Canadian Utilities Limited

Canadian Utilities reported Q2 2026 adjusted earnings of CAD 140 million, up from CAD 121 million in Q2 2025. ATCO Energy Systems posted adjusted earnings of CAD 124 million, up CAD 8 million year over year; ATCO EnPower delivered adjusted earnings of CAD 15 million; and ATCO Australia delivered adjusted earnings of CAD 34 million, up CAD 13 million. Cash flow from operating activities increased by CAD 160 million year over year. Looking ahead, management reiterated its CAD 12 billion capital program over the next five years and said the company expects the Yellowhead Pipeline to be in service in the fourth quarter of next year, with construction expected to begin in August. It also said the Carbon Storage Hub expansion and Alberta Hub expansion are expected to enter commercial operations in the third quarter of this year, bringing storage capacity to approximately 130 PJ.

Bob Myles framed the quarter around three priorities: growth and prosperity, operational excellence, and financial leadership. He highlighted major execution milestones, especially CETO finishing ahead of schedule and Yellowhead Pipeline clearing its final regulatory hurdle, and said both projects support the company’s long-term growth plan. His tone was constructive and confident, stressing that the regulatory and policy backdrop is improving and could create additional opportunities in transmission, storage, midstream, and potentially data-center-related infrastructure.

Katie Patrick focused on financing discipline and balance sheet strength. She said regulated equity needs will be funded through internally generated cash, the CAD 700 million of capital raised in late 2025, and about CAD 850 million of additional capital securities, and that the company does not anticipate needing common equity for regulated utility growth. On the financials, she pointed to the CAD 140 million in adjusted earnings, the CAD 160 million increase in operating cash flow, and the 16% year-over-year earnings growth, driven mainly by inflation indexing, higher Australian rates, and rate-base growth in ATCO Energy Systems.

Analyst John Mould asked where management is looking for incremental growth beyond the challenged power business, and Bob Myles said the company is particularly focused on gas storage expansion but is also evaluating opportunities in the midstream sector, which he said he has a lot of passion around. Mould also asked about intertie opportunities and what milestones matter; Myles said there is still a lot of work to do, but highlighted McNeill, transmission growth in northwest Alberta, and potential system expansion tied to oil sands development, with BC-Alberta interconnection currently seen as the more immediate priority.