Canadian Utilities (CU) Q1 2025 earnings summary

Executive summary

• Q1 2025 adjusted earnings rose to $232 million ($0.85 per share), up $7 million or 3% year-over-year, with growth across all major segments except Financing & Other.

• Cash flows from operating activities increased to $637 million in Q1 2025, supporting ongoing capital investments.

• Major capital investments are planned, including the $5.8 billion three-year program and the Yellowhead Pipeline project, with 90% of its capacity already contracted.

• The company is advancing hydrogen and cleaner energy projects, but regulatory and policy clarity is needed before final investment decisions.

• Capital expenditures totaled $401 million in Q1 2025, with 91% invested in regulated utilities.

Financial highlights

• Q1 2025 adjusted earnings were $232 million, up from $225 million in Q1 2024; adjusted EPS was $0.85.

• IFRS earnings attributable to equity owners were $236 million ($0.80 per share), down $6 million year-over-year.

• Cash from operations was $637 million, a 27% increase from the prior year.

• Capital expenditures for Q1 2025 totaled $401 million, primarily in regulated utilities.

• Weighted average shares outstanding were 271.6 million in Q1 2025.

Outlook and guidance

• Expectation of continued year-over-year growth in adjusted earnings at Echo/ATCO Gas Australia in 2025, supported by a higher regulated ROE.

• Alberta utilities' allowable ROE reset from 9.28% in 2024 to 8.97% in 2025, with the end of incremental 50 bps ROE under PBR 2.

• Construction on the Yellowhead Pipeline Project is expected to commence in 2026, pending regulatory approval, with in-service by Q4 2027.

• Central East Transfer-Out Project targets Q2 2026 completion and continues to support renewable integration.

• Focus remains on strong cash generation to support capital programs and growth.