AQN

On August 7, Algonquin Power & Utilities (NYSE:AQN) held its second-quarter earnings call, and the story split cleanly in two. Management touted regulatory wins and a headline-grabbing plan to redomicile to the US, even as profits fell short of last year's numbers. Algonquin's case for progress rests on a string of state-level outcomes. On July 15, the Missouri Public Service Commission approved $97 million in annualized revenue adjustments, effective August 3, after Algonquin met customer service and billing metrics tied to its Empire Electric Missouri settlement. Kansas regulators approved an $8.8 million revenue adjustment tied to a settlement that also grants the company 50% of wind revenues in year one. On June 17, Algonquin secured a Certificate of Convenience and Necessity from Missouri for a 250-megawatt gas-fired generation project, its first under Missouri Senate Bill 4, which allows construction costs to be recovered while the project is still being built rather than after completion. The company also filed new rate cases at New York Water, Empire Electric Arkansas and EnergyNorth Gas, seeking $38.1 million, $8.4 million and $35.8 million respectively, with new rates expected to take effect between spring and summer of 2027. Separately, the Department of Energy approved reimbursement of $5 million tied to an AMI grant reinstated earlier in the year. The bigger headline was Algonquin's plan to redomicile from Canada to Delaware, with a new headquarters in Chicago while keeping a presence in Oakville, Ontario. Management noted over 80% of operations already sit in the United States versus less than 5% in Canada, and framed the move as a way to cut cross-border tax inefficiencies and open the door to inclusion in US equity indexes. Shareholder approval is expected in the first half of 2027. On the balance sheet, Liberty Utilities Company raised roughly $1.15 billion through a private placement of senior unsecured notes, using the proceeds to retire $1.15 billion of Algonquin notes that matured June 15, and the company does not expect to issue equity through 2027. The quarter's numbers told a less flattering story. GAAP net earnings fell to $4.9 million from $14.8 million a year earlier, while adjusted net earnings dropped to $29.2 million from $33.6 million. Year-to-date, adjusted net earnings came in at $128.8 million versus $142.6 million in the same period of 2025, and adjusted net EPS slipped to $0.17 from $0.19. Management attributed part of that gap to $25.7 million in favorable items in 2025 that didn't repeat this year, including a tax basis step-up recovery. The quarter also absorbed a $17.2 million write-down tied to a proposed decision in Algonquin's California WEMA wildfire cost proceeding, which authorized recovery of about 75% of requested costs rather than the full amount. Interest expense climbed $9.3 million on new debt and higher commercial paper usage, while operating expenses rose on higher gas safety and compliance costs. A rate reduction at the company's Apple Valley and Park Water utilities in California, including a retroactive adjustment back to July 2025, cut into revenue by $3.1 million. Several rate matters, including Arizona's Litchfield Park Water & Sewer case, remain unresolved. Hedge fund ownership of Algonquin slipped from 31 funds to 28 in the most recent quarter, a modest pullback rather than a rush for the exits. The stock trades at a forward price-to-earnings ratio of 16.56, a multiple that assumes steady, utility-style earnings growth rather than a rebound story. That combination suggests the market is still waiting for confirmation that the regulatory wins translate into earnings growth. Algonquin heads into the back half of 2026 with regulatory tailwinds piling up and a structural overhaul on the horizon, but the earnings trend has yet to catch up to the narrative. For the redomicile and rate case pipeline to matter to shareholders, they will need to show up in adjusted earnings per share, which management still says is on track for its 2026 and 2027 forecast. Until then, the gap between regulatory progress and bottom-line results is the tension investors are left watching. While we acknowledge the potential of AQN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 8:30 a.m. ET Vice President of Investor Relations - Brian Chin Chief Executive Officer - Roderick West Chief Financial Officer - Robert Stefani Operator: Hello, and welcome to Algonquin Power & Utilities Corporation Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now turn the conference over to Mr. Brian Chin, Vice President of Investor Relations. Please go ahead. Brian Chin: Thank you, operator, and good morning, everyone. We appreciate you attending our second quarter 2026 earnings conference call. Joining me on the call today will be Rod West, Chief Executive Officer; and Rob Stefani, Chief Financial Officer, who will share prepared remarks. Following their remarks, they will be available to answer your questions along with other members of the management team during a Q&A session. To accompany today's earnings call, we have a supplemental webcast presentation available on our website, algonquinpower.com. Our financial statements and management discussion and analysis are also available on the website as well as on SEDAR+ and EDGAR. We would like to remind you that our discussion during the call will include certain forward-looking information and non-GAAP measures. Actual results could differ materially from any forecast or projection contained in such forward-looking information. Additionally, all net earnings information to be discussed today is for continuing operations and is attributable to the common shareholders of Algonquin. Certain material factors and assumptions were applied in making the forecasts and projections reflected in such forward-looking information. Please note and review the related disclaimers located on Slide 2 of our earnings call presentation at the Investor Relations section of our website at algonquinpower.com. Please also refer to our most recent MD&A filed on SEDAR+ and EDGAR and available on our website for additional important information on these items. On the call this morning, Rod will provide a business update, and Rob will follow with the details of our financial results. We'll then open the line for questions. We kindly ask that you restrict your questions to 2, then follow up with us after the call if you have any additional questions to allow others the opportunity to participate. And with that, I'll turn things over to Rod. Roderick West: Thanks, Brian, and good morning, everyone. Thank you for joining us. Our second quarter 2026 has been another step forward for Algonquin on our path to premier. As I stated consistently since I've arrived, a premier, pure-play, regulated utility earns its standing through consistent execution, a constructive regulatory compact and disciplined financial and operational management. These attributes aim to position the company to deliver long-term sustainable value to shareholders, customers and communities we serve and our employees. As we will discuss in a moment, this quarter's results reflect all of those, build on the measurable progress we've made since last year and keep us on track to meet our adjusted net earnings per share forecast for 2026 and 2027. In short, we are once again advancing toward our goal of becoming a premier pure-play regulated utility. Taking measure of our strategic priorities for the year, I'm pleased with the progress we've made in the second quarter. On the regulatory side, we are pleased to achieve progress on or conclusions to several of our rate cases. The Missouri Public Service Commission determined on July 15 that we had satisfied customer service and billing performance metrics required for implementation of the previously approved Empire Electric Missouri settlement. I want to recognize the extensive and professional effort that commission staff and our employees displayed to reach this outcome and for the tremendous patience exhibited by our customers and shareholders as we underwent this process. Additionally, we received a proposed decision for our California WEMA proceeding, an order approving a settlement for Empire Electric Kansas, a final order for our California water utilities and new rate case filings at New York Water, Empire Electric Arkansas, EnergyNorth Gas and 2 water utilities in Arizona. We continue to await an order on our Arizona Litchfield Park Water & Sewer rate case and continue to work towards completing new filings at Granite State Electric, Empire Electric Oklahoma and the Missouri large load tariff before year's end. Moreover, we filed a case with FERC requesting conversion for our electric transmission projects to a projected test year versus a historic test year, including CWIP into rate base under a transmission formula rate. This rate request, though small, could set the foundation for regulatory treatment of our SPP transmission line project over the next few years. And one additional update. In the second quarter, we captured approval from the Department of Energy for the reimbursement of $5 million of expenses related to an AMI grant in California that was reinstated earlier this year. In summary, I'm pleased to see in the second quarter that we've made continued progress on this year's priority list. I do want to take a moment on Slide 6 to address our announcement regarding the intended redomicile of Algonquin to the United States. At a high level, we see this as an important strategic step for the company and one that we expect will create meaningful benefits for shareholders over time. Today, over 80% of our operations are located in the United States with less than 5% in Canada. Redomiciling to the U.S. would better align our corporate structure with our assets and where we expect to grow. As we've discussed before, it would also support our efforts to reduce cross-border tax inefficiencies. We've described them as tax friction. And over time, we believe it would strengthen our financial profile, broaden our access to capital and create a path to inclusion in certain U.S. equity indices and funds. From a structural standpoint, we expect to complete the redomicile to Delaware through a court-approved plan of arrangement under the Canada Business Corporations Act. We expect to establish our headquarters in Chicago, where our senior executive leadership team would be based while maintaining our significant presence in Oakville, Ontario. I want to emphasize that this does not change how we operate our utilities, serve our customers or satisfy our regulatory obligations. In terms of timing, we expect to seek shareholder approval in the first half of 2027 and to complete the redomicile following the receipt of the required shareholder and regulatory approvals and satisfaction of customary conditions. Overall, we believe this positions us to more effectively execute on our strategic priorities and enhance long-term shareholder value. Turning to Slide 7 and 8, focusing a bit more on our regulatory strategy. We continue to prioritize