Algonquin Power & Utilities (AQN) Q3 2024 earnings summary

Executive summary

• Strategic transition to a pure-play regulated utility is progressing, with major asset sales, including renewables and Atlantica stake, and business simplification underway; Atlantica sale closing anticipated December 12, 2024.

• Completed rollout of Customer First SAP system to enhance efficiency and focus.

• Appointed new board members and revamped organizational processes to drive consistent results.

• Progressed on regulatory initiatives with multiple rate case filings to improve earned returns.

Financial highlights

• Q3 2024 revenue from continuing operations grew 1% year-over-year to $573.2 million; Adjusted EBITDA up 4% to $264.4 million.

• Adjusted Net Earnings for Q3 2024 were $64.9 million, down 5% year-over-year; Adjusted EPS was $0.08, down 20%.

• Net earnings from continuing operations were $49.5 million, up from a loss of $174.9 million in Q3 2023.

• Including discontinued operations, Q3 net loss was $1,305.7 million, reflecting significant one-time items related to asset sales.

• Cash provided by operating activities was $66.7 million, down 50% year-over-year.

Outlook and guidance

• No 2025 guidance provided; full-year guidance to be issued with Q4 results.

• Over $700 million in potential net increases to authorized rate base from three major rate cases; additional cases planned through 2027.

• Rate case filings in progress or planned, targeting equity ratios around 52-53% and allowed ROEs of 10-11%.

• 2025 will be the first year with full focus on regulated business; short-term results impacted by timing of rate cases.

• Sale of the renewable energy business (excluding hydro) to LS Power for up to $2.5 billion is expected to further focus the business.