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

Executive Summary

• Algonquin Power & Utilities Corp. (AQN) reported financial results for the second quarter ended June 30, 2025, showing a significant decline in net earnings compared to the prior year period, driven largely by the sale of its stake in Atlantica and loss of related dividends.
• The company reaffirmed its 2025-2027 financial outlook, projecting Adjusted Net Earnings per share of $0.30 - $0.32 for 2025, $0.35 - $0.37 for 2026, and $0.42 - $0.46 for 2027, with no expected need for common equity financings through 2027.
• Operational updates include positive rate implementations in the Regulated Services Group, new rate case filings totaling $73.6 million in aggregate, and leadership transitions within the executive team.

Key Details

• Q2 2025 Financial Performance (Three Months Ended June 30, 2025):
  • AQN Net Earnings: $17.4 million (down 90% from $180.1 million in Q2 2024).
  • AQN Adjusted Net Earnings: $36.2 million (down 13% from $41.5 million in Q2 2024).
  • AQN Adjusted Net Earnings per share: $0.04 (down 33% from $0.06 in Q2 2024).
  • Dividends per share declared: $0.0650 (down 40% from $0.1085 in Q2 2024).
• Six Months 2025 Financial Performance:
  • AQN Net Earnings: $112.8 million (down 9% from $123.3 million in H1 2024).
  • AQN Adjusted Net Earnings: $147.8 million (up 22% from $121.6 million in H1 2024).
  • AQN Adjusted Net Earnings per share: $0.19 (up 12% from $0.17 in H1 2024).
• Segment Performance (Q2 2025):
  • Regulated Services Group Net Earnings: $47.1 million (down 2% YoY). Growth was driven by approved rate implementations and reduced interest expense, offset by weather normalization, one-time prior period benefits, higher taxes, and lower HLBV income.
  • Hydro Group Net Earnings: $9.1 million (up 176% YoY from $3.3 million).
  • Corporate Group Net Earnings: $(38.8) million (down 130% YoY from $128.8 million), negatively impacted by the sale of Atlantica and loss of dividends.
• Regulatory and Operational Updates:
  • Filed general rate cases at New England Natural Gas System (Massachusetts) and Litchfield Park Water and Sewer System (Arizona) with an aggregate rate request increase of $73.6 million.
  • Regulated Services Group benefited from reduced interest expense due to deleveraging following the Atlantica sale.
• Strategic Outlook (2025-2027):
  • 2025 Adjusted Net Earnings per share target: $0.30 - $0.32.
  • 2026 Adjusted Net Earnings per share target: $0.35 - $0.37.
  • 2027 Adjusted Net Earnings per share target: $0.42 - $0.46.
  • Utility capital expenditures expected to be approximately $2.5 billion for 2025 through 2027.
  • No common equity financings expected through 2027; BBB investment grade ratings to be maintained.
• Leadership Changes:
  • Effective June 30, 2025, Noel Black joined as Chief Regulatory and External Affairs Officer.
  • Effective June 30, 2025, Amy Walt joined as Chief Customer Officer.

Notable Quotes

• “Our second quarter results reflect continued execution, and we remain on track to meet our previously-disclosed financial outlook for 2025," said Rod West, Chief Executive Officer of AQN. “We are equally pleased to see the beginnings of positive impacts of our disciplined approach to spending. As we sharpen our focus on customer service, operational excellence and execution, we expect that these foundational efforts will continue to lay the groundwork for stronger performance and position the Company for long-term, sustainable growth and value creation. We remain confident in our ability to achieve our strategic goal of becoming a premier pure-play regulated utility.”