Algonquin Power & Utilities (NYSE:AQN) Announces Earnings Results

Algonquin Power & Utilities (NYSE:AQN) posted its quarterly earnings data on Friday. The utilities provider reported $0.06 EPS for the quarter, beating the consensus estimate of $0.04 by $0.02, Briefing.com reports. The business had revenue of $630.70 million for the quarter, compared to analysts’ expectations of $625.77 million. Algonquin Power & Utilities had a negative net margin of 1.11% and a positive return on equity of 5.14%. The firm’s revenue was up 7.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.06 EPS. Algonquin Power & Utilities updated its FY 2027 guidance to 0.380-0.420 EPS and its FY 2026 guidance to 0.350-0.370 EPS.

Here are the key takeaways from Algonquin Power & Utilities’ conference call:

• Used net proceeds from the sale of the renewables business to retire approximately $1.6 billion of debt, lowering total debt to about $6.5 billion, improving the credit profile and enabling management to expect no equity issuance through 2027.
• Achieved several constructive regulatory outcomes with clear near‑term benefits — Missouri Empire settlement approved (authorizes a $97M revenue increase plus up to $13M conditional), CalPeco proposed decision for $48.6M, New England Gas settlement for $45.3M (stay‑out to 2029), and a filed Arizona Litchfield Park settlement for $15.3M — providing line of sight to rate implementations.
• While 2026 Adjusted Net EPS guidance was reaffirmed at $0.35–$0.37, management lowered the 2027 outlook to $0.38–$0.42 due to an updated expectation that the effective tax rate will be in the mid‑to‑high 20% range, reducing 2027 EPS by roughly $0.03 per share absent further tax optimization.
• Laid out a growth‑oriented capital plan of roughly $3.2 billion for 2026–2028 (ramping from $800M to $1.3B), with rate base expected to grow to about $9.7B by 2028 and ~65–70% of CapEx expected to be internally funded, supporting organic regulated utility growth.
• Operational improvements showed early traction — operating expense as a percent of gross revenue fell from ~38% to ~36%, earned ROE rose from 5.5% to ~6.8%, and full‑year Adjusted Net EPS increased ~13% to $0.34, beating guidance by $0.02.

Algonquin Power & Utilities Stock Down 10.8%

AQN stock opened at $6.14 on Friday. The company has a quick ratio of 0.98, a current ratio of 1.23 and a debt-to-equity ratio of 1.26. The business has a 50 day moving average price of $6.54 and a two-hundred day moving average price of $6.08. The company has a market cap of $4.72 billion, a price-to-earnings ratio of -153.46 and a beta of 0.75. Algonquin Power & Utilities has a twelve month low of $4.29 and a twelve month high of $7.11.

Algonquin Power & Utilities Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be given a dividend of $0.065 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $0.26 annualized dividend and a yield of 4.2%. Algonquin Power & Utilities’s dividend payout ratio is -650.00%.

Wall Street Analysts Forecast Growth

AQN has been the subject of several recent research reports. Wall Street Zen raised Algonquin Power & Utilities from a “hold” rating to a “buy” rating in a research report on Saturday. Desjardins lifted their target price on Algonquin Power & Utilities from $7.00 to $7.25 and gave the company a “buy” rating in a research report on Thursday, February 5th. Zacks Research upgraded Algonquin Power & Utilities from a “hold” rating to a “strong-buy” rating in a research note on Friday, January 23rd. Scotiabank raised Algonquin Power & Utilities from a “sector perform” rating to a “sector outperform” rating and set a $6.50 price target for the company in a research report on Tuesday, December 16th. Finally, National Bank Financial set a $7.50 price objective on shares of Algonquin Power & Utilities in a report on Wednesday, January 7th. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, Algonquin Power & Utilities has an average rating of “Moderate Buy” and a consensus price target of $6.67.

Key Algonquin Power & Utilities News

Here are the key news stories impacting Algonquin Power & Utilities this week:

• Positive Sentiment: Q4 beat — Algonquin reported $0.06 EPS (beat consensus) and revenue of $630.7M, with revenue up ~7.8% year‑over‑year; adjusted metrics showed growth and operating efficiencies. This supports near‑term earnings credibility. Q4 Results Press Release/Report
• Positive Sentiment: FY‑2026 guidance topped consensus slightly — management set FY‑2026 EPS at $0.350–$0.370 versus consensus ~$0.34, which frames modest upside for the current year. Guidance Details
• Positive Sentiment: Dividends declared — board approved a common dividend of US$0.0650 (payable April 15) plus preferred share dividends (two preferred issues announced in CAD). This supports income investors and signals cash‑return focus. Dividend Announcement
• Neutral Sentiment: Earnings materials and presentation are available — the company posted the slide deck and earnings presentation (useful for detail on segment performance and assumptions). Earnings Presentation
• Neutral Sentiment: Analyst notes and preview coverage arrived ahead of the print — expectations were modest and some shops adjusted forecasts into the quarter. Useful for tracking changes in sell‑side sentiment. Analyst Recap
• Negative Sentiment: FY‑2027 guidance missed consensus — company set FY‑2027 EPS at $0.380–$0.420 versus street ~$0.44, which likely triggered investor disappointment about longer‑term earnings momentum. FY‑2027 Guidance
• Negative Sentiment: Profitability and leverage signals — the quarter shows a negative net margin and the company carries meaningful leverage (debt/equity), which increases sensitivity to rate and regulatory risks. These fundamentals can weigh on valuation until longer‑term guidance restores confidence. Full Results/Notes
• Negative Sentiment: Market reaction — the stock is trading down on heavy volume after the print, indicating the guidance miss and forward outlook dominated the modest beat. Monitor intraday volume and analyst updates for further downside or stabilization. Market Reaction

Institutional Investors Weigh In On Algonquin Power & Utilities

Several large investors have recently made changes to their positions in the stock. Invesco Ltd. increased its holdings in Algonquin Power & Utilities by 0.4% during the fourth quarter. Invesco Ltd. now owns 3,053,534 shares of the utilities provider’s stock worth $18,779,000 after buying an additional 13,603 shares during the last quarter. Vident Advisory LLC lifted its stake in Algonquin Power & Utilities by 9.6% in the fourth quarter. Vident Advisory LLC now owns 31,199 shares of the utilities provider’s stock valued at $192,000 after acquiring an additional 2,736 shares during the last quarter. Mackenzie Financial Corp lifted its stake in Algonquin Power & Utilities by 40.6% in the fourth quarter. Mackenzie Financial Corp now owns 885,632 shares of the utilities provider’s stock valued at $5,479,000 after acquiring an additional 255,549 shares during the last quarter. NewEdge Advisors LLC bought a new position in shares of Algonquin Power & Utilities in the 4th quarter valued at about $47,000. Finally, Empowered Funds LLC bought a new position in shares of Algonquin Power & Utilities in the 4th quarter valued at about $1,817,000. Institutional investors and hedge funds own 62.28% of the company’s stock.

About Algonquin Power & Utilities

Algonquin Power & Utilities Corp (NYSE: AQN) is a diversified generation, transmission and distribution utility company headquartered in Oakville, Ontario. Established in 1988, the firm operates through two primary business segments: Regulated Utilities and Renewable Energy. Its Regulated Utilities segment comprises electric, natural gas and water distribution networks serving residential, commercial and industrial customers across North America, while its Renewable Energy portfolio includes hydroelectric, solar, wind and thermal generation facilities.

The company’s renewable energy assets span multiple jurisdictions in Canada and the United States, reflecting its strategy to expand clean power capacity in regions with supportive regulatory frameworks.