AltaGas (ALA) Q1 2026 earnings summary

Executive summary

• Achieved record normalized EBITDA of $818 million in Q1 2026, up 19% year-over-year, driven by higher global export volumes, improved margins, new Utilities rates, and asset optimization.

• Normalized EPS rose to $1.33 from $1.15 year-over-year; GAAP EPS was $0.47, down from $1.31, mainly due to unrealized hedging impacts.

• Both midstream and utilities segments delivered strong performance, benefiting from constructive energy fundamentals, colder-than-normal weather, and positive regulatory outcomes.

• Exported nearly 125,000 barrels/day of LPGs to Asia, a 5% increase year-over-year, with 20 VLGCs delivered.

• Major growth projects (REEF Phase I, Dimsdale expansions, Keweenaw Connector Pipeline) remain on schedule and on budget, with REEF 75% complete.

Financial highlights

• Q1 2026 normalized EBITDA: $818 million, up 19% year-over-year, setting a new quarterly record.

• Q1 2026 normalized EPS: $1.33, up from $1.15 in Q1 2025.

• Utilities segment delivered normalized EBITDA of $555 million, up 11% year-over-year, driven by positive rate cases and modernization investments.

• Midstream segment delivered normalized EBITDA of $273 million, up 39% year-over-year, led by export platform growth and strong merchant margins.

• Revenue was $3,970 million, flat year-over-year; normalized net income was $415 million, up from $342 million.

Outlook and guidance

• 2026 normalized EBITDA guidance: $1.925–$2.025 billion; normalized EPS guidance: $2.20–$2.45.

• Results expected at the top end of guidance, with potential upside if LPG market strength continues.

• 2026 capital program increased to $1.7 billion, with 65% allocated to Utilities and 31% to Midstream.

• Long-term annual enterprise growth targeted at 5–7%, supported by low-risk, cost-of-service and take-or-pay cash flows.

• Expect leverage to return to 4.5–5x range by year-end 2026 due to increased capital spending and seasonality.