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

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

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 Price Performance

Shares of TSE:ACO.X opened at C$67.82 on Thursday. The firm’s 50 day moving average is C$67.35 and its two-hundred day moving average is C$60.29. ATCO has a 52 week low of C$47.52 and a 52 week high of C$72.37. The firm has a market capitalization of C$7.63 billion, a P/E ratio of 50.99, a PEG ratio of 3.80 and a beta of 0.46. The company has a current ratio of 1.42, a quick ratio of 1.48 and a debt-to-equity ratio of 131.63.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on ACO.X shares. Canadian Imperial Bank of Commerce increased their target price on ATCO from C$72.00 to C$82.00 in a research report on Monday, April 20th. Royal Bank Of Canada increased their target price on ATCO from C$59.00 to C$66.00 in a research report on Friday, February 27th. TD Securities increased their target price on ATCO from C$57.00 to C$67.00 and gave the stock a “hold” rating in a research report on Tuesday, March 3rd. Finally, BMO Capital Markets increased their target price on ATCO from C$63.00 to C$69.00 in a research report on Friday, February 27th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of C$66.50.

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.