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1. Company Snapshot

1.a. Company Description

Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets.The company operates through two segments, Regulated Services Group and Renewable Energy Group.The Regulated Services Group segment operates a portfolio of rate-regulated utilities located in the United States, Canada, Chile, and Bermuda.


Its utilities provide distribution services to approximately 1,093,000 customer connections in the electric, natural gas, and water and wastewater sectors The Renewable Energy Group segment generates and sells electrical energy, capacity, ancillary products, and renewable attributes produced by its portfolio of renewable and clean power generation facilities primarily in the United States and Canada.It owns and operates hydroelectric, wind, solar, and thermal facilities; and owns and operates a portfolio of clean energy and water infrastructure assets.The company was incorporated in 1988 and is headquartered in Oakville, Canada.

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1.b. Last Insights on AQN

Algonquin Power & Utilities Corp.'s recent performance was driven by its focus on strategic transitions and operational improvements for future growth, despite a dip in quarterly earnings. The company's emphasis on navigating the current market environment, coupled with its commitment to delivering long-term value to shareholders, is a positive development. Additionally, the company's ability to manage its debt and maintain a strong balance sheet is a key driver of its resilience in a challenging market.

1.c. Company Highlights

2. Algonquin Power & Utilities Corp. Posts Strong Q3 Earnings

Algonquin Power & Utilities Corp. reported a solid third quarter with double-digit year-over-year percentage increases in adjusted net earnings and adjusted net earnings per share. Adjusted net earnings from continuing operations were $71.7 million, up approximately 10% from $64.9 million in 2024. Earnings per share came in at $0.1253, significantly beating analyst estimates of $0.06745. Revenue growth was fueled by the implementation of approved rates across several of the company's gas and water utilities, with the Regulated Services Group seeing a year-over-year increase in net earnings.

Publication Date: Nov -08

📋 Highlights
  • Leadership Transition:: Robert Stefani to join as CFO effective January 5, 2026, ensuring continuity in strategic direction.
  • Financial Growth:: Q3 adjusted net earnings rose 10% YoY to $71.7M, driven by rate implementation in regulated utilities.
  • Operational Efficiency:: $11M cost reductions in Q3 ($9M timing-related), with partial reversal expected in Q4, maintaining guidance.
  • Portfolio Strategy Confidence:: Reinforced commitment to regulated pure-play model post-review, prioritizing risk reduction across regulatory and operational areas.
  • Customer Systems Progress:: SAP deployment advancements under new Chief Customer Officer, Amy Walt, with Missouri pilot showing improved metrics.

Operational Efficiency

The company has been working on improving its cost discipline, with operating expenses showing improvement in Q3. According to Brian Chin, "we have taken cost-cutting measures as part of our ongoing strategy of improving value to our customers and stakeholders." The company saw $11 million in cost reductions in Q3, with $9 million due to timing. While some reversal is expected in Q4, the order of magnitude is expected to be correct, according to Brian Chin.

Valuation and Outlook

With a current P/E Ratio of -3.48, the market has priced in significant challenges for the company. However, the Dividend Yield stands at 4.2%, providing a relatively stable return for investors. The EV/EBITDA ratio is 13.67, indicating a moderate valuation. Analysts estimate revenue growth at 4.1% next year, suggesting a steady outlook for the company. As Roderick West mentioned, "our focus remains on creating sustainable long-term value for our stakeholders and continuing to effectively serve our customers and communities."

Strategic Direction

The company is committed to its back-to-basics pure-play regulated strategy, having identified a clear direction and priorities through its portfolio optimization review. According to Roderick West, "we're confident that our strategy is fundamentally sound, and we're committed to executing on it." The company is also making progress on its customer and billing data systems, with a new Chief Customer Officer, Amy Walt, bringing in expertise in SAP deployment and end-to-end customer systems.

3. NewsRoom

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Energy & Utilities Roundup: Market Talk

Nov -11

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Company News for Nov 10, 2025

Nov -10

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Will Algonquin Power & Utilities' (TSX:AQN) CFO Appointment Cement Its Pure-Play Utility Ambitions?

Nov -09

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Algonquin Power & Utilities Corp (AQN) Q3 2025 Earnings Call Highlights: Strong Financial ...

Nov -08

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In a tough week for equities, this TSX company's stock bucked the trend

Nov -07

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Here are 6 TSX winners and losers as earnings bonanza keeps rolling out

Nov -07

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TSX Down 1% at Midday With Tech Sector Down Near 5%

Nov -07

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Algonquin Power & Utilities (AQN) Beats Q3 Earnings Estimates

Nov -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.61%)

6. Segments

Regulated Services Group

Expected Growth: 2.5%

The Regulated Services Group's 2.5% growth is driven by increasing demand for utility services, rate base growth through infrastructure investments, and favorable regulatory environments. Additionally, the segment benefits from a stable and predictable revenue stream, supported by long-term contracts and a diversified customer base.

Renewable Energy Group

Expected Growth: 3.5%

Renewable Energy Group's 3.5% growth is driven by increasing demand for clean energy, government incentives, and declining technology costs. Algonquin Power & Utilities Corp.'s diversified portfolio and strategic acquisitions also contribute to growth. Additionally, rising environmental concerns and regulations support the adoption of renewable energy sources, further fueling growth.

7. Detailed Products

Electricity Generation

Algonquin Power & Utilities Corp. generates electricity through its diverse portfolio of renewable energy sources, including wind, solar, hydro, and thermal power.

Electricity Distribution

The company distributes electricity to customers through its regulated utility business, providing safe and reliable electricity to homes and businesses.

Water Distribution

Algonquin Power & Utilities Corp. provides clean drinking water to communities through its water distribution systems.

Wastewater Collection and Treatment

The company collects and treats wastewater through its wastewater collection systems and treatment plants.

Natural Gas Distribution

Algonquin Power & Utilities Corp. distributes natural gas to customers through its regulated utility business.

Renewable Energy Solutions

The company offers renewable energy solutions, including wind, solar, and hydroelectric power, to customers seeking clean and sustainable energy options.

8. Algonquin Power & Utilities Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Algonquin Power & Utilities Corp. operates in a regulated industry, which reduces the threat of substitutes. However, the increasing adoption of renewable energy sources and energy storage technologies could pose a moderate threat to the company's traditional business model.

Bargaining Power Of Customers

Algonquin Power & Utilities Corp. serves a diverse customer base, including residential, commercial, and industrial customers. While large industrial customers may have some bargaining power, the company's diversified customer base reduces the overall bargaining power of customers.

Bargaining Power Of Suppliers

Algonquin Power & Utilities Corp. relies on a diverse range of suppliers for fuel, equipment, and services. While the company has some bargaining power due to its scale, suppliers of specialized equipment and services may have some bargaining power.

Threat Of New Entrants

The utility industry is highly regulated, and new entrants would face significant barriers to entry, including obtaining licenses and permits, building infrastructure, and complying with regulations. This reduces the threat of new entrants.

Intensity Of Rivalry

Algonquin Power & Utilities Corp. operates in a competitive industry, with several established players competing for market share. The company's focus on renewable energy and sustainability may help it differentiate itself, but the industry remains highly competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.82%
Debt Cost 6.29%
Equity Weight 37.18%
Equity Cost 6.29%
WACC 6.29%
Leverage 168.98%

11. Quality Control: Algonquin Power & Utilities Corp. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Northland Power

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Growth: 3.7

Quality: 4.4

Yield: 7.0

Momentum: 7.5

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Clearway Energy

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Algonquin Power

A-Score: 5.8/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.12$

Current Price

8.12$

Potential

-0.00%

Expected Cash-Flows