AltaGas (ALA) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 2025 results with normalized EBITDA of $342 million, up 16% year-over-year, and normalized EPS of $0.27, nearly double the prior year; GAAP EPS was $0.59 versus a loss of $0.14.

• Record LPG export volumes to Asia and robust demand for export terminal capacity, supported by new long-term tolling agreements with Keyera, Pembina, and BASF.

• Advanced major projects (REEF, Pipestone II) on time and on budget, supporting long-term growth and de-risking strategy.

• Maintained disciplined capital allocation, with leverage at 4.6x, below the long-term target, and significant progress on deleveraging.

• Net income applicable to common shares was $175 million, up from a loss of $42 million in Q2 2024.

Financial highlights

• Q2 2025 normalized EBITDA was $342 million, up from $295 million in Q2 2024; normalized EPS reached $0.27, up from $0.14.

• Revenue for Q2 2025 was $2,844 million, up from $2,775 million year-over-year.

• Midstream segment Q2 normalized EBITDA was $215 million, up 23% from $175 million in Q2 2024.

• Utilities segment Q2 normalized EBITDA was $134 million, up 10% from $122 million in Q2 2024.

• Adjusted net debt reduced by $215 million quarter-over-quarter; leverage at 4.6x, improved from 5.1x at 2024 year-end.

Outlook and guidance

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

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

• Utilities expected to contribute ~55% and Midstream ~45% of normalized EBITDA for 2025.

• Committed to 5–7% dividend growth, supported by strong platform-wide growth.

• Focused on delivering resilient and growing normalized EPS and FFO per share while targeting lower leverage.