Algonquin Power & Utilities Corp.

Q2 2026 reported GAAP net earnings were $4.9 million versus $14.8 million in Q2 2025. Q2 2026 adjusted net earnings were $29.2 million versus $33.6 million, and adjusted net EPS was $0.04 per share, flat year over year. Year-to-date GAAP net earnings were $88 million versus $107.6 million, while year-to-date adjusted net earnings were $128.8 million versus $142.6 million. The quarter included a $17.2 million write-down of a regulatory asset tied to the California WEMA proceeding; management said the proposed decision authorizes 75% recovery of wildfire costs and that impact was excluded from adjusted EPS. Driver-wise, CalPeco approved rates added $12.1 million but were partly offset by $5.7 million of higher wildfire insurance expense, $9.3 million of higher interest expense, and $3.3 million of higher operating expenses. For the balance sheet, the company raised about $1.15 billion at Liberty Utilities Company and used the proceeds to repay $1.15 billion of maturities at Algonquin on June 15. Guidance was unchanged: management said it remains on track to meet adjusted net EPS forecasts for 2026 and 2027, does not expect to issue equity through 2027, and expects to stay above the S&P FFO-to-debt downgrade threshold.

Rod West framed the quarter as another step toward becoming a “premier, pure-play, regulated utility,” emphasizing consistent execution, constructive regulation and disciplined financial management. He highlighted progress on several rate cases, the Missouri CCN for the 250 MW gas-fired generation project, and the company’s U.S. redomicile plan as a strategic move to better align structure with assets and reduce tax friction. His tone was confident but still measured, repeatedly noting there is more work to do.

Robert Stefani said Q2 adjusted net EPS was $0.04 and described the quarter’s variance mainly as higher rates being offset by higher financing costs, slightly higher operating expenses and prior-year favorable items. He cited $12.1 million of higher CalPeco approved rates, $5.7 million of wildfire insurance expense, $9.3 million of higher interest expense and $3.3 million of higher gas safety and excellence costs; he also noted the $17.2 million WEMA write-down. On capital structure, he said the company raised approximately $1.15 billion in senior unsecured notes and used the proceeds to repay $1.15 billion of maturing notes, and reiterated no equity is expected through 2027. On the redomicile, he quantified recurring tax savings from eliminating a roughly 5% dividend cash tax and a roughly 10% BEAT tax, estimating about 2 to 2.5 cents of run-rate EPS impact, with 2028 expected to be the more fully run-rate year if approved.

Analysts focused heavily on the U.S. redomicile, asking about IRS timing, tax implications, one-time exit costs and required regulatory approvals. Management said it filed for a private letter ruling with the IRS, expects a response in the back half of the year, and will pursue regulatory filings in jurisdictions including Arizona, California, Georgia, Iowa, Illinois, New York, Texas and New Brunswick. They declined to disclose the one-time tax cost range or specific customer pipeline details for Missouri large-load opportunities, but said the company is putting more resources behind the large-load tariff and expects to file it in the coming weeks, if not days.