ALGONQUIN POWER & UTILITIES CORP. (AQN): Financial results for Q3 2026
ALGONQUIN POWER & UTILITIES CORP. (AQN) furnished an SEC Form 6-K — earnings release. Algonquin Power & Utilities Corp. Reports Third Quarter 2026 Financial Results Reports third quarter 2026 net earnings 1 per common share of $0.07 and Adjusted Net Earnings per common share 2 of $0.11 Supporting anticipated economic development and affordability protections for r
How this was made
The 30-second read
Why it matters
The earnings release provides fresh financial data that could influence short‑term price action and sector sentiment.
Market read
The Q3 earnings miss may prompt a modest sell‑off in AQN and pressure on comparable utility stocks.
What to watch
The impact of recent rate case approvals and the sale of the Chilean water utility may provide longer‑term earnings upside.
Third-quarter net earnings were $57.6 million, or $0.07 per common share, while Adjusted Net Earnings were $88.1 million, or $0.11 per common share.
Third-quarter GAAP net earnings and Regulated Services Group earnings were lower than the prior-year period, while Adjusted Net Earnings were higher. Regulatory progress, rate implementation and favourable weather supported results, but higher interest expense, Mountain View Fire costs, the Suralis loss and other one-time items weighed on GAAP earnings.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net earnings attributable to common shareholdersGAAP | $57.6M | – | – |
| Nine months ended September 30, 2026 net earnings attributable to common shareholdersGAAP | $145.6M | – | – |
| Q3 2026 Adjusted Net Earningsnon-GAAP | $88.1M | – | – |
| Nine months ended September 30, 2026 Adjusted Net Earningsnon-GAAP | $216.9M | – | – |
| Q3 2026 basic and diluted net earnings per common shareGAAP | $0.07 | – | – |
| Nine months ended September 30, 2026 basic and diluted net earnings per common shareGAAP | $0.19 | – | – |
| Q3 2026 Adjusted Net Earnings per common sharenon-GAAP | $0.11 | – | – |
| Nine months ended September 30, 2026 Adjusted Net Earnings per common sharenon-GAAP | $0.28 | – | – |
| Q3 2026 weighted average number of common shares outstandingother | 769,953,614 | – | – |
| Nine months ended September 30, 2026 weighted average number of common shares outstandingother | 769,480,819 | – | – |
| Q3 2026 Regulated Services Group net earningsGAAP | $72.6M | – | – |
| Nine months ended September 30, 2026 Regulated Services Group net earningsGAAP | $222M | – | – |
| Q3 2026 Hydro Group net earningsGAAP | $2.1M | – | – |
| Nine months ended September 30, 2026 Hydro Group net earningsGAAP | $7.3M | – | – |
| Q3 2026 Corporate Group net lossGAAP | −$17.1M | – | – |
| Nine months ended September 30, 2026 Corporate Group net lossGAAP | −$83.7M | – | – |
| Q3 2026 net earnings attributable to common shareholders in Adjusted Net Earnings reconciliationGAAP | $57M | – | – |
| Nine months ended September 30, 2026 net earnings attributable to common shareholders in Adjusted Net Earnings reconciliationGAAP | $141.6M | – | – |
| Q3 2026 loss from discontinued operations, net of taxGAAP | $600K | – | – |
| Nine months ended September 30, 2026 loss from discontinued operations, net of taxGAAP | $4M | – | – |
| Q3 2026 restructuring costsGAAP | $7.7M | – | – |
| Nine months ended September 30, 2026 restructuring costsGAAP | $36.6M | – | – |
| Q3 2026 Mountain View Fire related costsGAAP | $16.6M | – | – |
| Nine months ended September 30, 2026 Mountain View Fire related costsGAAP | $33.8M | – | – |
| Q3 2026 loss on net assets classified as held for saleGAAP | $8.3M | – | – |
| Nine months ended September 30, 2026 loss on net assets classified as held for saleGAAP | $8.3M | – | – |
| Q3 2026 loss on foreign exchangeGAAP | $1.9M | – | – |
| Nine months ended September 30, 2026 loss on foreign exchangeGAAP | $5.7M | – | – |
| Q3 2026 adjustment for taxes related to aboveGAAP | −$4M | – | – |
| Nine months ended September 30, 2026 adjustment for taxes related to aboveGAAP | −$13.1M | – | – |
What drove it
- Favourable weather impact of $20.4 million in the Regulated Services Group compared to the same period in 2025.
- Implementation of approved rates totaling $11.4 million in the third quarter, primarily from a CalPeco rate impact of $12.1 million and an Empire Electric Missouri rate impact of $11.2 million.
- Favourable permanent tax differences and net effect of non-controlling interests of $7.1 million in the Regulated Services Group.
- CalPeco approved-rate adjustment of $85.0 million for the nine months ended September 30, 2026, including retroactive revenues of $48.6 million.
- Litchfield Park Water & Sewer received a final rate case decision approving a $14.9 million revenue adjustment, a 9.4% authorized return on equity, a 54% authorized equity ratio, and a formula rate mechanism.
- Empire Electric Missouri filed its proposed Large Load Tariff on September 11, 2026.
- The sale of AQN's ownership stake in its Chilean water utility was completed.
