Algonquin Power & Utilities (NYSE:AQN) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Algonquin Power & Utilities (NYSE:AQN) released its earnings results on Friday. The utilities provider reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.01, Zacks reports. Algonquin Power & Utilities had a return on equity of 5.16% and a net margin of 5.77%. 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:

• Third-quarter adjusted earnings rose to $88.1 million from $69 million a year earlier, with adjusted EPS up two cents to $0.11, helped by favorable weather and new rates. GAAP earnings declined to $57.6 million from $71 million.
• Management reaffirmed adjusted EPS guidance of $0.35–$0.37 for 2026 and $0.38–$0.42 for 2027, and said it does not expect to issue equity through 2027; liquidity stood at $1.2 billion.
• Algonquin filed a Large Load Tariff for Empire Electric Missouri, designed to support potential large customers while protecting existing customers. The tariff still needs regulatory approval, and the company disclosed no customer commitments or specific investment plans.
• The planned U.S. redomicile remains on track for the first half of 2027, subject to approvals, and is expected to generate an annualized adjusted EPS benefit of $0.02–$0.03, with a partial benefit beginning in 2027.
• Year-to-date operating, depreciation, and other expenses increased by $29 million, including $24.8 million in higher gas operating expenses. Management said cost-reduction efforts are underway but expects further work to bring O&M toward its low-to-mid-30% target as a share of gross revenue.

Algonquin Power & Utilities Price Performance

AQN stock traded down $0.12 during trading on Friday, hitting $5.51. The stock had a trading volume of 13,183,871 shares, compared to its average volume of 3,597,342. Algonquin Power & Utilities has a 1-year low of $4.91 and a 1-year high of $7.11. The company has a debt-to-equity ratio of 1.28, a quick ratio of 0.69 and a current ratio of 0.88. The company’s 50 day moving average price is $5.32 and its two-hundred day moving average price is $5.94. The stock has a market cap of $4.25 billion, a price-to-earnings ratio of 17.53 and a beta of 0.73.

Algonquin Power & Utilities Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be issued a $0.0650 dividend. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $0.26 annualized dividend and a yield of 4.7%. Algonquin Power & Utilities’s dividend payout ratio is 136.84%.

Algonquin Power & Utilities News Roundup

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

• Positive Sentiment: Third-quarter adjusted earnings were $0.11 per share, beating the $0.10 analyst consensus and rising from $0.09 a year earlier. Revenue also beat estimates, and the company reported $57.6 million in GAAP net earnings. Algonquin Power & Utilities Q3 Earnings and Revenues Beat Estimates
• Neutral Sentiment: For 2026, AQN guided to adjusted EPS of $0.35–$0.37, a range centered on the $0.36 consensus estimate. It also declared a quarterly common-share dividend of US$0.065 per share, payable January 15, 2027. Third Quarter 2026 Financial Results Fourth Quarter 2026 Dividend Declaration
• Negative Sentiment: 2027 adjusted EPS guidance is $0.38–$0.42, with a $0.40 midpoint slightly below the $0.41 consensus, which could weigh on expectations for earnings growth. Third Quarter 2026 Financial Results

Analyst Upgrades and Downgrades

Several research analysts recently commented on AQN shares. National Bank Financial set a $7.00 price objective on shares of Algonquin Power & Utilities and gave the stock an “outperform” rating in a report on Tuesday, September 1st. Canadian Imperial Bank of Commerce lowered their price objective on Algonquin Power & Utilities from $6.00 to $5.75 and set a “neutral” rating on the stock in a research report on Wednesday, October 28th. Weiss Ratings lowered Algonquin Power & Utilities from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 8th. Barclays reduced their target price on Algonquin Power & Utilities from $7.00 to $6.00 and set an “overweight” rating on the stock in a report on Thursday, October 1st. Finally, TD set a $6.00 price objective on shares of Algonquin Power & Utilities and gave the stock a “hold” rating in a research report on Monday, August 31st. Seven research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $6.59.

About Algonquin Power & Utilities

Algonquin Power & Utilities Corp. is a Canadian utility company that owns and operates regulated electric, natural gas and water distribution businesses. Through its Liberty operating brands, the company provides essential utility services to residential, commercial and industrial customers in communities across the United States and Canada.

The company’s regulated utility operations include electricity distribution and generation, natural gas distribution, and water and wastewater services.