Algonquin Power & Utilities Corp. Announces 2025 First Quarter Financial Results; Plans to Host Investor Update Call on June 3

OAKVILLE, Ontario--(BUSINESS WIRE)--May 09, 2025-- 

Algonquin Power & Utilities Corp. (TSX/NYSE: AQN) ("AQN" or the "Company") announced today financial results for the first quarter ended March 31, 2025. All amounts are shown in United States dollars ("U.S. $" or "$"), unless otherwise noted.

"The Company recorded a constructive first quarter of 2025 with notable year-over-year improvements in our key financial metrics. Our results were solid, reflecting the strength of our core regulated utility operations, even when accounting for one-time items that contributed positive tailwinds," said Rod West, Chief Executive Officer of AQN. "Since stepping into the role in early March, I have quickly gotten up to speed and I am encouraged by the opportunities ahead. I look forward to providing a further investor update on June 3."

 
 First Quarter 2025 Results for Continuing Operations(1) 
 
                                           Three months ended 
                                                March 31 
 (all dollar amounts in $ millions 
 except per share information)          2025      2024     Change 
-------------------------------------   -----    ------   -------- 
 Net Earnings for Regulated Services 
  Group                                $134.6   $  93.8     43% 
 Net Earnings for Hydro Group            15.9       2.5    536% 
 Net Earnings for Corporate Group       (55.1)   (153.1)    64% 
                                        -----    ------   ---- 
 AQN Net Earnings                        95.4     (56.8)   268% 
                                        -----    ------   ---- 
 AQN Adjusted Net Earnings(2)           111.6      80.1     39% 
-------------------------------------   -----    ------   ---- 
 AQN Adjusted Net Earnings(2) per 
  share                                  0.14      0.11     27% 
-------------------------------------   -----    ------   ---- 
 Dividends declared to common 
  shareholders                           50.4      75.5    (33)% 
 
 
(1)   AQN's operations are organized across two business units consisting of: 
      1) the Regulated Services Group, which primarily owns and operates a 
      portfolio of regulated electric, water distribution and wastewater 
      systems, and natural gas utility systems and transmission operations in 
      the United States, Canada, Bermuda and Chile; and 2) the Hydro Group, 
      which consists of hydroelectric generation facilities located in Canada 
      that were not sold as part of the sale of the Company's renewable energy 
      business. Additionally, the Company has a corporate function, the 
      Corporate Group, consisting of corporate interest expense and shared 
      services that primarily support the Regulated Services Group and the 
      Hydro Group, in addition to holding certain ancillary investments. 
(2)   Please refer to "Non-GAAP Measures" below for further details. 
 

First Quarter 2025 Operational Results and Corporate Actions

   -- Regulated Services Group saw growth from implementation of new rates and 
      a non-recurring depreciation true up -- The Regulated Services Group 
      recorded first quarter 2025 year-over-year growth in net earnings of 
      approximately 43%, primarily due to the implementation of new rates at 
      several of the Company's electric, water and gas utilities, as well as a 
      favourable non-recurring $8.2 million depreciation true up related to 
      constructive regulatory orders. The Company also benefited from reduced 
      interest expense as a result of repayment of debt with the proceeds of 
      the sale of the Company's renewable energy business (excluding hydro) and 
      the sale of its 42.2% ownership stake in Atlantica Sustainable 
      Infrastructure plc ("Atlantica"). 
 
   -- First quarter net earnings positively impacted by additional 
      non-recurring tax step-up -- The Company benefited from a one-time $13.4 
      million income tax recovery stemming from a tax basis step-up during the 
      Hydro Group's reorganization related to the sale of the Company's 
      renewable energy business. 
 
   -- Regulatory schedule progressing as the Company obtains conclusive orders 
      in four separate rate cases -- During the first quarter of 2025, the 
      Company obtained conclusive orders, primarily by way of approved 
      settlements, at its Midstates Gas (Missouri), Missouri Water, Arkansas 
      Water and Granite State Electric utilities. Authorized revenue increases 
      for these cases total approximately $22.3 million in aggregate. 
 
