Algonquin Power & Utilities Q2 Earnings Call Highlights

Algonquin Power & Utilities Q2 Earnings Call Highlights

Key Points Adjusted EPS held steady at $0.04 in the second quarter, keeping Algonquin on track for its 2026 and 2027 forecasts, although GAAP earnings and adjusted net income declined year over year amid higher financing and operating costs.

Algonquin advanced several rate cases, including a $97 million annualized Missouri revenue adjustment, an $8.8 million Kansas settlement and proposed recovery of $58.1 million in California wildfire costs, while also securing approval for a 250-megawatt Missouri gas-generation project.

The company plans to seek approval to re-domicile from Canada to Delaware, potentially reducing recurring taxes by approximately $0.02 to $0.025 per share and improving access to U.S. equity indexes; it also refinanced $1.15 billion of debt and does not expect to issue equity through 2027.

Algonquin Power & Utilities NYSE: AQN said its second-quarter results kept it on track to meet its adjusted earnings-per-share forecast for 2026 and 2027, as the company advanced rate cases, refinanced debt and outlined plans to move its corporate domicile to the United States. Chief Executive Officer Rod West said the company’s strategy remains focused on becoming a “premier pure-play regulated utility” through execution, regulatory engagement and financial discipline. He said the second quarter extended progress made during the prior year and first quarter, though the company still has work to do across several regulatory proceedings.

Second-Quarter Earnings Decline, Adjusted EPS Flat

Algonquin reported second-quarter GAAP net earnings attributable to common shareholders from continuing operations of $4.9 million, down from $14.8 million in the year-earlier period. Adjusted net earnings were $29.2 million, compared with $33.6 million a year earlier. Adjusted net earnings per share were $0.04, unchanged from the second quarter of 2025.

Chief Financial Officer Rob Stefani said higher approved rates at CalPeco and increased revenue at several water utilities were offset by higher financing costs, operating expenses and favorable items that occurred in the prior-year quarter. The company recorded a $17.2 million write-down of a regulatory asset tied to a proposed decision in its California wildfire expense memorandum account, or WEMA, proceeding. The proposed decision authorized recovery of approximately 75% of recorded costs related to the 2020 Mountain View fire. Algonquin excluded the impact of that decision from adjusted earnings.

For the first half of 2026, GAAP net earnings were $88 million, compared with $107.6 million in the first half of 2025. Adjusted net earnings totaled $128.8 million, down from $142.6 million a year earlier, while adjusted EPS was $0.17 compared with $0.19. Stefani noted that first-half 2025 included $25.7 million of non-recurring favorable items, including a tax-basis step-up recovery related to Hydro, pension adjustments at Empire, and depreciation deferrals and rate-proceeding items in New Hampshire and Arizona. Excluding those items, he said year-over-year EPS was $0.01 favorable. CalPeco approved rates, net of wildfire insurance expense, added $38.7 million year to date. New rates in New York, Arizona, Chile and Peach State improved year-to-date net revenue by $11 million. Operating expenses increased on gas safety and excellence costs, along with higher labor, maintenance and property tax expenses. Unfavorable weather reduced year-to-date results by $9.9 million versus the prior year.

Rate-Case Progress Across Multiple Jurisdictions West highlighted several regulatory developments during the...