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 doubling from $0.14 in Q2 2024.

• Record global LPG export volumes to Asia and robust performance in both Midstream and Utilities segments, supported by new long-term tolling agreements.

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

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

• Continued execution on strategic priorities: maximizing asset returns, reducing operating costs, and advancing growth projects.

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.

• Net income before income taxes was $226 million in Q2 2025, compared to a loss of $46 million in Q2 2024.

• Adjusted net debt reduced by $215 million quarter-over-quarter; leverage at 4.6x, in line with long-term target.

• Normalized funds from operations increased to $228 million from $180 million year-over-year.

Outlook and guidance

• Reiterated 2025 guidance: normalized EBITDA of $1,775–$1,875 million and normalized EPS of $2.10–$2.30.

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

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

• On track to reach long-term leverage target of 4.65x adjusted net debt to normalized EBITDA in 2025.

• Modernization and system expansion investments to continue, with over $700 million planned for Utilities in 2025.