ALGONQUIN POWER & UTILITIES CORP. (AQN): Financial results for Q2 2026
ALGONQUIN POWER & UTILITIES CORP. (AQN) furnished an SEC Form 6-K — earnings release. Algonquin Power & Utilities Corp. Reports Second Quarter 2026 Financial Results Reports second quarter 2026 net earnings 1 per common share of $0.01 and Adjusted Net Earnings per common share 2 of $0.04 Achieved regulatory progress across key proceedings in Missouri, California a
How this was made
The 30-second read
Why it matters
The earnings release provides fresh financial metrics and regulatory updates that could influence short‑term trading sentiment.
Market read
First‑hand earnings data with modest profit and several regulatory rate adjustments; relevance mainly to utility sector investors.
What to watch
Potential future cash flow from the Missouri $97 M revenue adjustment and Kansas rate settlement could be material over the longer term.
Algonquin Power & Utilities Corp. reported second quarter 2026 net earnings of $4.9 million, or $0.01 per common share, and Adjusted Net Earnings of $29.2 million, or $0.04 per common share.
Second-quarter net earnings, Regulated Services Group earnings, Hydro Group earnings, and Adjusted Net Earnings were below the comparable 2025 period, while Corporate Group losses narrowed. Regulatory progress, including rate adjustments and proposed cost recovery, supports the utility strategy, but the quarter included a $17.2 million WEMA write-off, higher operating costs, higher interest expense, and lower Hydro earnings.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net earnings attributable to common shareholdersGAAP | $4.9 million | – | – |
| Adjusted Net Earningsnon-GAAP | $29.2 million | – | – |
| Basic and diluted net earnings per common shareGAAP | $0.01 | – | – |
| Adjusted Net Earnings per common sharenon-GAAP | $0.04 | – | – |
| Weighted average number of common shares outstandingother | 769,712,719 | – | – |
| Net earnings attributable to common shareholders, six months ended June 30GAAP | $88.0 million | – | – |
| Adjusted Net Earnings, six months ended June 30non-GAAP | $128.8 million | – | – |
| Basic and diluted net earnings per common share, six months ended June 30GAAP | $0.11 | – | – |
| Adjusted Net Earnings per common share, six months ended June 30non-GAAP | $0.17 | – | – |
| Weighted average number of common shares outstanding, six months ended June 30other | 769,289,055 | – | – |
| Regulated Services Group net earningsGAAP | $30.0 million | – | – |
| Hydro Group net earningsGAAP | $3.1 million | – | – |
| Corporate Group net lossGAAP | $(28.2) million | – | – |
| Regulated Services Group net earnings, six months ended June 30GAAP | $149.4 million | – | – |
| Hydro Group net earnings, six months ended June 30GAAP | $5.2 million | – | – |
| Corporate Group net loss, six months ended June 30GAAP | $(66.6) million | – | – |
| Net earnings attributable to common shareholders in Adjusted Net Earnings reconciliationGAAP | $1.0 million | – | – |
| Earnings (Loss) from discontinued operations, net of taxGAAP | $3.9 million | – | – |
| Restructuring costsGAAP | $9.7 million | – | – |
| WEMA write-offGAAP | $17.2 million | – | – |
| Loss on foreign exchangeGAAP | $3.8 million | – | – |
| Adjustment for taxes related to aboveGAAP | $(6.4) million | – | – |
What drove it
- Regulated Services Group second-quarter results included approved rates at CalPeco of $12.1 million, offset by higher wildfire insurance expenses of $5.7 million.
- Approved rates across multiple other utility systems, customer growth, and favourable weather as compared to the prior year contributed $7.5 million, partially offset by a rate reduction at Apple Valley Water and Park Water retroactive to July 2025 of $3.1 million.
- For the six months ended June 30, 2026, CalPeco implemented $72.8 million of approved rates, including retroactive revenues of $48.6 million, offset by higher wildfire insurance expenses recovered in rates of $34.2 million.
- Hydro Group earnings declined primarily because of prior-year income tax recoveries from a tax basis step-up connected with the sale of the renewable energy business, excluding hydro, of $2.5 million for the quarter and $15.9 million year to date.
- Corporate Group losses narrowed primarily because of favourable foreign exchange revaluation and higher income tax recoveries.
- Missouri approved a $97.0 million revenue adjustment for Empire Electric Missouri effective August 3, 2026, phased in over three years.
Concerns
- The Regulated Services Group recorded a one-time write-off of $17.2 million related to the WEMA proposed decision.
- Increased gas safety and excellence costs were $3.3 million in the second quarter and $6.3 million year to date.
- Year-to-date higher labour, benefits, maintenance costs, and property taxes were $14.1 million.
- Increased interest expense reflected new financings and higher commercial paper usage.
- Year-to-date results faced unfavourable weather versus the prior year of $9.9 million.
- The California PUC WEMA Proposed Decision remains subject to final California PUC approval and would authorize recovery of approximately $58.1 million, or 75%, of requested costs.
What to watch
- Implementation of the $97.0 million Missouri revenue adjustment and whether the Company earns the additional $13.7 million annually tied to customer performance metrics.
