Algonquin Power & Utilities (AQN) Investor presentation summary

Business overview and strategy

• Operates as a pure-play regulated utility with over 1.2 million customer connections across electric, gas, water, and wastewater services in 13 U.S. states, 1 Canadian province, Bermuda, and Chile.

• Maintains a diversified portfolio with an $8.2B rate base and a $3.2B capital expenditure plan for 2026–2028.

• Strategic priorities for 2026 include operational efficiencies, regulatory execution, customer experience improvements, and exploring a potential U.S. redomicile for tax and index inclusion benefits.

• Focused on back-to-basics execution, medium-term organic growth, and maintaining a strong balance sheet and credit rating.

• Leadership team with deep industry experience assembled to drive transformation and growth.

Financial performance and outlook

• Delivered 2025 adjusted net EPS of $0.34 and net earnings per share of $0.27, with improved operational efficiency and regulatory outcomes.

• Reduced O&M expenses as a percent of gross revenue from 37.7% in 2024 to 35.8% in 2025, targeting low- to mid-30% range.

• Strengthened financial foundation by retiring $1.6B in debt and improving FFO/debt ratio to 12.8% in 2025.

• 2026 adjusted net EPS guidance is $0.35–$0.37, with a 5–6% compound annual growth rate in rate base projected through 2028.

• No expected equity issuances through 2027; dividend expected to be maintained at $0.26 per share annually.

Regulatory and operational highlights

• Achieved constructive regulatory outcomes, including major rate case settlements in Missouri, California, and Massachusetts, with phased-in revenue increases tied to performance metrics.

• Ongoing and pending rate cases in multiple jurisdictions, with significant capital investments driving future rate base growth.

• Constructive regulatory mechanisms such as formula rates, multi-year plans, and cost recovery trackers support timely investment recovery.

• Major infrastructure projects include $770M SPP transmission investment, $120M Peach State Pipeline, and a 250MW gas generation project to support reliability and growth.

• Enhanced safety, customer satisfaction, and energy efficiency through targeted programs and technology upgrades.