earlier dialogue with stakeholders to identify areas of common ground as well as advancing more pragmatic filings. We expect this to deliver fair regulatory outcomes that allow us the opportunity to capture both recovery of reasonable costs and returns on our investments for the benefit of our customers. I'm pleased to note that in aggregate, this is playing out in a balanced manner. In Missouri, the commission's July 15 order approved implementation of $97 million in annualized revenue adjustments effective on August 3. We continue to make regulatory progress in Kansas, where the Corporation Commission approved our settlement agreement for an $8.8 million revenue adjustment and a provision for 50% of wind revenues for year 1. The settlement included a black box stipulation for authorized equity ratios and ROE. Out west in California, the Public Utilities Commission issued a constructive proposed decision in our WEMA proceeding, which authorizes a $58.1 million recovery in wildfire costs or approximately 75% of our requested recovery. Consistent with standard practices of how other California utility peers have accounted for WEMA and similar proceeding outcomes, we excluded the impact of the final outcome from our adjusted net earnings per share results. Also, in California, we received an order approving an alternate proposed decision for our Apple Valley and Park Water utility cases. For those utilities, the commission approved a combined revenue reduction of $2.7 million and a retroactive true-up to July 2025, totaling $3.1 million for that revenue reduction. In Arizona, our settlement agreement and a final decision regarding formula rate plans remains pending at Litchfield Park Water & Sewer. The ALJ issued a recommended opinion and order, and we've asked the commission for a final decision this month. For new rate cases, New York Water filed its rate case requesting a $38.1 million revenue adjustment based on a 10% return on equity and a 48% equity ratio for a proposed rate year starting May of next year. Empire Electric Arkansas filed its rate case requesting $8.4 million based on a 10% ROE and a 53.4% cap structure with the proposed implementation date of spring of next year. EnergyNorth also recently filed its rate case with a $35.8 million rate request based on a 10.25% ROE with a 52% cap structure, and we expect to have permanent rates implemented in the summer of next year. Turning ahead to Slide 9. I'll add a few comments regarding our evolving regulatory and legislative landscape. On the operations front, on June 17, we received our Certificate of Convenience and Necessity, or the CCN, from the Missouri Public Service Commission. This milestone achievement is for one of our most significant capital projects where we're deploying 250 megawatts of new gas-fired generation to meet customer demand and Southwest Power Pool requirements. This will be the first gas-fired generation project for us under Missouri Senate Bill 4, where we will take advantage of the construction work in progress, or CWIP, regulatory recovery mechanism. In aggregate, the point of these updates, and I recognize that there are many, we continue to make overall progress on rate cases across multiple jurisdictions in a more deliberate and intentional manner. With that, I'll turn it over to Rob to walk through our financial update for the quarter. Robert Stefani: Thanks, Rod, and good morning, everyone. Let's start with Slide 11, where you can see our reported second quarter GAAP net earnings of $4.9 million compared to $14.8 million for the same period in 2025. On an adjusted basis for the period, net earnings were $29.2 million versus $33.6 million for the second quarter of 2025. Overall, the second quarter decline in adjusted net earnings from 2025 to 2026 reflects increased rates at several of our utilities, offset by higher financing costs, slightly higher operating expenses and several nonrecurring favorable items from the second quarter of 2025. In the second quarter, we also reported a $17.2 million write-down of a regulatory asset related to the previously discussed proposed decision in our California WEMA proceeding. The impact of the proposed decision, which, as Rod previously mentioned, authorizes 75% recovery of reported costs stemming from the 2020 Mountain View Fire has been excluded from our adjusted net earnings. Moving to year-to-date results. We reported GAAP net earnings of $88 million compared to $107.6 million for the same period in 2025. Year-to-date adjusted net earnings were $128.8 million versus $142.6 million in the same period the prior year. Taking into account $25.7 million in nonrecurring favorable items from 2025, results were higher year-over-year, as I will explain in more detail in a moment. On Slide 12, I'll discuss the drivers behind our second quarter 2026 adjusted net earnings per share walk. Second quarter adjusted net EPS to common was $0.04 per share, which was flat year-over-year. Second quarter year-over-year results were driven by higher CalPeco approved rates of $12.1 million and were partially offset by higher wildfire insurance expenses of $5.7 million. Net revenues outside of CalPeco rose at our water utilities in New York, Arizona and Chile as well as customer growth in Arizona and favorable weather year-over-year at Empire totaling $7.5 million. Net revenues were partially offset by a rate reduction at our Apple Valley and Park Water utilities in California, inclusive of an unfavorable retroactive adjustment to July 2025 of $3.1 million. Interest expense grew by $9.3 million related to a new debt issuance at Liberty Utilities Company and higher commercial paper usage, partially offset by higher investment income of $3.1 million. Operating expenses were slightly higher due to an additional $3.3 million of higher gas safety and excellence costs, and other gains and losses were slightly unfavorable due to a gain on an asset sale in 2025. On Slide 13, we provide our year-to-date 2026 adjusted net EPS walk. Year-to-date, adjusted net EPS was $0.17 per share compared to $0.19 per share in the first half of 2025. Although a decline year-over-year, I'd like to highlight that 2025 experienced $25.7 million in favorable items that did not repeat in 2026, including a tax basis step-up recovery of $15.9 million for Hydro as an example, plus pension adjustments at Empire and depreciation deferrals and rate proceedings in New Hampshire and Arizona. Absent these items, year-over-year net EPS was $0.01 favorable. Similar to Q2 results, year-to-date year-over-year benefited from approved rates at CalPeco net of wildfire insurance expenses of $38.7 million. New rates at New York, Arizona, Chile and Peach State all contributed to improved net revenues year-over-year of $11 million less $3.1 million related to the Apple Valley and Park Water retroactive adjustment. Operating expenses increased due to gas safety and excellence costs of $6.3 million and higher labor, maintenance and property tax expenses of $14.1 million. We experienced unfavorable weather of $9.9 million year-to-date versus the prior year. And lastly, interest expense was unfavorable as previously discussed, due to a new financing at Liberty Utilities Company, net of investment income. Briefly touching on Slide 14, our balance sheet continues to be in a position of strength. We don't expect to issue equity through 2027. During the second quarter, we raised approximately $1.15 billion at Liberty Utilities Company through a private placement offering of senior unsecured notes and used the proceeds from the offering to pay down $1.15 billion aggregate principal amount of notes at Algonquin Power & Utilities Corp. that matured on June 15. At Algonquin, we continue to be rated BBB by S&P and Fitch and at Liberty Utilities Company continued to be rated Baa2 by Moody's and BBB at Fitch and S&P. As Rod indicated at the top of his remarks, our adjusted net EPS forecast is unchanged, and we remain on track. With that, I'll turn the call back over to Rod for his closing remarks. Roderick West: Thanks, Rob. Before we open the line for questions, I want to take a step back and leave you with a few thoughts on where we are and where we're headed. Halfway through the year, we've made substantial progress as we expected, but we continue to have work to do. We've concluded rate cases or resettlement agreements that reduce uncertainty for Empire Electric Missouri, Empire Electric Kansas and our California water utilities. We're pending approvals of key decisions and settlements for WEMA and Litchfield Park, and we continue to work diligently on our rate cases at New York Water, Empire Arkansas, EnergyNorth and in Arizona. On the operations front, we've continued to improve our customer performance metrics and strengthen our standing with our regulators and customers while obtaining approval for CWIP treatment for our ARIS generation project in Missouri. In short, I'm pleased with our trajectory in the second quarter, extending our momentum from the first quarter and from our efforts of last year. I couldn't be more excited for what's next, and I hope you will join us on our path to premier. Thanks for your time this morning. And with that, I'll turn it back to the operator for questions. Operator: [Operator Instructions] The first question comes from the line of Mark Jarvi from CIBC Capital Markets. Mark Jarvi: Thanks for the update on the U.S. redomicile. Can you just walk us through what conversations you've had with the IRS and just overall expected tax implications, maybe effective tax rate, also cash taxes if you do redomicile in the U.S.? Roderick West: Yes. Rob, go ahead. Robert Stefani: Yes. So we began discussions with the IRS earlier this year. We filed that private letter ruling. We'll expect a decision here in the back half of the year. As far as the tax implications, what the redomicile helps accomplish is elimination of a couple of cash taxes that we pay. Number one is cash on the funds that we send up to Algonquin to pay the dividend from the utilities. And so we pay about a 5% tax on that. So -- and we pay, subject to continued Board approval, $200 million of dividends about per year. So that's 5% on the $200 million. And then the other tax that the redomicile would eliminate was the BEAT tax. And that tax is the tax on the cash funds that are sent up to Algonquin to service the debt at the holding company level, and that's about a 10% tax rate on the funds that we send up to service that debt. So, as far as the effective tax rate, obviously, that will be determined by a number of factors, but those are 2 instances of savings that we would point to that we would expect to realize through the redomicile to the U.S. Mark Jarvi: And Robert, if I recall, you talked about maybe calling back some of the headwinds you announced earlier on the effective tax rate assumption. Do you still feel like that's possible to reverse some of those reductions? Robert Stefani: Yes. So, the effective tax rate, it certainly has the BEAT tax and the dividend tax kind of embedded in there. And so we would expect that effective tax rate moving