Canadian Utilities (CU) Q3 2025 earnings summary

Executive summary

• Achieved strong year-over-year growth in adjusted earnings, driven by major project execution, operational excellence, and cost efficiencies, with momentum across all business segments in Q3 2025.

• Alberta's population growth and economic drivers underpin robust customer connections and infrastructure investments.

• Continued expansion in Australia, with strong customer growth, favorable regulatory returns, and higher rates.

• Revenues for the nine months ended September 30, 2025, were $2,719 million, down $42 million year-over-year, mainly due to the sale of ATCO Energy and regulatory changes.

• Cash flows from operating activities increased to $1,546 million, up $154 million year-over-year, due to improved working capital and customer contributions.

Financial highlights

• Q3 2025 adjusted earnings were $108 million ($0.40 per share), up from $102 million year-over-year; IFRS earnings were $100 million ($0.29 per share), up $88 million year-over-year.

• ATCO Energy Systems delivered adjusted earnings of $98 million, nearly flat year-over-year.

• ATCO Power/EnPower adjusted earnings rose to $16 million, up $2 million year-over-year.

• ATCO Australia adjusted earnings reached $27 million in Q3 and $61 million for nine months, both up significantly year-over-year.

• Cash from operating activities increased 12% compared to the same period last year.

Outlook and guidance

• Major projects such as the Yellowhead Pipeline and CETO transmission line are progressing on schedule, with targeted in-service dates in 2026 and 2027.

• Expect continued strong growth in Australia, though some one-time items in 2025 will not repeat in 2026.

• Anticipate headwinds in Q4 due to reduced tax efficiencies in Canada.

• Appeals on regulatory decisions (PBR2 re-opener) are pending, with no current impact on adjusted earnings.

• Dividend growth is targeted in line with sustainable earnings growth.