Canadian Utilities (CU) Q2 2025 earnings summary

Executive summary

• Adjusted earnings for Q2 2025 were $121 million ($0.45/share), up $4 million year-over-year, with contributions from rate base growth, higher rates in Australia, and improved natural gas storage, despite lower ROE and wind challenges.

• IFRS earnings attributable to equity owners were $111 million ($0.34/share), up $49 million year-over-year, reflecting timing adjustments and one-time items.

• Major capital projects, including the $280 million CETO and $2.8 billion Yellowhead Pipeline, are progressing, with CETO on track for mid-2026 completion and Yellowhead construction set for 2026.

• Strong cash flows from operating activities and a robust capital program underpin long-term growth.

• Continued focus on Indigenous partnerships, with early-stage discussions for Yellowhead Pipeline monetization and ongoing engagement for future projects.

Financial highlights

• Adjusted earnings for Q2 2025 were $121 million ($0.45/share), up from $117 million in Q2 2024.

• Earnings attributable to equity owners were $111 million for Q2 2025, up from $62 million in Q2 2024.

• Cash flows from operating activities for six months were $1,078 million, up $105 million year-over-year.

• Capital expenditures for six months were $783 million, up $145 million year-over-year, with 93–95% invested in regulated utilities.

• Total assets at June 30, 2025, were $23,878 million, up $677 million from a year earlier.

Outlook and guidance

• Full-year earnings growth expected to be more moderate due to prior-year tax efficiencies.

• A $5.8 billion capital expenditure plan is in place for 2025–2027, with a targeted 5.4% mid-year rate base CAGR.

• Major projects like Yellowhead Pipeline and CETO are progressing, with construction and regulatory milestones expected in 2025–2026.

• Dividend growth targeted in line with sustainable earnings growth from regulated and long-term contracted investments.

• Forward-looking statements are subject to regulatory, market, and operational risks.