ATCO REPORTS SECOND QUARTER 2025 EARNINGS
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Second quarter 2025 earnings attributable to Class I and Class II Shares reported in accordance with International Financial Reporting Standards (IFRS earnings) were $64 million ($0.57 per share) compared to $52 million ($0.46 per share) in the second quarter of 2024.
ATCO Structures
ATCO Structures continued growing its market presence through organic strategic initiatives and investment in the base business, including the addition of a new manufacturing facility in Australia. The below awards illustrate the diversity of geographies and industries that ATCO Structures services:
Awarded three contracts to provide space rental, workforce housing, and permanent modular construction solutions supporting mining operations in Western Canada, air transportation in Central Canada, and for a women's transitional centre in Northern Canada. These awards total $21 million and include sale and lease contracts.
Awarded a Multiple Award Schedule contract by the US General Services Administration (GSA), enabling the sale of products and services to the US government directly through the GSA. Projects previously executed through GSA-certified contractors can now be bid on by and awarded directly to ATCO Structures.
Awarded three contracts in the US to provide space rental solutions, including highly-customized special- purpose complexes supporting traditional and nuclear power generation, and lithium mining operations. These awards comprise 85 modular units and total $19 million.
Awarded a $22 million contract to relocate accommodations, central facilities, supporting infrastructure and equipment from a mine site to expand an existing accommodation camp, both located in the Pilbara region of Western Australia. The contract also includes provision for newly manufactured facilities that will be tied into existing services. This is the second award related to the relocation and expansion of this camp, bringing the total value of works awarded to $34 million.
Canadian Utilities
Canadian Utilities invested $382 million of capital expenditures in the second quarter of 2025, of which 95 per cent was invested in our regulated utilities in ATCO Energy Systems and ATCO Australia, with the remaining 5 per cent largely invested in ATCO EnPower.
ATCO Energy Systems continues to work on many utility infrastructure opportunities, including two previously announced projects: the Yellowhead Pipeline Project (Yellowhead) in Natural Gas Transmission and the Central East Transfer-Out Project (CETO) in Electricity Transmission.
Yellowhead is on track for construction to commence in 2026, subject to Alberta Utilities Commission (AUC) and corporate approvals. The expected $2.8 billion project continues to advance on-going stakeholder consultation, land acquisition, long-lead pipeline materials procurement, and design work in anticipation of the needs application decision from the AUC that is expected in the third quarter of 2025. In addition, we continue to pursue equity partnership arrangements with Indigenous partners.
Electricity Transmission began construction of CETO in the third quarter of 2024, and has progressed substation tendering for civil, structural and electrical works and expects to begin fall season construction in the third quarter of 2025. Electricity Transmission's 85-km of the transmission line are on track to be energized by June 2026 with an approximate $280 million expected project spend. CETO will support renewable energy integration in Alberta and transport electricity in the counties of Red Deer, Lacombe and Stettler, supplying more than 1,500 megawatts of electricity to Alberta's grid.
ATCO EnPower continues to see favourable market conditions for natural gas storage operations which supports its long-term revenue growth strategy. The $169 million of revenues in the first six months of 2025, an increase of $9 million compared to the same period in 2024, underlines the strength in our natural gas and natural gas liquids storage assets.
Corporate
On July 10, 2025, ATCO declared a third quarter dividend of 50.45 cents per share or $2.02 per Class I non-voting and Class II voting share on an annualized basis.
This news release should be read in concert with the full disclosure documents. ATCO's unaudited interim consolidated financial statements and management's discussion and analysis for the quarter ended June 30, 2025 will be available on the ATCO website (www.ATCO.com), via SEDAR+ (www.sedarplus.ca) or can be requested from the Company.
TELECONFERENCE AND WEBCAST
ATCO will hold a live teleconference and webcast with Katie Patrick, Executive Vice President, Chief Financial & Investment Officer and Adam Beattie, President, Structures at 10:00 am Mountain Time (12:00 pm Eastern Time) on Thursday, July 31, 2025 at 1-833-821-0222. No pass code is required.
