AltaGas (ALA) Q1 2025 earnings summary

Executive summary

• Delivered strong Q1 2025 results with normalized EBITDA of $689 million, up 4% year-over-year, and normalized EPS of $1.15, driven by Utilities segment growth and record LPG export volumes to Asia.

• Utilities segment outperformed with 15% normalized EBITDA growth, aided by modernization, customer growth, and cost management, offsetting lower Midstream contribution.

• Strategic priorities remain focused on asset optimization, de-risking, deleveraging, advancing growth projects, and disciplined capital allocation.

• Major projects, including REEF and Pipestone II, are progressing on schedule and budget, with significant construction milestones achieved.

• Maintained focus on operational excellence, cost management, and long-term value creation through de-risking and growth initiatives.

Financial highlights

• Revenue rose to $3,969 million in Q1 2025 from $3,655 million in Q1 2024.

• Normalized EBITDA reached $689 million, up from $660 million; normalized EPS was $1.15, slightly above Q1 2024.

• Utilities normalized EBITDA: $501 million, up from $437 million; Midstream normalized EBITDA: $197 million, down from $247 million.

• Net income applicable to common shares was $392 million ($1.31 per share) versus $408 million ($1.38 per share) year-over-year.

• Normalized funds from operations increased to $551 million ($1.85 per share) from $510 million ($1.73 per share).

Outlook and guidance

• 2025 normalized EBITDA guidance reaffirmed at $1,775–$1,875 million; normalized EPS guidance at $2.10–$2.30.

• Capital program for 2025 set at ~$1.4 billion, with 51% allocated to Utilities and 45% to Midstream.

• Dividend growth guidance of 5–7% CAGR through 2029 maintained.

• Rate base growth expected at 8% CAGR, with potential to reach 9% if data center opportunities materialize.

• Active hedging program in place, with 89% of 2025 expected global export volumes hedged or tolled.