Algonquin Power & Utilities (NYSE:AQN) Announces Quarterly Earnings Results

Algonquin Power & Utilities (NYSE:AQN) released its quarterly earnings data on Friday. The utilities provider reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.01, Briefing.com reports. The business had revenue of $630.70 million for the quarter, compared to analysts’ expectations of $625.77 million. Algonquin Power & Utilities had a return on equity of 5.45% and a net margin of 7.32%.The firm’s quarterly revenue was up 7.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.06 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:

• Used net proceeds from the sale of the renewables business to retire approximately $1.6 billion of debt, lowering total debt to about $6.5 billion, improving the credit profile and enabling management to expect no equity issuance through 2027.
• Achieved several constructive regulatory outcomes with clear near‑term benefits — Missouri Empire settlement approved (authorizes a $97M revenue increase plus up to $13M conditional), CalPeco proposed decision for $48.6M, New England Gas settlement for $45.3M (stay‑out to 2029), and a filed Arizona Litchfield Park settlement for $15.3M — providing line of sight to rate implementations.
• While 2026 Adjusted Net EPS guidance was reaffirmed at $0.35–$0.37, management lowered the 2027 outlook to $0.38–$0.42 due to an updated expectation that the effective tax rate will be in the mid‑to‑high 20% range, reducing 2027 EPS by roughly $0.03 per share absent further tax optimization.
• Laid out a growth‑oriented capital plan of roughly $3.2 billion for 2026–2028 (ramping from $800M to $1.3B), with rate base expected to grow to about $9.7B by 2028 and ~65–70% of CapEx expected to be internally funded, supporting organic regulated utility growth.
• Operational improvements showed early traction — operating expense as a percent of gross revenue fell from ~38% to ~36%, earned ROE rose from 5.5% to ~6.8%, and full‑year Adjusted Net EPS increased ~13% to $0.34, beating guidance by $0.02.

Algonquin Power & Utilities Stock Up 0.6%

Shares of AQN traded up $0.04 during midday trading on Tuesday, reaching $6.23. 962,473 shares of the stock were exchanged, compared to its average volume of 4,887,345. The company has a current ratio of 1.23, a quick ratio of 0.98 and a debt-to-equity ratio of 1.26. The company’s 50 day moving average is $6.54 and its two-hundred day moving average is $6.08. The company has a market capitalization of $4.78 billion, a P/E ratio of 27.02 and a beta of 0.75. Algonquin Power & Utilities has a 52 week low of $4.45 and a 52 week high of $7.11.

Algonquin Power & Utilities Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be issued a $0.065 dividend. This represents a $0.26 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Tuesday, March 31st. Algonquin Power & Utilities’s dividend payout ratio is currently 113.04%.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on AQN shares. National Bank Financial lowered their target price on shares of Algonquin Power & Utilities from $7.50 to $7.25 and set an “outperform” rating on the stock in a research note on Monday. Scotiabank raised Algonquin Power & Utilities from a “sector perform” rating to a “sector outperform” rating and set a $6.50 target price on the stock in a research note on Tuesday, December 16th. Wall Street Zen raised Algonquin Power & Utilities from a “hold” rating to a “buy” rating in a report on Saturday. Desjardins reduced their price objective on shares of Algonquin Power & Utilities from $7.25 to $7.00 and set a “buy” rating on the stock in a research report on Monday. Finally, Raymond James Financial upgraded shares of Algonquin Power & Utilities from a “market perform” rating to an “outperform” rating and upped their target price for the stock from $6.50 to $7.25 in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $6.63.

More Algonquin Power & Utilities News

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

• Positive Sentiment: Raymond James upgraded AQN from “market perform” to “outperform” and raised its price target to $7.25 (from $6.50), giving the stock notable analyst support and a reported upside to the new target. Raymond James upgrades Algonquin Power & Utilities (AQN)
• Positive Sentiment: Wall Street commentary is turning constructive on utilities and singles out Algonquin as one of the names drawing renewed analyst interest, reinforcing sector momentum that can lift AQN shares. PG&E, Algonquin Power and Avista Are Drawing New Analyst Interest in the Utility Sector
• Neutral Sentiment: Desjardins trimmed its price target to $7.00 (from $7.25) but maintained a “buy” rating, signaling confidence in the thesis while reflecting slightly lower near‑term expectations. Analyst ratings update (BayStreet.CA)
• Neutral Sentiment: National Bank Financial lowered its target to $7.25 (from $7.50) but kept an “outperform” rating, a mixed signal that preserves upside expectations though with reduced conviction on the magnitude. Analyst ratings update (BayStreet.CA)
• Neutral Sentiment: Kalkine Media coverage summarizes recent group developments and sector impact for AQN; useful context but not a direct catalyst. Algonquin Power Utilities Corporate Group Developments Sector Impact
• Negative Sentiment: TD Cowen lowered its price target to $6.00 (from $6.50) and moved to a “hold” rating, which is the clearest near‑term negative analyst signal and may cap upside until guidance/earnings trends firm up. TD Cowen target cut (Finviz)

Institutional Investors Weigh In On Algonquin Power & Utilities

Hedge funds and other institutional investors have recently bought and sold shares of the company. Quarry LP acquired a new position in shares of Algonquin Power & Utilities in the third quarter valued at about $29,000. Group One Trading LLC boosted its position in Algonquin Power & Utilities by 63.3% in the fourth quarter. Group One Trading LLC now owns 7,479 shares of the utilities provider’s stock valued at $46,000 after buying an additional 2,900 shares during the last quarter. NewEdge Advisors LLC purchased a new stake in Algonquin Power & Utilities in the fourth quarter valued at approximately $47,000. Vise Technologies Inc. acquired a new position in Algonquin Power & Utilities in the 3rd quarter worth approximately $56,000. Finally, Tudor Investment Corp ET AL purchased a new position in Algonquin Power & Utilities during the 4th quarter worth approximately $62,000. Hedge funds and other institutional investors own 62.28% of the company’s stock.

Algonquin Power & Utilities Company Profile

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.