In This Article:
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Adjusted Earnings: $481 million, an increase of $49 million and over 11% higher than the previous year.
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Canadian Utilities ROE: Increased from 8.5% in 2023 to 9.28% in 2024.
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Structures & Logistics Adjusted Earnings: $14 million higher compared to the prior year.
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Neltume Ports Adjusted Earnings: $2 million higher compared to the prior year.
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Cash Flow from Operating Activities: $280 million in 2024, up over 50% from the prior year.
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ATCO Structures Adjusted Earnings: $108 million, marking the tenth consecutive quarter of year-over-year growth.
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Global Space Rentals Fleet Size: Increased by 53% to over 25,000 units.
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Average Rental Rate Growth: Over 38% increase.
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New Operating Locations: Five new locations established across Canada and the US.
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NRB Modular Solutions Acquisition: Integrated into Canadian modular operations, enhancing manufacturing capabilities.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Atco Ltd (ACLLF) achieved adjusted earnings of $481 million in 2024, marking an 11% increase from the previous year.
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The company reported a significant increase in cash flow from operating activities, up over 50% from the prior year, driven by efficiencies and strategic reporting changes.
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ATCO Structures delivered strong growth with adjusted earnings of $108 million, marking ten consecutive quarters of year-over-year growth.
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The acquisition of NRB Modular Solutions has expanded ATCO Structures' capabilities and market reach in Canada.
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Neltume Ports continues to be a stable source of earnings and dividends, with plans for growth through capital deployment and new investments.
Negative Points
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The allowable ROE for Alberta utilities will decrease from 9.28% in 2024 to 8.97% in 2025, potentially moderating growth.
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The efficiency carryover mechanism that contributed to growth in 2023 and 2024 will end, impacting future growth prospects.
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ATCO Frontec faced challenges with negative earnings, partly due to inflationary pressures affecting margins.
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The market is undervaluing ATCO Structures, trading at a significant discount compared to North American peers.
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Uncertainty around tariffs could impact decision-making and contract security in certain markets, although the direct impact on ATCO is muted.
Q & A Highlights
Q: Can you provide more details on the residential housing opportunity and its potential growth? A: Adam Beattie, President of ATCO Structures, explained that Triple M is a significant modular single-family housing provider in Western Canada. The opportunity expands with NRB, which has delivered multifamily projects across Canada. While it's not the majority of their business, it's a significant portion of their sales activity. They see potential for further opportunities in Canada and other countries.