Core Viewpoint - Algonquin Power & Utilities reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, marking a 50% earnings surprise compared to the previous year’s earnings of $0.08 per share [1][2] Financial Performance - The company posted revenues of $582.7 million for the quarter ended September 2025, which was 1.19% below the Zacks Consensus Estimate, and an increase from $573.2 million in the same quarter last year [2] - Over the last four quarters, Algonquin has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance - Algonquin Power & Utilities shares have increased approximately 28.5% year-to-date, outperforming the S&P 500's gain of 14.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.07 for the upcoming quarter and $0.31 for the current fiscal year, with revenues expected to be $609.81 million and $2.41 billion respectively [7] - The Zacks Rank for Algonquin is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Utility - Electric Power industry is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable environment for stocks within this sector [8]

November 7, 2025 | 10:00 a.m. ET Forward-Looking Statements Certain written statements included herein and/or oral statements made in connection with the presentation contained herein constitute "forward-looking information" within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies, regulations and rules under such laws and "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collec ...

Financial Performance - Revenue for the three months ended September 30, 2025, was $582.7 million, a 1.9% increase from $573.2 million in the same period of 2024[2] - Operating income for the three months ended September 30, 2025, was $149.7 million, up 34.6% from $111.1 million in the prior year[2] - Net earnings attributable to shareholders for the three months ended September 30, 2025, were $38.9 million, compared to a loss of $1,305.7 million in the same period of 2024[2] - Basic and diluted net earnings per share from continuing operations for the three months ended September 30, 2025, were $0.09, compared to $0.06 in 2024[2] - The company reported a comprehensive income of $31.5 million for the nine months ended September 30, 2025, compared to a loss of $1,228.3 million in the same period of 2024[3] - The net earnings for the three months ended September 30, 2025, were $23.9 million, compared to a net loss of $1,330.6 million for the same period in 2024[7] - Net earnings from continuing operations attributable to common shareholders for Q3 2025 were $71.0 million, compared to $46.8 million in Q3 2024, representing a 51.1% increase[57] - The net loss from discontinued operations attributable to common shareholders for Q3 2025 was $(34.8) million, a significant improvement from $(1,355.2) million in Q3 2024[57] Assets and Liabilities - Total assets as of September 30, 2025, were $13,788.4 million, a decrease from $16,961.7 million as of December 31, 2024[4] - Long-term debt as of September 30, 2025, was $6,163.0 million, slightly down from $6,207.0 million at the end of 2024[5] - Cash and cash equivalents increased to $62.2 million as of September 30, 2025, from $34.8 million at the end of 2024[4] - As of September 30, 2025, Algonquin Power & Utilities Corp. reported total equity of $5,074.2 million, a decrease from $7,686.5 million on June 30, 2024[6] - The total deficit increased to $2,929.3 million as of September 30, 2025, from $2,690.3 million on September 30, 2024[7] - The total financial liabilities as of September 30, 2025, were $6,182.5 million, with long-term debt recorded at $6,163.0 million[73] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $417.6 million, compared to $433.6 million for the same period in 2024[11] - The company recorded cash paid for interest expense of $242.1 million for the nine months ended September 30, 2025, compared to $330.2 million for the same period in 2024[12] - The company reported an increase in cash, cash equivalents, and restricted cash to $86.7 million as of September 30, 2025, from $156.3 million at the end of the previous period[12] - The company accrued estimated losses of $178.4 million for claims arising out of the Mountain View Fire, with expected recoveries of $116.0 million through insurance[32] - The company reported a derecognition on the sale of the renewable energy business amounting to $1,064.1 million[8] Dividends and Shareholder Returns - The company declared dividends and distributions to non-controlling interests amounting to $51.9 million for the three months ended September 30, 2025[6] - Cash dividends on common shares for the nine months ended September 30, 2025, totaled $151.0 million, compared to $234.5 million for the same period in 2024[12] - Dividends declared for common shares in the three months ended September 30, 2025, were $50.5 million, consistent with $50.4 million in 2024, maintaining a dividend per share of $0.0650[49] - For the nine months ended September 30, 2025, total dividends declared for common shares were $151.3 million, a decrease from $209.6 million in 2024, with a dividend per share of $0.1950 compared to $0.2820[50] Regulatory and Compliance - Regulatory assets increased to $1,169.9 million as of September 30, 2025, compared to $1,126.1 million at the end of 2024[4] - Total regulatory assets increased to $1,372.7 million as of September 30, 2025, compared to $1,321.0 million as of December 31, 2024[30] - The Company recognized carrying charges on regulatory balances of $4.7 million and $16.0 million for the three and nine months ended September 30, 2025, respectively[30] Capital Expenditures and Investments - Capital expenditures for Q3 2025 were $146.8 million, down from $175.0 million in Q3 2024, representing a decrease of 16.1%[61] - Capital expenditures for the nine months ended September 30, 2025, totaled $386.1 million, down from $503.4 million in the same period of 2024, a reduction of about 23.3%[65] - Long-term investments increased to $209.2 million as of September 30, 2025, from $67.8 million as of December 31, 2024[33] Other Comprehensive Income and Taxation - The accumulated other comprehensive income (AOCI) balance as of September 30, 2025, was $4.1 million, a significant improvement from a loss of $102.3 million at the beginning of 2024[51] - The income tax expense for the three months ended September 30, 2025, was $27.0 million, compared to $6.4 million in 2024, reflecting an effective tax rate that differs from the Canadian statutory rate of 26.5%[52] - The Company recognized an income tax recovery of $10.6 million during the nine months ended September 30, 2025, due to the sale of investment tax credits[93] Strategic Focus and Future Outlook - The company plans to focus on market expansion and new technology development to enhance future growth prospects[1]

