Canada's Algonquin Power Q2 income falls on wildfire cost

Algonquin Power & Utilities

07/08/2026 11:40

Overview
Canada-U.S. utility's Q2 adjusted net earnings per share held steady yr/yr at $0.04
Q2 net earnings fell due to wildfire cost write-off and higher operating expenses
Company plans to redomicile to the United States to reduce tax inefficiencies

Outlook
Algonquin expects regulatory changes in Missouri, California, Kansas and Arizona to impact future results
Company plans to redomicile to the U.S., aiming for tax efficiency and broader capital access
Algonquin expects to maintain presence in Ontario and establish headquarters in Chicago after redomicile

Result Drivers
WILDFIRE COSTS - One-time $17.2 mln write-off related to California wildfire cost recovery decision weighed on results
OPERATING AND INTEREST EXPENSES - Higher gas safety, maintenance, and interest costs reduced earnings
RATE CHANGES AND CUSTOMER GROWTH - Approved rate increases across multiple other utility systems and customer growth partially offset negative drivers, though some systems saw retroactive rate reductions

Company press release: ID:nBwc4VLtFa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted Net Income
 
$29.2 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the multiline utilities peer group is "buy."
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
Aug 6 - Sempra raises full-year earnings forecast, beats quarterly estimates on utility rate gains
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Aug 4 - ONE Gas beats Q2 revenue estimates on new rates and customer growth, raises 2026 earnings outlook

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(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.)