AltaGas (ALA) Q1 2025 earnings summary

Executive summary

• Delivered normalized EBITDA of $689 million in Q1 2025, up 4% year-over-year, with normalized EPS of $1.15, driven by strong Utilities and Midstream performance, favorable weather, and cost management.

• Utilities segment outperformed with 15% normalized EBITDA growth, offsetting lower Midstream contribution.

• Record Q1 LPG export volumes to Asia at over 119,000 barrels per day, up 13% year-over-year.

• Progressed on de-risking, with 85% of EBITDA from cost-of-service, take-or-pay, and fee-for-service contracts, targeting 90% by 2027.

• Strategic priorities include asset optimization, deleveraging, advancing growth projects, and disciplined capital allocation.

Financial highlights

• Revenue rose to $3,969 million in Q1 2025 from $3,655 million in Q1 2024.

• Utilities normalized EBITDA was $501 million, up 15% year-over-year, driven by colder weather, cost management, and modernization investments.

• Midstream normalized EBITDA was $197 million, down from $247 million last year due to lower export margins and absence of prior one-time items.

• Normalized net income was $342 million ($1.15 per share), up from $338 million ($1.14 per share).

• Cash from operations was $627 million, up from $557 million.

Outlook and guidance

• 2025 normalized EBITDA guidance reaffirmed at $1,775–$1,875 million; normalized EPS guidance at $2.10–$2.30.

• 2025 capital budget set at $1.4 billion, with 51% allocated to Utilities and 45% to Midstream.

• Dividend growth guidance of 5–7% CAGR through 2029 maintained.

• Rate base growth expected at 8% CAGR, with potential to reach 9% with data center additions.

• Active hedging program in place, with 89–90% of 2025 expected global export volumes hedged or tolled.