Core Points - Algonquin Power & Utilities Corp. has announced a dividend of US$0.0650 per common share, payable on January 15, 2026 [1] - The dividend is for the period from October 1, 2025, to December 31, 2025, and is available to shareholders of record on December 31, 2025 [1] - Registered shareholders have the option to receive the dividend in Canadian dollars [1]

Core Insights - Algonquin Power & Utilities Corp. reported solid third quarter results for 2025, highlighting year-over-year improvements in key financial metrics and progress in regulatory proceedings [2][8]. Financial Performance - Net earnings for the Regulated Services Group increased by 61% year-over-year for Q3 2025, reaching $104.1 million compared to $64.8 million in Q3 2024 [8]. - The overall net earnings for Algonquin Power & Utilities Corp. rose by 49% to $73.7 million in Q3 2025 from $49.5 million in Q3 2024 [8]. - Adjusted net earnings per share increased by 13% to $0.09 in Q3 2025 from $0.08 in Q3 2024 [8]. Operational Highlights - The Regulated Services Group benefited from the implementation of approved rates, favorable weather conditions, and lower operating expenses, contributing to the significant increase in net earnings [8]. - The Corporate Group's net earnings were negatively impacted by the sale of the Company's stake in Atlantica Sustainable Infrastructure, which affected dividend income [8]. Regulatory Developments - The Company made progress in its regulatory proceedings, including an approved settlement at EnergyNorth Gas and a proposed settlement at CalPeco Electric [8]. - A non-unanimous stipulation agreement was reached at Empire Electric, with the Missouri Commission requesting amendments to include customer satisfaction performance metrics [8]. Leadership Changes - The appointment of Robert Stefani as Chief Financial Officer, effective January 5, 2026, was announced, indicating a continued transition towards a premium, pure-play regulated utility [8].

Core Viewpoint - Algonquin Power & Utilities Corp. (AQN) is set to release its third quarter 2025 financial results on November 7, 2025, before the market opens [1] Financial Results Announcement - The financial results will be announced prior to market opening on November 7, 2025 [1] - An earnings conference call will be held at 10:00 a.m. eastern time on the same day [1] - The call will be hosted by CEO Rod West and Interim CFO Brian Chin [1]

Core Insights - The utilities sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **UGI Corp (NYSE: UGI)**: - Reported weaker-than-expected third-quarter sales on August 6, leading to a stock decline of approximately 7% over the past month, with a 52-week low of $23.14 - RSI Value is 29.7, indicating it is nearing oversold territory - Recent price action shows shares fell 0.6% to close at $32.64 on Thursday - Momentum score is 67.37 with a value score of 69.98 [4] - **Algonquin Power & Utilities Corp (NYSE: AQN)**: - Posted in-line quarterly earnings on August 8, with CEO Rod West expressing confidence in the company's strategic goals and long-term growth - The stock also fell around 7% over the past month, with a 52-week low of $4.19 - RSI Value is 16.5, indicating it is significantly oversold - Recent price action shows shares slipped 0.7% to close at $5.37 on Thursday [4]

Core Viewpoint - Algonquin Power & Utilities Corp. (AQN) is focused on investing in renewable generation assets to provide reliable services, making it a strong investment option in the Zacks Utility Electric Power industry [1] Group 1: Growth Projections - The Zacks Consensus Estimate for AQN's Q3 2025 revenues is $594.5 million, indicating a growth of 3.7% [2] - The estimated earnings per share (EPS) for 2025 is 31 cents, reflecting a year-over-year increase of 3.3% [2] - AQN has delivered an average earnings surprise of 4.86% over the last four quarters [2] Group 2: Debt Structure - AQN's total debt to capital ratio is 55.25%, which is better than the industry average of 59.39% [3] - The times interest earned (TIE) ratio at the end of Q2 2025 was 1.5, indicating the company can meet its interest obligations [3] Group 3: Liquidity Position - AQN's current ratio at the end of Q2 2025 was 1.09, suggesting the company can meet its short-term liabilities [4] Group 4: Return to Shareholders - AQN has been increasing shareholder value through dividends, currently paying 6.5 cents per share quarterly, leading to an annualized dividend of 26 cents [5] - The current dividend yield is 4.64%, outperforming the Zacks S&P 500 Composite average of 1.13% [5] Group 5: Customer Reach - AQN's Regulated Services Group manages a diverse portfolio across the U.S., Canada, Bermuda, and Chile, serving approximately 1,268,000 customer connections as of June 30, 2025 [6][8] - The company operates generating assets with a total gross capacity of about 2 gigawatts (GW) and holds investments in assets providing roughly 0.3 GW of net generation capacity [6] Group 6: Stock Performance - AQN shares have increased by 14.5% over the past six months, compared to the industry's growth of 8.5% [7]

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