ATCO (TSE:ACO.X) Posts Earnings Results

ATCO (TSE:ACO.X) announced its quarterly earnings results on Wednesday. The company reported C$1.47 earnings per share for the quarter, FiscalAI reports. ATCO had a return on equity of 8.54% and a net margin of 8.16%.The company had revenue of C$1.43 billion during the quarter.

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

• Q1 2026 adjusted earnings were CAD 165 million (CAD 1.47/share), up 3% year‑over‑year and reported as in line with management expectations.
• Canadian Utilities contributed CAD 127 million of adjusted earnings (up CAD 5 million YoY), driven by rate‑base growth at ATCO Energy Systems and higher rates/CPI adjustments at ATCO Gas Australia, with management expecting full‑year utility earnings growth.
• ATCO Structures & Logistics delivered CAD 28 million of adjusted earnings (4% YoY), with a 5% larger rental fleet, a 7% increase in average rental rate to CAD 863/month, CAD 65 million of adjusted EBITDA (+5%), CAD 113 million of Q1 project awards, and ongoing progress on the 1,000‑person Stibnite accommodation village (~one‑third of units manufactured).
• Management is pursuing a long‑dated Arctic/defense strategy—highlighting CAD 35 billion of federal Arctic/defense spending, 73 Indigenous partnerships, and a CAD 10 million (40%) stake in West Kitikmeot Resources to advance the Grays Bay Road & Port project—but expects returns to materialize over an extended timeframe.
• Management asserts that ATCO Structures is undervalued by over CAD 2 billion on a sum‑of‑the‑parts basis, a company perspective that could imply upside if market re‑rating occurs.

ATCO Stock Performance

ACO.X stock traded down C$0.72 during trading on Wednesday, reaching C$67.82. 219,899 shares of the stock were exchanged, compared to its average volume of 239,878. ATCO has a twelve month low of C$47.52 and a twelve month high of C$72.37. The company has a market capitalization of C$7.63 billion, a P/E ratio of 50.99, a price-to-earnings-growth ratio of 3.80 and a beta of 0.46. The stock has a 50 day simple moving average of C$67.28 and a 200-day simple moving average of C$60.19. The company has a current ratio of 1.42, a quick ratio of 1.48 and a debt-to-equity ratio of 131.63.

Analyst Upgrades and Downgrades

ACO.X has been the topic of a number of recent analyst reports. BMO Capital Markets lifted their price objective on ATCO from C$63.00 to C$69.00 in a research note on Friday, February 27th. Royal Bank Of Canada lifted their price objective on ATCO from C$59.00 to C$66.00 in a research note on Friday, February 27th. Canadian Imperial Bank of Commerce upped their price target on ATCO from C$72.00 to C$82.00 in a report on Monday, April 20th. Finally, TD Securities upped their price target on ATCO from C$57.00 to C$67.00 and gave the stock a “hold” rating in a report on Tuesday, March 3rd. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of C$66.50.

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.