Opening remarks will be followed by a question and answer period with investment analysts. Participants are asked to please dial-in 10 minutes prior to the start and request to join the ATCO teleconference.
Management invites interested parties to listen via live webcast at: https://www.atco.com/en-ca/about-us/investors/events-presentations.html.
A replay of the teleconference will be available approximately two hours after the conclusion of the call until August 31, 2025. Please call 1-855-669-9658 and enter pass code 2903671.
As a global enterprise, ATCO Ltd. and its subsidiary and affiliate companies have approximately 21,000 employees and assets of $27 billion. ATCO is committed to future prosperity by working to meet the world's essential energy, housing, security and transportation challenges. ATCO Structures designs, builds and delivers products to service the essential need for housing and shelter around the globe. ATCO Frontec provides operational support services to government, defence and commercial clients. ATCO Energy Systems delivers essential energy for an evolving world through its electricity and natural gas transmission and distribution, and international electricity operations. ATCO EnPower creates sustainable energy solutions in the areas of electricity generation, energy storage, industrial water and cleaner fuels. ATCO Australia develops, builds, owns and operates energy and infrastructure assets. ATCO Energy provides retail electricity and natural gas services, home maintenance services and professional home advice that bring exceptional comfort, peace of mind and freedom to homeowners and customers. ATCO also has investments in ports and transportation logistics, the processing and marketing of ash, retail food services and commercial real estate. More information can be found at www.ATCO.com.
Investor & Analyst Inquiries:
Colin Jackson
Senior Vice President, Financial Operations
[email protected]
(403) 808 2636
Media Inquiries:
Kurt Kadatz
Director, Corporate Communications
[email protected]
(587) 228 4571
Subscription Inquiries:
To receive ATCO Ltd. news releases, please click here.
Other Financial and Non-GAAP Measures Advisory
Adjusted Earnings
Consolidated adjusted earnings is a "total of segments measure", as defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). The most directly comparable measure to adjusted earnings reported in accordance with IFRS is "earnings attributable to Class I non-voting and Class II voting shares". IFRS earnings include timing adjustments related to rate-regulated activities, unrealized gains or losses on mark-to-market forward and swap commodity contracts, one-time gains and losses, impairments, and items that are not in the normal course of business or a result of day-to-day operations. These items are not included in adjusted earnings. A reconciliation of adjusted earnings to earnings attributable to Class I non-voting and Class II voting shares is provided below.
(1)
In the second quarter and first six months of 2025, the Company recorded restructuring costs of nil and $8 million (after-tax and non-controlling interests) mainly related to staff reductions and associated severance costs. As these costs are not in the normal course of business, they have been excluded from adjusted earnings.
(2)
In the second quarter and first six months of 2025, the Company recognized IT transition costs of $3 million (after-tax and non-controlling interests) and $8 million (after-tax and non-controlling interests). The transition costs were primarily related to activities to shift the managed IT services from a single-vendor service provider to a hybrid model of multiple new vendors and internal teams. As these costs are not in the normal course of business, they have been excluded from adjusted earnings.
(3)
The Company's electricity generation and retail electricity and natural gas businesses in Alberta enter into fixed-price swap commodity contracts to manage exposure to electricity and natural gas prices and volumes. These contracts are measured at fair value. Unrealized gains and losses due to changes in the fair value of the fixed-price swap commodity contracts in the electricity generation and electricity and natural gas retail businesses are recognized in the earnings of the ATCO EnPower segment and ATCO Investments segment, respectively. Realized gains or losses are recognized in adjusted earnings when the commodity contracts are settled.
(4)
The Company records significant timing adjustments as a result of the differences between rate-regulated accounting and IFRS with respect to additional revenues billed in the current year, revenues to be billed in future years, regulatory decisions received, and settlement of regulatory decisions and other items.
(5)
Consistent with the treatment of the gain on sale in 2014 from the IT services business by the Company, financial impacts associated with the IT Common Matters decision are excluded from adjusted earnings.
