Algonquin Power & Utilities (AQN) Q4 2025 earnings summary

Executive summary

• Reported full-year 2025 net EPS of $0.27 and adjusted net EPS of $0.34, up from $0.30 in 2024, reflecting significant profitability and operational efficiency gains.

• Achieved 286% growth in net EPS and 13% growth in adjusted net EPS year-over-year, with earned ROE rising 130 basis points to 6.8%.

• Strengthened balance sheet by retiring $1.6 billion in debt using proceeds from the sale of the renewable energy business (excluding hydro).

• Assembled a new executive leadership team and reduced operating expenses as a percent of gross revenue to 35.8% in 2025 from 37.7% in 2024.

• Strategy centers on becoming a premium pure-play regulated utility with disciplined growth.

Financial highlights

• Full-year GAAP net earnings were $208 million, up from $54.8 million in 2024; adjusted net earnings reached $258.8 million, a 17% increase year-over-year.

• Q4 2025 net earnings were $29.4 million, reversing a prior year Q4 net loss of $110.2 million.

• Adjusted net EPS for 2025 was $0.34, up 13% from $0.30 in 2024, exceeding guidance by $0.02.

• Operating expense as a percentage of gross revenue improved to 35.8% in 2025 from 37.7% in 2024.

• FFO/debt ratio increased to 12.8% in 2025 from 10.4% in 2024.

Outlook and guidance

• 2026 adjusted net EPS guidance reaffirmed at $0.35–$0.37; 2027 guidance updated to $0.38–$0.42 due to a higher expected effective tax rate in the mid-to-high 20% range.

• Capital plan of approximately $3.2 billion for 2026–2028, supporting 5–6% CAGR in rate base from $8.2 billion in 2025 to $9.7 billion by 2028.

• No equity issuance expected through 2027; annualized dividend of $0.26 per share expected, subject to board approval.

• Majority of tax optimization benefits expected after 2027.

• Approximately $0.8 billion in utility capital expenditures planned for 2026.