Canada's ATCO Q2 adjusted earnings rise year over year

Overview

• Canada diversified infrastructure firm's Q2 adjusted earnings rose yr/yr to C$114 mln

• ATCO Australia earnings grew, driven by inflation indexing on rate base

• Company secured new contracts and regulatory approvals across Structures, Frontec, and Utilities divisions

Outlook

• Company expects construction on Yellowhead Pipeline to begin immediately following regulatory approval

• ATCO Structures contracts in Western Canada and Australia expected to commence in 2026, valued at C$80 mln

• Company sees regulatory decisions supporting investment in critical infrastructure and modest electricity tariff increases

Result Drivers

• NEW CONTRACTS - ATCO Structures secured contracts for modular housing and infrastructure projects in North America and Australia

• CAPITAL INVESTMENT & REGULATORY APPROVALS - Canadian Utilities invested in regulated utilities and advanced major pipeline and transmission projects after receiving regulatory approvals

• RATE BASE INFLATION INDEXING - ATCO Australia earnings increased, mainly due to inflation indexing on rate base

Company press release: ID:nCNWzrHtNa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Atco Ltd is C$72.00, about 7.5% below its July 28 closing price of C$77.87

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• July 27 - Canada's Gibson Energy Q2 net income rises on record Infrastructure segment EBITDA

• July 28 - CenterPoint Energy reports Q2 profit beat, hikes capex plan on data center demand

• July 27 - Germany's Hochtief H1 operational net profit rises on infrastructure demand; raises guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)