Canadian Utilities (CU) Q1 2026 earnings summary

Executive summary

• Adjusted earnings for Q1 2026 were $242 million ($0.89/share), up $10 million year-over-year, driven by rate base growth, lower income tax expense, and strong performance in regulated utilities and Australia.

• Focus remains on three strategic pillars: growth and prosperity, operational excellence, and financial leadership, supported by a robust project pipeline and efficiency-driven affordability initiatives.

• Major initiatives include a $12 billion five-year regulated utility capital plan (2026–2030), the Yellowhead Pipeline Project, and the CETO transmission line.

• Operational excellence is demonstrated by substantial cost efficiencies, resulting in over $500 million in customer savings from 2023 to 2028.

• Non-regulated growth, particularly in natural gas storage, continues to be a consistent cash flow and earnings contributor.

Financial highlights

• Q1 2026 consolidated adjusted earnings were $242 million, up from $232 million in Q1 2025, with EPS of $0.89 (+$0.04 YoY); IFRS earnings attributable to equity owners were $224 million ($0.75/share), down $12 million year-over-year.

• Cash flow from operating activities was $604 million, down $33 million year-over-year, mainly due to customer refunds under the PBR2 reopener and elimination of the carbon levy.

• Capital investment in Q1 2026 totaled $354 million, with 94% focused on regulated utilities.

• Total assets reached $24.5 billion (+$393 million YoY); long-term debt was $12.1 billion (+$1.2 billion YoY).

• Dividends per share increased to $0.4623, continuing a 54-year track record of annual increases.

Outlook and guidance

• Five-year capital plan of $12 billion projects a 6.9% CAGR for regulated utility business, with no common equity issuance required.

• Yellowhead Pipeline construction expected to commence in 2026, pending regulatory approval, with a $2.9 billion investment and targeted in-service date in Q4 2027.

• Dividend growth is expected to align with sustainable earnings growth from regulated and long-term contracted investments.

• AESO long-term outlook supports increased load growth and transmission opportunities in Alberta, with electricity demand projected to double by 2050.

• CETO transmission line energization is expected by June 2026.