSPI and the effect of FX translation of Emera's non-Canadian affiliates. These were partially offset by higher deferrals related to the fuel adjustment mechanism ("FAM") and the deferred income tax regulatory asset at NSPI Receivables and other assets (current and long-term) 984 Increased trade receivables due to higher commodity prices at EES, higher trade receivables at NSPI and TEC, higher right of use assets related to new finance leases at TEC, and increased pension assets due to higher return on assets in 2025 at TEC Assets held for sale (current and long-term), net of liabilities (1) (101) Decreased primarily due to non-cash impairment charge recognized in 2025, and the effect of FX translation of NMGC PP&E, net of accumulated depreciation and amortization 1,240 Increased due to capital additions in excess of depreciation, partially offset by the effect of FX translation of Emera's non-Canadian affiliates Goodwill (278) Decreased due to the effect of FX translation of Emera's non-Canadian affiliates Liabilities and Equity Short-term debt and long-term debt (including current portion) $ 1,654 Increased due to issuance of long-term debt at EUSHI Finance Inc. ("EUSHI Finance") and TEC, proceeds from the issuance of a non-revolving term credit facility at NSPI, and higher utilization of committed credit facilities at TEC. These were partially offset by the effect of FX translation of Emera's non-Canadian affiliates and repayment of committed credit facilities at Corporate and TECO Finance Deferred income tax liabilities, net of deferred income tax assets 156 Increased due to tax deductions in excess of accounting depreciation related to PP&E and changes in pension and post-retirement assets and liabilities. This was partially offset by increased tax credits at TEC and the effect of FX translation of Emera's non-Canadian affiliates Regulatory liabilities (current and long-term) (211) Decreased due to lower FAM liability at NSPI, lower cost recovery clause liabilities and lower deferred income tax regulatory liabilities at TEC, and the effect of FX translation of Emera's non-Canadian affiliates Other liabilities (current and longterm) 96 Increased due to finance leases entered into at TEC and timing of interest payments at Corporate Common stock 345 Increased due to shares issued Accumulated other comprehensive income (388) Decreased due to the effect of FX translation of Emera's non-Canadian affiliates, partially offset by higher unrecognized pension and post-retirement benefit costs due to higher investment returns and favourable changes in actuarial assumptions and amortization at NSPI Retained earnings 146 Increased due to net income in excess of dividends paid On August 5, 2024, Emera announced the sale of NMGC. As a result, NMGC's assets and liabilities were classified as held for sale beginning in Q3 2024. For further details, refer to the "Other Developments" section and note 4 in the consolidated financial statements. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌Other Developments Increase in Common Dividend On September 25, 2025, the Emera Board of Directors approved an increase in the annual common share dividend rate to $2.93 from $2.90 per common share. The first payment was effective November 14, 2025. Cybersecurity Incident On April 25, 2025, Emera and NSPI discovered a cybersecurity incident involving unauthorized access into certain parts of its Canadian IT network and servers supporting portions of its business applications (the "Cybersecurity Incident'). There was no disruption to the Canadian physical operations or Emera's US or Caribbean utilities' operations. The Company implemented business continuity processes for certain impacted business and administrative functions at its Canadian affiliates. The systematic restoration of affected IT systems and corresponding transition away from business continuity processes continues to progress in a planned, controlled and phased approach. For more information on the impact on internal controls over financial reporting, refer to the "Disclosure and Internal Controls" section. The Company maintains cyber insurance coverage and is working with its insurer on the claims process. At this time, the Cybersecurity Incident is not expected to have a material impact on the Company's financial position or results of operations. For information on risks associated with cybersecurity incidents generally, refer to the "Enterprise Risk and Risk Management" section. Pending Sale of NMGC On August 5, 2024, Emera entered into an agreement to sell its indirect wholly-owned subsidiary NMGC for a total enterprise value of approximately $1.3 billion USD, consisting of cash proceeds and the transfer of debt and customary closing adjustments. As a result of the pending sale, NMGC's assets and liabilities were classified as held for sale in Q3 2024 and the carrying value of the assets and liabilities