Earnings release
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July 29, 2026 CANADIAN UTILITIES REPORTS SECOND QUARTER 2026 EARNINGS CALGARY, Alberta - Canadian Utilities Limited (TSX: CU) Canadian Utilities Limited (Canadian Utilities or the Company) today announced second quarter 2026 adjusted earnings (1) of $140 million ($0.51 per share), which were $19 million ($0.06 per share) higher compared to $121 million ($0.45 per share) in the second quarter of 2025. Second quarter 2026 earnings attributable to equity owners of the Company reported in accordance with International Financial Reporting Standards (IFRS earnings) were $128 million ($0.40 per Class A and Class B share), which were $17 million ($0.06 per Class A and Class B share) higher compared to $111 million ($0.34 per Class A and Class B share) in the second quarter of 2025. RECENT DEVELOPMENTS • Canadian Utilities invested $403 million of capital expenditures in the second quarter of 2026, of which 98 per cent was invested in our regulated utilities in ATCO Energy Systems and ATCO Australia. • ATCO Energy Systems continues to work on many utility infrastructure opportunities, including two previously announced projects: the Yellowhead Pipeline Project (Yellowhead Pipeline) in Natural Gas Transmission and the Central East Transfer-Out Project (CETO) in Electricity Transmission. ◦ Yellowhead Pipeline consists of approximately 235 kilometres of high-pressure natural gas pipeline with the projected spend estimated at $2.9 billion based on a Class III estimate with an expected accuracy of +/-20 per cent. In the third quarter of 2025, the Alberta Utilities Commission (AUC) approved the Need Assessment Application for the project, and on July 17, 2026, the AUC approved the facility application. With these two key regulatory filings approved, construction is now set to begin effective immediately. All major pipeline and compressor contracts, including supply and materials, have been awarded and the pipeline is 100 per cent contracted with customers. The Yellowhead Pipeline will support Alberta's continued economic growth, industrial expansion and rising energy demand. ◦ In June 2026, ATCO and AltaLink L.P. announced the successful completion and energization of CETO. CETO consists of a 135-km 240kV transmission line, of which Electricity Transmission built 85-km of the transmission line and AltaLink L.P. constructed the remaining 50-km. Electricity Transmission's 85-km of the transmission line was energized on June 26, 2026, and was completed ahead of project schedule, below expected project spend, and with zero lost time Injuries. CETO supports renewable energy integration in Alberta and transports electricity in the counties of Red (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.
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Deer, Lacombe and Stettler, supplying more than 1,500 megawatts of electricity to Alberta's grid • ATCO Energy Systems received two decisions from the AUC related to Natural Gas Transmission's 2026-2028 General Rate Application and Electricity Transmission's 2026-2027 General Tariff Application. The AUC decisions support investment in critical infrastructure, provide credit-supportive measures during construction for Yellowhead Pipeline, approve forecasted IT costs, and maintain a focus on affordability through modest electricity tariff increases. These outcomes provide greater regulatory certainty and support the continued delivery of safe and reliable utility services. • ATCO Australia had a strong second quarter in 2026. The $34 million of adjusted earnings in the second quarter of 2026, an increase of $13 million compared to the same period in 2025, is largely driven by the impact of inflation indexing on rate base. Corporate • On July 9, 2026, Canadian Utilities declared a third quarter dividend of 46.23 cents per share or $1.85 per Class A and Class B share on an annualized basis. 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 June 30, 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, July 29, 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 August 29, 2026. Please call 1-855-669-9658 and enter pass code 4409623. Canadian Utilities Limited and its subsidiary and affiliate companies have approximately 8,600 employees and assets of $25 billion. Canadian Utilities, an ATCO company, delivers safe and reliable energy services through its utilities, midstream and generation businesses to customers in Canada, Mexico, Australia and Puerto Rico. Together, these operations provide essential electricity and natural gas infrastructure, generation and storage solutions that support customers, communities and industry. More information can be found at www.canadianutilities.com. Investor & Analyst Inquiries: Colin Jackson Senior Vice President, Financial Operations Colin.Jackson@atco.com (403) 808 2636
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Media Inquiries: Kurt Kadatz Director, Corporate Communications Contact Media Relations (587) 228 4571 Subscription Inquiries: To receive Canadian Utilities Limited news releases, please click here. Other Financial and Non-GAAP Measures Advisory Adjusted Earnings Consolidated adjusted earnings is a “total of segments measure”, as defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”). The most directly comparable measure to adjusted earnings reported in accordance with IFRS is “earnings attributable to equity owners of the Company”. IFRS earnings include timing adjustments related to rate-regulated activities, dividends on equity preferred shares, unrealized gains or losses on mark-to-market forward and swap commodity contracts, one-time gains and losses, impairments, and items that are not in the normal course of business or a result of day-to-day operations. These items are not included in adjusted earnings. A reconciliation of adjusted earnings to earnings attributable to equity owners of the Company is provided below. Three Months Ended June 30 Six Months Ended June 30 ($ millions except share data) 2026 2025 2026 2025 Adjusted Earnings 140 121 382 353 Unrealized losses on mark-to-market forward and swap commodity contracts (1) — (2) — — Rate-regulated activities (2) (30) (20) (66) (15) IT Common Matters decision (3) (1) — (2) (1) Transition of managed IT services (4) — (5) — (12) Restructuring (5) — — — (14) Dividends on equity preferred shares of Canadian Utilities Limited 19 19 38 38 Other — (2) — (2) Earnings attributable to equity owners of the Company 128 111 352 347 Weighted average shares outstanding (millions of shares) 272.3 271.8 272.2 271.7 (1) The Company's electricity generation business enters into fixed-price swap electricity contracts in order to manage exposure to electricity prices for its renewable facilities. These contracts, comprising virtual power purchase agreements, are measured at fair value. Unrealized gains and losses due to changes in the fair value of the fixed-price electricity contracts where hedge accounting is not applied, or due to hedge ineffectiveness where hedge accounting is applied, together with reclassifications of unrealized gains or losses from other comprehensive income or loss, are recognized in the ATCO EnPower operating 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 second quarter and first six months of 2025, the Company recognized IT transition costs of $5 million (after-tax) and $12 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 six months 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
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timing for commencement of construction, the anticipated total investment in the project and the anticipated benefits of the project; the anticipated benefits of the CETO project; 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.