Algonquin Power & Utilities (AQN) Q4 2024 earnings summary

Executive summary

• Leadership transition with Rod West appointed as CEO and Brian Chin as interim CFO, following the departure of Darren Myers; Chris Huskilson remains as director.

• Completed sale of the renewables business (excluding hydro) for $2.1B–$2.5B and Atlantica stake for $1.1B, marking the shift to a pure-play regulated utility and recapitalizing the balance sheet.

• Focus on operational efficiency, customer service, and achieving allowed returns on equity, with value creation as a regulated utility.

Financial highlights

• Q4 consolidated adjusted EBITDA was $248.6M, down 5.2% year-over-year; regulated adjusted EBITDA was $234.4M, up 2.4%.

• Full-year consolidated adjusted EBITDA was $1.04B, up 2.6%–3%; regulated adjusted EBITDA was $940.2M, up 4.2%.

• Q4 adjusted net earnings were $45.2M (down 44%); full-year adjusted net earnings were $232.1M (down 17%).

• Q4 adjusted EPS was $0.06 (down 50%); full-year adjusted EPS was $0.30 (down 23%).

• Q4 revenue from continuing operations was $584.8M, down 1%; full-year revenue was $2,319.5M, down 4%.

• Cash from operating activities for Q4 was $48.1M (down 76%); full-year was $481.7M (down 23%).

• Dividends per share for 2024 were $0.3470, a 20% decrease year-over-year.

Outlook and guidance

• No formal guidance provided; 2025 is positioned as a transition year with more details expected in 90 days.

• Focus on improving earned ROE (currently mid-5%) toward the authorized 9.2% and maintaining a 60%-70% dividend payout ratio.

• Capital expenditures expected to be directionally lower year-over-year, with disciplined investment approach.

• Proceeds from asset sales to be used for debt repayment and balance sheet strengthening.