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Dec 31, 2024
Algonquin Q4 2024 Earnings Report
Algonquin reported a decrease in adjusted net earnings and EPS for Q4 2024 amid higher costs and strategic restructuring.
Key Takeaways
Algonquin Power & Utilities Corp. reported Q4 2024 revenue of $584.8 million, a slight 1% decline year-over-year. Adjusted net earnings decreased by 44% to $45.2 million, with adjusted EPS dropping 50% to $0.06. The company continued its transition towards a regulated utility business, completing the sale of its renewables business and Atlantica stake, which strengthened its balance sheet but weighed on short-term profitability.
Q4 2024 revenue was $584.8 million, down 1% year-over-year.
Adjusted net earnings declined 44% to $45.2 million.
Adjusted EPS dropped 50% to $0.06 per share.
Company completed divestment of renewables and Atlantica, using proceeds to reduce debt.
Revenue by Segment
Forward Guidance
Algonquin is focusing on its transition to a pure-play regulated utility, with an emphasis on improving profitability and reducing debt through strategic divestitures.
Positive Outlook
- Successfully completed the sale of the renewables business and Atlantica stake, strengthening the balance sheet.
- Continued rate case approvals, leading to authorized revenue increases of $21.2 million.
- Regulated Services Group saw a 2% increase in Adjusted EBITDA in Q4.
- Strong cash proceeds expected from earn-outs related to wind assets.
- New CEO Rod West expected to drive further operational efficiencies.
Challenges Ahead
- Higher operating expenses, including system conversion and residual costs from renewables, impacting margins.
- Q4 adjusted net earnings declined by 44% year-over-year.
- Adjusted EPS dropped by 50% compared to Q4 2023.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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