EPCOR announces Q2 2026 quarterly results

EDMONTON, AB – EPCOR Utilities Inc. (EPCOR) today filed its quarterly results for the period ended June 30, 2026.

“EPCOR’s financial performance was in line with expectations in the first half of 2026,” said John Elford, EPCOR President & CEO. “Second quarter results continued to demonstrate the value of EPCOR’s geographic diversification strategy. Financial results reflect lower per customer water consumption in Edmonton due in part to record-setting rainfall, partly offset by higher water consumption in our U.S. operations driven by warm weather and customer growth.”

“The greater impacts from the record-setting rainfall in Edmonton were operational, as our teams repeatedly mobilized at scale to support our customers by responding to stormwater issues, beginning long-term term restoration in areas significantly impacted by the rainfall, and continuing to deliver high-quality drinking water despite challenging raw water conditions in the river.”

“Our teams reached a record level of capital expenditure – investing $633 million in the first six months of 2026, a 34% increase over the prior year. Our investment remains focused on sustaining the reliability of water and electricity systems and supporting existing and future community growth.”

Highlights of EPCOR’s financial performance are as follows:

• Net income was $111 million and $219 million for the three and six months ended June 30, 2026, compared with net income of $151 million and $254 million for the comparative periods in 2025, respectively. The decrease of $40 million and $35 million for the three and six months ended June 30, 2026, respectively, was primarily due to fair value adjustments related to financial electricity purchase contracts and higher depreciation, partially offset by lower income tax expense. Additionally, for the three months ended June 30, 2026, there was lower Adjusted EBITDA¹ and for the six months ended June 30, 2026, there was lower transmission system access service charge net collections.
  
• Adjusted EBITDA¹ was $297 million and $600 million for the three and six months ended June 30, 2026, compared with $311 million and $600 million for the comparative periods in 2025, respectively. The decrease of $14 million for the three months ended June 30, 2026, was primarily due to lower construction activity driven by driven by the Samsung projects, higher operating and staff costs, partially offset by higher rates and customer growth. Adjusted EBITDA¹ for the six months ended June 30, 2026 was consistent with the comparative period in 2025 as the impacts of lower construction activity driven by the Samsung projects and higher operating and staff costs were offset by higher rates and customer growth.
• Investment in capital projects was $633 million for the six months ended June 30, 2026, compared with $472 million for the corresponding period in 2025. The projected cash requirements for capital expenditures in 2026 are estimated to be at the upper end of our annual guidance range of $1,180 million and $1,460 million.

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

EPCOR builds, owns and operates water, electrical, natural gas transmission and distribution networks, water and wastewater treatment facilities, sanitary and stormwater systems in North America. EPCOR also provides water, electricity and natural gas 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.

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

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Appe​​ndix 1 Non-GAAP Financial Measures 

We use earnings before 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. 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.}

_{2. 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.}