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Reports first quarter 2026 net earnings1 per common share of $0.11 and adjusted net earnings per common share
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of $0.13
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Received orders allowing for resolution of rate cases in Missouri, California and Massachusetts and filed settlement agreement in Arizona
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OAKVILLE, Ontario — Algonquin Power & Utilities Corp. (TSX/NYSE: AQN) (“AQN”, “Algonquin” or the “Company”) today reported first quarter 2026 net earnings of $83.1 million, or $0.11 per common share, and adjusted net earnings2 of $99.6 million, or $0.13 per common share. These results compared to net earnings of $92.8 million, or $0.12 per common share, and adjusted net earnings2 of $109.0 million, or $0.14 per common share, for the first quarter of 2025.
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All amounts are shown in United States dollars (“U.S. $” or “$”), unless otherwise noted.
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“The progress we made in the first quarter reflects strong execution against our ‘Back to Basics’ strategy,” said Rod West, Chief Executive Officer of AQN. “We advanced key regulatory proceedings across our electric, gas and water utilities, while reinforcing operational and financial discipline across the business. By staying focused on fundamentals, we are positioning Algonquin to deliver steady, predictable value for our customers, communities and shareholders. Looking ahead, we remain confident in our ability to drive durable earnings growth over the long-term as we continue to advance our transformation into a premier, pure-play utility.”
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First Quarter 2026 AQN Financial and Operational Highlights
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- Received orders allowing for resolution of rate cases at Empire Electric Missouri, CalPeco Electric, and New England Gas;
- Submitted a settlement agreement for Litchfield Park Water & Sewer in Arizona;
- Subsequent to quarter-end, reached a tariff agreement at Chilean water utility Suralis;
- Subsequent to quarter-end, closed a $1.15 billion senior unsecured syndicated delayed draw term facility; the facility, which is undrawn and available, may, subject to capital markets conditions, be used to refinance AQN’s $1.15 billion senior note due June 15, 2026.
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| ____________________________ |
| 1 All amounts herein are from continuing operations and are attributable to common shareholders, unless otherwise noted |
| 2 Please refer to “Non-GAAP Measures” below |
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Net Earnings and Adjusted Net Earnings3 by Business Unit
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Three months ended | ||||||
March 31 | ||||||
(all dollar amounts in $ millions except per share information) | 2026 | 2025 | ||||
Net earnings by business units | ||||||
Net earnings for Regulated Services Group | $ | 119.4 | $ | 122.1 | ||
Net earnings for Hydro Group | 2.1 | 16.6 | ||||
Net loss for Corporate Group | (38.4 | ) | (45.9 | ) | ||
Net earnings | 83.1 | 92.8 | ||||
Adjusted net earnings3 | $ | 99.6 | $ | 109.0 | ||
Per common share | ||||||
Basic and diluted net earnings | $ | 0.11 | $ | 0.12 | ||
Adjusted net earnings3 | $ | 0.13 | $ | 0.14 | ||
Weighted average number of common shares outstanding | 768,860,143 | 767,670,571 | ||||
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Business Segment Highlights
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Regulated Services Group
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Regulated Services Group Overview
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Achieved regulatory progress across key proceedings:
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- On January 14, 2026, the Missouri Public Service Commission issued an order approving a settlement agreement for Empire District Electric which would allow for $97 million annualized revenues to be phased in over three years once certain customer performance metrics have been met for three consecutive months. Also, the Company would have the ability to earn a further $13 million annually if it meets additional performance metrics to be agreed and filed with the Missouri Public Service Commission by May 31, 2026. The Company continues to work with the Missouri Public Service Commission on the evaluation of customer metrics for the adjustment of rates. The approved agreement includes a provision by which a new rate case is not to be filed for 24 months from the effective date of new rates.
