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

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