Algonquin Power & Utilities (AQN) Investor presentation summary

Company overview and strategic direction

• Operates as a pure-play regulated utility with over 1.2 million customer connections across 13 U.S. states, 1 Canadian province, Bermuda, and Chile, with a $8.2B rate base as of December 2025.

• Focuses on electric, natural gas, water, and wastewater services, with a diversified portfolio and strong presence in the U.S. (over 80% of operations).

• Announced intention to redomicile to the U.S. to align structure with asset footprint, broaden capital access, and reduce tax inefficiencies.

• Assembled a new executive team with deep industry experience to drive operational and regulatory improvements.

• Emphasizes a back-to-basics approach, targeting operational efficiencies and regulatory fundamentals to drive financial performance.

Financial performance and outlook

• Delivered 2025 adjusted net EPS of $0.34 and improved earned ROE to 6.8%, with operating expenses reduced to 35.8% of gross revenue.

• Retired $1.6B in debt, improved FFO/debt ratio to 12.8%, and completed the sale of the renewable energy business (excluding hydro).

• 2026 adjusted net EPS guidance is $0.35–$0.37, with $0.8B in planned utility capital expenditures and a 5–6% CAGR in rate base through 2028.

• Maintains a strong investment-grade balance sheet (BBB ratings) and expects no equity issuances through 2027.

• Dividend payout ratio continues to decline, with a $0.26 per share annualized dividend expected for 2026.

Regulatory and operational initiatives

• Achieved constructive regulatory outcomes, including major rate case approvals in Missouri, Kansas, California, and Massachusetts.

• Implemented operational efficiency initiatives, targeting long-term O&M expenses in the low- to mid-30% range of revenue.

• Invested $3.2B in regulated capital from 2026–2028, with a focus on safety, reliability, and customer service.

• Advanced major infrastructure projects, including a $770M SPP transmission investment and the $120M Peach State Pipeline.

• Enhanced wildfire mitigation, safety, and customer satisfaction through technology, vegetation management, and energy efficiency programs.