   -- Corporate Group net earnings impacted due to sale of Atlantica -- The 
      Corporate Group's net earnings were negatively impacted by the sale of 
      the Company's ownership stake in Atlantica and the loss of related 
      dividends. The repayment of debt with the proceeds of the Atlantica sale 
      contributed to interest expense reductions across the Regulated Services 
      Group and Corporate Group segments, which partly offset the loss of 
      Atlantica dividends. 
 
   -- Sale of the renewable energy business marks key achievement in strategic 
      transition to pure-play regulated utility -- On January 8, 2025, the 
      Company completed the sale of its renewable energy business (excluding 
      hydro) to a wholly-owned subsidiary of LS Power for proceeds of 
      approximately $2.1 billion, after subtracting taxes, transaction fees and 
      other preliminary closing adjustments, including an adjustment for 
      estimated remaining completion costs for in-construction assets. 
      Approximately $1.95 billion of such proceeds were received upon the 
      closing of the transaction and approximately $150 million of such 
      proceeds are currently expected to be received at a later date in 2025 
      upon monetization of tax attributes on certain in-construction projects. 
 
   -- Leadership transition supports AQN's ongoing transformation -- On March 
      7, 2025, Roderick (Rod) West joined the Company as Chief Executive 
      Officer, and Brian Chin, Vice President of Investor Relations, assumed 
      the role of Interim Chief Financial Officer. A nationally recognized 
      search firm has been engaged to assist in identifying a permanent Chief 
      Financial Officer. 
 
   -- Investor Update scheduled for June 3, 2025 -- Consistent with comments 
      made on the previous earnings call regarding an approximately 90-day 
      review period for the incoming management team, the Company plans to hold 
      an investor update on June 3, 2025, at 1:30 p.m. ET, hosted by Chief 
      Executive Officer, Rod West, and Interim Chief Financial Officer and Vice 
      President of Investor Relations, Brian Chin. The update is expected to 
      include the Company's forward-looking financial outlook. Details for the 
      call and accompanying webcast are below. 

AQN's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2025, and management discussion & analysis for the three months ended March 31, 2025, (the "Interim MD&A") will be available on its website at www.AlgonquinPower.com and in its corporate filings on SEDAR+ at www.sedarplus.com (for Canadian filings) and EDGAR at www.sec.gov/edgar (for U.S. filings).

Earnings Conference Call

AQN will hold an earnings conference call at 8:30 a.m. eastern time on Friday, May 9, 2025, hosted by Chief Executive Officer, Rod West, and Interim Chief Financial Officer and Vice President, Investor Relations, Brian Chin.

 
Date:              Friday, May 9, 2025 
-----------------  --------------------------------------------------------- 
Time:              8:30 a.m. ET 
-----------------  --------------------------------------------------------- 
Conference Call:   Toll Free Dial-In Number:           1 (800) 715-9871 
-----------------  ----------------------------------  --------------------- 
 Toll Dial-In Number:                                  1 (647) 932-3411 
 ----------------------------------------------------  --------------------- 
 Conference ID:                                        4990414 
 ----------------------------------------------------  --------------------- 
Webcast:           https://edge.media-server.com/mmc/p/fyef9ok5 
-----------------  --------------------------------------------------------- 
 Presentation also available at: www.algonquinpower.com 
 --------------------------------------------------------------------------- 
 

Investor Update Call

AQN will hold an investor update at 1:30 p.m. eastern time on Tuesday, June 3, 2025, hosted by Chief Executive Officer, Rod West, and Interim Chief Financial Officer and Vice President, Investor Relations, Brian Chin.

 
Date:              Tuesday, June 3, 2025 
-----------------  --------------------------------------------------------- 
Time:              1:30 p.m. ET 
-----------------  --------------------------------------------------------- 
Conference Call:   Toll Free Dial-In Number:           1 (800) 715-9871 
-----------------  ----------------------------------  --------------------- 
 Toll Dial-In Number:                                  1 (647) 932-3411 
 ----------------------------------------------------  --------------------- 
 Conference ID:                                        7105211 
 ----------------------------------------------------  --------------------- 
Webcast:           https://edge.media-server.com/mmc/p/6hxz6o7y 
-----------------  --------------------------------------------------------- 
 Presentation also available at: www.algonquinpower.com 
 --------------------------------------------------------------------------- 
 

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