Canadian Utilities (TSE:CU) Posts Earnings Results

Canadian Utilities (TSE:CU) released its quarterly earnings results on Friday. The company reported C$0.43 earnings per share for the quarter, FiscalAI reports. Canadian Utilities had a net margin of 3.30% and a return on equity of 1.88%. The company had revenue of C$902.00 million for the quarter.

Here are the key takeaways from Canadian Utilities’ conference call:

• Canadian Utilities reported Q3 adjusted earnings of CAD 117 million, up from CAD 108 million year over year, with growth at ATCO Energy Systems and ATCO Australia. Operating cash flow rose CAD 58 million; ATCO EnPower earnings were lower due to reduced carbon pricing and turbine-availability compensation.
• The proposed Emera merger is expected to increase Canadian Utilities shareholders’ dividend by approximately 20% upon closing and combine the companies into a larger, more diversified utility. Management highlighted added capital access and expertise for potential large transmission interties and gas-fired generation; the transaction remains subject to approvals.
• The company is executing a CAD 12 billion five-year capital program, including the CAD 2.9 billion Yellowhead Pipeline, where construction began in August and the in-service target remains Q4 2027. Management sees potential for additional Alberta investment beyond the current plan, though those opportunities are not yet included in its outlook.
• Management reported improved year-over-year reliability across Alberta distribution utilities and cited a track record of cost efficiencies and returns above approved levels. Natural gas storage expansions are also progressing, with completed and planned projects expected to lift capacity by 10% to about 130 petajoules.

Canadian Utilities Stock Performance

Canadian Utilities stock traded down C$0.49 during mid-day trading on Friday, reaching C$52.19. The company’s stock had a trading volume of 350,288 shares, compared to its average volume of 627,219. The firm’s fifty day moving average price is C$50.53 and its two-hundred day moving average price is C$50.00. The company has a debt-to-equity ratio of 184.88, a quick ratio of 1.30 and a current ratio of 1.80. Canadian Utilities has a 12-month low of C$39.95 and a 12-month high of C$56.90. The company has a market capitalization of C$14.21 billion, a P/E ratio of 326.19, a PEG ratio of 2.38 and a beta of 0.40.

Canadian Utilities Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, December 1st will be paid a $0.4623 dividend. This represents a $1.85 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Thursday, November 5th. Canadian Utilities’s payout ratio is currently 1,150.00%.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Scotiabank upped their target price on Canadian Utilities from C$50.00 to C$53.00 and gave the company a “sector perform” rating in a report on Tuesday, July 21st. TD lifted their price target on Canadian Utilities from C$52.00 to C$57.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. Royal Bank Of Canada boosted their price objective on Canadian Utilities from C$58.00 to C$63.00 and gave the stock a “sector perform” rating in a research report on Thursday, October 8th. Canadian Imperial Bank of Commerce decreased their target price on Canadian Utilities from C$55.00 to C$52.00 in a research report on Tuesday, September 22nd. Finally, BMO Capital Markets lifted their target price on Canadian Utilities from C$50.00 to C$55.00 and gave the stock a “market perform” rating in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, Canadian Utilities currently has an average rating of “Hold” and a consensus target price of C$54.71.

About Canadian Utilities

Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. The company’s main divisions include electricity (generation, transmission, and distribution), pipelines & liquid (natural gas and water), and Retail Energy. Headquartered in Calgary, Alberta, the firm mainly operates in Canada and Australia, along with some operations in the United States and Mexico. Canadian Utilities launched a large venture called Atco Energy, which provides low-cost and sustainable energy solutions for Alberta.