ATCO REPORTS SECOND QUARTER 2025 EARNINGS

Executive Summary

• ATCO Ltd. reported second quarter 2025 adjusted earnings of $101 million ($0.90 per share), an increase of $5 million compared to the same period in 2024.
• IFRS earnings attributable to Class I and Class II Shares were $64 million ($0.57 per share), up from $52 million ($0.46 per share) in Q2 2024.
• Significant operational updates include new contract awards for ATCO Structures totaling $62 million and major progress on utility infrastructure projects, including the $2.8 billion Yellowhead Pipeline and the $280 million CETO transmission project.

Key Details

• Financial Performance (Q2 2025):
  • Adjusted Earnings: $101 million ($0.90/share), compared to $96 million ($0.86/share) in Q2 2024.
  • IFRS Earnings: $64 million ($0.57/share), compared to $52 million ($0.46/share) in Q2 2024.
  • Six-Month Adjusted Earnings: $261 million (2025) vs. $244 million (2024).
  • Six-Month IFRS Earnings: $208 million (2025) vs. $199 million (2024).
• ATCO Structures Contract Awards:
  • Western Canada, Central Canada, and Northern Canada: Three contracts for space rental, workforce housing, and modular construction totaling $21 million.
  • US General Services Administration (GSA): Awarded a Multiple Award Schedule contract, allowing direct bidding on US government projects.
  • United States: Three contracts for space rental solutions (including nuclear power and lithium mining support) totaling $19 million, comprising 85 modular units.
  • Australia (Pilbara region): $22 million contract to relocate and expand accommodation camps; total value of works awarded for this expansion is now $34 million.
• Canadian Utilities Capital & Project Updates:
  • Capital Expenditures: $382 million invested in Q2 2025 (95% in regulated utilities ATCO Energy Systems and ATCO Australia; 5% in ATCO EnPower).
  • Yellowhead Pipeline Project (Natural Gas Transmission): Expected $2.8 billion investment. Construction slated to commence in 2026 pending AUC and corporate approvals. Needs application decision expected in Q3 2025.
  • Central East Transfer-Out Project (CETO) (Electricity Transmission): $280 million expected spend. Construction began Q3 2024; fall season construction expected Q3 2025. 85-km line expected to be energized by June 2026, supplying >1,500 MW to Alberta's grid.
  • ATCO EnPower: First six months 2025 revenues were $169 million, an increase of $9 million compared to the same period in 2024, driven by favorable natural gas storage market conditions.
• Dividends:
  • Declared third quarter dividend of 50.45 cents per share ($2.02 per Class I non-voting and Class II voting share on an annualized basis) on July 10, 2025.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.