AltaGas (ALA) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with normalized EBITDA of $391 million (up 14% YoY) and normalized EPS of $0.31 (up 15% YoY), driven by strong Midstream and Utilities performance and record LPG exports.

• Raised 2026 guidance for normalized EBITDA to $2.0–$2.1 billion and normalized EPS to $2.35–$2.60, reflecting robust year-to-date performance and outlook.

• Increased 2026 capital budget to $1.8 billion, supporting major projects like REEF, NEBC Liquids Expansion, and Dimsdale storage.

• Growth supported by higher global export volumes, Montney and Pipestone II contributions, and successful execution of growth projects.

• Continued focus on long-term partnerships, infrastructure modernization, and disciplined capital allocation to support future growth.

Financial highlights

• Q2 2026 normalized EBITDA: $391 million (+14% YoY); normalized EPS: $0.31 (+15% YoY); normalized net income: $97 million (up from $81 million); revenue: $3.8 billion (up from $2.8 billion).

• Midstream Q2 normalized EBITDA: $285 million (+33% YoY); Utilities Q2 normalized EBITDA: $142 million (+6% YoY).

• Cash from operations reached $490 million, up from $365 million year-over-year.

• Normalized funds from operations were $283 million ($0.91/share), up from $228 million ($0.76/share).

• Adjusted net debt to normalized EBITDA improved to 4.4x, below the low end of the target leverage range.

Outlook and guidance

• 2026 normalized EBITDA guidance raised by 4% to $2.0–$2.1 billion; normalized EPS guidance up 6% to $2.35–$2.60.

• Capital budget for 2026 increased to $1.8 billion, with 61% allocated to Utilities and 36% to Midstream.

• Both Utilities and Midstream segments expected to contribute ~50% of normalized EBITDA in 2026.

• Five-year EPS CAGR now 8%, EBITDA CAGR 7% (2021–2026E); targeting 5–7% average annual normalized EBITDA and EPS CAGR through 2030.

• Dividend payout ratio remains low, supporting increased capital program and expected to grow in line with EPS.