CALGARY, AB, July 29, 2026 /CNW/ -- 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 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. 
 
________________________ 
((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. 
 

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

Media Inquiries:

Kurt Kadatz

Director, Corporate Communications

Contact Media Relations

(587) 228 4571

Subscription Inquiries:

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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    Six Months Ended 
                                       June 30               June 30 
($ millions except share data)        2026       2025       2026      2025 
 
Adjusted Earnings                           140        121       382       353 
Unrealized losses on mark-to-market          --        (2)        --        -- 
forward and swap 
commodity contracts (1) 
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.