Algonquin Power & Utilities Corp. (NYSE:AQN) shares gained 1.91% in premarket trading on Friday after the utility company reported first-quarter earnings that came in slightly ahead of Wall Street expectations.
Quarterly profit tops analyst forecasts
The company posted adjusted earnings per share of $0.13 for the quarter, surpassing analyst estimates of $0.12 per share.
Adjusted net earnings totalled $99.6 million, or $0.13 per share, compared with $109.0 million, or $0.14 per share, in the same quarter of 2025.
Reported net earnings came in at $83.1 million, or $0.11 per share, down from $92.8 million, or $0.12 per share, recorded a year earlier.
“The progress we made in the first quarter reflects strong execution against our ’Back to Basics’ strategy,” said Rod West, Chief Executive Officer. “We advanced key regulatory proceedings across our electric, gas and water utilities, while reinforcing operational and financial discipline across the business.”
Utility operations affected by weather and higher costs
Algonquin’s Regulated Services Group generated net earnings of $119.4 million during the quarter, representing a 2.2% decline from $122.1 million in the prior-year period.
The company said earnings were negatively affected by unfavourable weather conditions impacting Empire District Electric, along with increased gas safety and operating expenses.
These pressures were partially offset by approved electricity rate adjustments at CalPeco Electric, which are expected to contribute $48.6 million in annualised revenue.
Regulatory progress continues across key markets
During the quarter, Algonquin secured several regulatory approvals across its operating regions.
The California Public Utilities Commission approved an annual revenue adjustment of $48.6 million for CalPeco Electric.
Meanwhile, regulators in Massachusetts approved a $45.3 million distribution revenue adjustment for New England Gas.
The company also confirmed that settlement agreements were submitted during the quarter in both Missouri and Arizona.