Algonquin Power & Utilities (AQN) AI Stock Analysis

• Market Cap: C$6.70B
• Dividend Yield: 4.2%
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -4.72%
• EPS Growth: 96.98%
• Country: CA
• Employees: 3,786
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.13
• Shares Outstanding: 768,025,000
• 10 Day Avg. Volume: 2,172,661
• 30 Day Avg. Volume: 2,261,811
• PEG Ratio: <0.01
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.40
• P/FCF Ratio: -8.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.88
• Price Target Upside: 1.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$8.50 ▼(-2.52% Downside)

Algonquin Power & Utilities faces significant financial challenges, including declining revenues and high leverage, which weigh heavily on its overall score. The earnings call provided some optimism with strong financial performance and regulatory progress, but ongoing restructuring costs and customer service issues remain concerns. Technical indicators suggest a neutral trend, while the valuation is impacted by negative earnings but supported by a decent dividend yield.

Positive Factors

Regulatory Progress

Regulatory progress ensures stable revenue streams and enhances long-term operational predictability, supporting sustainable growth.

Leadership Change

New CFO with extensive experience may bring fresh strategic insights, potentially improving financial management and operational efficiency.

Operational Improvements

Operational improvements reduce costs, enhancing profitability and cash flow, which supports long-term financial health and competitiveness.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to interest rate changes, impacting long-term stability.

Declining Revenue

Declining revenue indicates potential market challenges and could pressure profitability, affecting the company's ability to invest in growth.

Restructuring Costs

Ongoing restructuring costs strain financial resources, potentially delaying profitability improvements and impacting long-term financial health.

Algonquin Power & Utilities Business Overview & Revenue Model

Company Description

Algonquin Power & Utilities Corp. (AQN) is a North American diversified renewable energy and utility company headquartered in Oakville, Ontario. The company operates through two primary sectors: renewable energy and regulated utilities. In the renewable energy sector, AQN focuses on the generation of electricity from wind, solar, and hydroelectric sources. In the regulated utilities sector, the company provides water, electricity, and natural gas distribution services across several regions in the United States and Canada. AQN is committed to sustainability and aims to create long-term value by transitioning to cleaner energy solutions.

How the Company Makes Money

Algonquin Power & Utilities generates revenue primarily through the sale of electricity and utility services. The company has a diversified revenue model with key revenue streams including long-term power purchase agreements (PPAs) for its renewable energy projects, which provide stable and predictable cash flows. Additionally, regulated utility operations contribute significantly to earnings, as these services typically involve fixed rates set by regulatory bodies, ensuring a steady income stream. AQN also benefits from strategic partnerships and investments in renewable projects, which enhance its market presence and operational capacity. Factors contributing to its earnings include favorable regulatory environments, increasing demand for renewable energy, and a growing focus on sustainability among consumers and businesses.

Algonquin Power & Utilities Financial Statement Overview

Summary

Algonquin Power & Utilities is facing financial challenges with declining revenues, significant net losses, and high leverage. While gross profit margins are strong, the company struggles with profitability and cash flow management. The high debt levels pose a risk to financial stability, and the negative return on equity indicates poor shareholder returns.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -2.89% in the TTM. The company is experiencing significant net losses, with a net profit margin of -57.66% in the TTM. Gross profit margin remains relatively strong at 74.06%, but the negative net income is a concern. EBIT and EBITDA margins are moderate, indicating some operational efficiency, but overall profitability is weak.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.35 in the TTM, indicating significant leverage. Return on equity is negative, reflecting the company's inability to generate positive returns for shareholders. The equity ratio is not explicitly calculated, but the high leverage suggests potential financial risk. Overall, the balance sheet shows financial instability due to high debt levels.

