Algonquin Power & Utilities (NYSE:AQN) Releases Earnings Results, Misses Estimates By $0.01 EPS

Algonquin Power & Utilities (NYSE:AQN) issued its quarterly earnings data on Friday. The utilities provider reported $0.04 EPS for the quarter, missing the consensus estimate of $0.05 by ($0.01), Zacks reports. The firm had revenue of $582.99 million for the quarter, compared to analysts’ expectations of $582.99 million. Algonquin Power & Utilities had a net margin of 6.62% and a return on equity of 5.21%. During the same period in the prior year, the firm posted $0.04 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:

• Regulatory progress continued: Missouri approved approximately $97 million in annualized revenue adjustments, while Kansas approved an $8.8 million settlement and California’s WEMA proceeding authorized $58.1 million of wildfire-cost recovery. Several additional rate cases were filed, although some key decisions remain pending.
• 2026 earnings guidance was maintained. Second-quarter adjusted EPS was CAD 0.004, flat year over year, while year-to-date adjusted EPS declined to CAD 0.17 from CAD 0.19; management said results would have been slightly higher absent non-recurring favorable items in 2025.
• U.S. re-domiciliation is targeted for completion after a shareholder vote in the first half of 2027. Management expects the move to reduce cross-border tax costs, improve capital-market access, and potentially support U.S. index inclusion, with estimated recurring tax benefits of roughly CAD 0.02–0.03 per share once fully effective. One-time tax and transaction costs remain uncertain.
• Algonquin said it does not expect to issue equity through 2027 and maintained its investment-grade ratings. However, trailing FFO-to-debt fell to 11.9% from 12.9%, leaving a narrower cushion above S&P’s 11% downgrade threshold.
• The company received approval for CWIP treatment for a planned 250-megawatt Missouri gas-generation project and is preparing a large-load tariff that could facilitate future data-center or other industrial demand. Management described Missouri as an area of interest but disclosed no specific customer pipeline or load commitments.

Algonquin Power & Utilities Price Performance

AQN stock opened at $5.74 on Friday. The firm has a 50 day simple moving average of $5.85 and a two-hundred day simple moving average of $6.18. The stock has a market cap of $4.41 billion, a PE ratio of 26.07 and a beta of 0.70. Algonquin Power & Utilities has a one year low of $5.32 and a one year high of $7.11. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.05 and a quick ratio of 0.87.

Algonquin Power & Utilities Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 29th will be paid a $0.065 dividend. This represents a $0.26 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date of this dividend is Tuesday, September 29th. Algonquin Power & Utilities’s payout ratio is currently 118.18%.

Algonquin Power & Utilities News Summary

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

• Positive Sentiment: Algonquin reported progress in regulatory proceedings in Missouri, California and Kansas, potentially improving visibility around future utility operations and rate recovery. Algonquin Power & Utilities Corp. Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The board declared a quarterly common-share dividend of US$0.065 per share, payable October 15 to shareholders of record September 29. The continued payout may support the stock’s income-oriented appeal. Algonquin Declares Third Quarter 2026 Dividend
• Neutral Sentiment: Management set fiscal 2026 EPS guidance at $0.35-$0.37 and fiscal 2027 guidance at $0.38-$0.42. The ranges bracket consensus estimates of $0.36 and $0.40, respectively, suggesting expectations were broadly maintained rather than materially raised or lowered.
• Negative Sentiment: Second-quarter adjusted earnings were $0.04 per share, below the $0.05 analyst consensus and unchanged from the prior-year quarter. Reported net earnings were $4.9 million, or $0.01 per share, while adjusted net earnings totaled $29.2 million, or $0.04 per share. The earnings and revenue shortfall weighed on sentiment. Algonquin Power & Utilities Misses Q2 Earnings and Revenue Estimates

Institutional Trading of Algonquin Power & Utilities

A number of hedge funds have recently made changes to their positions in the stock. EdgePoint Investment Group Inc. grew its holdings in shares of Algonquin Power & Utilities by 32.6% during the 4th quarter. EdgePoint Investment Group Inc. now owns 81,727,385 shares of the utilities provider’s stock valued at $502,563,000 after purchasing an additional 20,074,709 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in Algonquin Power & Utilities by 65.0% in the first quarter. Goldman Sachs Group Inc. now owns 12,205,756 shares of the utilities provider’s stock worth $62,738,000 after purchasing an additional 4,808,539 shares during the last quarter. Citadel Advisors LLC boosted its position in Algonquin Power & Utilities by 14,166.9% during the third quarter. Citadel Advisors LLC now owns 4,445,126 shares of the utilities provider’s stock valued at $23,870,000 after buying an additional 4,476,726 shares during the period. Bank of Montreal Can boosted its position in Algonquin Power & Utilities by 23.1% during the fourth quarter. Bank of Montreal Can now owns 20,717,144 shares of the utilities provider’s stock valued at $127,395,000 after buying an additional 3,886,254 shares during the period. Finally, Picton Mahoney Asset Management grew its stake in shares of Algonquin Power & Utilities by 193.4% during the fourth quarter. Picton Mahoney Asset Management now owns 3,519,080 shares of the utilities provider’s stock valued at $21,670,000 after buying an additional 2,319,663 shares during the last quarter. 62.28% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have commented on AQN. National Bank Financial cut their price target on shares of Algonquin Power & Utilities from $7.25 to $7.00 and set an “outperform” rating for the company in a report on Friday, July 3rd. Weiss Ratings reiterated a “hold (c)” rating on shares of Algonquin Power & Utilities in a research report on Friday, July 17th. Canadian Imperial Bank of Commerce lifted their price objective on Algonquin Power & Utilities from $6.25 to $6.50 and gave the company a “neutral” rating in a research note on Monday, April 20th. Finally, Wells Fargo & Company started coverage on Algonquin Power & Utilities in a research report on Tuesday, May 12th. They set an “equal weight” rating and a $7.00 target price for the company. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $6.81.

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.