Algonquin’s Adjusted Earnings Jump to $88.1 Million Despite Lower Net Income
Key Facts
Algonquin Power & Utilities said on November 6 that net earnings were $57.6 million, or $0.07 per share, in the third quarter of 2026, while adjusted net earnings rose to $88.1 million, or $0.11 per share. The company said net earnings compared with $71.0 million, or $0.09 per share, in the year-earlier quarter, while adjusted net earnings increased from $69.0 million, or $0.09 per share. The results show a divergence between the two measures, with net earnings down and adjusted earnings up year over year. The company says adjusted net earnings are a non-U.S. GAAP financial measure and should not be considered a substitute for consolidated net earnings under those standards. Chief Executive Rod West said the quarter’s progress reflected "continued execution of our back-to-basics strategy."
For the nine months ended September 30, net earnings were $145.6 million, compared with $178.6 million in the year-earlier period, while adjusted net earnings reached $216.9 million, compared with $211.6 million. Net earnings were $0.19 per share for the nine months, compared with $0.23 a year earlier, while adjusted earnings per share held at $0.28 in both periods. In the second quarter, whose results were published on August 7, the company recorded net earnings of $4.9 million and adjusted net earnings of $29.2 million. Those results compared with $14.8 million and $33.6 million, respectively, in the second quarter of 2025. The nine-month figures provide context for year-to-date performance, while the direct quarterly comparison between the third quarter and the year-earlier quarter remains separate.
In the regulated services group, third-quarter net earnings were $72.6 million, compared with $103.6 million in the year-earlier period. The company said favorable weather contributed $20.4 million compared with the previous year, while interest expense increased by $21.8 million. It also recorded one-time items of $35.4 million, including $16.6 million in non-recoverable costs and additional provisions related to the Mountain View fire. These factors show the impact of mixed elements on the group’s quarterly results, with favorable weather contributing in the opposite direction to higher interest expense and one-time items. In the Hydro group, net earnings were $2.1 million, compared with $3.3 million a year earlier, with the company attributing the quarter’s result to lower revenue.
The Corporate group recorded a net loss of $17.1 million in the third quarter, compared with a loss of $35.9 million in the year-earlier quarter. In Missouri, Empire Electric Missouri filed a proposed large-load tariff with the Public Service Commission on September 11, 2026. Algonquin said the proposal aims to support investment and protect residential and small-business customers by charging large-load customers the cost of the service they represent. The Missouri Public Service Commission approved a $97.0 million revenue adjustment for the company on July 15, effective August 3 and to be phased in over three years. The company’s disclosure added that it could earn an additional $13.7 million annually if it achieves further customer performance measures.
West said the company completed the sale of its interest in Chilean water utility Suralis, adding that the move "contributes to simplifying our portfolio." The company linked the sale to the possibility of recycling capital into regulated utility businesses. The move was part of a direction West described as focused on executing the "back-to-basics" strategy and becoming a pure-play regulated utility. In the second quarter, the company announced its intention to move its legal domicile to the United States, saying at the time that more than 80% of its operations were there and less than 5% were in Canada. In its third-quarter results, it said the legal domicile move remained on track and that the process of requesting a private letter ruling from the U.S. Internal Revenue Service was progressing as expected.
The company previously said it expected to seek shareholder approval for the legal domicile move in the first half of 2027. It scheduled its third-quarter 2026 earnings call for November 6, 2026, at 8:30 a.m. Eastern Time, hosted by West and Chief Financial Officer Rob Stefani. Algonquin describes itself as the parent company of Liberty, a diversified international utility engaged in power generation, transmission and distribution. Its portfolio, according to the company, includes investments in generation, transmission and distribution utilities, and it provides energy and water solutions to more than one million customer connections, mostly in the United States and Canada. The description places regulated services alongside power generation within the company’s operations, as it says its legal domicile move to the United States is progressing as planned.