ATCO REPORTS FIRST QUARTER 2025 EARNINGS

Canada NewsWire

CALGARY, AB, May 7, 2025

CALGARY, AB, May 7, 2025 /CNW/ - ATCO Ltd. (TSX: ACO.X) (TSX: ACO.Y)

ATCO Ltd. (ATCO or the Company) today announced first quarter 2025 adjusted earnings (1) of $160 million ($1.43 per share), which were $12 million ($0.11 per share) higher compared to $148 million ($1.32 per share) in 2024.

First quarter 2025 earnings attributable to Class I and Class II Shares reported in accordance with International Financial Reporting Standards (IFRS earnings) were $144 million ($1.28 per share) compared to $147 million ($1.31 per share) in 2024.

RECENT DEVELOPMENTS

ATCO Structures

ATCO Structures continued to demonstrate the resiliency of its base business growth with awarded contracts that illustrate the diversity of geographies and industries that ATCO Structures services:

   -- Awarded multiple contracts in Canada totaling $50 million; including 
      contracts to provide space rental and workforce housing solutions 
      supporting uranium exploration, nuclear generation and urban 
      infrastructure projects. 
 
   -- Awarded two contracts in the US to provide space rental solutions 
      supporting the construction of a data centre in Alabama, and standalone 
      modular offices for use by the US Navy. These awards comprise 55 modular 
      units and total $8 million. 
 
   -- Executed a $7 million contract to supply a 42-unit, 300-person 
      accommodation camp in support of mining operations in New South Wales, 
      Australia. The camp comprises existing fleet assets and was handed over 
      in the first quarter of 2025. 

Frontec

   -- Awarded the $49 million Polar Over-the-Horizon Radar contract to design, 
      build, install and operate a new radar defence system in the Northwest 
      Territories. The Government of Canada awarded the contract to Inuvialuit 
      Frontec Services, a joint venture partnership between ATCO Frontec and 
      Inuvialuit Development Corporation. The contract commenced on March 28, 
      2025, with a term of two years and potential for three additional 
      one-year options. 

Canadian Utilities

   -- Canadian Utilities invested $401 million of capital expenditures in the 
      first quarter of 2025, of which 91 per cent was invested in our regulated 
      utilities in ATCO Energy Systems and ATCO Australia, with the remaining 9 
      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 and Company approvals. As 
             part of the regulatory application process that establishes the 
             need for the project, the oral argument and reply portion of the 
             needs application took place in March 2025. A decision is expected 
             in the second or third quarter of 2025. As well, we continue to 
             progress discussions on Indigenous ownership in the pipeline. 
 
          -- Electricity Transmission began construction of CETO in the third 
             quarter of 2024, completed the winter season construction in the 
             first quarter of 2025, and will begin fall season construction in 
             the third quarter of 2025. 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. 
 
   -- ATCO EnPower continues to see favourable market conditions for natural 
      gas storage operations which supports its long-term revenue growth 
      strategy. The $98 million of revenues in the first quarter 2025, an 
      increase of $7 million compared to the same period in 2024, underlines 
      the strength in our natural gas and natural gas liquids storage assets. 

Corporate

   -- On April 10, 2025, ATCO declared a second quarter dividend of 50.45 cents 
      per share or $2.02 per Class I non-voting and Class II voting share on an 
      annualized basis. 
 
_____________________________ 
(1) Adjusted earnings is a total of segments measure. 
 See Other Financial and Non-GAAP Measures Advisory 
 included in this News Release. 
 

This news release should be read in concert with the full disclosure documents. ATCO's unaudited interim consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2025 will be available on the ATCO website (www.ATCO.com), via SEDAR+ (www.sedarplus.ca) or can be requested from the Company.

TELECONFERENCE AND WEBCAST

ATCO will hold a live teleconference and webcast with Katie Patrick, Executive Vice President, Chief Financial & Investment Officer and Adam Beattie, President, Structures at 10:00 am Mountain Time (12:00 pm Eastern Time) on Wednesday, May 7, 2025 at 1-833-821-0222. 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 ATCO teleconference.

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

A replay of the teleconference will be available approximately two hours after the conclusion of the call until June 7, 2025. Please call 1-855-669-9658 and enter pass code 3069408.

As a global enterprise, ATCO Ltd. and its subsidiary and affiliate companies have approximately 21,000 employees and assets of $27 billion. ATCO is committed to future prosperity by working to meet the world's essential energy, housing, security and transportation challenges. ATCO Structures designs, builds and delivers products to service the essential need for housing and shelter around the globe. ATCO Frontec provides operational support services to government, defence and commercial clients. ATCO Energy Systems delivers essential energy for an evolving world through its electricity and natural gas transmission and distribution, and international electricity operations. 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. ATCO Energy provides retail electricity and natural gas services, home maintenance services and professional home advice that bring exceptional comfort, peace of mind and freedom to homeowners and customers. ATCO also has investments in ports and transportation logistics, the processing and marketing of ash, retail food services and commercial real estate. More information can be found at www.ATCO.com.

Investor & Analyst Inquiries:

Colin Jackson

Senior Vice President, Financial Operations

Colin.Jackson@atco.com

(403) 808 2636

Media Inquiries:

Kurt Kadatz

Director, Corporate Communications

Kurt.Kadatz@atco.com

(587) 228 4571

Subscription Inquiries:

To receive ATCO Ltd. 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 Class I non-voting and Class II voting shares". IFRS earnings include timing adjustments related to rate-regulated activities, 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 Class I non-voting and Class II voting shares is provided below.

 
                                                          Three Months Ended 
                                                           March 31 
($ millions except share data)                            2025       2024 
 
Adjusted Earnings                                               160        148 
Restructuring (1)                                               (8)         -- 
Transition of managed IT services (2)                           (5)         -- 
Unrealized (losses) gains on mark-to-market forward 
 and swap commodity contracts (3)                               (4)          6 
Rate-regulated activities (4)                                     2        (4) 
IT Common Matters decision (5)                                  (1)        (3) 
 
Earnings attributable to Class I non-voting and Class 
 II voting shares                                               144        147 
Weighted average shares outstanding (millions of shares)      112.3      112.2 
 
 
(1)  In the first quarter of 2025, the Company recorded 
      restructuring costs of $8 million (after-tax and non-controlling 
      interests) mainly related to staff reductions and 
      associated severance costs. As these costs are not 
      in the normal course of business, they have been excluded 
      from adjusted earnings. 
(2)  In the first quarter of 2025, the Company recognized 
      IT transition costs of $5 million (after-tax and non-controlling 
      interests). 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 

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