Canadian Utilities (CU) Q1 2026 earnings summary

Executive summary

• Adjusted earnings for Q1 2026 were $242 million ($0.89/share), up $10 million year-over-year, driven by rate base growth and lower income tax expense from new federal legislation.

• IFRS earnings attributable to equity owners were $224 million ($0.75/share), down $12 million year-over-year, reflecting timing adjustments and non-recurring items.

• Capital expenditures totaled $353 million in Q1 2026, with 94% invested in regulated utilities.

• Major projects include the $2.9 billion Yellowhead Pipeline (construction expected to begin in 2026) and the CETO transmission line (energization by June 2026).

• Dividend per share increased to $0.4623, continuing a 54-year track record of annual increases.

Financial highlights

• Adjusted earnings: $242 million (+$10 million YoY); EPS: $0.89 (+$0.04 YoY).

• Earnings attributable to equity owners: $224 million (-$12 million YoY); EPS: $0.75 (-$0.05 YoY).

• Cash flow from operations was $604 million, down $33 million YoY, mainly due to regulatory-mandated customer refunds and timing of receivables.

• Capital investment in Q1 2026 was $354 million, focused 94% on regulated utilities.

• Total assets reached $24.5 billion (+$393 million YoY); long-term debt was $12.1 billion (+$1.2 billion YoY).

Outlook and guidance

• Five-year capital plan of $12 billion (2026–2030) focused on regulated utilities, with no common equity issuance required.

• Mid-year rate base expected to grow at a 6.9% CAGR from 2025 to 2030, reaching $23.2 billion by 2030.

• Construction of the Yellowhead Pipeline Project is expected to commence in 2026, pending regulatory approval.

• Dividend growth is expected to align with sustainable earnings growth from regulated and long-term contracted investments.

• Additional growth opportunities anticipated post-2030, including major transmission projects and interties.