ATCO (ACO-X) Q1 2026 earnings summary

Executive summary

• Adjusted earnings for Q1 2026 were $165 million ($1.47 per share), up $5 million year-over-year, driven by utilities growth, modular construction, and increased activity in ATCO Structures.

• Portfolio diversification across energy, housing, and defense continues to deliver stable earnings and dividends, with a 33-year track record of annual dividend increases.

• Strategic focus on growth opportunities in Canada's North and Arctic, leveraging expertise in Arctic operations, defense, construction, Indigenous partnerships, and a $10 million staged investment for a 40% stake in West Kitikmeot Resources for the Grays Bay Road and Port Project.

• ATCO Structures expanded its global rental fleet and secured major contracts across North America and Australia in mining, data centers, nuclear, emergency response, and public infrastructure.

• Cash flows from operating activities were $729 million, down $28 million year-over-year, mainly due to the elimination of the carbon levy and timing of receivables.

Financial highlights

• Adjusted earnings for Canadian Utilities Limited reached $127 million, up $5 million year-over-year, supported by rate base growth and favorable rate adjustments.

• ATCO Structures & Logistics delivered adjusted earnings of $28 million, up 4% year-over-year, with space rentals and the Stibnite project as key drivers.

• Adjusted EBITDA for ATCO Structures was $65 million, up from $62 million in Q1 2025, a 5% increase year-over-year.

• Total assets at March 31, 2026: $27,732 million; long-term debt: $12,787 million; equity: $4,642 million.

• Capital investment for Q1 2026 was $419 million, with 79% in Regulated Utilities and 21% in other segments.

Outlook and guidance

• Expectation of strong organic earnings growth across the investment portfolio for full year 2026, with continued momentum in utility assets and modular construction supported by a robust project pipeline and backlog.

• Dividend growth is expected to continue in line with sustainable investment growth.

• Major infrastructure projects (Yellowhead Pipeline, CETO) are progressing, with funding strategies in place for regulated debt and equity requirements.

• Plans to issue debentures annually and raise $0.8 billion in capital securities over 2026-2030 to fund regulated equity requirements.