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Highlights

  • In FY24, Canadian Utilities saw a slight revenue decline of 1.4% YoY, totalling CAD 3,742 million, primarily due to reduced contributions from ATCO Energy
  • Operating profit for FY24 dropped by 20.1% YoY to CAD 1,056 million, influenced by higher expenses and lower gains from derivative financial instruments
  • The company’s business unit ATCO Energy Systems achieved YoY revenue growth, with an increase of CAD 103 million for FY24
  • For FY25, Canadian Utilities plans to invest CAD 1.5 billion, and expects capital expenditure will lead to significant earnings and cash flow growth

Canadian Utilities Ltd (TSX:CU) is a diversified global energy infrastructure company headquartered in Canada. It operates across three primary segments: Utilities, Energy Infrastructure, and Retail Energy.

In the financial year 2024 (FY24), Canadian Utilities reported a slight decline in revenue, totaling CAD 3,742 million, a decrease of 1.4% compared to CAD 3,796 million in FY23.  Total expenses, on the other hand, rose by 8.6% YoY, reaching CAD 2,759 million, driven by higher salaries, wages, and benefits, as well as an increase in other operational expenses.

As a result, operating profit fell by 20.1% YoY to CAD 1,056 million from CAD 1,321 million in the previous year. This decline was mainly due to the increased expenses and lower gains from derivative financial instruments, though earnings from joint ventures helped partially offset the losses. Consequently, the company's earnings for the year dropped by 31.5%, from CAD 717 million in FY23 to CAD 491 million in FY24.

On a positive note, the company achieved higher margins in FY24 compared to the industry median.

Recent Business Update

On 27-Feb-25, the company’s business unit ATCO Energy Systems reported revenue of CAD 828 million in the fourth quarter and CAD 3,071 million for the full year of 2024. These figures represent a YoY increase of CAD 28 million and CAD 103 million, respectively. The revenue growth was driven by the expansion of the Alberta regulated rate base and a rise in Return on Equity (ROE), following the 2023 Alberta Utilities Commission (AUC) decision.

Company Outlook

For FY25, the company plans to allocate CAD 1.5 billion towards investments. According to management, this capital expenditure is anticipated to generate substantial earnings and cash flows.

Top 10 Shareholders

The top 10 shareholders of CU collectively hold approximately 46.93% of the company's total shares. Among them, Atco Ltd and BMO Asset Management Inc. are the largest stakeholders, with holdings of around 37.26% and 3.31%, respectively.

Stock Information

In terms of recent performance, the stock has gained approximately 2.96% over the past month and 11.02% over the past three months. It is currently trading above the midpoint of its 52-week price range, which spans from CAD 29.15 (low) to CAD 38.87 (high), with a closing price of CAD 37.85 as of 28 April 2025.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is April 28 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.