Canadian Utilities Q4 adjusted profit drops

Overview

• Canada energy infrastructure firm's adjusted earnings drop

• Company's 2025 IFRS earnings impacted by non-cash impairments and write-offs

• Company acquired Northstone Power Corp, expanding its energy generation capacity

Outlook

• Canadian Utilities plans $12 bln in capital spending from 2026 to 2030

• Company expects consolidated mid-year rate base to grow to $23.2 bln by 2030

• Canadian Utilities anticipates Yellowhead Pipeline construction to start in 2026

Result Drivers

• REGULATED RETURN ON EQUITY - Temporary decrease in regulated return on equity impacted earnings by $57 mln

• CAPITAL REDEPLOYMENT - Strategic decision to redeploy capital from ATCO Energy into core businesses affected earnings

• NON-CASH IMPAIRMENTS - IFRS earnings negatively impacted by non-cash impairments and write-offs

Company press release: ID:nCNW6hXLpa

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 no "sell" or "strong sell"

• The average consensus recommendation for the multiline utilities peer group is "hold"

• Wall Street's median 12-month price target for Canadian Utilities Ltd is C$43.00, about 10.2% below its February 25 closing price of C$47.86

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

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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.)