Algonquin Power & Utilities Corp. (NYSE:AQN) reported second-quarter adjusted earnings on Friday that met analyst expectations, as the utility company continues its transition into a leading pure-play regulated utility. Following the announcement, shares edged up 1.01% in pre-market trading.
The company posted adjusted earnings per share of $0.04 for the quarter, in line with analyst estimates. Revenue from the Regulated Services Group, AQN’s main business segment, saw a modest 2% year-over-year decline in net earnings. This was due to weather normalization and the absence of one-time benefits from the prior year, offsetting positive contributions from approved rate implementations.
“Our second quarter results reflect continued execution, and we remain on track to meet our previously disclosed financial outlook for 2025,” said Rod West, CEO of Algonquin Power. “We are also encouraged by early signs of the positive impact from our disciplined spending approach.”
The Corporate Group segment was negatively affected by the sale of AQN’s stake in Atlantica Sustainable Infrastructure, though this impact was partly offset by reduced interest expenses following debt repayments funded by the sale proceeds. Meanwhile, the Hydro Group delivered a strong performance, with net earnings surging 176%.
In June, Algonquin outlined its “Back to Basics” capital plan focused on utility operations, designed to improve customer experience, boost operational efficiency, and secure favorable regulatory outcomes. The company forecasts adjusted EPS of $0.30 to $0.32 for 2025, rising to $0.35 to $0.37 in 2026, and $0.42 to $0.46 in 2027.
Algonquin plans approximately $2.5 billion in utility capital expenditures through 2027 and expects no need for common equity financing during this period, while maintaining its BBB investment grade credit ratings.
Algonquin Power & Utilities stock price
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