ATCO (ACO-X) Q3 2026 earnings summary

Executive summary

• Q3 2026 adjusted earnings rose 9% YoY to $112 million, or $1.00 per share; IFRS earnings were $83 million, or $0.74 per share, down from $85 million.

• Proposed Emera–Canadian Utilities combination and reorganization would create a larger utility platform and a standalone housing, defence and investment business; current shareholders would receive 0.865 shares in the combined company and one standalone share per current share.

• The standalone portfolio is to include housing, defence services and strategic investments, including ATCO Structures, ATCO Frontec and Neltume Ports.

Financial highlights

• Adjusted earnings were $112 million versus $103 million in Q3 2025; adjusted EPS was $1.00 versus $0.92.

• IFRS earnings were $83 million versus $85 million; IFRS EPS was $0.74 versus $0.76.

• Nine-month adjusted earnings were $391 million versus $364 million; IFRS earnings were $323 million versus $293 million.

• Excluding Canadian Utilities, consolidated adjusted earnings were $45 million versus $40 million YoY; cash flow from operations was $84 million versus $109 million.

Outlook and guidance

• The proposed combined utility has a ~$45 billion rate base and a $33.5 billion capital plan; Alberta and Florida account for 79% of rate base.

• The merger and spin-out are expected to close in Q3 or Q4 2027, subject to required approvals and other customary conditions.

• Yellowhead Pipeline projected spend is $2.9 billion for ~235 km; construction has commenced and the pipeline is fully contracted.

• US manufacturing capacity is under assessment amid a strong backlog; Chile’s facility is reaching full capacity as mining demand improves.

• Large Canadian forward operating base contracts were delayed by procurement restructuring; management expects them within the next half year.