- Final California PUC approval of the WEMA Proposed Decision.
- The Kansas settlement's $8.8 million annual rate adjustment, phased in over two years, and the right to retain 50% of wind revenues sold into the Southwest Power Pool in the first year of the phase-in.
- An expected August 2026 commission decision in the Litchfield Park Water & Sewer rate case, where the Recommended Opinion and Order included a combined rate adjustment of $15.0 million with a 9.75% ROE and 54.0% equity layer.
- The intended U.S. redomicile, for which AQN expects to seek shareholder approval in the first half of 2027.
Balance sheet and cash flow
- Liberty Utilities Co. issued $1.15 billion aggregate principal amount of unsecured Senior Notes during the quarter.
- The proceeds were used to repay Canadian holding company debt of $1.15 billion that matured on June 15, 2026.
Analysis
AQN reported second-quarter net earnings attributable to common shareholders of $4.9 million, or $0.01 per common share, compared with $14.8 million, or $0.02 per common share, in the second quarter of 2025. Adjusted Net Earnings were $29.2 million, or $0.04 per common share, compared with $33.6 million, or $0.04 per common share. For the six months ended June 30, 2026, net earnings were $88.0 million and Adjusted Net Earnings were $128.8 million, versus $107.6 million and $142.6 million, respectively, in the comparable 2025 period.
The regulated business remained the principal earnings contributor but weakened from the prior year. Regulated Services Group net earnings were $30.0 million in the quarter and $149.4 million year to date, compared with $43.9 million and $167.5 million, respectively. The reported factors included the $17.2 million WEMA write-off, higher operating costs and increased interest expense. Approved rates, customer growth, and favourable quarter-on-quarter weather comparisons provided offsets, while year-to-date weather was unfavourable versus the prior year.
Hydro Group net earnings were $3.1 million in the quarter and $5.2 million year to date, compared with $8.9 million and $25.5 million. The Company attributed the decrease primarily to prior-year income tax recoveries related to a tax basis step-up. Corporate Group net loss narrowed to $(28.2) million from $(38.0) million in the quarter and to $(66.6) million from $(85.4) million year to date, primarily reflecting favourable foreign exchange revaluation and higher income tax recoveries.
The release emphasized regulatory execution and financing actions. Missouri approved a $97.0 million revenue adjustment effective August 3, 2026, while the Company cited pending proceedings and filings across California, Kansas, Arizona, New York, New Hampshire and Arkansas. Liberty Utilities Co. issued $1.15 billion of unsecured Senior Notes and used the proceeds to repay $1.15 billion of Canadian holding company debt that matured on June 15, 2026. AQN also announced its intention to redomicile to the United States, with shareholder approval expected to be sought in the first half of 2027.
No company-wide financial outlook was provided in the release. Near-term attention is on final regulatory decisions, implementation of approved rate adjustments, the potential recovery of approximately $58.1 million under the WEMA proceeding, customer performance metrics in Missouri, and execution of the planned redomicile.
Management, verbatim
The second quarter marked another step forward in Algonquin’s transformation into a premier, pure-play utility. We advanced key regulatory priorities, reinforced financial and operational discipline and continued to make investments across our utilities that support safe and reliable service while balancing customer affordability. These actions are helping us build a stronger business and position Algonquin to deliver steady, predictable value for customers, communities and shareholders.
Rod West, Chief Executive Officer of AQN
The redomicile would align our corporate structure with our predominantly U.S.-based asset footprint, supporting the work already underway to simplify the business as part of our ‘Back to Basics’ strategy. We believe this is the right next step toward building a more focused, disciplined and durable company that is well positioned to serve its stakeholders for years to come.
Rod West, Chief Executive Officer of AQN
Not in the filing
stated, not guessed- Total revenue
- Segment revenue
- Gross margin
- Operating income
- Operating expenses as a consolidated line item
- Income tax rate
- Operating cash flow
- Free cash flow
- Cash balance
- Total debt balance
- Dividends
- Share repurchases
- Company-wide financial guidance
- Prior-quarter comparisons
- Reported percentage changes for the financial metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Algonquin Power & Utilities Corp. (AQN) is a utility company listed on both the NYSE and TSX, reporting quarterly results via SEC Form 6‑K.
Ticker impact
Algonquin Power & Utilities Corp. filed its Q2 2026 earnings release on Form 6‑K, reporting net earnings of $0.01 per share and adjusted earnings of $0.04 per share.
Potential modest upside if investors focus on the $97 M Missouri rate adjustment and other regulatory wins.
The numbers are small and the company is mid‑cap, so price movement is likely limited unless the regulatory updates are re‑priced.
Market effects
Positive regulatory outcomes may signal broader tailwinds for North American utility rate cases.
Limited to Canadian and U.S. utility investors; no immediate macro effect.
Low; the news is company‑specific without global ripple.
Counterpoint
Investors may view the modest earnings as a sign of stagnant growth despite regulatory wins.
Key entities
- companyAlgonquin Power & Utilities Corp.
Utility operator reporting Q2 2026 results.
- executiveRod West
CEO of Algonquin Power & Utilities Corp.
