CANADIAN UTILITIES REPORTS SECOND QUARTER 2025 EARNINGS

Executive Summary

• Canadian Utilities Limited reported second quarter 2025 adjusted earnings of $121 million ($0.45 per share), an increase of $4 million ($0.02 per share) compared to the same period in 2024.
• IFRS earnings attributable to equity owners were $111 million ($0.34 per share), significantly higher than the $62 million ($0.16 per share) reported in Q2 2024, driven by the exclusion of prior-year restructuring and regulatory settlement costs from the adjusted metric.
• The company invested $382 million in capital expenditures during the quarter, with 95% directed toward regulated utilities in ATCO Energy Systems and ATCO Australia.

Key Details

• Financial Performance (Q2 2025):
  • Adjusted Earnings: $121 million ($0.45 per share).
  • IFRS Earnings: $111 million ($0.34 per Class A and Class B share).
  • Comparison: Adjusted earnings were up $4 million ($0.02/share) year-over-year; IFRS earnings were up $49 million ($0.18/share) year-over-year.
• Capital Expenditures:
  • Total Q2 2025 CapEx: $382 million.
  • Allocation: 95% to regulated utilities (ATCO Energy Systems and ATCO Australia); 5% largely to ATCO EnPower.
• Project Updates (ATCO Energy Systems):
  • Yellowhead Pipeline Project: Expected $2.8 billion investment. Construction anticipated to commence in 2026 subject to approvals. Stakeholder consultation, land acquisition, and design work are ongoing. AUC needs application decision expected in Q3 2025. Pursuing equity partnerships with Indigenous partners.
  • Central East Transfer-Out Project (CETO): Construction began Q3 2024. Substation tendering for civil, structural, and electrical works is progressing. Fall season construction expected in Q3 2025. 85-km transmission line expected to be energized by June 2026. Approximate project spend is $280 million. The project will support renewable energy integration and supply >1,500 MW to Alberta's grid.
• Operational Performance (ATCO EnPower):
  • Revenues for the first six months of 2025 were $169 million, an increase of $9 million compared to the same period in 2024, driven by favorable market conditions for natural gas storage.
• Dividends:
  • Declared third quarter dividend of 45.77 cents per share ($1.83 per Class A and Class B share on an annualized basis).
• Reconciliation Items (IFRS to Adjusted):
  • Q2 2024 included significant non-recurring items excluded from adjusted earnings, including $36 million in restructuring costs, $18 million in unrealized losses on commodity contracts, $7 million in rate-regulated timing adjustments, $5 million in IT Common Matters decision impacts, and $8 million in ATCO Electric settlement reductions.

Notable Quotes

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