CANADIAN UTILITIES REPORTS THIRD QUARTER 2025 EARNINGS
Executive Summary
- Adjusted earnings for Q3 2025 were $108 million ($0.40 per share), up $6 million versus the prior year, and IFRS earnings rose to $100 million, a $88 million increase YoY.
- Capital expenditures totaled $402 million in the quarter, with 95% invested in regulated utilities (ATCO Energy Systems & ATCO Australia) and key projects advancing: Yellowhead Pipeline received AUC Needs Assessment approval; CETO transmission line construction progressed toward June 2026 energization.
- ATCO Pipelines filed a General Rate Application seeking $381‑$680 million revenue requirements for 2026‑2028, including credit relief measures tied to the Yellowhead project.
Key Details
- Financial Performance
- Adjusted earnings: $108 M (Q3 2025) vs. $102 M (Q3 2024).
- IFRS earnings attributable to equity owners: $100 M (Q3 2025) vs. $12 M (Q3 2024).
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Weighted‑average shares outstanding: 271.8 M.
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Capital Expenditures
- Total Q3 2025 capex: $402 M.
- Regulated utilities allocation: ~95% ($381.9 M).
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Non‑regulated (ATCO EnPower) allocation: ~5% ($20.1 M).
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Project Updates
- Yellowhead Pipeline (Natural Gas Transmission)
- AUC approved Needs Assessment Application (Class III estimate, $2.9 B ±20%).
- Facilities application filed on Nov 4 2025; construction slated to start in 2026 pending approvals.
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Central East Transfer‑Out (CETO) Project (Electricity Transmission)
- Construction began Q3 2024; substation tendering and civil/electrical works underway Q3 2025.
- 85 km line expected to be energized by June 2026; projected spend $255 M; capacity >1,500 MW for Alberta grid.
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Rate Application
- ATCO Pipelines’ General Rate Application (2026‑2028 Test Period) seeks revenue requirements of:
- 2026: $381 M
- 2027: $489 M
- 2028: $680 M
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Includes deferral account for Yellowhead uncertainties and temporary credit relief options (1% ROE adder, 2% deemed equity thickness adder, CWIP inclusion).
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Dividend Declaration
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On Oct 9 2025, declared Q4 dividend of $0.4577 per share ($1.83 annualized per Class A/B share).
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Teleconference
- Live webcast with CEO Bob Myles and EVP/CFO Katie Patrick scheduled for Nov 7 2025, 9:00 am MT / 11:00 am ET.
Notable Quotes
“Thanks to the strong operational, financial and safety performance from our dedicated Canadian Utilities team, we've had a great quarter,” – Bob Myles, CEO.
“That same dedication is keeping our growth plans on track… we’ve received approval from the Alberta Utilities Commission for Yellowhead’s Needs Assessment and have filed the Facilities Application.” – Bob Myles, CEO.