Algonquin Power & Utilities (AQN) Q4 2025 earnings summary

Executive summary

• 2025 marked a turning point with strong results, improved returns, operational and regulatory progress, and a strengthened balance sheet, including a new executive team focused on a disciplined, pure-play regulated utility strategy.

• Achieved full year net earnings per share of $0.27 and adjusted net earnings per share of $0.34, up from $0.30 in 2024, reflecting significant profitability and operational efficiency gains.

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

• Completed the sale of the renewable energy business (excluding hydro) and consolidated four Arizona utilities into one.

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 GAAP net earnings were $29.4 million, reversing a net loss of $110.2 million in Q4 2024.

• Full-year Adjusted Net EPS was $0.34, up from $0.30 in 2024, exceeding guidance by $0.02.

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

• Operating expense as a percentage of gross revenue reduced from 38% to 35.8% year-over-year.

Outlook and guidance

• 2026 Adjusted Net EPS guidance reaffirmed at $0.35–$0.37; 2027 guidance revised to $0.38–$0.42 due to a higher expected effective tax rate.

• Capital plan of approximately $3.2 billion for 2026–2028, supporting 5–6% CAGR in rate base, projected to grow 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 planned, subject to board approval.

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