Algonquin Power & Utilities Corp. Announces 2025 Third Quarter Financial Results

Executive Summary

• Algonquin Power & Utilities Corp. (AQN) reported financial results for the third quarter ended September 30, 2025, showing significant year-over-year growth in net earnings for its Regulated Services Group and overall adjusted net earnings.
• The company announced the appointment of Robert Stefani as Chief Financial Officer, effective January 5, 2026, marking a key leadership transition as the company focuses on becoming a "pure-play regulated utility."
• Operational highlights include a 61% increase in Regulated Services Group net earnings driven by approved rate implementations, favorable weather, and lower operating expenses, alongside progress in several regulatory proceedings.

Key Details

• Third Quarter 2025 Financial Results (Three Months Ended Sept 30, 2025):
  • AQN Net Earnings: $73.7 million (up 49% from $49.5 million in Q3 2024).
  • AQN Adjusted Net Earnings: $71.7 million (up 10% from $64.9 million in Q3 2024).
  • AQN Adjusted Net Earnings Per Share: $0.09 (up 13% from $0.08 in Q3 2024).
  • Dividends Per Share Declared: $0.0650 (unchanged from Q3 2024).
• Nine Months 2025 Financial Results (Nine Months Ended Sept 30, 2025):
  • AQN Net Earnings: $186.5 million (up 8% from $172.8 million in 2024).
  • AQN Adjusted Net Earnings: $219.5 million (up 18% from $186.8 million in 2024).
  • AQN Adjusted Net Earnings Per Share: $0.28 (up 12% from $0.25 in 2024).
• Segment Performance (Q3 2025 vs Q3 2024):
  • Regulated Services Group Net Earnings: $104.1 million (up 61% from $64.8 million). Drivers included approved rate implementations, favorable weather at Empire Electric System, lower operating expenses, decreased interest expenses, and a one-time depreciation adjustment at EnergyNorth Gas System.
  • Hydro Group Net Earnings: $3.3 million (down 11% from $3.7 million).
  • Corporate Group Net Earnings: $(33.7) million (down 77% loss from $(19.0) million). The negative impact was primarily due to the sale of the ownership stake in Atlantica Sustainable Infrastructure plc in Q4 2024 and the loss of related dividends, partially offset by interest expense reductions from debt repayment using Atlantica sale proceeds.
• Regulatory Progress:
  • EnergyNorth Gas: Approved settlement agreement reached.
  • CalPeco Electric: Proposed settlement agreement reached.
  • Empire Electric: Non-unanimous stipulation agreement reached; Missouri Commission requested amendments to incorporate customer satisfaction performance metrics.
• Leadership Changes:
  • Robert Stefani appointed as Chief Financial Officer, effective January 5, 2026. He joins from Southwest Gas Holdings (NYSE: SWX), where he served as Senior Vice President and CFO.
  • Brian Chin will continue as Interim CFO and VP of Investor Relations to assist with the transition.

Notable Quotes

• “We are pleased to report a solid third quarter with year-over-year improvements across key financial metrics and meaningful progress in several regulatory proceedings," said Rod West, Chief Executive Officer of AQN. "These results underscore the impacts of our continued focus on disciplined cost management and operational excellence. As we look ahead, we remain steadfast in executing our strategy to become a premium, pure-play regulated utility, delivering sustainable, long-term value for our customers, communities and shareholders."