Algonquin Power & Utilities Corp. Reports Fourth Quarter and Full Year 2025 Financial Results

Executive Summary

• Algonquin Power & Utilities Corp. reported full‑year 2025 net earnings of $208 M ($0.27 per share) and adjusted net earnings of $258.8 M ($0.34 per share), a turnaround from a 2024 loss.
• Adjusted Net EPS for 2025 exceeded the prior guidance range by $0.02, driven by operating expense reductions, depreciation deferrals and tax adjustments.
• The company reaffirmed its 2026 Adjusted Net EPS outlook ($0.35‑$0.37) and provided an updated 2027 Adjusted Net EPS range of $0.38‑$0.42, alongside a $3.2 B regulated capital plan for 2026‑2028.

Key Details

• Full‑Year 2025 Financials
• Net earnings: $208.0 M (≈ $0.27/share) vs. $54.8 M in 2024.
• Adjusted net earnings: $258.8 M (≈ $0.34/share) vs. $221.6 M in 2024.
• Operating & maintenance expense flat YoY; operating expense as % of revenue fell to 35.8% (down from 37.7%).

• Earned ROE improved to ~6.8% (from ~5.5%).

• Quarter‑End 2025 Highlights

• Q4 net earnings: $29.4 M ($0.04/share); adjusted net earnings: $47.2 M ($0.06/share).

• Regulated Services Group Q4 net earnings: $73.6 M (up from $60.5 M YoY).

• Segment Performance

• Regulated Services Group: FY net earnings $351.0 M (↑ 35% YoY); capital expenditures $603.5 M (down from $757.2 M). Served ~1.27 M customer connections.
• Hydro Group: FY net earnings $31.1 M (↑ $19.1 M YoY) due to tax recovery from reorganization.

• Corporate Group: FY net loss $174.1 M (improved vs. $217.3 M loss in 2024). Loss impacted by sale of Atlantica stake and related dividend loss; debt repayment reduced interest expense.

• Debt Repayment & Proceeds

• Approximately $1.6 B of debt retired using net proceeds from the sale of the renewable‑energy business (excluding hydro) and the sale of a 42.2% stake in Atlantica Sustainable Infrastructure plc.

• Financial Outlook

• 2026 Adjusted Net EPS: $0.35 – $0.37 (unchanged).
• 2027 Adjusted Net EPS: $0.38 – $0.42 (updated due to higher expected effective tax rate and extended gas‑operational‑excellence timeline).
• Utility Capital Expenditures 2026: ≈ $0.8 B; 2026‑2028 aggregate: ≈ $3.2 B.

• Expected compound annual growth in rate base (2025‑2028): 5% – 6%.

• Guidance & Strategy

• No equity issuances expected through 2027.

• Continued focus on disciplined, customer‑focused capital investments and rate case filings to boost earned ROE.

• Conference Call Details

• Date: Friday, March 6 2026 at 8:30 a.m. ET.
• Hosted by CEO Rod West and CFO Rob Stefani.
• Dial‑in: 1‑800‑715‑9871 (toll‑free) / 1‑647‑932‑3411; Conference ID 3922090; webcast link provided.

Notable Quotes

• “Our strong 2025 results reflect continued progress executing our ‘Back to Basics’ strategy as we build a premier, pure‑play utility,” – Rod West, CEO.
• “We are reaffirming our full year 2026 Adjusted Net EPS outlook… and establishing a clear framework for long‑term growth through disciplined, customer‑focused capital investments.” – Rod West, CEO.