Cash Flow

Cash flow analysis indicates negative free cash flow growth of -7.04% in the TTM, with free cash flow to net income ratio also negative. Operating cash flow is positive but insufficient to cover net losses, as reflected in the operating cash flow to net income ratio of 0.47. The cash flow situation highlights liquidity challenges and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.38B	2.32B	2.40B	2.77B	2.27B	1.68B
Gross Profit	885.96M	845.26M	836.51M	1.05B	858.10M	759.16M
EBITDA	808.96M	831.16M	816.62M	955.99M	758.75M	655.26M
Net Income	-1.37B	-1.38B	28.67M	-211.99M	264.86M	782.46M
Balance Sheet
Total Assets	13.69B	16.96B	18.37B	17.63B	16.80B	13.22B
Cash, Cash Equivalents and Short-Term Investments	54.30M	34.84M	25.05M	57.62M	125.16M	101.61M
Total Debt	6.34B	6.73B	7.51B	7.53B	6.25B	4.60B
Total Liabilities	8.57B	10.78B	11.43B	10.47B	9.10B	7.23B
Stockholders Equity	4.68B	4.71B	5.04B	5.22B	5.86B	5.20B
Cash Flow
Free Cash Flow	-409.51M	-371.94M	-404.59M	-455.94M	-1.17B	-295.05M
Operating Cash Flow	449.20M	458.59M	638.22M	600.67M	154.82M	530.84M
Investing Cash Flow	2.06B	176.05M	-1.00B	-1.47B	-656.52M	-1.28B
Financing Cash Flow	-2.57B	-579.38M	340.20M	808.32M	534.21M	798.30M

Algonquin Power & Utilities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AQN, the sentiment is Positive. The current price of 8.72 is above the 20-day moving average (MA) of 8.13, above the 50-day MA of 7.87, and above the 200-day MA of 7.45, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 72.70 is Negative, neither overbought nor oversold. The STOCH value of 68.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AQN.

Algonquin Power & Utilities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INE	72 Outperform	―	―	―	―	0.97%	―
NPI	67 Neutral	$6.68B	―	-1.19%	4.84%	-8.39%	-180.67%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
BEP.UN	58 Neutral	$28.84B	―	-5.58%	4.79%	14.78%	-9.37%
BLX	57 Neutral	C$2.89B	-288.59	-1.47%	2.31%	-11.91%	-132.41%
AQN	54 Neutral	C$6.70B	―	2.04%	4.20%	-4.72%	96.98%
PIF	54 Neutral	C$265.76M	-16.40	-4.69%	6.63%	8.26%	-267.17%

Algonquin Power & Utilities Corporate Events

Algonquin Power Reports Strong Q3 2025 Performance

Algonquin Power & Utilities Corp., a diversified international utility company, focuses on providing sustainable energy and water solutions across North America and beyond. The company operates through its Regulated Services and Hydro Groups, offering electric, water, and natural gas utilities, as well as hydroelectric generation facilities.

Algonquin Power & Utilities Appoints Robert Stefani as CFO

Algonquin Power & Utilities Corp. has appointed Robert J. Stefani as its new Chief Financial Officer, effective January 5, 2026. Stefani brings a wealth of experience from his previous role at Southwest Gas Holdings, where he played a key role in significant financial transformations. His expertise in financial strategy and capital markets is expected to support Algonquin’s strategic priorities and enhance its foundation for sustainable growth. The transition is set to be seamless, with Brian Chin continuing as Interim CFO until Stefani’s appointment.

The most recent analyst rating on (TSE:AQN) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Algonquin Power & Utilities stock, see the TSE:AQN Stock Forecast page.

Algonquin Power & Utilities Declares Q4 2025 Dividends

Algonquin Power & Utilities Corp. has declared its fourth quarter 2025 dividends for both common and preferred shares. The common share dividend is set at US$0.0650, payable in January 2026, with an option for Canadian dollar conversion. Preferred shares, Series A and D, will receive dividends of C$0.41100 and C$0.42831, respectively, payable in December 2025. These dividends are eligible under the Income Tax Act (Canada), highlighting AQN’s commitment to shareholder returns.