(6)
In the second quarter of 2024, the Company recorded a $4 million (after-tax and non-controlling interests) reduction to earnings related to an AUC enforcement decision on two historical matters the Electric Transmission business had self-reported to AUC Enforcement staff.
Forward-Looking Information Advisory
Certain statements contained in this news release constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", "goals", "targets", "strategy", "future", and similar expressions. In particular, forward-looking information in this news release includes, but is not limited to, references to: growth and expansion plans and opportunities; the expected value, timing and term of contracts; the expected timing of commencement, completion or commercial operations of activities, contracts and projects, including ATCO Structures' various projects; ATCO Energy Systems' continued work on many utility infrastructure opportunities, including Yellowhead and CETO; expectations regarding Yellowhead, including the anticipated timing for commencement of construction, the anticipated total investment in the project, the anticipated timing for the needs application decision from the AUC, and our pursuit of equity partnership arrangements with Indigenous partners; the anticipated size, capacity and benefits of CETO, the anticipated timing for fall season construction and energization of the project, and the anticipated total investment in the project; expectations regarding favourable market conditions for natural gas storage operations for ATCO EnPower, which supports its long-term revenue growth strategy; and the payment of dividends.
Although the Company believes that the expectations reflected in the forward-looking information are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors, which may cause actual results, levels of activity, and achievements to differ materially from those anticipated in such forward-looking information. The forward-looking information reflects the Company's beliefs and assumptions with respect to, among other things: the applicability and stability of legal and regulatory requirements in the jurisdictions in which we invest and/or operate; the payment of fees owing pursuant to applicable contracts; certain regulatory applications being made and approved in 2025; the development and performance of technology and technological innovations; continuing collaboration with certain business partners, and regulatory and environmental groups; the performance of assets and equipment; the ability to meet current project schedules, and other assumptions inherent in management's expectations in respect of the forward-looking information identified herein.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of, among other things: risks inherent in the performance of assets; capital efficiencies and cost savings; applicable laws and regulations and the interpretation and manner of enforcement of such laws and regulations; changes to government policies; regulatory decisions; competitive factors in the industries in which the Company operates; evolving market or economic conditions; credit risk; interest rate fluctuations; the availability and cost of labour, materials, services, and infrastructure; future demand for resources; the development and execution of projects; prices of electricity, natural gas, natural gas liquids, and renewable energy; the development and performance of technology and new energy efficient products, services, and programs including but not limited to the use of zero-emission and renewable fuels, carbon capture, and storage, electrification of equipment powered by zero-emission energy sources and utilization and availability of carbon offsets; potential cancellation, termination, default, non-compliance, or breach of contract by contract counterparties; the risk that payments owed may not be collected or received in a timely manner, or at all; risks associated with potential litigation proceedings; potential damage to our brand and/or reputation that may result from a failure to perform, or from factors outside of our control, or negative publicity related to significant projects, investments, operations or activities; the risk of operational disruptions, outages, or force majeure events; the occurrence of unexpected events such as fires, extreme weather conditions, explosions, blow-outs, equipment failures, transportation incidents, and other accidents or similar events; global pandemics; the imposition of or changes to customs duties, tariffs or other trade restrictions; geopolitical tensions and wars; and other risk factors, many of which are beyond the control of the Company. Due to the interdependencies and correlation of these factors, the impact of any one material assumption or risk on a forward-looking statement cannot be determined with certainty. Readers are cautioned that the foregoing lists are not exhaustive. For additional information about the principal risks that the Company faces, see "Business Risks and Risk Management" in the Company's Management's Discussion and Analysis for the year ended December 31, 2024.
Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
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For a reconciliation of Cash Operating Costs, EBITDA, and Adjusted EBITDA to the Consolidated Financial Statements, please refer to the tables below. Cash Operating Costs measures total operating expenses excluding stock-based compensation expense, depreciation and amortization, impairment losses or recoveries on trade receivables, restructuring charges, acquisition related costs, the impact of unrealized gains or losses on foreign exchange contracts, and financing charges. EBITDA measures net loss excluding finance expense, income taxes, depreciation of property, plant and equipment, and amortization of intangible assets. Adjusted EBITDA adjusts EBITDA for stock-based compensation expense, transactional gains and losses, acquisition related costs, finance and other income, recovery on settlement of contingent consideration, asset impairment charges, and the impact of unrealized gains or losses on foreign exchange contracts. 2 Total Operating Expenses refer to the measure reported in accordance with IFRS. 3 Capital Expenditure is defined as Additions to property, plant and equipment and Investment in other intangible assets as disclosed in the Consolidated Statements of Cash Flows. 4 We report our results in the single operating segment of Fuel Cell Products and Services. Our Fuel Cell Products and Services segment consists of the sale of PEM fuel cell products and services for a variety of applications including Heavy-Duty Mobility (consisting of bus, truck, rail, and marine applications), Stationary Power, and Emerging and Other Markets (consisting of material handling, off-road, and other applications). Revenues from the delivery of Services, including technology solutions, after sales services and training, are included in each of the respective markets. (Expressed in thousands of U.S. dollars) Three months ended June 30, Cash Operating Costs 2025 2024 $ Change Total Operating Expenses $ 31,705 $ 36,228 $ (4,523) Stock-based compensation expense (2,289) (2,568) 279 Impairment recovery (losses) on trade receivables (491) (21) (470) Acquisition related costs - - - Restructuring and related (costs) recovery (5,851) (161) (5,690) Impact of unrealized gains (losses) on foreign exchange contracts 249 (126) 375 Depreciation and amortization (659) (2,436) 1,777 Cash Operating Costs $ 22,664 $ 30,916 $ (8,252) (Expressed in thousands of U.S. dollars) Three months ended June 30, EBITDA and Adjusted EBITDA 2025 2024 $ Change Net loss from continuing operations $ (24,280) $ (31,463) $ 7,183 Depreciation and amortization 963 3,749 (2,786) Finance expense 495 590 (95) Income taxes (recovery) 24 68 (44) EBITDA $ (22,798) $ (27,056) $ 4,258 Stock-based compensation expense 2,289 2,568 (279) Acquisition related costs - - - Finance and other (income) loss (10,819) (11,015) 196 Impairment charge on property, plant and equipment 939 - 939 Gain on sale of property, plant and equipment (3) - (3) Impact of unrealized (gains) losses on foreign exchange contracts (249) 126 (375) Adjusted EBITDA $ (30,641) $ (35,377) $ 4,736 SOURCE Ballard Power Systems Inc.
Cision Canada
7 hours ago
- Cision Canada
GEODRILL ANNOUNCES SECOND QUARTER 2025 FINANCIAL RESULTS
TORONTO, Aug. 11, 2025 /CNW/ - Geodrill Limited ("Geodrill" or the "Company") (TSX: GEO) (OTCQX: GEODF), a leading West African based drilling company, reported its financial results for the three and six month period ended June 30, 2025. All figures are reported in U.S. dollars ($), unless otherwise indicated. Geodrill's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). Financial Overview Q2-2025: Achieved highest-ever quarterly revenue of $50.4M, a 22% increase compared to Q2-2024; Delivered record EBITDA of $13.9M, or 28% of revenue, an increase of 31% compared to Q2-2024; Generated net income of $5.3M, or $0.11 per share, compared to $4.8M, or $0.10 per share for Q2-2024; Reported other gain of US$1.6M from listed equity investments; Continued to strengthen the balance sheet, achieving Total Equity of $130.3M; Increased the total rig fleet to 99 rigs; and Ended the quarter with net cash of $4.4M (excluding lease liabilities). Operational and Strategic Q2-2025: Accelerating revenue arising from robust demand for drilling services; West Africa and Egypt continue to show strong demand, reflecting the Company's momentum in the region; Strengthened presence in South America by adding 5 rigs in Chile in advance of a significant multi-phase contract commencing in Q3-2025; and Benefited from continued strength in global gold exploration, supported by elevated gold prices averaging US$3,280. Robust gold and copper prices continue to drive momentum in drilling service demand; and Our bidding pipeline remains highly active, signaling sustained industry interest and opportunity. Financial