EPCOR announces Q4 2025 quarterly results

Edmonton, Alberta - EPCOR Utilities Inc. (EPCOR) today filed its annual and fourth quarter results for 2025.

“EPCOR’s people delivered strong safety, operational and financial performance in 2025, and realized value from commercial growth opportunities,” said John Elford, EPCOR President and CEO. “We serve growing communities across North America and continue to see solid customer growth across our regulated water and electricity distribution utilities, as well as an evolving customer mix in our retail energy business. We continued to prioritize delivering value for our customers through strong reliability performance, exceptional customer satisfaction, and ongoing work to limit increases in operating costs per customer.”

“We are making growing investments to ensure utility infrastructure is safe, reliable and sustainable, and keeping pace with community growth and customer needs. In 2025, EPCOR invested nearly $1.2 billion in capital across our North American footprint, the second consecutive year we exceeded $1 billion in capital placement.”

“In November 2025, we announced that based on the current and expected performance of our business we are increasing the dividend to our shareholder, the City of Edmonton, from $201 million in 2025 to $206 million in 2026.”

Highlights of EPCOR’s financial performance are as follows:

• Net income was $147 million and $533 million for the three months and year ended December 31, 2025, respectively, compared with net income of $88 million and $427 million for the comparative periods in 2024, respectively. The increase of $59 million and $106 million for the three months and year ended December 31, 2025, respectively, was primarily due to the Project Blue Sky transfer fee, higher Adjusted EBITDA¹ and transmission system access service charge net collections, partially offset by income tax expenses, depreciation and amortization, other income and gain (loss) on disposals, finance expenses and fair value adjustments related to financial electricity purchase contracts.
• Adjusted EBITDA¹ was $297 million and $1,219 million for the three months and year ended December 31, 2025, respectively, compared with $287 million and $1,147 million for the comparative periods in 2024, respectively. The increase of $10 million and $72 million for the three months and year ended December 31, 2025, respectively, was primarily due to higher rates, customer growth, regulated electricity margins and commercial activity. These were partially offset by lower construction activity and higher operating costs. In addition, for the year ended December 31, 2025, there was higher consumption per customer, partially offset by higher staff costs.
• Investment in capital projects was $1,170 million for the year ended December 31, 2025, compared with $1,019 million for the corresponding period in 2024.

Management’s discussion and analysis and the audited consolidated financial statements are available on our website and SEDAR+.

EPCOR, through its wholly owned subsidiaries, builds, owns and operates electrical, natural gas and water transmission and distribution networks, water and wastewater treatment facilities, sanitary and stormwater systems, and infrastructure in Canada and the United States. The Company also provides electricity, natural gas and water products and services to residential and commercial customers. EPCOR, headquartered in Edmonton, is committed to conducting its business and operations safely and responsibly. Environmental stewardship, public health and community well-being are at the heart of EPCOR’s mission to provide clean water and safe, reliable energy. EPCOR is an Alberta Top 85 employer, is ranked among Corporate Knights’ 2025 Best 50 Corporate Citizens in Canada, and is designated a Utility of the Future Today by the Water Environment Federation.

^{1. Adjusted EBITDA is a non-GAAP financial measure.  See the Non-GAAP Financial Measures section in Appendix 1.}

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Appendix 1 Non-GAAP Financial Measures

We use earnings before the Project Blue Sky transfer fee, other income and gain (loss) on disposals, finance expenses, income tax recovery (expense), depreciation and amortization, changes in the fair value of derivative financial instruments, transmission system access service charge net collections and other unusual items (collectively, Adjusted EBITDA) to discuss operating results for EPCOR’s lines of business. We believe that Adjusted EBITDA provides an indicator of the Company’s ongoing ability to fund capital expenditures, to incur and service debt and to pay dividends to its shareholder and may be useful for external stakeholders in evaluating the operations and performance of the Company. Adjusted EBITDA is a non-GAAP financial measure and is not a standardized financial measure under IFRS and might not be comparable to similar financial measures disclosed by other issuers.

The reconciliation between Adjusted EBITDA to Net income as reported under IFRS Accounting Standards is shown below:

_{1. Commencing with the Company’s December 31, 2025 quarter-end, the Company refined its adjusted EBITDA to better reflect the purpose of the measure to exclude the Blue Sky transfer fee that is not reflective of recurring long-term performance of the Company’s underlying business. The 2024 comparative Adjusted EBITDA figure has been restated for this change to adjust $4 million in Project Blue Sky transfer fee.}

_{2. The change in fair value of derivative financial instruments represents the change in fair value of financial electricity purchase contracts between the electricity market forward prices and the contracted prices at the end of the reporting period, for the contracted volumes of electricity.}

_{3. Transmission system access service charge net collections is the difference between the transmission system access service charges paid to the provincial system operators and the transmission system access service charges collected from electricity retailers. Transmission system access service charge net collections are timing differences, which are collected from or returned to electricity retailers as the transmission system access service charges and customer billing determinants are finalized.}