EPCOR Profits Surge on Asset Sale, Fueling Record Infrastructure Investment

EDMONTON, AB – February 26, 2026 – EPCOR Utilities Inc. announced a banner year for 2025, reporting a significant surge in net income and its second consecutive year of capital investment exceeding one billion dollars. The strong performance, bolstered by a major asset sale and steady customer growth, will also result in an increased dividend payment to its sole shareholder, the City of Edmonton.

The Edmonton-headquartered utility filed its annual results today, revealing a net income of $533 million for the year ended December 31, 2025. This marks a substantial 25% increase from the $427 million reported in 2024. The company's operational performance also remained robust, with Adjusted EBITDA—a key measure of ongoing profitability—rising to $1.219 billion from $1.147 billion the previous year.

"EPCOR's people delivered strong safety, operational and financial performance in 2025, and realized value from commercial growth opportunities," said John Elford, EPCOR President and CEO, in a statement accompanying the results.

Decoding the Financial Surge

A closer look at the financial statements reveals that the impressive jump in net income was significantly influenced by a one-time event: an $84 million transfer fee related to 'Project Blue Sky'. Research confirms this fee stems from the strategic divestiture of the Blue Sky Water Reclamation Facility, which was transferred to Samsung Austin Semiconductor in late 2025. This move is part of EPCOR's broader strategy of "recycling capital" from mature assets into new growth opportunities across its North American footprint.

While the asset sale provided a substantial one-time boost, the company's core operations also demonstrated healthy growth. The $72 million year-over-year increase in Adjusted EBITDA was driven by a combination of higher rates, strong customer growth across its regulated water and electricity utilities, and favorable regulated electricity margins. This underlying performance indicates a solid foundation beyond the headline-grabbing asset transfer.

"We serve growing communities across North America and continue to see solid customer growth across our regulated water and electricity distribution utilities, as well as an evolving customer mix in our retail energy business," Elford noted, highlighting the fundamental drivers of the company's success.

However, the growth was not without its challenges. The gains were partially offset by increased operating and staff costs, as well as lower construction activity compared to the previous year. These factors underscore the complex environment utilities navigate, balancing growth-driven revenue with the rising costs of doing business.

A Billion-Dollar Bet on Growth

For the second year in a row, EPCOR has committed over a billion dollars to its infrastructure, investing a record $1.17 billion in capital projects during 2025. This figure is up from an already substantial $1.019 billion in 2024 and signals a determined push to modernize and expand its networks.

These investments are not concentrated in one area but are spread across the company's vast operational map, which spans Canada and the United States. The capital is being deployed to ensure the safety and reliability of electrical grids, water and wastewater treatment facilities, and distribution networks. This includes upgrading aging infrastructure and building new capacity to keep pace with population and economic growth in the communities it serves.

"We are making growing investments to ensure utility infrastructure is safe, reliable and sustainable, and keeping pace with community growth and customer needs," Elford stated. The nearly $1.2 billion investment, he added, represents the company's commitment to its customers and its long-term vision. This level of capital intensity is characteristic of the utility sector, which requires constant reinvestment to maintain service standards and meet evolving regulatory and environmental requirements.

Edmonton's Dividend Windfall

As a wholly-owned subsidiary of the City of Edmonton, EPCOR's financial success translates directly into a significant revenue stream for the municipality. Citing the strong performance in 2025 and a positive outlook, the company announced it will increase its annual dividend to the city to $206 million for 2026. This is a $5 million increase from the $201 million dividend paid in 2025.

This latest increase continues a trend of steadily growing returns for the city. The annual dividend has climbed by over 20% since 2021, providing a reliable and expanding source of funding that the city can use for public services, infrastructure projects, or to help stabilize municipal tax rates.

The long-term value of this ownership model is striking. Since its inception as a municipal corporation in 1996, EPCOR's dividend payments to the City of Edmonton are projected to reach a cumulative total of $4.17 billion by the end of 2026. This enduring financial relationship highlights the significant benefits a municipality can derive from owning a profitable, well-managed utility, turning essential services into a powerful engine for public good.

Navigating a Dynamic Utility Landscape

An analysis of EPCOR's segmented results shows broad-based strength. The Water Services segment remains the largest contributor to earnings, with its Adjusted EBITDA growing from $488 million to $519 million. The Energy Services segment saw a dramatic near-doubling of its earnings, jumping from $54 million to $105 million, reflecting strong commercial activity. The U.S. Regulated Water segment also posted solid results, contributing $204 million.

This diversified portfolio of assets and services across different geographic and regulatory environments provides a degree of stability and resilience. The company's focus on operational excellence was also highlighted by Elford, who emphasized the ongoing efforts to deliver value to customers.

"We continued to prioritize delivering value for our customers through strong reliability performance, exceptional customer satisfaction, and ongoing work to limit increases in operating costs per customer," he said. This focus on efficiency and customer service is crucial as the utility navigates the dual pressures of funding massive capital projects while managing affordability for its residential and commercial clients. The company's performance in 2025 demonstrates a successful balancing act between investing for the future, managing current operations, and delivering substantial value back to its owner and the communities it serves.