Summary US$ 000s (except earnings per share and percentages) For the three months ended June 30, 2025 For the three months ended June 30, 2024 For the six months ended June 30, 2025 For the six months ended June 30, 2024 Revenue $50,350 $41,176 $99,102 $75,843 Gross profit $11,949 $12,721 $25,501 $20,165 Gross profit margin 24 % 31 % 26 % 27 % EBITDA (1)(2) $13,941 $10,664 $27,511 $17,328 EBITDA margin 28 % 26 % 28 % 23 % Net Income $5,328 $4,838 $10,900 $6,952 Earnings per share - basic $0.11 $0.10 $0.23 $0.15 Notes: (1) EBITDA = earnings before interest, taxes, depreciation and amortization (2) Please see " Non-IFRS Measures" below for additional discussion "This quarter, Geodrill achieved a new quarterly revenue record, underscoring the success of our operational model and our commitment to exceed our customer's expectations. Through continued substantial investments in our rig fleet, combined with our over 25 years of industry experience, we have successfully expanded our customer base and secured significant contracts that led to record quarterly revenue and EBITDA. With gold prices remaining high and strong global demand for exploration drilling, the market conditions have boosted the impact of our strategic decisions to focus on primary markets and align capacity with client needs," said Greg Borsk, Chief Financial Officer. "Our results this quarter reflect more than just strong numbers— they demonstrate an outstanding performance. As demand for high-quality drilling solutions accelerates, we are broadening our geographic reach beyond West Africa, and positioning Geodrill to capitalize on emerging growth opportunities in key resource regions. This momentum fuels our long-term vision of delivering exceptional growth and industry-leading service. Additionally, achieving record shareholder equity reflects our unwavering commitment to sustainable growth, disciplined capital management, and long-term value creation. Geodrill continues to demonstrate solid operational efficiency and prudent reinvestment of earnings. These metrics highlight our resilient balance sheet and our ability to deploy capital strategically, ensuring that shareholder value is consistently enhanced over time," stated Dave Harper, President and Chief Executive Officer. Q2 2025 Conference Call Information Conference Call Replay The conference call replay will be available from 12:00 p.m. ET on August 18, 2025 until 11:59 p.m. ET. About Geodrill Limited Geodrill has been successful in establishing a leading market position in Ghana and Cote d'Ivoire. The Company also operates in other African jurisdictions including Egypt and Senegal and is expanding its geographic presence in the South America countries of Chile and Peru. With the large fleet of multi-purpose rigs, Geodrill provides a broad selection of diverse drilling services, including exploration, delineation, underground and grade control drilling, to meet the specific needs of its clients. The Company's client mix is made up of senior mining, intermediate and junior exploration companies. Geodrill has 47,163,170 common shares outstanding. For more information: Non-IFRS Measures EBITDA is defined as Earnings before Interest, Taxes, Depreciation and Amortization and is used as a measure of financial performance. The Company believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the industry. However, EBITDA is not a measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. EBITDA should not be viewed in isolation and does not purport to be an alternative to net income or gross profit as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. EBITDA does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, and EBITDA should not be construed as an alternative to other financial measures determined in accordance with IFRS. Additionally, EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as capital expenditures, contractual commitments, interest payments, tax payments and debt service requirements. Please see the Company's MD&A for the three month and six month period ended June 30, 2025 for the EBITDA reconciliation. Forward Looking Information This press release may contain "forward-looking information" which may include, but is not limited to the future financial or operating performance of the Company, its subsidiaries, future growth, results of operations, performance, business prospects and opportunities. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release including, without limitation those described in the Management's Discussion & Analysis for the quarter ended June 30, 2025 and the Company's Annual Information Form dated March 26, 2025 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking statements, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information and forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or otherwise, except as required by law.