forward to be lower. Obviously, we are targeting an approval to proceed in the first half of 2027. And so, as you think about ramping up to that, you need to consider the timing there. Mark Jarvi: Understood. And second question for me, just in terms of the filings now in New Hampshire. Last time around, there were some issues with the data. Just your confidence level that you've resolved those issues going in, you feel very confident in terms of the materials you're supporting for that reapplication. Roderick West: I'm here -- actually, I got the signal that the improvements we've made in our systems give us far greater confidence that the data issues have been identified. Obviously, it's going to be ongoing in terms of our efforts to improve. But we spent a fair amount of time and energy addressing our structural deficits and making the case to the regulators that we got the message that the customer outcomes actually matter. So my confidence is high. And I think for us, the proof of concept has been the work that we've done to sort of restore the benefit of the doubt from our stakeholders in Missouri that we're making meaningful gains in that arena. And we expect to make a similar case in New Hampshire. Mark Jarvi: Is there some dialogue along the way with staff to show them the improvements you've done before you submit applications? Roderick West: Always, but it's not what you know, it's what you can prove. And if you've had a rough experience, whether it's in California, Missouri or in New Hampshire, Missouri is the Show-Me State, New Hampshire is taking a similar stance, and I would if I was them. They want us to prove it. And we've put the work in to be able to do just that. So we're looking forward to making the case, and it's been ongoing. Operator: The next question comes from the line of Baltej Sidhu from National Bank of Canada. Baltej Sidhu: Just a question on the redomiciling and timing just between now and the targeted shareholder vote in the first half of '27, are there any key regulatory tax court or legal milestones we should be watching for that could influence the timing or ultimate economics of the redomicile? Robert Stefani: Yes. So as mentioned in the release, we'll -- as mentioned in my prior comment, we'll expect an outcome from the IRS, just the guidance there in the second half of the year here. That filing, we continue to have a dialogue there. So we'll update you on timing, but would expect that here in the back half of the year. We also intend to pursue regulatory filings. And so you can expect to see those across several of our jurisdictions. Baltej Sidhu: Great. And I know you touched on the dividend and the debt tax implications of flowing the capital through the border of Canada. But could you directionally frame -- I know the work with provisioning MD&A was significant cost and taxes. Could you directionally frame the magnitude of what could be expected in terms of those 2 factors? Robert Stefani: Yes. So I think the expectation, if you do the math on the 5% on the run rate dividend assumption plus the BEAT tax on the current level of debt service, you would be in that kind of 2 to 2.5 or maybe slightly higher cents of impact on a run rate basis. So again, for 2027, we need to think about the timing of our guidance on when we expect to seek shareholder approval with that run rate impact being what we would expect on a recurring basis. Operator: The next question comes from the line of Rob Hope from Scotiabank. Robert Hope: A question on tax on the redom. Can we dive a little bit deeper on Slide 20? So you do comment that the redomicile is expected to be a taxable event in Canada as well as a Foreign Investment in Real Property Tax toll as well. So rather than the ongoing tax savings, can you speak to the potential one-time exit tax liability, both deferred and current that you could incur? Robert Stefani: Do you want to speak to the actual -- the tariff itself? Do you feel like you've got it -- do you want to have any kind of color on that or you're just looking for magnitude? Robert Hope: Both would be helpful. Robert Stefani: Okay. So the way the FIRPTA tax is calculated is effectively we go back and look at non-U.S. shareholders that held the shares in the prior 10 years prior to the redomicile. We look at shareholders who were over 5% holders, and the tariff is then based on a rate based on those shareholders who sold over that 10-year period that held a greater than 5% position. So we've done that math. We are confirming methodology with the Internal Revenue Service, which is the purpose of the private letter ruling. We continue to have discussions with them. We've obviously -- we and our advisers have worked through those calculations. And given the value creation opportunity -- expected value creation opportunity of the tax savings relative to those one-time costs, we believe this is a beneficial move. Robert Hope: And then do you have an estimate of the one-time costs? Robert Stefani: We have a range, and we aren't disclosing that at this point in time, just given the fact that we are confirming that methodology. But again, relative to the range of outcomes, we believe that this is a value-accretive transaction and expect relative to those one-time transaction costs that the recurring benefit outweighs that one-time transaction cost. Robert Hope: Great. And then maybe just going back to the regulatory approvals. Can you just confirm which states do you think will need commission approval for the transaction? And do you have any expected time lines or past precedents you can help us with there? Robert Stefani: So we're going to pursue regulatory filings in Arizona, California, Georgia, Iowa, Illinois, New York and Texas and then in New Brunswick. These are filings, and we would expect the outcomes of the filings to occur and coincide with that timing that we had discussed earlier as far as when we would expect to take this for shareholder vote. So again, these are filings, and there'll be more there in the coming weeks, as you see them get filed. Operator: Next question comes from the line of Michael Lonegan from Barclays. Michael Lonegan: So your trailing 12-month FFO to debt was 12.9% as of the first quarter. It went to 11.9% this quarter versus the downgrade threshold of 11%. Obviously, you said you had no equity -- still no equity expected through '27. I was just wondering if you could talk about where you expect to land this year through '27, and what kind of cushion you're targeting versus your downgrade threshold in general? Robert Stefani: Yes. So I think you have to also consider like rate case timing and implementation. So obviously, we'll begin to get the Missouri rates in August, and we've gotten the California rates in, and those will continue to benefit from those, and then, all of the rate implementation associated with some of the updates that Rod made. And so we will -- we expect on an FFO to debt basis to continue to be above our S&P downgrade threshold. We haven't put guidance out for FFO to debt, in particular for beyond this year, but we continue to expect to -- on an S&P FFO to debt basis to maintain above that threshold. Michael Lonegan: Great. And then, I was wondering if you could talk about the discussions you're having with data centers and large load in Missouri. I know you're planning on filing a large load tariff sometime this year. What is your pipeline there? And when could we potentially expect an announcement? Roderick West: It's Rod. And I very much appreciate the question. And the only thing I can say that whether it was a data center or any other customer, one, we're planning to file our large load tariff in the coming weeks, if not days, and the team constantly updates me on that. I would not and cannot disclose any conversation around any potential or existing pipeline, as it relates to a specific customer unless we were at a point in alignment with that customer to say something public about it. The only thing that I've been able to say publicly, and it's consistent, is that the -- our service territory and particularly in this instance, Missouri, is in the heat map of interest of the types of load that are consistent with data center interest. The large load tariff is an enabling aspect of our ability to further any conversations we might have with potential customers. And the moment that we're at a point where we could disclose any type of engagement with a specific customer, we won't hesitate to do that, but I cannot get ahead of any process, whether it existed or didn't exist just as a matter of course. So I know that might be frustrating to hear, but there are reasons why we have to be deliberate, and we will not disclose anything unless we're at the point where we're aligned. So I do appreciate the question. Operator: [Operator Instructions] The next question comes from the line of Eli Jossen from JPMorgan. Elias Jossen: Maybe just sticking with Missouri. I know that you guys had a lot of activity in the state, and you just talked about not being able to provide much clarity on the -- or specifics on the large load tariff filing right now. But maybe just kind of the other filings for formula rates and CWIP incentives, any color there just in terms of potential time line or quantifying uplift at this time? I know it's an ongoing process, but just broader color would be great. Robert Stefani: Yes. So definitely excited about a couple of aspects. I think just the ARIS project, in particular, that project being eligible for CWIP treatment and helping kind of stem some of the regulatory lag that you would otherwise see in part. And then, on the transmission filing, that will really apply mainly to the kind of future transmission development in SPP. So obviously, that's a large project for us that extends over the next several years. But moving for those assets to a future test year as well as getting CWIP treatment as well as part of that filing was a cancellation or abandonment provision, all of those are beneficial. And so that future test period will also help eliminate some of the lag component for us on that future development work. Elias Jossen: Got it. And then, I know there's been a lot of questions on the redom, but if we think about the broader index inclusion benefits, you talked about a $0.02 impact. Maybe does that include potential -- like how do you frame sort of the broader index inclusion upside, I guess, if you've done any math there? And maybe broadly on the $0.02 impact from what you've already talked about, what would the timing look like just in terms of actually flowing through EPS? Would that be kind of phased in through '27 and '28? Or how would that look? Robert Stefani: Yes. So as far as the tax savings and the expected EPS impact of that kind of $0.02 to $0.03, if the 2027 impact would be determined based on kind of when in the year we're able to achieve the approval. And then, 2028, assuming that we've been approved, that would be what we would expect to be more run rate. We haven't extended the guidance for the EPS out there. So -- but the -- as far as the kind of separate issue