EPCOR Announces Quarterly Results

EDMONTON, AB, Nov. 4, 2026 /CNW/ -- EPCOR Utilities Inc. (EPCOR) today filed its quarterly results for the period ended September 30, 2026.

EPCOR Utilities Inc. Management's Discussion and Analysis. For nine months ended Sept. 30, 2026.

"EPCOR's financial and operating performance was in line with expectations during the first nine months of 2026," said John Elford, EPCOR President & CEO. "We saw continued growth across our utility footprint, and record-setting execution of capital programs. In the first nine months of 2026, EPCOR invested nearly $1 billion in capital projects focused on utility reliability, environmental performance, community growth and resilience, an increase of nearly 30% year-over-year."

Highlights of EPCOR's financial performance are as follows:

• Net income was $140 million and $359 million for the three and nine months ended September 30, 2026, compared with net income of $132 million and $386 million for the comparative periods in 2025, respectively. The increase of $8 million for the three months ended September 30, 2026, was primarily due to higher Adjusted EBITDA¹ and fair value adjustments related to financial electricity purchase contracts, partially offset by lower other income and gain (loss) on disposal of assets, higher depreciation, finance expenses and income tax expense. The decrease of $27 million for the nine months ended September 30, 2026, was primarily due to higher depreciation, fair value adjustments related to financial electricity purchase contracts, finance expenses and lower other income and gain (loss) on disposal of assets, partially offset by higher Adjusted EBITDA¹.
• Adjusted EBITDA¹ was $352 million and $952 million for the three and nine months ended September 30, 2026, compared with $321 million and $921 million for the comparative periods in 2025, respectively. The increase of $31 million for both the three and nine months ended September 30, 2026, was primarily due to higher rates, customer growth and finance lease income, partially offset by lower regulated electricity margins, lower water consumption per customer and higher operating costs. Adjusted EBITDA¹ for the nine months ended September 30, 2026 was further impacted by lower Samsung construction activity and higher staff costs.
• Investment in capital projects was $998 million for the nine months ended September 30, 2026, compared with $779 million for the corresponding period in 2025. The projected cash requirements for capital expenditures in 2026 are estimated to be at the upper end of our annual guidance range of $1,180 million and $1,460 million.

1. Adjusted EBITDA is a non-GAAP financial measure. See the Non-GAAP Financial Measures section in Appendix 1 to this media release.

Interim management's discussion and analysis and the unaudited condensed consolidated interim financial statements are available on EPCOR's website (www.epcor.com) and SEDAR+ (www.sedarplus.ca).

About EPCOR

EPCOR builds, owns and operates water, electrical, natural gas transmission and distribution networks, water and wastewater treatment facilities, sanitary and stormwater systems in North America. EPCOR also provides water, electricity and natural gas products and services to residential and commercial customers. EPCOR, headquartered in Edmonton, is committed to conducting its business and operations safely and responsibly. Environmental stewardship, public health and community well-being are at the heart of EPCOR's mission to provide clean water and safe, reliable energy.

Appendix 1 Non-GAAP Financial Measures

We use earnings before other income and gain (loss) on disposal of assets, finance expenses, income tax recovery (expense), depreciation and amortization, changes in the fair value of derivative financial instruments, transmission system access service charge net collections and other unusual items (collectively, Adjusted EBITDA) to discuss operating results for EPCOR's lines of business. We believe that Adjusted EBITDA provides an indicator of the Company's ongoing ability to fund capital expenditures, to incur and service debt and to pay dividends to its shareholder and may be useful for external stakeholders in evaluating the operations and performance of the Company. Adjusted EBITDA is a non-GAAP financial measure and is not a standardized financial measure under IFRS and might not be comparable to similar financial measures disclosed by other issuers.

The reconciliation between Adjusted EBITDA to Net income as reported under IFRS Accounting Standards is shown below:

(Unaudited, $ millions)	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
Adjusted EBITDA by Segment
Water Services segment	$              139	$              140	$              399	$              396
Distribution and Transmission segment	81	73	227	210
Energy Services segment	22	25	77	78
North American Commercial Services segment	17	9	48	51
U.S. Regulated Water segment	68	62	160	159
Other	25	12	41	27
Adjusted EBITDA	352	321	952	921
Other income and (loss) gain on disposal of assets	(7)	7	(7)	1
Finance expenses	(58)	(52)	(170)	(157)
Income tax expense	(16)	(11)	(30)	(35)
Depreciation and amortization	(129)	(121)	(374)	(352)
Change in fair value of financial electricity purchase contracts^1	1	(9)	(9)	4
Transmission system access service charge net collections^2	(3)	(3)	(3)	4
Net income	$              140	$              132	$              359	$              386

1. The change in fair value of derivative financial instruments represents the change in fair value of financial electricity purchase contracts between the electricity market forward prices and the contracted prices at the end of the reporting period, for the contracted volumes of electricity.
2. Transmission system access service charge net collections is the difference between the transmission system access service charges paid to the provincial system operators and the transmission system access service charges collected from electricity retailers. Transmission system access service charge net collections are timing differences, which are collected from or returned to electricity retailers as the transmission system access service charges and customer billing determinants are finalized.

SOURCE Epcor Utilities Inc.

For more information contact: Media Relations: Laura Ehrkamp, [phone], [email protected]; Corporate Relations: Matt Lemay, [phone] or toll free [phone], [email protected]