Algonquin Power & Utilities (NYSE:AQN) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Algonquin Power & Utilities (NYSE:AQN) posted its quarterly earnings data on Friday. The utilities provider reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.02, Briefing.com reports. Algonquin Power & Utilities had a negative net margin of 1.11% and a positive return on equity of 5.14%. The firm had revenue of $630.70 million for the quarter, compared to analysts’ expectations of $625.77 million. During the same quarter last year, the company posted $0.06 EPS. The business’s quarterly revenue was up 7.8% on a year-over-year basis. 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 Down 10.8%

AQN stock opened at $6.14 on Friday. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.98 and a current ratio of 1.23. The company has a market capitalization of $4.72 billion, a price-to-earnings ratio of 26.70 and a beta of 0.75. The business’s 50 day moving average price is $6.54 and its two-hundred day moving average price is $6.08. Algonquin Power & Utilities has a fifty-two week low of $4.29 and a fifty-two week high of $7.11.

Algonquin Power & Utilities Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be given a dividend of $0.065 per share. The ex-dividend date is Tuesday, March 31st. This represents a $0.26 annualized dividend and a dividend yield of 4.2%. Algonquin Power & Utilities’s payout ratio is currently -650.00%.

Analyst Ratings Changes

A number of research analysts recently commented on AQN shares. Desjardins increased their target price on Algonquin Power & Utilities from $7.00 to $7.25 and gave the company a “buy” rating in a research note on Thursday, February 5th. Janney Montgomery Scott set a $7.00 price target on Algonquin Power & Utilities in a research note on Monday, November 10th. Wall Street Zen upgraded Algonquin Power & Utilities from a “hold” rating to a “buy” rating in a report on Saturday. National Bank Financial set a $7.50 target price on Algonquin Power & Utilities in a research report on Wednesday, January 7th. Finally, Weiss Ratings lowered Algonquin Power & Utilities from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $6.67.

Key Algonquin Power & Utilities News

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

• Positive Sentiment: Q4 beat — Algonquin reported $0.06 EPS (beat consensus) and revenue of $630.7M, with revenue up ~7.8% year‑over‑year; adjusted metrics showed growth and operating efficiencies. This supports near‑term earnings credibility. Q4 Results Press Release/Report
• Positive Sentiment: FY‑2026 guidance topped consensus slightly — management set FY‑2026 EPS at $0.350–$0.370 versus consensus ~$0.34, which frames modest upside for the current year. Guidance Details
• Positive Sentiment: Dividends declared — board approved a common dividend of US$0.0650 (payable April 15) plus preferred share dividends (two preferred issues announced in CAD). This supports income investors and signals cash‑return focus. Dividend Announcement
• Neutral Sentiment: Earnings materials and presentation are available — the company posted the slide deck and earnings presentation (useful for detail on segment performance and assumptions). Earnings Presentation
• Neutral Sentiment: Analyst notes and preview coverage arrived ahead of the print — expectations were modest and some shops adjusted forecasts into the quarter. Useful for tracking changes in sell‑side sentiment. Analyst Recap
• Negative Sentiment: FY‑2027 guidance missed consensus — company set FY‑2027 EPS at $0.380–$0.420 versus street ~$0.44, which likely triggered investor disappointment about longer‑term earnings momentum. FY‑2027 Guidance
• Negative Sentiment: Profitability and leverage signals — the quarter shows a negative net margin and the company carries meaningful leverage (debt/equity), which increases sensitivity to rate and regulatory risks. These fundamentals can weigh on valuation until longer‑term guidance restores confidence. Full Results/Notes
• Negative Sentiment: Market reaction — the stock is trading down on heavy volume after the print, indicating the guidance miss and forward outlook dominated the modest beat. Monitor intraday volume and analyst updates for further downside or stabilization. Market Reaction

Hedge Funds Weigh In On Algonquin Power & Utilities

Several large investors have recently modified their holdings of AQN. Public Sector Pension Investment Board lifted its position in Algonquin Power & Utilities by 2.5% in the 2nd quarter. Public Sector Pension Investment Board now owns 74,271 shares of the utilities provider’s stock valued at $424,000 after acquiring an additional 1,800 shares in the last quarter. LPL Financial LLC lifted its holdings in Algonquin Power & Utilities by 5.7% in the fourth quarter. LPL Financial LLC now owns 37,364 shares of the utilities provider’s stock valued at $230,000 after acquiring an additional 2,026 shares during the period. Vident Advisory LLC boosted its holdings in shares of Algonquin Power & Utilities by 9.6% in the fourth quarter. Vident Advisory LLC now owns 31,199 shares of the utilities provider’s stock worth $192,000 after buying an additional 2,736 shares during the last quarter. Group One Trading LLC grew its position in shares of Algonquin Power & Utilities by 63.3% during the 4th quarter. Group One Trading LLC now owns 7,479 shares of the utilities provider’s stock valued at $46,000 after acquiring an additional 2,900 shares during the period. Finally, Vanguard Personalized Indexing Management LLC lifted its position in Algonquin Power & Utilities by 5.7% during the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 86,259 shares of the utilities provider’s stock valued at $530,000 after purchasing an additional 4,616 shares in the last quarter. Hedge funds and other institutional investors own 62.28% of the company’s stock.

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.