The most recent analyst rating on (TSE:AQN) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Algonquin Power & Utilities stock, see the TSE:AQN Stock Forecast page.

Algonquin Power & Utilities Reports Strong Q3 2025 Results and CFO Appointment

Algonquin Power & Utilities Corp. reported a strong financial performance for the third quarter of 2025, with significant year-over-year improvements in key financial metrics. The Regulated Services Group saw a 61% increase in net earnings due to approved rate implementations, favorable weather, and lower operating expenses. The company also announced the appointment of Robert Stefani as the new Chief Financial Officer, effective January 2026, signaling a continued focus on becoming a premium, pure-play regulated utility. The company’s regulatory progress included settlements at EnergyNorth Gas and CalPeco Electric, while the Corporate Group’s earnings were impacted by the sale of its stake in Atlantica Sustainable Infrastructure.

The most recent analyst rating on (TSE:AQN) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Algonquin Power & Utilities stock, see the TSE:AQN Stock Forecast page.

Algonquin Power & Utilities Sets Date for Q3 2025 Financial Results

On October 8, 2025, Algonquin Power & Utilities Corp. announced that it will release its third quarter 2025 financial results on November 7, 2025, before the market opens. An earnings conference call will follow at 10:00 a.m. ET, hosted by CEO Rod West and Interim CFO Brian Chin. This announcement is significant as it provides stakeholders with an opportunity to gain insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (TSE:AQN) stock is a Hold with a C$8.00 price target. To see the full list of analyst forecasts on Algonquin Power & Utilities stock, see the TSE:AQN Stock Forecast page.

Algonquin Power’s Earnings Call: A Mixed Bag of Results

The recent earnings call for Algonquin Power & Utilities Corp. was a mixed bag of solid financial results and strategic advancements, tempered by some financial challenges. The company showcased its regulatory progress and leadership appointments, but also acknowledged a decrease in net earnings and EPS, alongside the elimination of Atlantica dividends. Despite these hurdles, Algonquin Power remains optimistic about its regulatory filings and internal strengthening efforts.

Algonquin Power Reports Mixed Q2 2025 Results

Algonquin Power & Utilities Corp., a diversified international generation, transmission, and distribution utility, is committed to providing sustainable energy and water solutions across North America.

Algonquin Power & Utilities Reports Q2 2025 Financial Results and Strategic Updates

Algonquin Power & Utilities Corp. reported its second quarter financial results for 2025, highlighting a slight decrease in net earnings for its Regulated Services Group due to weather normalization and other factors, despite positive contributions from approved rate implementations. The company’s strategic focus on operational excellence and customer service aims to position it for long-term growth. The sale of its stake in Atlantica Sustainable Infrastructure impacted corporate earnings, but debt repayment from the sale proceeds helped reduce interest expenses. Additionally, the company filed for rate increases in Massachusetts and Arizona, and announced leadership changes to support its ongoing transformation.

The most recent analyst rating on (TSE:AQN) stock is a Hold with a C$6.00 price target. To see the full list of analyst forecasts on Algonquin Power & Utilities stock, see the TSE:AQN Stock Forecast page.

Algonquin Power & Utilities Declares Q3 2025 Dividends

Algonquin Power & Utilities Corp. has declared dividends for its common and preferred shares for the third quarter of 2025. The common share dividend is set at US$0.0650, with an option for Canadian shareholders to receive C$0.0893. Preferred shares, Series A and D, will receive dividends of C$0.41100 and C$0.42831, respectively. This announcement reflects the company’s ongoing commitment to shareholder returns and may influence investor confidence and market positioning.

The most recent analyst rating on (TSE:AQN) stock is a Hold with a C$6.00 price target. To see the full list of analyst forecasts on Algonquin Power & Utilities stock, see the TSE:AQN Stock Forecast page.