Canadian Utilities Q2 adjusted EPS beats estimates

Overview

• Canada energy infrastructure firm's Q2 adjusted EPS rose, beating analyst expectations

• Q2 adjusted net income increased to C$140 mln from C$121 mln last year

• Company cites strong regulated utilities and ATCO Australia performance, with major capital spending on infrastructure

Outlook

• Company says construction on Yellowhead Pipeline has commenced following regulatory approvals

• Canadian Utilities expects modest electricity tariff increases following recent regulatory decisions

Result Drivers

• REGULATED UTILITIES - Co said higher adjusted earnings were driven by strong performance in regulated utilities, including ATCO Energy Systems

• ATCO AUSTRALIA - Co said ATCO Australia contributed C$34 mln in adjusted earnings, up C$13 mln, largely due to inflation indexing on rate base

• CAPITAL INVESTMENT - Co invested C$403 mln in capital expenditures, mainly in regulated utilities and infrastructure projects

Company press release: ID:nCNWbK7hla

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• Wall Street's median 12-month price target for Canadian Utilities Ltd is C$51.00, about 6.8% below its July 28 closing price of C$54.73

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

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

• July 28 - FirstEnergy Corp beats Q2 revenue estimates, reaffirms 2026 outlook

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)