of index inclusion, based on the work that we've done with our advisers, the expectations there would be some positive fund flow associated with inclusion in at least one of the indexes in the U.S. I think one of your peers has also done some work around that. But I think that's all we can say at this point. Operator: The next question comes from the line of Ben Pham from BMO Capital. Benjamin Pham: You mentioned some of the tax benefits from the redomicile pushing beyond your -- the guidance. You haven't extended the guidance. I'm just curious more specific to the guide you had that 3 year through '27. Should we expect -- how should we think about -- when you do extend your guidance, I'm presuming it's not going to be until you get approval on the redomicile first half. Can you confirm that? And is it -- do you think 3-year CAGR through end of decade is reasonable for you given the regulatory time line? Or is it maybe something less or maybe more than that? Robert Stefani: Yes. I think we've talked a little bit about this. I think that moving forward, when we do move to -- and that's typically done at the 4Q results, end of year results call, we would look to be more consistent with our peers providing kind of prompt year guidance and then the long-term growth rate. I wouldn't say right now how far out we will go. But I think your rationale is broadly consistent of a longer-term EPS growth rate would likely be, subject to Board approval, of that guidance, that, that mechanic would put us on par with our peer group. As far as what we bake into those projections, we'll address at that point in time. Benjamin Pham: Okay. Could you also provide -- just on the OpEx side of things, you had a guidance around OpEx trending lower as a percent of a growing revenue base. Could you perhaps update on progress on that, where you are right now? Have you surfaced the easy pickings? Has there been some challenges along the way on some of these areas? And how should we look at the trends this year and next year? Robert Stefani: We're continuing to target that kind of mid-30s O&M to gross revenue. We continue to make progress on our cost savings efforts. I wouldn't get into specifics here, but that continues to progress. Operator: The next question comes from the line of John Mould from TD Cowen. John Mould: I'd like to go back to the large load opportunity in Missouri, not focusing on any specific customer discussions. More just about the ability in your system as it stands right now to handle incremental loads. I'm just wondering if you can give us a sense of the scale that might be available in your system right now, like what kind of revenue you got... Roderick West: Yes. And again -- yes, go ahead. You had a second part to your question. Go ahead. John Mould: I was just saying -- sorry, I was just going to add and -- the pace at which you think you might be able to add supply in the state if you did see that as an incremental demand driver. Roderick West: Yes. And again, we've been around in conversations before, and we're not seeking to obfuscate, I think, the question. The answer to that question would be premature because disclosing it would then signal the size, the scale of any potential customer. I commit, and we commit to you, the moment we are in a position, remember that we have multiple stakeholders who are part of this conversation, including the State of Missouri, the commission as well as any potential customers in shaping an integrated resource plan. It's premature for us to signal a size before we're in a position to actually match that integrated resource plan with expected loads. And all of those things are to be determined. And what we're framing up with the large load tariff is enabling a range of outcomes that would then allow us to get further along analytically around just what scale of generation and transmission, either at or beyond our existing plans, we'd be able to go public with. It's just a little early. I will signal this. We are internally putting more resources to work in anticipation, one, of our large load tariff filings and in furtherance of our efforts to bring economic development to our service territory. And I guess, I'm comfortable signaling internally that we're putting more resources to bear in anticipation of us having greater impact in the areas that we're seeking to file a large load tariff. And I'll leave it at that. That's all I can communicate. John Mould: Okay. No, I appreciate that incremental insight on the thought process. I will leave it there. Operator: There are no further questions at this time. I will now turn the call to Mr. Rod West. Please go ahead. Roderick West: All right. Well then, if there are no more questions, I will simply say thank you for your continued interest, support and feedback. And with that, we will end the call. Operator: Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Before you buy stock in Algonquin Power & Utilities, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Algonquin Power & Utilities wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Algonquin Power (AQN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Algonquin Power & Utilities (TSX:AQN) just released its second quarter 2026 results, reporting modestly higher revenue along with materially lower net income. The board also affirmed cash dividends on both common and preferred shares. See our latest analysis for Algonquin Power & Utilities. At a share price of CA$7.99, Algonquin Power & Utilities has seen its share price drift lower over the past quarter and year to date. The 1 year total shareholder return remains positive, which suggests recent momentum has faded even as dividends and previous price levels still support longer term holders. If Algonquin Power & Utilities' latest earnings and dividend update has you thinking about the wider utilities space, it can be useful to see which other grid focused stocks are gaining attention through the 36 power grid technology and infrastructure stocks Algonquin Power & Utilities now trades at a sizable discount to both analyst targets and some intrinsic value estimates after a weak quarterly profit and a falling share price. Is that discount compensation for risk, or a sign the market is too cautious? Algonquin Power & Utilities' most followed narrative pegs fair value at about CA$9.73 per share versus the last close of CA$7.99. This frames the current discount as meaningful in valuation models built on detailed earnings and cash flow assumptions. Read the complete narrative. Want to see what justifies a higher fair value than today’s price? The core thesis leans on steadier revenue, wider margins, and a different earnings multiple. The key building blocks are all laid out in that narrative. Result: Fair Value of CA$9.73 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, investors still need to watch for execution risk related to Algonquin Power & Utilities' pure play utility shift and any prolonged billing or regulatory setbacks. Find out about the key risks to this Algonquin Power & Utilities narrative. The first narrative leans on fair value estimates that treat Algonquin Power & Utilities as meaningfully undervalued. Yet on a simple P/E basis of 22.2x, the stock trades above the global integrated utilities average of 18.6x, while still below a 31.3x fair ratio that regression work suggests the market could move toward. That mix of premium to peers but discount to the fair ratio raises a practical question for investors: Is the current price offering a margin of safety, or just paying up for a possible recovery that still needs to be proved? See what the numbers say about this price — find out in our valuation breakdown. With Algonquin Power & Utilities showing both pressure points and reasons for optimism, it helps to move quickly and review the numbers yourself. To weigh both sides carefully, start by reviewing the 3 key rewards and 2 important warning signs If Algonquin Power & Utilities has sharpened your interest in utilities and income stocks, now is a good time to broaden your watchlist using focused screeners. Target potential value opportunities by checking companies that combine quality fundamentals with discounted prices through the 12 high quality undervalued stocks Strengthen your income focus by reviewing stocks that offer higher yields and sturdy profiles via the 6 dividend fortresses Reduce portfolio stress by finding companies that score well on resilience and risk through the 9 resilient stocks with low risk scores This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AQN.TO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Algonquin Power & Utilities (AQN) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -20.00%. A quarter ago, it was expected that this utility operator would post earnings of $0.11 per share when it actually produced earnings of $0.13, delivering a surprise of +18.18%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Algonquin Power & Utilities, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $543.9 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.56%. This compares to year-ago revenues of $527.8 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Algonquin Power & Utilities shares have lost about 6.5% since the beginning of the year versus the S&P 500's gain of 12.6%. While Algonquin Power & Utilities has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Algonquin Power & Utilities was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $612.4 million in revenues for the coming quarter and $0.36 on $2.59 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Utilities sector, Global Water Resources, Inc. (GWRS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Global Water Resources, Inc.'s revenues are expected to be $15 million, up 5.