AltaGas (ALA) Q1 2026 earnings summary

Executive summary

• Achieved record normalized EBITDA of $818 million in Q1 2026, up 19% year-over-year, driven by higher global export volumes, improved margins, new Utilities rates, and asset optimization.

• Normalized EPS rose to $1.33 from $1.15, while GAAP EPS dropped to $0.47 from $1.31 due to unrealized hedging impacts.

• Both midstream and utilities segments delivered strong performance, benefiting from constructive energy fundamentals, colder-than-normal weather, and positive regulatory outcomes.

• Strategic growth projects advanced, including REEF construction (75% complete), Dimsdale expansions, and new data center agreements.

• Global LPG market disruptions have increased demand for Canadian exports, especially in Asia, reinforcing the value of the export platform.

Financial highlights

• Normalized EBITDA reached $818 million, up 19% year-over-year, setting a new quarterly record.

• Normalized net income was $415 million, up from $342 million in Q1 2025.

• Utilities segment delivered normalized EBITDA of $555 million, up 11% year-over-year, driven by positive rate cases and modernization investments.

• Midstream segment delivered normalized EBITDA of $273 million, up 39% year-over-year, with export volumes up 5%.

• Adjusted net debt to normalized EBITDA improved to 4.4x, below the targeted range.

Outlook and guidance

• 2026 normalized EBITDA guidance: $1.925–$2.025 billion; normalized EPS guidance: $2.20–$2.45.

• Results expected at the top end of guidance, with potential upside if LPG market strength continues.

• 2026 capital program increased to $1.7 billion, with 65% allocated to Utilities and 31% to Midstream.

• Long-term annual enterprise growth targeted at 5–7%, supported by low-risk, cost-of-service and take-or-pay cash flows.