were adjusted to FV less cost to sell. The public hearing was held in November 2025. The transaction is expected to close in the first half of 2026. At each reporting date, the Company performs an assessment of the FV of the disposal group by comparing the FV of expected transaction proceeds, less costs to sell, to the carrying value of net assets, including goodwill ("carrying amount"). On June 30, 2025, the Company remeasured the NMGC disposal group at the lower of its carrying amount and FV less costs to sell. As a result of the change in the expected timing of the transaction close, a non-cash impairment charge of $75 million ($71 million, after-tax), or $55 million USD ($52 million USD, after-tax), was recorded in "Impairment charges" on the Consolidated Statements of Income in Q2 2025. An additional loss for estimated future transaction costs of $2 million ($1 million after- tax) was recorded in "Other income, net" on the Consolidated Statements of Income in Q2 2025. There were no additional adjustments recorded in 2025. The Company will continue to record depreciation on the NMGC assets through the transaction closing date, as the depreciation continues to be reflected in customer rates and will be reflected in the carryover basis of the assets when sold. Depreciation and amortization of $97 million ($70 million USD) was recorded on these assets from August 5, 2024, the date they were classified as held for sale, through December 31, 2025. Of the $97 million ($70 million USD) recorded to date, $71 million ($51 million USD) was recorded in 2025. US One Big Beautiful Bill Act ("OBBBA") On July 4, 2025, the OBBBA was signed into law. The OBBBA makes permanent many of the expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017 . It also includes significant changes in future years to the timing and availability of several clean energy tax credits previously enacted in the Inflation Reduction Act , including the investment tax credit and production tax credit. On August 15, 2025, the Internal Revenue Service released guidance on determining when wind and solar projects have begun construction for purposes of qualifying for these tax credits. Emera's 2025 financial statements were not materially impacted as a result of the enacted changes. Emera will continue to evaluate the future impact as additional information and guidance becomes available. New York Stock Exchange ("NYSE") Listing Emera filed a registration statement dated May 1, 2025 on Form 40-F with the US Securities and Exchange Commission ("SEC") to register its common shares under Section 12 of the Securities Exchange Act of 1934. Emera subsequently completed the listing of its common shares on the NYSE and commenced trading on May 28, 2025. Emera's common shares continue to be listed and traded on the Toronto Stock Exchange. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌Appointments Executive Effective March 1, 2026, Vivek Sood will become President and CEO of NSPI, succeeding Peter Gregg. Most recently, Mr. Sood retired as Executive Vice President, Related Businesses from Sobeys Inc. in 2024, and has served as a member of the NSPI Board of Directors since June 2024. Effective December 1, 2025, Jared Green became Emera's new Chief Financial Officer, succeeding Greg Blunden. Mr. Green most recently served as President and Chief Executive Officer of TriSummit Utilities (previously AltaGas Canada). Board of Directors Effective September 17, 2025, Isabelle Courville joined the Emera Board of Directors. Ms. Courville is Chair of the Board of Canadian Pacific Kansas City and previously served as President of Hydro-Québec Distribution and Hydro Québec TransÉnergie, as well as President of Bell Canada's Enterprise Group. Financial Highlights For the millions of USD (except as indicated) Three months ended December 31 2025 2024 Year ended December 31 2025 2024 Florida Electric Utility Operating revenues - regulated electric $ 706 $ 582 $ 3,115 $ 2,526 Regulated fuel for generation and purchased power $ 150 $ 151 $ 703 $ 622 Contribution to consolidated adjusted net income $ 85 $ 85 $ 607 $ 470 Contribution to consolidated adjusted net income - CAD $ 119 $ 120 $ 845 $ 644 Charges related to wind-down costs and certain asset impairments, after-tax (1) $ - $ (2) $ - $ (2) Contribution to consolidated net income $ 85 $ 83 $ 607 $ 468 Contribution to consolidated net income - CAD $ 119 $ 117 $ 845 $ 641 Average fuel costs in dollars per MWh $ 31 $ 31 $ 32 $ 28 Net of income tax recovery of $1 million for the three months and year ended December 31, 2024. The impact of the change in FX rates on CAD earnings was minimal for the three months ended December 31, 2025, and increased CAD earnings by $16 million for the year ended December 31, 2025. Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information Net Income Highlights of net income changes are summarized in the following table: For the Three months ended Year ended millions of USD December 31 December 31 Contribution to consolidated net income - 2024 $ 83 $ 468 Increased operating revenues, primarily due to storm cost recovery revenue (offset in OM&G), new 124 589 base rates, higher regulatory deferral revenue and customer growth. These were partially offset by unfavourable weather of $10 million quarter-over-quarter. Year-over-year increase was also due to favourable weather of $10 million Increased fuel for generation and purchased power year-over-year due to higher natural gas prices and higher purchased power Increased OM&G due to higher storm cost recognition (offset in revenue), higher costs for employee benefits, operations related to solar investments, and software maintenance. These were partially offset by the timing of recognition of regulatory deferrals 1 (81) (88) (246) Increased depreciation and amortization due to facilities and capital projects placed in service (17) (51) Increased interest expense due to higher borrowings (9) (25) Increased state and municipal taxes due to higher revenues and higher taxable plant in service (10) (28) Increased income tax expense year-over-year, primarily due to higher income before provision for income taxes, partially offset by higher benefit from production tax credits and increased amortization of deferred investment tax credits 2 (32) Other (1) 13 Contribution to consolidated net income - 2025 $ 85 $ 607 Operating Revenues - Regulated Electric Annual electric revenues and sales volumes are summarized in the following table by customer class: Residential $ 1,786 $ 1,507 10,309 10,269 Commercial 822 686 6,536 6,481 Industrial 195 162 2,105 2,019 Other (1) 312 171 2,377 2,276 Total $ 3,115 $ 2,526 21,327 21,045 Electric Revenues (millions of USD) Electric Sales Volumes (Gigawatt hours ("GWh")) 2025 2024 2025 2024 Other includes regulatory deferrals related to clauses, sales to public authorities, and off-system sales to other utilities. Regulated Fuel for Generation and Purchased Power Production Volumes (GWh) 2025 2024 Annual production volumes are summarized in the following table: Natural gas 17,470 18,027 Solar 2,419 2,250 Purchased power 2,004 1,569 Coal 46 32 Total 21,939 21,878 Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information ‌TEC's fuel costs are affected by commodity prices and generation mix that is largely dependent on economic dispatch of the generating fleet, bringing the lowest cost options on first (renewable energy from solar or battery storage), such that the incremental cost of production increases as sales volumes increase. Generation mix may also be affected by plant outages, plant performance, availability of lower priced short-term purchased power, availability of renewable solar generation, and compliance with environmental standards and regulations. Regulatory Environment TEC is regulated by the FPSC and is also subject to regulation by the FERC. The FPSC sets rates at a level that allows utilities such as TEC to collect total revenues or revenue requirements equal to their cost of providing service, plus an appropriate return on invested capital. Base rates are determined in FPSC rate setting hearings which can occur at the initiative of TEC, the FPSC, or other interested parties. For further details on TEC's regulatory environment, base rates and recovery mechanisms, refer to note 7 in the consolidated financial statements. For the millions of dollars (except as indicated) Three months ended December 31 2025 2024 Year ended December 31 2025 2024 Canadian Electric Utilities Operating revenues - regulated electric $ 504 $ 479 $ 1,944 $ 1,855 Regulated fuel for generation and purchased power (1)(2) $ 269 $ (216) $ 1,065 $ 509 Contribution to consolidated net income $ 31 $ 77 $ 182 $ 232 Average fuel costs in dollars per MWh (2) $ 89 $ (73) $ 93 $ 45 Regulated fuel for generation and purchased power includes NSPI's FAM deferral on the Consolidated Statements of Income; however, it is excluded in the segment overview. Regulated fuel for generation and purchased power and average fuel costs for 2024 include a $486 million refund of previous NSPML assessment payments ("NSPML Refund"), which decreased average fuel costs by $164 per MWh and $43 per MWh for the three months and year ended December 31, 2024, respectively. For more information on the NSPML Refund, refer to note 7 in the consolidated financial statements. For the millions of dollars Three months ended December 31 2025 2024 Year ended December 31 2025 2024 Canadian Electric Utilities' contribution to consolidated net income is summarized in the following table: NSPI Equity investment in NSPML Equity investment in LIL $ 22 9 - $ 71 6 - $ 141 41 - $ 160 44 28 Contribution to consolidated net income $ 31 $ 77 $ 182 $ 232 Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information

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