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report Global Water Resources, Inc. (GWRS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Algonquin Power & Utilities Corp (NYSE:AQN) is on track to meet its adjusted net earnings per share forecast for 2026 and 2027, reflecting consistent execution and financial discipline. The company achieved significant regulatory progress, including the Missouri Public Service Commission approving implementation of $97 million in annualized revenue adjustments and a settlement in Kansas for an $8.8 million revenue adjustment. Algonquin Power & Utilities Corp (NYSE:AQN) received a constructive proposed decision in California for $58.1 million in wildfire cost recovery, approximately 75% of the requested amount, aligning with peer practices. The company obtained a Certificate of Convenience and Necessity for a 250 MW gas-fired generation project in Missouri, which will benefit from CWIP regulatory recovery, reducing regulatory lag. Algonquin Power & Utilities Corp (NYSE:AQN) plans to redomicile to the U.S., which is expected to eliminate cross-border tax frictions, reduce the effective tax rate, and potentially lead to inclusion in U.S. equity indices, enhancing shareholder value. The company maintains a strong balance sheet with no equity issuance expected through 2027, and successfully refinanced $1.15 billion in debt at Liberty Utilities, preserving its investment-grade credit ratings. Algonquin Power & Utilities Corp (NYSE:AQN) reported a decline in adjusted net earnings for Q2 2026 ($29.2 million vs. $33.6 million in Q2 2025) and year-to-date ($128.8 million vs. $142.6 million), partly due to higher financing costs and operating expenses. The company recorded a $17.2 million writedown of a regulatory asset related to the California WEMA proceeding, reflecting only 75% recovery of wildfire costs, which was excluded from adjusted earnings. Higher interest expenses of $9.3 million in Q2, driven by new debt issuance and commercial paper usage, negatively impacted earnings. Operating expenses increased due to higher gas safety and excellence costs ($3.3 million in Q2, $6.3 million year-to-date) and higher labor, maintenance, and property tax expenses ($14.1 million year-to-date). Unfavorable weather conditions reduced year-to-date net revenues by $9.9 million compared to the prior year. The redomicile to the U.S. is expected to be a taxable event in Canada, potentially incurring one-time exit tax liabilities (including FIRPTA), the magnitude of which has not been disclosed, and requires regulatory approvals in multiple jurisdictions, adding execution risk. Warning! GuruFocus has detected 6 Warning Signs with AQN. Is AQN fairly valued? Test your thesis with our free DCF calculator. Q: Can you walk us through the conversations you've had with the IRS regarding the US redomicile, the expected tax implications, and the impact on the effective tax rate and cash taxes?A: Rob Stefani (CFO): We began discussions with the IRS earlier this year and filed for a private letter ruling, expecting a decision in the back half of the year. The redomicile eliminates two cash taxes: a 5% tax on the ~$200 million annual dividends sent up from utilities to Algonquin, and the BEAT tax, which is a ~10% tax on funds sent up to service holding company debt. We expect the effective tax rate to be lower moving forward, with approval targeted for the first half of 2027. Q: Between now and the targeted shareholder vote in the first half of 2027, are there any key regulatory, tax, or legal milestones that could influence the timing or economics of the redomicile?A: Rob Stefani (CFO): We expect an outcome from the IRS on the private letter ruling in the second half of the year. We also intend to pursue regulatory filings across several of our jurisdictions, which will be visible in the coming weeks. These filings are expected to coincide with the timing of the shareholder vote. Q: Can you directionally frame the magnitude of the tax savings from eliminating the dividend and debt tax implications of flowing capital through the border to Canada?A: Rob Stefani (CFO): On a run-rate basis, the impact would be in the range of $0.02 to $0.025 per share, maybe slightly higher. For 2027, you need to consider the timing of when we expect to seek shareholder approval, but this is the recurring benefit we would expect. Q: Can you dive deeper into the one-time exit tax liability, both deferred and current, that you could incur from the redomicile, including the FIRPTA tax?A: Rob Stefani (CFO): The FIRPTA tax is calculated by looking back at non-US shareholders who held over 5% positions in the prior 10 years before the redomicile. We've done the math and are confirming the methodology with the IRS through the private letter ruling. We have a range for the one-time cost but aren't disclosing it at this point. However, relative to the expected value creation from recurring tax savings, we believe this is a value-creative transaction. Q: Which states will need commission approval for the redomicile transaction, and what are the expected timelines?A: Rob Stefani (CFO): We will pursue regulatory filings in Arizona, California, Georgia, Iowa, Illinois, New York, Texas, and New Brunswick. We expect the outcomes of these filings to coincide with the timing we discussed for the shareholder vote, which is targeted for the first half of 2027. Q: Your trailing 12-month FFO to debt was 11.9% this quarter versus the downgrade threshold of 11%. Where do you expect to land this year and through 2027, and what cushion are you targeting?A: Rob Stefani (CFO): You have to consider rate case timing and implementation. We'll begin to get Missouri rates in August and have already received California rates, which will continue to benefit us. We expect to remain above the S&P downgrade threshold on an FFO to debt basis. We haven't put out specific guidance beyond this year, but we expect to maintain above that threshold. Q: Can you talk about the discussions you're having with data centers and large load customers in Missouri, and when can we expect an announcement?A: Rod West (CEO): We're planning to file our large load tariff in the coming weeks, if not days. I cannot disclose any conversations around potential or existing pipeline with specific customers unless we're at a point of alignment to say something public. Our service territory, particularly Missouri, is in the heat map of interest for data center load. The large load tariff is an enabling aspect of furthering conversations, and we won't hesitate to disclose when we're aligned. Q: Can you provide color on the other filings for formula rates and CWIP incentives in Missouri, including potential timelines or quantifying uplift?A: Rod West (CEO): We're excited about the ARIS project being eligible for CWIP treatment, which helps stem regulatory lag. The transmission filing will apply to future transmission development in SPP, moving assets to a future test year and getting CWIP treatment, plus a cancellation or abandonment provision. All of these are beneficial and will help eliminate lag on future development work. Q: How should we think about the timing of the $0.02 EPS impact from the redomicile flowing through, and does it include broader index inclusion benefits?A: Rob Stefani (CFO): The 2027 impact will be determined by when in the year we achieve approval. Assuming approval, 2028 would be more of a run-rate impact. We haven't extended EPS guidance beyond that. On index inclusion, based on work with our advisors, we expect positive fund flows associated with inclusion in at least one US index, but that's all we can say at this point. Q: When you extend your guidance beyond 2027, should we expect a three-year forecast, and is that reasonable given regulatory timelines?A: Rob Stefani (CFO): Moving forward, we would look to be more consistent with our peers, providing multi-year guidance and a long-term growth rate, typically done at the Q4 results call. We wouldn't say right now how far out we'll go, but your rationale of a longer-term EPS growth rate is broadly consistent. That guidance would likely be subject to board approval. Q: Can you update us on progress toward your OpEx guidance of trending lower as a percentage of a growing revenue base?A: Rob Stefani (CFO): We're continuing to target that mid-30s O&M to gross revenue ratio. We continue to make progress on our cost savings efforts, though I wouldn't get into specifics here. The progress continues. Q: Can you give us a sense of the scale of incremental load your system in Missouri can handle and the pace at which you could add supply?A: Rod West (CEO): Disclosing that would signal the size and scale of any potential customer, For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Algonquin Power & Utilities Corp.? Here are five stocks we like better. Adjusted EPS held steady at $0.04 in the second quarter, keeping Algonquin on track for its 2026 and 2027 forecasts, although GAAP earnings and adjusted net income declined year over year amid higher financing and operating costs. Algonquin advanced several rate cases, including a $97 million annualized Missouri revenue adjustment, an $8.8 million Kansas settlement and proposed recovery of $58.1 million in California wildfire costs, while also securing approval for a 250-megawatt Missouri gas-generation project. The company plans to seek approval to re-domicile from Canada to Delaware, potentially reducing recurring taxes by approximately $0.02 to $0.025 per share and improving access to U.S. equity indexes; it also refinanced $1.15 billion of debt and does not expect to issue equity through 2027. 2026 Sector Playbook: 3 Sectors Trading Below Fair Value Algonquin Power & Utilities (NYSE:AQN) said its second-quarter results kept it on track to meet its adjusted earnings-per-share forecast for 2026 and 2027, as the company advanced rate cases, refinanced debt and outlined plans to move its corporate domicile to the United States. Chief Executive Officer Rod West said the company’s strategy remains focused on becoming a “premier pure-play regulated utility” through execution, regulatory engagement and financial discipline. He said the second quarter extended progress made during the prior year and first quarter, though the company still has work to do across several regulatory proceedings. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 cheap utility stocks that shouldn't be so Algonquin reported second-quarter GAAP net earnings attributable to common shareholders from continuing operations of $4.9 million, down from $14.8 million in the year-earlier period. Adjusted net earnings were $29.2 million, compared with $33.6 million a year earlier. Adjusted net earnings per share were $0.04, unchanged from the second quarter of 2025. Chief Financial Officer Rob Stefani said higher approved rates at CalPeco and increased revenue at several water utilities were offset by higher financing costs, operating expenses and favorable items that occurred in the prior-year quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company recorded a $17.2 million write-down of a regulatory asset tied to a proposed decision in its California wildfire expense memorandum account, or WEMA, proceeding. The proposed decision authorized recovery of approximately 75% of recorded costs related to the 2020 Mountain View fire. Algonquin excluded the impact of that decision from adjusted earnings. For the first half of 2026, GAAP net earnings were $88 million, compared with $107.6 million in the first half of 2025. Adjusted net earnings totaled $128.8 million, down from $142.6 million a year earlier, while adjusted EPS was $0.17 compared with $0.19. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Stefani noted that first-half 2025 included $25.7 million of non-recurring favorable items, including a tax-basis step-up recovery related to Hydro, pension adjustments at Empire, and depreciation deferrals and rate-proceeding items in New Hampshire and Arizona. Excluding those items, he said year-over-year EPS was $0.01 favorable. CalPeco approved rates, net of wildfire insurance expense, added $38.7 million year to date. New rates in New York, Arizona, Chile and Peach State improved year-to-date net revenue by $11 million. Operating expenses increased on gas safety and excellence costs, along with higher labor, maintenance and property tax expenses. Unfavorable weather reduced year-to-date results by $9.9 million versus the prior year. West highlighted several regulatory developments during the quarter. In Missouri, the Public Service Commission determined that the company had met customer-service and billing metrics required to implement a previously approved Empire Electric settlement. The July 15 order allowed $97 million in annualized revenue adjustments to take effect Aug. 3. In Kansas, regulators approved a settlement that includes an $8.8 million revenue adjustment and a provision for 50% of wind revenues in the first year. In California, the Public Utilities Commission issued a proposed decision authorizing $58.1 million of wildfire-cost recovery in the WEMA proceeding. The California commission also approved an alternate proposed decision involving the Apple Valley and Park Water utilities. The decision included a combined $2.7 million revenue reduction and a retroactive adjustment to July 2025 totaling $3.1 million. Algonquin also cited new rate filings at New York Water, Empire Electric Arkansas and EnergyNorth Gas. New York Water requested a $38.1 million revenue adjustment based on a 10% return on equity and a 48% equity ratio. Empire Electric Arkansas requested $8.4 million, based on a 10% return on equity and a 53.4% capital structure. EnergyNorth filed for a $35.8 million adjustment based on a 10.25% return on equity and a 52% capital structure. The company continues to await a final decision in its Litchfield Park Water and Sewer case in Arizona. It also expects to complete filings by year-end for Granite State Electric, Empire Electric Oklahoma and a Missouri large-load tariff. On the infrastructure front, West said Algonquin received a Missouri certificate of convenience and necessity for a project deploying 250 megawatts of new gas-fired generation. The project will use a construction-work-in-progress recovery mechanism under Missouri Senate Bill 4. Algonquin intends to re-domicile to Delaware through a court-approved plan of arrangement under the Canada Business Corporations Act. West said more than 80% of the company’s operations are in the United States, while less than 5% are in Canada. The company expects to establish its headquarters in Chicago, where the senior executive leadership team would be based, while retaining a significant presence in Oakville, Ontario. West said the proposed move would not alter how the company operates utilities, serves customers or fulfills regulatory obligations. Algonquin expects to seek shareholder approval in the first half of 2027, subject to required shareholder and regulatory approvals and customary conditions. Stefani said the company began discussions with the Internal Revenue Service earlier this year and expects a decision on its private-letter ruling request in the second half of 2026. Stefani said the move could eliminate a roughly 5% tax on funds sent to the parent company to support dividends, as well as a base erosion and anti-abuse tax, or BEAT tax, of about 10% on funds used to service holding-company debt. Based on the company’s current dividend and debt-service levels, he estimated a recurring impact of roughly $0.02 to $0.025 per share, potentially slightly higher, on a run-rate basis. He said the re-domicile could also support inclusion in certain U.S. equity indices and funds, although the company did not quantify that potential benefit. Algonquin is evaluating one-time transaction and tax costs, including potential foreign investment in real property tax considerations, but did not disclose a range while it continues to confirm methodology with the IRS. During the quarter, Liberty Utilities Company raised approximately $1.15 billion through a private placement of senior unsecured notes. The proceeds were used to repay $1.15 billion of Algonquin notes that matured June 15. Stefani said Algonquin does not expect to issue equity through 2027. The parent company remains rated BBB by S&P and Fitch, while Liberty Utilities is rated Baa2 by Moody’s and BBB by Fitch and S&P. The company reiterated its adjusted EPS forecast for 2026 and 2027. Stefani said Algonquin expects to remain above S&P’s FFO-to-debt downgrade threshold, aided by the implementation of new rates in Missouri and California and expected regulatory outcomes in other jurisdictions. Algonquin Power & Utilities Corp (NYSE: AQN) is a diversified generation, transmission and distribution utility company headquartered in Oakville, Ontario. Established in 1988, the firm operates through two primary business segments: Regulated Utilities and Renewable Energy. Its Regulated Utilities segment comprises electric, natural gas and water distribution networks serving residential, commercial and industrial customers across North America, while its Renewable Energy portfolio includes hydroelectric, solar, wind and thermal generation facilities. The company's renewable energy assets span multiple jurisdictions in Canada and the United States, reflecting its strategy to expand clean power capacity in regions with supportive regulatory frameworks. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Algonquin Power & Utilities Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Reports second quarter 2026 net earnings1 per common share of $0.01 and Adjusted Net Earnings per common share2 of $0.04 Achieved regulatory progress across key proceedings in Missouri, California and Kansas OAKVILLE, Ontario, August 07, 2026--(BUSINESS WIRE)--Algonquin Power & Utilities Corp. (TSX/NYSE: AQN) ("AQN", "Algonquin" or the "Company") today reported second quarter 2026 net earnings of $4.9 million, or $0.01 per common share, and Adjusted Net Earnings2 of $29.2 million, or $0.04 per common share. For the six months ended June 30, 2026, net earnings were $88.0 million, or $0.11 per common share, and Adjusted Net Earnings2 were $128.8 million, or $0.17 per common share. These results compared to net earnings of $14.8 million, or $0.02 per common share, and Adjusted Net Earnings2 of $33.6 million, or $0.04 per common share, for the second quarter of 2025, and net earnings of $107.6 million, or $0.14 per common share, and Adjusted Net Earnings2 of $142.6 million, or $0.19 per common share, for the six months ended June 30, 2025. All amounts are shown in United States dollars ("U.S. $" or "$"), unless otherwise noted. "The second quarter marked another step forward in Algonquin’s transformation into a premier, pure-play utility," said Rod West, Chief Executive Officer of AQN. "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." Net earnings (loss) by business unit and Total Adjusted Net Earnings2 Business Segment Highlights Regulated Services Group Overview Achieved regulatory progress across key proceedings: Following improvements to customer performance metrics, on July 15, 2026, the Missouri Public Service Commission issued an order for implementation of a $97.0 million revenue adjustment effective August 3, 2026 for Empire Electric Missouri. The revenue adjustment is to be phased in over three years and reflects the significant progress made to improve customer service and billing performance while advancing investments that enhance reliability and service for Missouri customers. The Company also has the ability to earn an additional $13.7 million annually if it meets additional customer performance metrics agreed to and filed with the Commission. The Company filed interim metrics on May 30, 2026 and is currently tracking performance against those metrics. On June 22, 2026, the California Public Utilities Commission ("California PUC") issued a Proposed Decision in CalPeco’s Wildfire Expense Management Account ("WEMA") cost recovery proceeding associated with the November 17, 2020 wildfire in California (the "Mountain View Fire"). The Proposed Decision, which remains subject to final California PUC approval, would authorize recovery of approximately $58.1 million, or 75%, of requested costs. Received confirmation that the Expedited Resource Adequacy 250 MW generation project qualifies as an eligible asset for treatment under Missouri’s Construction Work in Progress ("CWIP") framework allowing for Allowance for Funds Used During Construction recovery and partially reducing regulatory lag. The Company expects to seek CWIP treatment for the project in its next Missouri rate case. On July 21, 2026, the Kansas Public Service Commission approved a settlement in the Empire Electric Kansas rate case, with new rates in effect August 1, 2026. The settlement includes an $8.8 million annual rate adjustment, phased in over two years, plus the right to retain 50% of wind revenues sold into the Southwest Power Pool in the first year of the phase-in. In Arizona, the assigned Administrative Law Judge issued a Recommended Opinion and Order on July 24, 2026 in the Litchfield Park Water & Sewer rate case including a formula rate proposal approval, combined rate adjustment of $15.0 million with a 9.75% return on equity ("ROE"), and 54.0% equity layer with a commission decision expected in August 2026. Filed requests with FERC to modify transmission formula rates for Empire Electric to a projected formula from historical, along with incentive requests related to CWIP. On May 29, 2026, New York Water filed an application with the New York Public Service Commission requesting a revenue adjustment of $38.1 million, based on an ROE of 10.0% and an equity ratio of 48.0%. On July 30, 2026, EnergyNorth filed with the New Hampshire Public Utilities Commission for a rate adjustment of $35.8 million with a 10.25% ROE and a 52.0% equity ratio. On May 15, 2026, Empire Electric filed an application with the Arkansas Public Service Commission requesting a rate adjustment of $8.4 million. The request is based on an ROE of 10.0% and an equity ratio of approximately 53.4%. On May 14, 2026, the California PUC issued orders authorizing revenue decreases for Apple Valley Water and Park Water of approximately $2.4 million and $0.3 million, respectively, for the 2025 test year. Regulated Services Group — Second Quarter 2026 The Regulated Services Group reported net earnings of $30.0 million in the second quarter of 2026, compared to net earnings of $43.9 million in the second quarter of 2025. Key drivers for the second quarter were: A one-time write-off of $17.2 million related to the WEMA proposed decision; 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 of $7.5 million partially offset by a rate reduction at Apple Valley Water and Park Water retroactive to July 2025 of $3.1 million; Increased operating expenses including increased gas safety and excellence costs of $3.3 million; and Increased interest expense of $7.7 million due to the impact of new financings and higher commercial paper usage. Regulated Services Group — Year-to-Date 2026 The Regulated Services Group reported net earnings of $149.4 million for the six months ended June 30, 2026, compared to net earnings of $167.5 million for the comparable period in 2025. Key drivers of year-to-date results were: A one-time write-off of $17.2 million related to the WEMA proposed decision; Implementation of $72.8 million of approved rates at CalPeco, including