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

Key Points

• Algonquin Power & Utilities reported adjusted EPS of $0.04, $0.01 below consensus and unchanged from the prior-year quarter. The company maintained fiscal 2026 EPS guidance of $0.35–$0.37 and set fiscal 2027 guidance at $0.38–$0.42.
• Regulatory developments improved future earnings visibility: Missouri, Kansas and California approved revenue adjustments or wildfire-cost recovery, while the company also advanced a planned 250-megawatt Missouri generation project and a large-load tariff.
• The company declared a quarterly dividend of $0.065 per share, equivalent to a 4.5% annualized yield, while shares slipped 0.3% to $5.74. Management also targets completing its U.S. re-domiciliation after a shareholder vote in the first half of 2027.

Algonquin Power & Utilities (NYSE:AQN - Get Free Report) released its earnings results on Friday. The utilities provider reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.01), Zacks reports. 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 company 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 Trading Down 0.3%

Algonquin Power & Utilities stock traded down $0.01 during trading hours on Friday, hitting $5.74. The company had a trading volume of 5,635,876 shares, compared to its average volume of 3,518,964. The firm has a market cap of $4.41 billion, a P/E ratio of 26.07 and a beta of 0.70. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.87 and a current ratio of 1.05. Algonquin Power & Utilities has a 1 year low of $5.32 and a 1 year high of $7.11. The company has a 50-day moving average price of $5.85 and a two-hundred day moving average price of $6.18.

Algonquin Power & Utilities Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 29th will be issued a dividend of $0.065 per share. The ex-dividend date is Tuesday, September 29th. This represents a $0.26 dividend on an annualized basis and a yield of 4.5%. Algonquin Power & Utilities's dividend payout ratio (DPR) is presently 118.18%.

Hedge Funds Weigh In On Algonquin Power & Utilities

A number of institutional investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. boosted its holdings in shares of 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 valued at $62,738,000 after purchasing an additional 4,808,539 shares during the period. Envestnet Asset Management Inc. bought a new stake in Algonquin Power & Utilities during the 2nd quarter valued at $85,000. American Century Companies Inc. raised its position in Algonquin Power & Utilities by 8.4% during the 2nd quarter. American Century Companies Inc. now owns 240,683 shares of the utilities provider's stock valued at $1,377,000 after purchasing an additional 18,752 shares in the last quarter. Russell Investments Group Ltd. lifted its holdings in shares of Algonquin Power & Utilities by 15.9% in the 2nd quarter. Russell Investments Group Ltd. now owns 120,708 shares of the utilities provider's stock worth $691,000 after buying an additional 16,552 shares during the period. Finally, Marshall Wace LLP lifted its holdings in shares of Algonquin Power & Utilities by 465.0% in the 2nd quarter. Marshall Wace LLP now owns 106,046 shares of the utilities provider's stock worth $608,000 after buying an additional 87,276 shares during the period. 62.28% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

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

Key Stories Impacting Algonquin Power & Utilities

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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