Canadian Utilities (CU) Q2 2025 earnings summary

Executive summary

• Adjusted earnings for Q2 2025 reached $121 million ($0.45/share), up from $117 million in Q2 2024, with contributions from Energy Systems and EnPower, despite regulatory and operational headwinds.

• IFRS earnings attributable to equity owners were $111 million ($0.34/share), up from $62 million in Q2 2024.

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

• Strong cash flows from operations and robust capital programs 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.

• IFRS earnings attributable to equity owners were $111 million ($0.34/share), up from $62 million in Q2 2024.

• Year-to-date cash flows from operations increased to $1,078 million; capital expenditures rose to $783 million.

• Weighted average shares outstanding: 271.8 million in Q2 2025.

• Six-month 2025 adjusted earnings: $353 million vs. $342 million in 2024.

Outlook and guidance

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

• Three-year capital forecast to be updated at year-end; $5.8 billion capital plan for 2025–2027 underway.

• Growth in mid-year rate base expected to drive earnings trends, with a targeted 5.4% CAGR.

• CETO project on track for mid-2026 completion; Yellowhead construction expected to begin in 2026, pending regulatory approval.

• Favourable market conditions for natural gas storage expected to support long-term revenue growth.