retroactive revenues of $48.6 million, offset by higher wildfire insurance expenses recovered in rates of $34.2 million; Approved rates across multiple other utility systems and customer growth totaling $11.0 million, offset by a rate reduction at Apple Valley Water and Park Water retroactive to July 2025 of $3.1 million; The non-recurrence of certain 2025 items including favourable depreciation deferrals and pension adjustments totaling $9.8 million; Increased operating expenses consisting of increased gas safety and excellence costs of $6.3 million and higher labour, benefits, maintenance costs, and property taxes of $14.1 million; Unfavourable weather versus prior year of $9.9 million; and Increased interest expense due to the impact of new financings and higher commercial paper usage. Hydro Group – Second Quarter and Year-to-Date 2026 The Hydro Group recorded net earnings of $3.1 million in the second quarter of 2026, compared to net earnings of $8.9 million in the second quarter of 2025, and recorded net earnings of $5.2 million for the six months ended June 30, 2026 compared to $25.5 million for the same period in 2025. For both the second quarter and year-to-date, the decrease in net earnings was primarily due to prior year income tax recoveries resulting from a tax basis step-up from a reorganization in connection with the Company’s sale of its renewable energy business (excluding hydro) of $2.5 million and $15.9 million, respectively. Corporate Group – Second Quarter and Year-to-Date 2026 The Corporate Group recorded a net loss of $28.2 million in the second quarter of 2026, compared to a net loss of $38.0 million for the same period in 2025, and recorded a net loss of $66.6 million for the six months ended June 30, 2026, compared to a net loss of $85.4 million in the same period in 2025. For the second quarter, the decrease in net loss was primarily due to foreign exchange losses resulting from favourable foreign exchange revaluation and higher income tax recoveries, both in the current period. For the year-to-date period, the decrease in net losses was primarily related to lower foreign exchange losses resulting from favourable foreign exchange revaluation, higher income tax recoveries, and a prior year settlement of a foreign exchange forward contract used to hedge underlying debt from the Company’s former renewable energy group (excluding hydro). Additionally, during the quarter, Liberty Utilities Co. issued $1.15 billion aggregate principal amount of unsecured Senior Notes, the proceeds of which were used to repay Canadian holding company debt of $1.15 billion that matured on June 15, 2026, supporting the Company’s tax optimization initiatives. Intention to Redomicile to the United States AQN is announcing its intention to redomicile the incorporation of the Company to the United States. The redomicile is expected to deliver several strategic and financial benefits, including: Better aligning AQN’s corporate structure with its asset footprint, as over 80% of the Company’s operations are in the United States, with less than 5% in Canada; Reducing cross-border tax inefficiencies and supporting a stronger long-term financial profile; and Broadening access to capital and creating a potential path for inclusion in certain United States equity indices and funds over time. AQN expects the redomicile to strengthen its long-term profile while supporting the continued delivery of local utility operations, regulatory obligations and customer service. The Company expects to maintain its significant presence in Oakville, Ontario and establish its headquarters in Chicago, Illinois where AQN senior executive leadership would be based. "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," said Rod West, Chief Executive Officer of AQN. "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." To effect the redomicile, AQN would continue to Delaware pursuant to a court-approved plan of arrangement under the Canada Business Corporations Act. AQN’s common shares would continue trading on the Toronto Stock Exchange and the New York Stock Exchange under the ticker symbol "AQN," with its preferred shares and Series 2019-A subordinated notes also continuing on their respective exchanges, subject to applicable approvals. The Company currently expects to seek shareholder approval in the first half of 2027 and to complete the redomicile upon receipt of the required shareholder, court and other approvals, and satisfaction of customary closing conditions. Earnings Conference Call AQN will hold an earnings conference call at 8:30 a.m. eastern time on Friday, August 7, 2026, hosted by Chief Executive Officer, Rod West, and Chief Financial Officer, Rob Stefani. AQN’s unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2026 and management discussion and analysis for the three and six months ended June 30, 2026, (the "Interim MD&A") will be available on its website at www.algonquinpower.com and in its corporate filings on SEDAR+ at www.sedarplus.com and EDGAR at www.sec.gov/edgar (for U.S. filings). About Algonquin Power & Utilities Corp. and Liberty Algonquin Power & Utilities Corp., parent company of Liberty, is a diversified international generation, transmission, and distribution utility. AQN is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. AQN's common shares, preferred shares, Series A, and preferred shares, Series D are listed on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. AQN's common shares and Series 2019-A subordinated notes are listed on the New York Stock Exchange under the symbols AQN and AQNB, respectively. Visit AQN at www.algonquinpower.com and follow us on X.com @AQN_Utilities. Caution Regarding Forward-Looking Information Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies, regulations and rules under such laws and "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). The words "will", "expects", "would", "believes", "estimates", "targets", "forecast", "outlook", "guidance", "projected" (and grammatical variations of such terms) and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements in this news release include, but are not limited to, statements regarding: value creation and the ability to deliver steady, predictable value for customers, communities and shareholders and to become a premier pure-play regulated utility; CWIP treatment for Empire Electric Missouri’s 250 MW generation investment; expected cost recoveries associated with the Mountain View Fire; regulatory filings and proceedings, including the expected timing, impacts and outcomes thereof; the Company’s intention to redomicile to the United States, including the expected strategic and financial benefits thereof, the Company’s long-term profile following the redomicile, including its ability to serve its stakeholders, the location of the Company’s headquarters and executive leadership and its presence in Oakville, Ontario following the redomicile, the steps required to effect the redomicile, the treatment of certain of the Company’s outstanding securities and the expected timing of the redomicile and related shareholder meeting. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. AQN cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Forward-looking statements contained herein are provided for the purposes of assisting in understanding the Company and its business, operations, risks, financial performance, financial position and cash flows as at and for the periods indicated and to present information about management's current expectations and plans relating to the future and such information may not be appropriate for other purposes. Material risk factors and assumptions include those set out in AQN's annual information form and annual management discussion & analysis, each for the year ended December 31, 2025, and Interim MD&A each of which is or will be available on SEDAR+ and EDGAR. Given these assumptions and risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, AQN undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise. Non-GAAP Measures AQN uses a number of financial measures to assess the performance of its business lines. Some measures are calculated in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), while other measures do not have a standardized meaning under U.S. GAAP. These non-GAAP measures include non-GAAP financial measures and non-GAAP ratios, each as defined in Canadian National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure. AQN's method of calculating these measures may differ from methods used by other companies and therefore may not be comparable to similar measures presented by other companies. The term "Adjusted Net Earnings" is used in this news release and is a non-GAAP financial measure. An explanation of this non-GAAP financial measure can be found in the section titled "Caution Concerning Non-GAAP Measures" in the Interim MD&A, which section is incorporated by reference into this news release, and a reconciliation to the most directly comparable U.S. GAAP measure can be found below. In addition, Adjusted Net Earnings is presented in this news release on a per common share basis. "Adjusted Net Earnings per common share" is a non-GAAP ratio and is calculated by dividing Adjusted Net Earnings by the weighted average number of common shares outstanding during the applicable period. Reconciliation of Adjusted Net Earnings to Net Earnings The following table is derived from and should be read in conjunction with the unaudited interim condensed consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted Net Earnings and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to U.S. GAAP consolidated net earnings. The following table shows the reconciliation of net earnings (loss) attributable to common shareholders to adjusted net earnings exclusive of these items: View source version on businesswire.com: https://www.businesswire.com/news/home/20260807246688/en/ Contacts Investor Inquiries: Brian Chin - Vice President, Investor RelationsAmanda Bersing - Manager, Investor RelationsAlgonquin Power & Utilities Corp.E-mail: [email protected] Telephone: (905) 465-4500Media Inquiries: Stephanie Bose - Senior Director, Corporate CommunicationsAlgonquin Power & Utilities Corp.E-mail: [email protected] Telephone: (905) 465-4500