- On March 3, 2026, Litchfield Park Water & Sewer and Arizona Corporation Commission (“ACC”) staff jointly submitted a settlement agreement that would result in a combined water and wastewater revenue adjustment of $15.3 million based on a return on equity of 9.75% and an equity ratio of 54%. On March 19, the Company and ACC staff jointly submitted an updated formula rate proposal. The Residential Utility Consumer Office is not party to the settlement agreement. The ACC held hearings in March 2026 on the settlement agreement and the jointly filed formula rate proposal. Legal briefs are due on May 18. The Company awaits a Commission order on the settlement agreement and formula rate proposal, which is expected in August 2026.
- On March 19, 2026, the California Public Utilities Commission issued an order approving a proposed decision for CalPeco Electric that results in an adjustment of $48.6 million in annualized revenues based on a return on equity of 9.75% and an equity ratio of 52.5%, retroactive to January 1, 2025.
- On March 27, 2026, the Massachusetts Department of Public Utilities approved a settlement agreement for New England Gas which provides for an adjustment of $45.3 million in distribution revenues, of which $27.4 million relates to prior investments under the Gas System Enhancement Program and was previously included in revenues. The approved settlement reflects an authorized return on equity of 9.3% and an equity ratio of 52.9%. New rates were effective April 1, 2026. The Company agreed to no further redesign of distribution rates before November 1, 2029.
- On May 4, 2026, Suralis and the Superintendence of Sanitary Services reached an agreement for the VIII Tariff Process, setting base tariffs for the 2026-2031 period. The new tariff level translates to an estimated annual revenue impact of approximately $4.0 million. The new tariffs are expected to go into effect in the third quarter of 2026 upon publication of the Tariff Decree and Order by the Comptroller General.
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| ____________________________ |
| 3 Please refer to “Non-GAAP Measures” below |
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Regulated Services Group
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The Regulated Services Group reported net earnings of $119.4 million in the first quarter of 2026, compared to net earnings of $122.1 million in the first quarter of 2025, a decrease of $2.7 million or approximately 2.2%. The decrease in net earnings was primarily due to slightly unfavourable weather conditions in 2026 as compared to slightly favourable weather conditions in 2025 at Empire District Electric, favourable depreciation adjustments recorded in 2025 at Granite State Electric and Litchfield Park Water & Sewer systems, and higher gas safety excellence and operating expenses. The decrease was partially offset by the adjustment of approved rates at CalPeco Electric, which includes timing-related retroactive revenues and insurance expenses to the first quarter of 2025.
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Key drivers of first quarter 2026 performance as compared to first quarter 2025 performance include:
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- Adjustment of approved rates at CalPeco Electric of $48.6 million, which results in annualized retroactive revenues to January 1, 2025 of $60.7 million, partially offset by higher wildfire insurance expenses recovered in rates of $28.5 million, including retroactive expenses of $22.7 million relating to 2025; these amounts were previously incurred by the Company and deferred using its Wildfire Expense Memorandum Account (“WEMA”) mechanism;
- The impact of slightly unfavourable weather in the first quarter of 2026, as compared to slightly favourable conditions in the comparable period in 2025, resulting in an approximately $11.9 million decrease in net revenues at Empire District Electric;
- Higher operating expenses primarily related to $3.8 million in gas safety excellence costs with the remainder driven by higher labor, benefits and property taxes; and
- Higher depreciation primarily due to depreciation deferral adjustments of $5.6 million related to Granite State Electric and $2.6 million related to the Sarival wastewater plant at Litchfield Park Water & Sewer booked in the first quarter of 2025.
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Hydro Group
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The Hydro Group recorded net earnings of $2.1 million in the first quarter of 2026, compared to net earnings of $16.6 million in the first quarter of 2025. The decrease of $14.5 million was primarily due to a $13.4 million income tax recovery recognized in the first quarter of 2025 as a result of the tax basis step-up from the Hydro Group’s reorganization executed in connection with the sale of the Company’s renewable energy business (excluding hydro).
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