ATCO REPORTS 2025 EARNINGS

Executive Summary

• Adjusted earnings for 2025 rose to $518 M ($4.61 per share), up $37 M (+7%) versus 2024.
• IFRS‑reported earnings fell sharply to a $143 M loss, driven by non‑cash impairments and write‑offs.
• New contracts across Structures, Frontec, and Canadian Utilities total roughly $49 M in sales/leasing revenue; Yellowhead pipeline project moves toward 2026 construction start pending regulatory approval.

Key Details

• Adjusted Earnings (2025): $518 M ($4.61/sh) vs. $481 M ($4.29/sh) in 2024.
• Q4 Adjusted Earnings (2025): $154 M ($1.37/sh) vs. $146 M ($1.30/sh) in Q4‑24.
• IFRS Earnings (2025): Loss of $(143) M ($(1.27)/sh), down from $150 M earnings in 2024.
• Impairments: $253 M non‑cash impairments mainly from Alberta Renewables Portfolio, hydrogen assets, and Australian LPG network.
• Structures Contracts:
• Western Canada potash housing – 15 units, $4 M sales.
• Texas education/data‑centre housing – 337 units, $29 M sale/lease.
• Perpetua Resources dormitory – 1,052‑person facility in Idaho (manufacturing commenced).
• Western Australia defence/mining housing – 106 units, $6 M sale/lease.
• Frontec / ARCTEC Alaska: Re‑bid contract for Alaska Radar System operations & maintenance; initial term 1 yr + nine optional extensions; potential value ≈ $596 M USD.
• Yellowhead Pipeline (Natural Gas Transmission): ~235 km, estimated spend $2.9 B (Class III estimate ±20%). 100% customer‑contracted; construction slated for 2026 pending AUC approvals (Need Assessment approved Q3‑25; decision on facility application expected Q3‑26).
• Central East Transfer‑Out (CETO) Project: 135 km, 240 kV line; 85 km built by Electricity Transmission, 50 km by AltaLink LP. Expected energisation June 2026; spend ≈ $255 M.
• Financing – Canadian Utilities: Raised $500 M fixed‑rate subordinate notes and $200 M preferred shares to pre‑fund equity contribution for Yellowhead. Additional regulated debt to be issued 2026‑27.
• Capital Expenditures (2025): $415 M Q4, $1.6 B full year; 94% invested in regulated utilities. Five‑year (2026‑2030) capex plan ≈ $12 B, targeting a consolidated mid‑year rate base CAGR of 6.9% (rate base to grow from $16.6 B in 2025 to $23.2 B by 2030).
• Dividend: Declared Q1 2026 dividend of 51.96 c per share ($2.08 per share on an annualized basis) for Class I non‑voting and Class II voting shares.
• Teleconference/Webcast: Scheduled for Feb 26, 2026 at 10:00 am MT (12:00 pm ET) with CFO Katie Patrick and President Adam Beattie.

Notable Quotes

(No direct quotes were provided in the release.)