Lakeland reports stable Q2 performance following reduced dividend for Huntsville

The utility is owned by area municipalities

Huntsville Council received an update on Lakeland Holding Limited’s financial performance, in the September 30, 2026, Council meeting.

Staff reported stable financial performance as the company continues rebuilding reserves following the impacts of the 2025 drought, according to a second-quarter shareholder update.

The municipally owned company reduced its 2026 dividend by half earlier this year to help replenish its generation reserves. Staff told Council the dividend payment is expected to remain at approximately half the amount municipalities had previously anticipated.

Mayor Nancy Alcock referred to a recent meeting with Lakeland's board, saying, "It wasn't exactly what we wanted to hear."

However, CAO Denise Corry said the Q2 report indicates the company is "recovering steady at this time," adding its businesses remain sound and strong with a focus on long-term value.

According to the staff report, Lakeland's consolidated Q2 results show its business units generally performing in line with budget expectations, with costs remaining below budget and the overall consolidated budget expected to be achieved. The company invested approximately $4 million in capital improvements and expansion during the first half of 2026.

It adds that Lakeland also sold its 50 per cent ownership in the Chute Blanche generation facility to help restore the generation division's cash reserve following the drought.

Other business areas reported growth. Lakeland Networks increased its fibre subscribers to 9,288, with net new customers up 37 per cent over the previous year. Bracebridge Generation reached 105 per cent of its year-to-date budget despite variable watershed conditions, while Lakeland's electric vehicle charging network reported usage significantly above budget.

The Q2 update identified no additional dividend reductions beyond those already communicated.

Alcock noted the recent discussion around "the air of caution,” and as “putting that err on the backs of the municipality." She added, “They’d like to be in a position in June to say they will go back to the original payout.”

Council also discussed what could happen if Lakeland's reserves do not recover as anticipated and the potential need for longer-term planning.

Staff indicated another update is expected around the beginning of the municipal budget process, which should give the Town a clearer indication of what dividend revenue to anticipate.