Algonquin Power & Utilities (AQN) Q2 2025 earnings summary

Executive summary

• Q2 2025 results reflect continued execution toward the 2025 financial outlook, supported by disciplined spending, foundational work for growth, and operational excellence.

• Strategic management hires, including new Chief Regulatory and External Affairs Officer and Chief Customer Officer, were announced to drive operational efficiency and regulatory outcomes.

• A three-year financial outlook and customer-centric plan have been announced, emphasizing stability, forward planning, and community investment across 13 states.

• The company is actively investing in local communities and economic development, positioning as a premier pure-play regulated utility.

Financial highlights

• Q2 2025 adjusted net earnings from continuing operations were $36.2M, down 13% year-over-year; total net earnings were $17.4M, a 90% decrease.

• Adjusted net EPS for the quarter was $0.04, down from $0.06; dividends per share declared were $0.0650, a 40% decrease.

• Six-month adjusted net earnings rose 22% to $147.8M; adjusted EPS up 12% to $0.19.

• Hydro Group net earnings increased by $5.8M and 176% year-over-year, driven by a one-time tax recovery.

• Corporate Group reported a net loss of $38.8M versus a $128.8M gain last year, mainly from the removal of Atlantica dividends.

Outlook and guidance

• The three-year financial outlook and customer-centric plan project improvements in earned ROE, operating expenses as a percent of revenues, and organic capital investment.

• Adjusted net EPS guidance: $0.30–$0.32 for 2025, $0.35–$0.37 for 2026, $0.42–$0.46 for 2027.

• No common equity financings are expected through 2027, with a focus on maintaining a BBB investment-grade credit rating.

• Effective tax rate for the year is expected to remain in the low to mid-20% range for 2025–2027.

• Utility capital expenditures of ~$2.5B expected from 2025 to 2027.