CANADIAN UTILITIES REPORTS FIRST QUARTER 2026 EARNINGS

CALGARY, AB, May 5, 2026 /CNW/ - Canadian Utilities Limited (TSX: CU)

Canadian Utilities Limited (Canadian Utilities or the Company) today announced first quarter 2026 adjusted earnings ⁽¹⁾ of $242 million ($0.89 per share), which were $10 million ($0.04 per share) higher compared to $232 million ($0.85 per share) in the first quarter of 2025.

CANADIAN UTILITIES REPORTS FIRST QUARTER 2026 EARNINGS (CNW Group/Canadian Utilities Limited)

First quarter 2026 earnings attributable to equity owners of the Company reported in accordance with International Financial Reporting Standards (IFRS earnings) were $224 million ($0.75 per Class A and Class B share), which were $12 million ($0.05 per Class A and Class B share) lower compared to $236 million ($0.80 per Class A and Class B share) in the first quarter of 2025. 

RECENT DEVELOPMENTS

• Canadian Utilities invested $353 million of capital expenditures in the first quarter of 2026, of which 94 per cent was invested in our regulated utilities in ATCO Energy Systems and ATCO Australia, with the remaining 6 per cent largely invested in ATCO EnPower.  

• ATCO Energy Systems continues to work on many utility infrastructure opportunities, including two previously announced projects: the Yellowhead Pipeline Project (Yellowhead) in Natural Gas Transmission and the Central East Transfer-Out Project (CETO) in Electricity Transmission.
  • Yellowhead is on track for construction to commence in 2026, subject to Alberta Utilities Commission (AUC) and corporate approvals. Upon AUC's approval of the Need Assessment Application for the expected $2.9 billion project in the third quarter of 2025, ATCO Energy Systems filed a separate facility application on November 4, 2025 to seek AUC approval for construction and operation of the physical infrastructure. An AUC hearing is scheduled for May 2026 with a decision expected by the third quarter of 2026. Construction and execution schedules will be finalized following the approval of the facility application and mainline contractor selections. 
  • Electricity Transmission completed line construction for CETO ahead of schedule in the first quarter of 2026. Electricity Transmission's 85-km of the transmission line is on track to be energized by June 2026 with an approximate $255 million project spend. CETO will support renewable energy integration in Alberta and transport electricity in the counties of Red Deer, Lacombe and Stettler, supplying more than 1,500 megawatts of electricity to Alberta's grid.

• To fund ATCO Energy Systems' regulated debt requirements, the Company expects to issue debentures each year during the five-year (2026-2030) capital expenditure plan. For regulated equity requirements, in addition to cash flow from operations and the $0.7 billion financed in 2025, the Company expects to raise an additional $0.8 billion of capital securities ⁽²⁾ over the five-year (2026-2030) capital expenditure plan to fund the equity portion of investment.

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(1)	Adjusted earnings is a total of segments measure (as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure (NI 52-112)). See Other Financial and Non-GAAP Measures Advisory included in this news release.

Corporate

• On April 9, 2026, Canadian Utilities declared a second quarter dividend of 46.23 cents per share or $1.85 per Class A and Class B share on an annualized basis.

• On May 7, 2026, Canadian Utilities' parent company, ATCO Ltd., will release its 2025 Sustainability Report which presents current and comprehensive information on the topics of Governance & Responsible Business, Resilience & Safety, Energy Transition & Environment, and People & Partners.

This news release should be read in concert with the full disclosure documents. Canadian Utilities' unaudited interim consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2026 will be available on the Canadian Utilities website (www.canadianutilities.com), via SEDAR+ (www.sedarplus.ca) or can be requested from the Company.

TELECONFERENCE AND WEBCAST

Canadian Utilities will hold a live teleconference and webcast with Bob Myles, Chief Executive Officer, and Katie Patrick, Executive Vice President, Chief Financial & Investment Officer, at 9:00 am Mountain Time (11:00 am Eastern Time) on Wednesday, May 6, 2026 at 1-833-821-3314. No pass code is required.

