ATCO (TSE:ACO.X) Posts Earnings Results

ATCO (TSE:ACO.X) posted its quarterly earnings data on Wednesday. The company reported C$1.01 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 Stock Performance

Shares of TSE ACO.X opened at C$78.31 on Thursday. The company has a quick ratio of 1.48, a current ratio of 1.42 and a debt-to-equity ratio of 131.63. The firm’s 50-day moving average price is C$73.48 and its two-hundred day moving average price is C$67.88. ATCO has a 52-week low of C$47.52 and a 52-week high of C$80.61. The stock has a market capitalization of C$7.91 billion, a P/E ratio of 56.34, a P/E/G ratio of 3.80 and a beta of 0.35.

Analysts Set New Price Targets

ACO.X has been the topic of a number of analyst reports. Scotiabank raised their target price on shares of ATCO from C$70.00 to C$79.00 and gave the stock a “sector perform” rating in a research report on Tuesday, July 21st. National Bank Financial raised their price target on shares of ATCO from C$62.00 to C$69.00 and gave the company a “sector perform” rating in a report on Monday, June 1st. Royal Bank Of Canada upped their target price on ATCO from C$66.00 to C$71.00 and gave the stock a “sector perform” rating in a research report on Thursday, May 7th. Canadian Imperial Bank of Commerce lifted their target price on ATCO from C$72.00 to C$82.00 in a research report on Monday, April 20th. Finally, Scotia upped their price target on shares of ATCO from C$67.00 to C$70.00 and gave the company a “sector perform” rating in a report on Thursday, May 7th. Five analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, ATCO has a consensus rating of “Hold” and an average price target of C$72.43.

ATCO Company Profile

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.