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

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

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