Highlights

  • ALA’s Q3 2025 normalized EBITDA declined to CAD 268 million, reflecting the absence of a one-time Washington Gas pension settlement benefit recorded in the prior year.
  • Normalized net income for Q3 fell to CAD 11 million, while normalized funds from operations increased to CAD 148 million
  • The Mountain Valley Pipeline is operating near full capacity under long-term contracts, with the Boost expansion targeting a mid-2028 in-service date.
  • The company reaffirmed its 2025 guidance, citing stable utility earnings, steady midstream performance, and expected cash savings from recent hybrid refinancing.

AltaGas Ltd (TSX:ALA) operates a diversified portfolio of energy infrastructure assets. Its activities are organized across four segments: Midstream, Power, Utilities, and Corporate. The utilities segment focuses on owning and operating rate-regulated natural gas distribution networks across North America.

For the third quarter of 2025 (Q3 2025), the company reported normalized EBITDA of CAD 268 million versus CAD 294 million in Q3 2024, with the year‑over‑year decline mainly linked to the absence of a one‑time Washington Gas pension settlement benefit recognized in the prior period.

Normalized net income for Q3 fell to CAD 11 million from CAD 42 million, reflecting lower normalized EBITDA along with higher depreciation and interest expense, while normalized funds from operations increased to CAD 148 million from CAD 105 million, supported by cash generation, equity investment distributions, and lower non‑cash items.

Cash used in investing activities rose to CAD 425 million from CAD 393 million, which the company attributed to higher capital deployment across regulated utility modernization programs and ongoing midstream growth projects.

Recent Business Update

AltaGas informed that Mountain Valley Pipeline is operating near full capacity under long-term 20-year contracts, with incremental demand supported by the Boost expansion, which has been increased to 600 MMcf/d under take‑or‑pay agreements and is targeting a mid-2028 in-service date with approximate 3x capex‑to‑EBITDA returns, while the Southgate project continues to move through regulatory review.

Top Shareholders

Collectively, the company’s top ten shareholders account for approximately 20.31% of the outstanding shares. Among them, RBC Global Asset Management Inc. and The Vanguard Group, Inc. are the largest holders, with ownership stakes of about 3.94% and 3.21%, respectively.

Company Outlook

The company stated that its outlook remains positive, reaffirming 2025 guidance for normalized EBITDA of CAD 1.775–1.875 billion and normalized EPS of CAD 2.10–2.30, citing stable utility earnings and midstream performance, and highlighted that recent hybrid refinancing is expected to deliver about CAD 30 million in cash savings over five years, with a focus on free cash flow, balance‑sheet flexibility, dividends, and growth.

Stock Information

The stock saw a downside of ~1.04% and an upside of ~0.07% over the last 1 week and 3 months, respectively. Moreover, it is trading above the average 52-week high price of CAD 44.37 and 52-week low price of CAD 32.02.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 12, 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.