ATCO (TSE:ACO.X) Posts Quarterly Earnings Results

ATCO (TSE:ACO.X) released its quarterly earnings data on Wednesday. The company reported C$1.01 earnings per share (EPS) for the quarter, FiscalAI reports. ATCO had a return on equity of 8.54% and a net margin of 8.16%.

Here are the key takeaways from ATCO’s conference call:

• Q2 adjusted earnings rose 13% year over year to CAD 114 million, or CAD 1.01 per share. Growth was driven by stronger ATCO Structures space-rental activity and Stibnite project earnings, while utility results also benefited from rate-base inflation indexing and higher Australian gas rates.
• ATCO Structures delivered CAD 36 million of adjusted earnings and its 16th consecutive quarter of year-over-year growth. Adjusted EBITDA increased 17% to CAD 82 million, while average global rental rates rose 10% to CAD 896 per month.
• Demand and backlog remain strong across the Structures business. The company secured CAD 169 million of contracts during the quarter across Canada, the U.S., and Australia, received an additional CAD 80 million in notices of award or limited notices to proceed, and reported backlogs extending into 2026 and 2027.
• Standalone ATCO operating cash flow increased nearly 70% year over year to CAD 122 million, providing additional flexibility to fund growth. Management also expects consistent earnings growth across the portfolio in the second half of 2026.
• Canada’s defense and Arctic infrastructure opportunity is potentially substantial, but contracting remains in the early stages and some government RFPs have been delayed. The announced defense spending is expected to unfold over roughly 10 years, meaning meaningful earnings contribution may take time to materialize.

ATCO Price Performance

TSE ACO.X opened at C$81.41 on Friday. ATCO has a 12 month low of C$47.52 and a 12 month high of C$81.41. The firm has a market capitalization of C$8.22 billion, a PE ratio of 58.57, a P/E/G ratio of 3.80 and a beta of 0.35. The company’s 50 day simple moving average is C$73.69 and its 200 day simple moving average is C$68.06. The company has a debt-to-equity ratio of 131.63, a current ratio of 1.42 and a quick ratio of 1.48.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Royal Bank Of Canada raised their target price on ATCO from C$71.00 to C$80.00 and gave the company a “sector perform” rating in a research note on Thursday. BMO Capital Markets upped their price target on shares of ATCO from C$72.00 to C$85.00 and gave the stock an “outperform” rating in a research report on Thursday. Scotiabank lifted their price objective on shares of ATCO from C$70.00 to C$79.00 and gave the company a “sector perform” rating in a research report on Tuesday, July 21st. National Bank Financial boosted their target price on shares of ATCO from C$62.00 to C$69.00 and gave the company a “sector perform” rating in a research note on Monday, June 1st. Finally, Canadian Imperial Bank of Commerce upped their target price on shares of ATCO from C$85.00 to C$88.00 in a research report on Thursday. One investment analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of C$76.86.

About ATCO

Atco Ltd is a Canadian holding company that offers gas, electric, and infrastructure solutions. The largest subsidiary of the company is Canadian utilities, which operates natural gas, electricity, and logistical services. Atco’s primary segments include Structures and Logistics; Utilities; Energy Infrastructure; Neltume Ports and Corporate and Other. It generates maximum revenue from the Utilities segment. Geographically, it derives most of its revenue from Canada.