AltaGas (ALA) Q4 2025 earnings summary

Executive summary

• Delivered normalized EBITDA of $1.863 billion for 2025, at the top of guidance, and normalized EPS of $2.23, in the upper half of guidance range, with a five-year CAGR of 6% for both metrics.

• Achieved record global LPG export volumes and throughput at North Pine and Pipestone, with strong performance in both Midstream and Utilities segments.

• Advanced key growth projects, including Pipestone II (now in service), REEF (Phase I 70% complete and on schedule), Dimsdale expansions, and Keweenaw Connector, with positive FIDs and significant construction progress.

• Strengthened balance sheet, ending 2025 at 4.7x adjusted net debt to normalized EBITDA, with credit rating outlooks upgraded to positive by S&P and Fitch.

• Generated 29% total shareholder return in 2025 and a five-year TSR CAGR of 22%, with a 6% dividend increase for 2026 and payout ratio below 60%.

Financial highlights

• Q4 2025 normalized EBITDA was $564 million, up 8% year-over-year; normalized EPS was $0.77, flat year-over-year.

• FY 2025 normalized EBITDA reached $1.863 billion, up from $1.769 billion in 2024, with growth in both Utilities and Midstream segments.

• Record LPG exports at 126,000 barrels/day in 2025, with global exports and Montney throughput driving midstream growth.

• Utilities normalized EBITDA reached $383 million in Q4, up 14% year-over-year, driven by rate-based growth and increased usage.

• Midstream normalized EBITDA was $202 million in Q4, up 11% year-over-year, with strong export and processing volumes.

Outlook and guidance

• Reaffirmed 2026 guidance: normalized EBITDA of $1.925–$2.025 billion and normalized EPS of $2.20–$2.45.

• 2026 capital budget of ~$1.6 billion, with 69% allocated to Utilities and 27% to Midstream.

• Dividend growth guidance of 5–7% CAGR extended through 2030, with a 6% increase for 2026.

• Major projects including REEF, Dimsdale expansions, and Keweenaw Connector Pipeline progressing as planned.

• Approximately 80% of 2026 global export volumes are tolled or hedged, with an average FEI to North America spread of ~$19/bbl on non-tolled volumes.