Canadian Utilities Limited

Canadian Utilities reported second-quarter 2026 adjusted earnings of CAD 140 million, up from CAD 121 million in Q2 2025. ATCO Energy Systems contributed CAD 124 million in adjusted earnings, up CAD 8 million year over year; ATCO EnPower posted CAD 15 million; and ATCO Australia delivered CAD 34 million, up CAD 13 million year over year. Cash flow from operating activities increased by CAD 160 million year over year. Management reiterated that the current five-year capital program is CAD 12 billion and supports a 6.9% compound annual growth rate, with no common equity anticipated to fund regulated utility growth. They expect the Carbon Storage Hub expansion and Alberta Hub expansion to enter commercial operations in Q3 and increase storage capacity to approximately 130 PJ.

Bob Myles emphasized that the company remains anchored on three priorities: growth and prosperity, operational excellence, and financial leadership. He highlighted major execution wins, including CETO being completed ahead of schedule, below expected spend, and with zero lost time injuries, and said Yellowhead Pipeline received final approval and is set to begin construction in August. His tone was constructive and confident, stressing a strong regulatory backdrop, a sizable pipeline of regulated investment, and additional upside from non-regulated opportunities such as gas storage, midstream, and possible data-center-related infrastructure.

Katie Patrick focused on funding discipline and balance sheet strength. She said regulated equity needs are expected to 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, while debentures are expected to be issued annually for regulated debt requirements. On the quarter, she cited adjusted earnings of CAD 140 million versus CAD 121 million last year, with growth driven by inflation indexing on rate base, higher rates in ATCO Gas Australia, and rate-base growth in ATCO Energy Systems. She also noted cash flow from operating activities rose by CAD 160 million year over year.

On ATCO EnPower, an analyst asked what kinds of incremental growth the company is pursuing given headwinds in power generation and whether non-storage opportunities could become more meaningful. Bob Myles said the company is focused on gas storage but is also evaluating midstream opportunities and broader participation across the energy value chain. On electricity growth, the analyst asked what milestones would matter for bigger intertie opportunities; Myles pointed to the McNeill expansion, growth in northwest Alberta transmission, and ongoing work with BC and Alberta on interties, saying the BC-Alberta intertie appears to be the leading opportunity but still requires a lot of work.