Algonquin Power & Utilities (AQN) Q2 2026 earnings summary

Executive summary

• Achieved progress on multiple regulatory rate cases and settlements in Missouri, Kansas, California, and New York, supporting long-term value creation and operational efficiencies.

• Announced intent to re-domicile to the U.S., aligning corporate structure with asset base and reducing cross-border tax inefficiencies; headquarters to move to Chicago, maintaining presence in Oakville, Ontario.

• Maintained trajectory toward adjusted net EPS forecast for 2026 and 2027, with continued operational and financial discipline and new executive team onboarded.

• Reported Q2 2026 net earnings of $4.9M ($0.01/share) and adjusted net earnings of $29.2M ($0.04/share), both down from Q2 2025.

• Advanced regulatory priorities and continued investments in utility operations to support reliability and customer affordability.

Financial highlights

• Q2 2026 GAAP net earnings were $4.9M, down from $14.8M in Q2 2025; adjusted net earnings were $29.2M ($0.04/share) vs. $33.6M ($0.04/share) year-over-year.

• Year-to-date GAAP net earnings were $88M, compared to $107.6M in 2025; adjusted net earnings were $128.8M ($0.17/share) vs. $142.6M ($0.19/share).

• Higher approved rates and customer growth were offset by increased wildfire insurance, interest, and operating expenses, and non-recurring favorable items in 2025.

• $17.2M write-down of a regulatory asset related to California WEMA proceeding, excluded from adjusted net earnings.

• Weighted average shares outstanding for Q2 2026 were 769.7 million.

Outlook and guidance

• On track to meet adjusted net EPS forecast for 2026 and 2027; 2026E guidance: $0.35–$0.37, 2027E: $0.38–$0.42; no equity issuance expected through 2027.

• Tax savings from U.S. re-domicile expected to provide $0.02–$0.03 EPS benefit on a run-rate basis post-2027, subject to timing of approvals.

• Utility capital expenditures expected at ~$0.8B in 2026 and ~$3.2B aggregate from 2026–2028; rate base projected to grow at a 5–6% CAGR from 2025–2028.

• Dividend expected to be maintained at $0.26/share annually.

• Guidance extension likely after re-domicile approval, with long-term EPS growth rate to align with peers.