Algonquin Power's Q2 net earnings drop 90% on Atlantica sale

Algonquin Power & Utilities

08/08/2025 11:40

Overview

Algonquin Power Q2 net earnings fell 90% yr/yr due to Atlantica sale

Adjusted net earnings for Q2 declined 13%, reflecting corporate challenges

Hydro Group Q2 net earnings surged 176%, driven by operational improvements

Outlook

Company estimates 2025 adjusted EPS between $0.30 and $0.32

AQN expects $2.5 bln capital expenditures from 2025 to 2027

Company does not anticipate common equity financings through 2027

AQN aims to maintain BBB investment grade ratings

Result Drivers

RATE INCREASES - Regulated Services Group benefited from approved rate hikes across gas and water utilities, offset by weather normalization and prior period benefits

HYDRO IMPROVEMENTS - Hydro Group's net earnings surged due to operational improvements

CORPORATE IMPACT - Corporate Group earnings hit by Atlantica sale, reducing dividend income but partially offset by lower interest expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted Net Income
$36.20 mln
Q2 Net Income
$47.10 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the multiline utilities peer group is "buy."

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw5383jDa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)