ATCO (ACO-X) investor relations material

Executive summary

• Adjusted earnings for Q2 2025 reached $101 million ($0.90/share), up $5 million or 5% year-over-year, driven by regulated utilities, higher rates in Australia, and strong Structures growth.

• Structures segment delivered $32 million in adjusted earnings, up 6% year-over-year, with strong modular construction and workforce housing sales in Canada, Australia, and Chile.

• IFRS earnings attributable to shares were $64 million for Q2 2025, up from $52 million in Q2 2024.

• Portfolio of cash flow generating assets supports strategic investments and long-term growth.

• Neltume Ports investment contributed $1 million adjusted earnings growth and broke ground on a major Vancouver Bulk Terminal JV.

Financial highlights

• Standalone cash flow from operating activities reached $192 million YTD 2025, up 32% from $145 million YTD 2024.

• Year-to-date capital expenditures totaled $117 million, up $43 million or 58% year-over-year, mainly for rental fleet additions in the U.S.

• Structures segment reported adjusted EBITDA of $70 million in Q2 2025, a 9% year-over-year increase.

• Earnings attributable to Class I and II shares were $64 million for Q2 2025.

• ATCO EnPower reported $169 million in revenues for the first six months of 2025, up $9 million year-over-year.

Outlook and guidance

• Expect continued growth in Structures, with a robust pipeline of project opportunities and market tailwinds.

• Anticipate benefits from increased government spending on affordable housing and defense, with contracts expected to emerge later in the year.

• Confident in ability to scale modular housing production to meet potential demand, with capacity for 5,000 additional modules per year on a single shift.

• Yellowhead Pipeline Project ($2.8 billion) is on track for 2026 construction, pending regulatory approval.

• Central East Transfer-Out Project (CETO) construction began in Q3 2024; energization expected by June 2026 with $280 million spend.