Q2 2026 Algonquin Power & Utilities Corp Earnings Call Transcript

Aug 7, 2026 / 12:30 PM GMT

Release Date Price: C$25.69 (-0.23%)

Transcript

Key Points

Positve

Algonquin Power & Utilities Corp (AQN) is on track to meet its adjusted net earnings per share forecast for 2026 and 2027, reflecting consistent execution and financial discipline.
The company achieved significant regulatory progress, including the Missouri Public Service Commission approving implementation of $97 million in annualized revenue adjustments and a settlement in Kansas for an $8.8 million revenue adjustment.
Algonquin Power & Utilities Corp (AQN) received a constructive proposed decision in California for $58.1 million in wildfire cost recovery, approximately 75% of the requested amount, aligning with peer practices.
The company obtained a Certificate of Convenience and Necessity for a 250 MW gas-fired generation project in Missouri, which will benefit from CWIP regulatory recovery, reducing regulatory lag.
Algonquin Power & Utilities Corp (AQN) plans to redomicile to the U.S., which is expected to eliminate cross-border tax frictions, reduce the effective tax rate, and potentially lead to inclusion in U.S. equity indices, enhancing shareholder value.
The company maintains a strong balance sheet with no equity issuance expected through 2027, and successfully refinanced $1.15 billion in debt at Liberty Utilities, preserving its investment-grade credit ratings.

Negative

Algonquin Power & Utilities Corp (AQN) reported a decline in adjusted net earnings for Q2 2026 ($29.2 million vs. $33.6 million in Q2 2025) and year-to-date ($128.8 million vs. $142.6 million), partly due to higher financing costs and operating expenses.
The company recorded a $17.2 million writedown of a regulatory asset related to the California WEMA proceeding, reflecting only 75% recovery of wildfire costs, which was excluded from adjusted earnings.
Higher interest expenses of $9.3 million in Q2, driven by new debt issuance and commercial paper usage, negatively impacted earnings.
Operating expenses increased due to higher gas safety and excellence costs ($3.3 million in Q2, $6.3 million year-to-date) and higher labor, maintenance, and property tax expenses ($14.1 million year-to-date).
Unfavorable weather conditions reduced year-to-date net revenues by $9.9 million compared to the prior year.
The redomicile to the U.S. is expected to be a taxable event in Canada, potentially incurring one-time exit tax liabilities (including FIRPTA), the magnitude of which has not been disclosed, and requires regulatory approvals in multiple jurisdictions, adding execution risk.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

AQN.TO - Algonquin Power & Utilities Corp
Q2 2026 Algonquin Power & Utilities Corp Earnings Call
Aug 07, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Hello.

And welcome to Algonquin Power and Utilities Corporation second quarter 2026 earnings conference call.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks.

There will be a question-and-answer session.

It aar 1 on your telephone keypad.

I will now turn the conference over to Mr. Brian Chin.

Vice President of investor relation.

Please go ahead.

Thank you, operator, and good morning, everyone.

We appreciate you attending our second quarter 2026 earnings conference call.

Joining me on the call today will be Rod West, Chief Executive Officer, and Rob

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