OAKVILLE, Ontario, August 07, 2026--(BUSINESS WIRE)--Algonquin Power & Utilities Corp. ("AQN") (TSX: AQN, AQN.PR.A, AQN.PR.D, NYSE: AQN) announced today that its board of directors has approved and declared the following common and preferred share dividends: US$0.0650 per common share, payable on October 15, 2026, to the shareholders of record on September 29, 2026, for the period from July 1, 2026 to September 30, 2026. Registered shareholders can elect to receive the dividend in Canadian dollars in the amount of C$0.0912. C$0.41100 per preferred share, Series A, payable in cash on October 1, 2026 to preferred share, Series A holders of record on September 15, 2026, for the period from June 30, 2026 to, but excluding, September 30, 2026. C$0.42831 per preferred share, Series D, payable in cash on October 1, 2026 to preferred share, Series D holders of record on September 15, 2026, for the period from June 30, 2026 to, but excluding, September 30, 2026. Each of the foregoing dividends will be paid in cash. The quarterly dividends payable on common shares are declared in U.S. dollars. Beneficial shareholders (those who hold common shares through a financial intermediary) who are resident in Canada or the United States may request to receive their dividends in either U.S. dollars or the Canadian dollar equivalent by contacting the financial intermediary with whom the common shares are held. Unless the Canadian dollar equivalent is requested, holders of common shares will receive dividends in U.S. dollars, which, as is often the case, the financial intermediary may convert to Canadian dollars. Registered holders of common shares receive dividend payments in the currency of residency. Registered holders of common shares may opt to change the payment currency by contacting TSX Trust Company at 1-800-387-0825 prior to the record date of the dividend. The Canadian dollar equivalent of the quarterly common share dividend is based on the Bank of Canada daily average exchange rate on the day before the declaration date. Pursuant to the Income Tax Act (Canada) and corresponding provincial legislation, AQN hereby notifies holders of common shares, preferred shares, Series A, and preferred shares, Series D that such dividends declared qualify as eligible dividends. About Algonquin Power & Utilities Corp. and Liberty Algonquin Power & Utilities Corp., parent company of Liberty, is a diversified international generation, transmission, and distribution utility. AQN is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. AQN's common shares, preferred shares, Series A, and preferred shares, Series D are listed on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. AQN's common shares and Series 2019-A subordinated notes are listed on the New York Stock Exchange under the symbols AQN and AQNB, respectively. Visit AQN at www.algonquinpower.com and follow us on X.com @AQN_Utilities. View source version on businesswire.com: https://www.businesswire.com/news/home/20260807748417/en/ Contacts Investor Inquiries: Brian Chin - Vice President, Investor RelationsAmanda Bersing - Manager, Investor RelationsAlgonquin Power & Utilities Corp.354 Davis Road, Oakville, Ontario, L6J 2X1E-mail: [email protected] Telephone: (905) 465-4500Media Inquiries: Stephanie Bose - Senior Director, Corporate CommunicationsLiberty354 Davis Road, Oakville, Ontario, L6J 2X1E-mail: [email protected] Telephone: (905) 465-4500

MDU Resources Group Inc. MDU reported second-quarter 2026 earnings of 9 cents per share, beating the Zacks Consensus Estimate of 8 cents by 12.5%. The bottom line increased 28.6% from 7 cents in the year-ago quarter. Operating revenues of $375.2 million missed the Zacks Consensus Estimate of $398 million by 5.73%. The top line increased 6.8% from $351.2 million recorded in the year-ago quarter. MDU Resources Group, Inc. price-consensus-eps-surprise-chart | MDU Resources Group, Inc. Quote Total operating expenses were nearly $327.3 million, up 2% from the year-ago quarter’s $320.8 million. The increase was primarily due to higher electric fuel and purchased power costs, increased operation and maintenance expenses, and higher depreciation and amortization.Operating income totaled $47.9 million, up 57.6% from $30.4 million in the prior-year quarter.Interest expense was $31.5 million, up 24% year over year from $25.4 million.The Badger Wind Farm contributed $3.3 million to quarterly earnings. Results also benefited from Montana interim rates, new electric rates in Wyoming and higher retail sales volumes across all major customer classes. These gains were partly offset by increased interest expense, depreciation and amortization, and operation and maintenance costs.The natural gas distribution business benefited from new rates in Idaho, Washington, Montana and Wyoming. Retail sales volumes increased 6.7%, while the customer base grew 1.6% year over year. However, higher interest expense associated with increased long-term debt balances partly offset the improvement. MDU Resources has signed precedent agreements covering nearly 1.2 billion cubic feet per day for the proposed Bakken East Pipeline Project. A negotiated option could raise contracted volumes to nearly all the interest received during the binding open season.The project is being designed for 1.4 billion cubic feet per day and carries an estimated investment of $2.7-$3.2 billion. A final investment decision is expected before the planned fourth-quarter 2026 FERC filing. The proposed first and second phases remain targeted for late 2029 and late 2030, respectively.The company also has more than 1 gigawatt of data center load under signed electric service agreements. This includes 530 megawatts at Ellendale, ND, 430 megawatts at Center, ND and 50 megawatts at Leola, SD, with the latter two projects subject to regulatory approval. Net cash provided by operating activities totaled $265.3 million during the first six months of 2026, down 20.8% from $334.9 million a year earlier. As of June 30, total debt stood at $2.58 billion, while total equity was $2.93 billion. Debt represented 46.8% of total capitalization compared with 44.4% a year earlier, reflecting continued funding of the company’s utility and pipeline investment programs. For 2026, MDU Resources expects its earnings to be between 93 cents and $1 per share. The Zacks Consensus Estimate for the metric is pegged at 98 cents, which lies at the higher end of the company’s projected range.The company continues to expect a long-term EPS growth rate of 6-8%.MDU anticipates its utility customers’ growth to continue at an annual rate of 1-2%.Capital expenditures for 2026 are projected at $529 million. MDU also plans to invest approximately $3.1 billion from 2026 through 2030, including $1.08 billion in electric operations, $1.35 billion in natural gas distribution and $643 million in the pipeline business. Investments related to the proposed Bakken East Pipeline would be in addition to this program. MDU Resources currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Algonquin Power & Utilities Corp. AQN is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for second-quarter EPS is pinned at 5 cents, which implies a year-over-year increase of 25%.The Zacks Consensus Estimate for second-quarter sales is pinned at $552.5 million, which suggests year-over-year growth of 4.68%.PPL Corporation PPL is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies year-over-year growth of 9.38%.The Zacks Consensus Estimate for second-quarter sales is pinned at $2.18 billion, which suggests year-over-year growth of 7.50%.Vistra VST is scheduled to report second-quarter 2026 results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, which implies year-over-year growth of 52.48%.The Zacks Consensus Estimate for second-quarter sales is pinned at $6.29 billion, which suggests year-over-year growth of 48.07%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MDU Resources Group, Inc. (MDU) : Free Stock Analysis Report PPL Corporation (PPL) : Free Stock Analysis Report Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report Vistra Corp. (VST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

UGI Corporation UGI reported a third-quarter fiscal 2026 adjusted loss of 20 cents per share, which was 42.86% narrower than the Zacks Consensus Estimate of a loss of 35 cents. However, the adjusted loss widened from the year-ago loss of 1 cent per share.GAAP loss per share in the fiscal third quarter was 62 cents compared with a loss of 76 cents in the year-ago quarter. Revenues of $1.33 billion missed the Zacks Consensus Estimate of $1.55 billion by 14.02%. The top line also decreased 4.5% from the year-ago quarter’s $1.39 billion. Lower propane volumes pressured results, with retail gallons sold falling 10% at both AmeriGas Propane and UGI International. UGI Corporation price-consensus-eps-surprise-chart | UGI Corporation Quote UGI’s loss before interest expense and income tax (EBIT) for the third quarter of fiscal 2026 was $52 million, down 59% from $127 million in the prior year.The company’s interest expenses were $109 million, up 7.9% from $101 million in the year-ago quarter.On July 31, 2026, Administrative Law Judges recommended approval of a $65 million two-phase Pennsylvania gas rate settlement, with $40 million effective in October 2026 and $25 million in October 2027, pending PUC approval. AmeriGas Propane revenues declined 14% year over year to $372 million, while its EBIT loss widened 89% to $53 million. Retail gallons sold fell 10% to 124 million, reflecting unusually warm April weather and continued customer attrition. UGI International revenues remained essentially flat at $436 million compared with $437 million a year ago, while EBIT declined 5% to $41 million. Retail LPG volumes declined 10% to 125 million gallons, largely due to the divestitures of businesses in Italy, Austria and Eastern Europe.Midstream & Marketing revenues declined 10% year over year to $249 million, while EBIT increased 11% to $30 million from $27 million despite a higher cost base.UGI Utilities revenues increased 5% year over year to $302 million, while EBIT increased 33% to $40 million. Core market throughput remained flat at 12 billion cubic feet, while total throughput declined 11% to 73 billion cubic feet. The company ended June with $1.9 billion of available liquidity, including $500 million in cash and cash equivalents. UGI completed debt transactions expected to reduce annualized borrowing costs by approximately $30 million. Corporate leverage was 3.8 times, while AmeriGas's leverage stood at 4.3 times. UGI reaffirmed its fiscal 2026 adjusted EPS guidance of $2.75-$2.90. The Zacks Consensus Estimate for earnings is pegged at $2.87, which is above the midpoint of the company’s guided range. UGI currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Algonquin Power & Utilities Corp. AQN is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for second-quarter EPS is pinned at 5 cents, which implies a year-over-year increase of 25%.The Zacks Consensus Estimate for second-quarter sales is pegged at $552.5 million, which suggests year-over-year growth of 4.68%.PPL Corporation PPL is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies year-over-year growth of 9.38%.The Zacks Consensus Estimate for second-quarter sales is pinned at $2.18 billion, which suggests year-over-year growth of 7.50%.Vistra VST is scheduled to report second-quarter 2026 results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, which implies year-over-year growth of 52.48%.The Zacks Consensus Estimate for second-quarter sales is pinned at $6.29 billion, which suggests year-over-year growth of 48.07%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UGI Corporation (UGI) : Free Stock Analysis Report PPL Corporation (PPL) : Free Stock Analysis Report Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report Vistra Corp. (VST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research