Overview

* ATCO Q3 adjusted EPS beats analyst expectations, reaching C$0.92 per share

* Company's adjusted earnings rose to C$103 mln, up from C$91 mln in Q3 2024

* ATCO Structures awarded C$179 mln contract for Stibnite Gold Project in Idaho

Outlook

* ATCO expects Yellowhead Pipeline construction to start in 2026, pending approvals

* CETO project expected to energize 85-km transmission line by June 2026

* ATCO Pipelines seeks AUC approval for 2026-2028 revenue requirements

Result Drivers

* STRUCTURES EXPANSION - ATCO Structures expanded its market presence through strategic initiatives and investments, securing contracts worth C$179 mln for the Stibnite Gold Project and additional contracts in North America and Australia

* FRONTEC CONTRACTS - ATCO Frontec secured eligibility to bid on US Navy contracts, enhancing its position as a major US contractor

* UTILITIES INVESTMENT - Canadian Utilities invested C$402 mln in capital expenditures, focusing on regulated utilities and progressing key projects like Yellowhead and CETO

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$0.92 C$0.82

Adjusted (4

EPS Analysts

)

Q3 C$103

Adjusted mln

Net

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the multiline utilities peer group is "buy"

* Wall Street's median 12-month price target for Atco Ltd ( ACLLF ) is C$55.00, about 2.6% above its November 6 closing price of C$53.59

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)