Canadian Utilities (CU) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 results with adjusted earnings of $658 million ($2.42 per share), overcoming CAD 57 million in headwinds and regulatory changes, and delivering year-over-year growth.

• Announced a $12 billion five-year capital expenditure plan (2026–2030), the largest in company history, focused on growth, reliability, and energy transition initiatives.

• Major projects include the Yellowhead Pipeline and Central East Transfer-Out (CETO), both on schedule and budget.

• Continued expansion in Alberta and Australia, with significant new gas connections, infrastructure projects, and natural gas storage growth.

• Operational excellence highlighted by improvements in asset reliability and system interruption metrics.

Financial highlights

• Adjusted earnings for 2025 were $658 million ($2.42 per share), up from $647 million in 2024; IFRS earnings were $119 million, down from $480 million in 2024 due to non-cash impairments.

• Cash flow from operating activities was $1,917 million in 2025, down from $2,061 million in 2024.

• Capital expenditures totaled $1.6 billion in 2025, with 94% invested in regulated utilities.

• Consolidated mid-year rate base reached $16.6 billion in 2025.

Outlook and guidance

• Five-year capital expenditure plan for regulated utilities is $12 billion, supporting a 6.9% CAGR in consolidated mid-year rate base, projected to grow from $16.6 billion in 2025 to $23.2 billion in 2030.

• Continued focus on regulated utility growth, customer expansion, and energy transition projects.

• Yellowhead Pipeline Project targets in-service by Q4 2027, with $2.9 billion investment; CETO project expected in-service by Q2 2026, with $255 million investment.

• Non-regulated business and storage expansion expected to be significant drivers of future growth.