Opening remarks will be followed by a question and answer period with investment analysts. Participants are asked to please dial-in 10 minutes prior to the start and request to join the Canadian Utilities teleconference.

Management invites interested parties to listen via live webcast at: https://www.canadianutilities.com/en-ca/investors/events-presentations.html.

A replay of the teleconference will be available approximately two hours after the conclusion of the call until June 6, 2026. Please call 1-855-669-9658 and enter pass code 9503588.

Canadian Utilities Limited and its subsidiary and affiliate companies have approximately 8,600 employees and assets of $25 billion. Canadian Utilities, an ATCO company, is a diversified global energy infrastructure corporation delivering essential services and innovative business solutions. ATCO Energy Systems delivers energy for an evolving world through its electricity and natural gas transmission and distribution, and international electricity operations segments. ATCO EnPower creates sustainable energy solutions in the areas of electricity generation, energy storage, industrial water and cleaner fuels. ATCO Australia develops, builds, owns and operates energy and infrastructure assets. More information can be found at www.canadianutilities.com.

Investor & Analyst Inquiries:
Colin Jackson
Senior Vice President, Financial Operations
[email protected]
[phone]

Media Inquiries:
Kurt Kadatz
Director, Corporate Communications
Contact Media Relations
[phone]

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(1) Capital securities could include preferred shares, hybrid bonds, and/or debentures.

Other Financial and Non-GAAP Measures Advisory

Adjusted Earnings

Consolidated adjusted earnings is a "total of segments measure", as defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). The most directly comparable measure to adjusted earnings reported in accordance with IFRS is "earnings attributable to equity owners of the Company". IFRS earnings include timing adjustments related to rate-regulated activities, dividends on equity preferred shares, unrealized gains or losses on mark-to-market forward and swap commodity contracts, one-time gains and losses, impairments, and items that are not in the normal course of business or a result of day-to-day operations. These items are not included in adjusted earnings. A reconciliation of adjusted earnings to earnings attributable to equity owners of the Company is provided below.

	Three Months Ended March 31
($ millions except share data)	2026	2025
Adjusted Earnings	242	232
Unrealized gains on mark-to-market forward and swap commodity contracts ^(1)	--	2
Rate-regulated activities ^(2)	(36)	5
IT Common Matters decision ^(3)	(1)	(1)
Transition of managed IT services ^(4)	--	(7)
Restructuring ^(5)	--	(14)
Dividends on equity preferred shares of Canadian Utilities Limited	19	19
Earnings attributable to equity owners of the Company	224	236
Weighted average shares outstanding (millions of shares)	272.2	271.6

(1)	The Company's electricity generation business enters into fixed-price swap commodity contracts to manage exposure to electricity and natural gas prices and volumes. These contracts are measured at fair value. Unrealized gains and losses due to changes in the fair value of fixed-price swap commodity contracts, together with reclassifications of unrealized gains or losses from other comprehensive income or loss, in the electricity generation business are recognized in the ATCO EnPower segment. Realized gains or losses are recognized in adjusted earnings when the commodity contracts are settled.
(2)	The Company records significant timing adjustments as a result of the differences between rate-regulated accounting and IFRS with respect to additional revenues billed in the current year, revenues to be billed in future years, regulatory decisions received, and settlement of regulatory decisions and other items.
(3)	Consistent with the treatment of the gain on sale in 2014 from the IT services business by the Company, financial impacts associated with the IT Common Matters decision are excluded from adjusted earnings.
(4)	In the first quarter of 2025, the Company recognized IT transition costs of $7 million (after-tax). The transition costs were primarily related to activities to shift the managed IT services from a single-vendor service provider to a hybrid model of multiple new vendors and internal teams. As these costs were not in the normal course of business, they were excluded from adjusted earnings.
(5)	In the first quarter of 2025, the Company recorded restructuring costs of $14 million (after-tax) mainly related to staff reductions and associated severance costs. As these costs were not in the normal course of business, they were excluded from adjusted earnings.

