Scotiabank expects solid round of fundamental updates from US utilities in Q2

Bank of Nova Scotia

21/07/2025 11:27

** Scotiabank expects strong fundamental updates during 2Q25 earnings season from U.S.-based utilities

** Expects updates on demand trends from large load customers, related positive commentary on capex outlooks, upbeat reactions to 'One Big Beautiful Bill' and optimistic thoughts on rate cases

** Brokerage does not expect any companies to update near-term or long-term forecast

** "And with the market at all-time highs and the 10-year Treasury yield at ~4.4%, 120 basis points above utility dividend yields, investor sentiment on the group seems to be lukewarm at best these days," Scotiabank says

** Brokerage expects massive capex update for Southern Co SO.N and bullish commentary on capex from WEC Energy WEC.N and CenterPoint Energy CNP.N

** Scotiabank remains positive overall, but is cautious that group may trade sideways during earnings season or longer depending on macro picture

 (; Editing by Shreya Biswas)

 ((shreya.biswas@thomsonreuters.com;))