Concerns
- Regulated Services Group third-quarter net earnings were $72.6 million compared with $103.6 million in the third quarter of 2025.
- Increased interest expenses were $21.8 million in the third quarter, primarily associated with the Senior Note Offering.
- One-time Regulated Services Group items were $35.4 million in the third quarter, including $16.6 million of non-recoverable costs and additional accruals related to the Mountain View Fire and an $8.3 million loss on net assets of Suralis Holdco classified as held for sale.
- Hydro Group third-quarter net earnings were $2.1 million compared with $3.3 million in the third quarter of 2025, driven by lower revenue.
- Hydro Group nine-month net earnings were $7.3 million compared with $28.8 million in the same period in 2025, primarily due to the non-recurrence of $15.9 million of income tax recoveries.
What to watch
- Outcome of the proposed Large Load Tariff filed with the Missouri Public Service Commission on September 11, 2026.
- Outcomes of the Empire Electric Oklahoma and Granite State rate case filings, including requested revenue adjustments of $7.0 million and $12.3 million, respectively.
- Further costs and accruals related to the Mountain View Fire.
- Execution of the planned U.S. redomicile, for which the private letter ruling process with the Internal Revenue Service was progressing as expected.
- Potential capital recycling into regulated utility businesses following the sale of the Chilean water utility stake.
Balance sheet and cash flow
- Repayment on June 15, 2026 of $1,150 million of debt previously held at the Corporate Group, following the Senior Note Offering.
- As of September 30, 2026, AQN had hedging contracts on approximately $1.4 billion of “hybrid” debt instruments.
Analysis
AQN reported third-quarter net earnings of $57.6 million, or $0.07 per common share, compared with $71.0 million, or $0.09 per common share, in the third quarter of 2025. Adjusted Net Earnings moved in the opposite direction, reaching $88.1 million, or $0.11 per common share, compared with $69.0 million, or $0.09 per common share. The reconciliation identifies discontinued operations, restructuring, Mountain View Fire costs, the Suralis held-for-sale loss, foreign exchange and related tax adjustments as important differences between reported net earnings and Adjusted Net Earnings.
The Regulated Services Group remained the principal earnings contributor, reporting $72.6 million of third-quarter net earnings compared with $103.6 million a year earlier. Favourable weather contributed $20.4 million, approved-rate implementation totaled $11.4 million, and favourable permanent tax differences and the net effect of non-controlling interests contributed $7.1 million. These factors were offset by $21.8 million of increased interest expense, $10.5 million of higher operating, maintenance and depreciation expenses, and $35.4 million of one-time items.
The nine-month profile similarly reflects rate and weather support alongside significant expenses and one-time charges. The Regulated Services Group reported $222.0 million of net earnings for the nine months ended September 30, 2026, compared with $271.1 million in the comparable 2025 period. CalPeco approved-rate adjustments of $85.0 million included $48.6 million of retroactive revenues, while wildfire insurance expenses were $39.7 million and interest expense increased by $34.5 million. Hydro Group earnings were lower in both reported periods, while the Corporate Group loss narrowed following the June 15, 2026 repayment of $1,150 million of debt previously held at the Corporate Group.
Management advanced its utility-focused portfolio strategy through the sale of its Chilean water utility stake and continued regulatory activity. The company highlighted a Missouri Large Load Tariff filing, the final Litchfield Park Water & Sewer rate decision, and rate case filings in Oklahoma and New Hampshire. No financial outlook was provided in the release. The filing instead directs attention to regulatory outcomes, Mountain View Fire costs, interest expense associated with the Senior Note Offering, the potential use of recycled capital in regulated utility businesses, and execution of the planned U.S. redomicile.
Management, verbatim
Our progress in the third quarter reflects continued execution of our ‘Back to Basics’ strategy as we transform into a premier, pure-play utility.
Rod West, Chief Executive Officer of AQN
Not in the filing
stated, not guessed- Total revenue and total revenue comparisons
- Segment revenue and segment revenue comparisons
- Gross profit and gross margin
- Operating income, operating margin and operating expenses
- Cash flow from operations and free cash flow
- Cash balance, total debt balance and net debt
- Dividend and share repurchase amounts
- Forward financial guidance for revenue, gross margin, operating expenses, tax rate or other metrics
- Prior-quarter figures for reported earnings metrics
- Percentage year-over-year and quarter-over-quarter changes for reported earnings metrics
- Prior outlook for comparison
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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 listed utility company operating regulated services and hydro assets in North America.
Ticker impact
Algonquin Power & Utilities Corp. reported Q3 2026 earnings of $57.6M ($0.07/share) and adjusted earnings of $88.1M ($0.11/share), down from the prior year.
likely downside pressure as investors price in lower earnings
The quarter's net earnings declined versus Q3 2025 and guidance was not highlighted, suggesting limited upside.
Market effects
Utility sector may see modest pressure as a peer reports weaker earnings.
North American utility investors could adjust exposure.
Limited; primarily affects US/Canadian utility investors.
Counterpoint
If the company’s portfolio simplification and rate case wins translate to future cash flow, the stock could be undervalued despite the earnings dip.
Key entities
- ExecutiveRod West
CEO of Algonquin Power & Utilities Corp.