Forward-Looking Information Advisory

Certain statements contained in this news release constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", "goals", "targets", "strategy", "future", and similar expressions. In particular, forward-looking information in this news release includes, but is not limited to, references to: expectations regarding the Yellowhead project, including the anticipated timing for commencement of construction, the anticipated total investment in the project, and the anticipated timing and outcome of regulatory decisions from the AUC in relation to the project; the anticipated size, capacity and benefits of CETO, the anticipated timing for energization, and the anticipated total investment in the project; expectations regarding the Company's funding strategy for ATCO Energy Systems' regulated debt and equity requirements, including anticipated debenture issuances over the five year (2026-2030) capital expenditure plan, cash flow from operations, $0.7 billion financed in 2025, and an additional $0.8 billion in capital securities to be raised; the release of the ATCO Ltd. 2025 Sustainability Report; and the payment of dividends.

Although the Company believes that the expectations reflected in the forward-looking information are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors, which may cause actual results, levels of activity, and achievements to differ materially from those anticipated in such forward-looking information. The forward-looking information reflects the Company's beliefs and assumptions with respect to, among other things: the applicability and stability of legal and regulatory requirements in the jurisdictions in which we invest and/or operate; the payment of fees owing pursuant to applicable contracts; certain regulatory applications being made and approved; the development and performance of technology and technological innovations; continuing collaboration with certain business partners, and regulatory and environmental groups; the performance of assets and equipment; the ability to meet current project schedules, and other assumptions inherent in management's expectations in respect of the forward-looking information identified herein.

The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of, among other things: risks inherent in the performance of assets; capital efficiencies and cost savings; applicable laws and regulations and the interpretation and manner of enforcement of such laws and regulations; changes to government policies; regulatory decisions; competitive factors in the industries in which the Company operates; evolving market or economic conditions; credit risk; interest rate fluctuations; the availability and cost of labour, materials, services, and infrastructure; future demand for resources; the development and execution of projects; prices of electricity, natural gas, natural gas liquids, and renewable energy; the development and performance of technology and new energy efficient products, services, and programs including but not limited to the use of zero-emission and renewable fuels, carbon capture, and storage, electrification of equipment powered by zero-emission energy sources and utilization and availability of carbon offsets; potential cancellation, termination, default, non-compliance, or breach of contract by contract counterparties; the risk that payments owed may not be collected or received in a timely manner, or at all; risks associated with potential litigation proceedings; potential damage to our brand and/or reputation that may result from a failure to perform, or from factors outside of our control, or negative publicity related to significant projects, investments, operations or activities; the risk of operational disruptions, outages, or force majeure events; the occurrence of unexpected events such as fires, extreme weather conditions, explosions, blow-outs, equipment failures, transportation incidents, and other accidents or similar events; global pandemics; the imposition of or changes to customs duties, tariffs or other trade restrictions; geopolitical tensions and wars; risks associated with operating in international jurisdictions; and other risk factors, many of which are beyond the control of the Company. Due to the interdependencies and correlation of these factors, the impact of any one material assumption or risk on a forward-looking statement cannot be determined with certainty. Readers are cautioned that the foregoing lists are not exhaustive. For additional information about the principal risks that the Company faces, see "Business Risks and Risk Management" in the Company's Management's Discussion and Analysis for the year ended December 31, 2025.

This news release may contain information that constitutes future-oriented financial information or financial outlook information, all of which are subject to the same assumptions, risk factors, limitations and qualifications set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on such future-oriented financial information or financial outlook information. The Company's actual results, performance and achievements could differ materially from those expressed in, or implied by, such future-oriented financial information or financial outlook information. The Company has included such information in order to provide readers with a more complete perspective on its future operations and its current expectations relating to its future performance. Such information may not be appropriate for other purposes and readers are cautioned that such information should not be used for purposes other than those for which it has been disclosed herein. Future-oriented financial information or financial outlook information contained herein was made as of the date of this news release.

Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

SOURCE Canadian Utilities Limited