ATCO (ACO-X) investor relations material

Executive summary

• Adjusted earnings for Q2 2026 were $114 million ($1.01 per share), up $13 million year-over-year, reflecting strong performance across segments and robust demand for secure infrastructure, housing, energy, and defense.

• Strategic focus on sustainable growth in key sectors, leveraging experience, Indigenous partnerships, and expanding non-regulated energy opportunities.

• Portfolio strategy balances yield with long-term growth, maintaining a conservative balance sheet and growing earnings profile.

• Positioned to benefit from major government investments in defense and infrastructure, including the Grays Bay Road and Port Project and Arctic initiatives.

• Canadian Utilities invested $403 million in capital expenditures, with 98% directed to regulated utilities.

Financial highlights

• Adjusted earnings reached $114 million (or $1.01 per share) in Q2 2026, up from $101 million (or $0.90 per share) in Q2 2025.

• ATCO Structures delivered $36 million in adjusted earnings, marking 16 consecutive quarters of year-over-year growth.

• Adjusted EBITDA for Structures was $82 million, up 17% year-over-year.

• Cash flow from operating activities (excluding Canadian Utilities) was $122 million, up nearly 70% year-over-year.

• Earnings attributable to Class I and II shares were $88 million in Q2 2026, up from $64 million in Q2 2025.

Outlook and guidance

• Expectation of consistent, double-digit earnings growth in the near to medium term, supported by strong backlogs and demand across sectors.

• Strategic focus on growth in Canada’s North, with investments in infrastructure and defense projects, including a $10 million staged investment for 40% ownership in the Grays Bay Road and Port Project.

• Modular housing and infrastructure contracts expected to materialize over the next 6–18 months as defense projects advance.

• Construction on the $2.9 billion Yellowhead Pipeline begins immediately following regulatory approvals, supporting Alberta’s economic growth.

• Dividend declared for Q3 2026 at 51.96 cents per share ($2.08 annualized).