Canadian Utilities (CU) Q4 2024 earnings summary

Executive summary

• Adjusted earnings for 2024 reached CAD 647 million ($2.38/share), up 9% or CAD 51 million year-over-year, with growth across ATCO Energy Systems, EnPower, and Australia segments.

• Cash flow from operations was CAD 1.9 billion, up 8% year-over-year, supporting operations and capital programs.

• Major infrastructure projects, including the CAD 2.8 billion Yellowhead Mainline and CETO electric transmission project, are advancing, with construction targeted for 2026 and approval expected in Q2 2025.

• ATCO EnPower reported adjusted EBITDA of CAD 146 million and adjusted earnings of CAD 44 million, with strong performance in storage and industrial water.

• Sale of ATCO Energy Ltd. to ATCO Ltd. in 2024 resulted in a $14 million loss excluded from adjusted earnings.

Financial highlights

• Adjusted earnings increased by CAD 51 million year-over-year to CAD 647 million; IFRS earnings attributable to equity owners were $480 million in 2024, down from $707 million in 2023.

• Capital expenditures totaled CAD 1.9 billion in 2024, with 92% invested in regulated utilities.

• Cash flow from operations grew 8% to CAD 1.9 billion.

• Declared a Q1 2025 dividend of 45.77 cents per share ($1.83 annualized).

• Assets totaled $24 billion at year-end 2024.

Outlook and guidance

• Allowable ROE for 2025 reset to 8.97% from 9.28%, expected to reduce earnings by CAD 15 million year-over-year.

• Regulated Utilities' capital expenditure plan for 2025–2027 is at least $6.1 billion, supporting continued rate base growth.

• Yellowhead Mainline and CETO projects advancing, with construction targeted for 2026 and 2027.

• ATCO Gas Australia expects adjusted earnings to increase 8%-10% in 2025 following regulatory changes.

• ATCO EnPower's Heartland Hydrogen Hub aims to commence FEED in 2025, with further development contingent on policy certainty.