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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