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Algonquin Power & Utilities (NYSE:AQN) +11.3% in early trading Tuesday after releasing its financial outlook for 2025-27 as part of its “Back To Basics utility consumer-centric capital plan” aimed at “delivering steady predictable returns for investors through focused utility execution and capital discipline.”
Algonquin (NYSE:AQN) guided for current-year adjusted earnings of $0.30-$0.32/share, mostly above FY 2024 adjusted earnings and the FY 2025 analyst consensus estimate of $0.30/share, while also forecasting EPS of $0.35-$0.37 for 2026, and $0.42-$0.46 for 2027.
The company also said it expects operating expenses as a percentage of revenue to improve by 5%-7% by the end of 2027, and anticipates its earned return on equity will improve by ~300 bps to ~8.5% by 2027.
The company expects utility capital expenditures of ~$2.5B for 2025-27, with no need for equity issuance expected through 2027 while maintaining a BBB investment-grade rating.
Algonquin (NYSE:AQN) has taken steps to streamline and strengthen its balance sheet, including last year’s sale of the majority of its renewable energy business to LS Power for $2.5B.