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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.
Algonquin
Algonquin
Algonquin Revenue by Segment
Revenue by Segment
Regulated Services Group net earnings Revenue
CapyFin.comHydro Group net earnings Revenue
CapyFin.comCorporate Group net earnings Revenue
CapyFin.com 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.
- Ongoing rate case uncertainty, with some rate applications yet to be approved.
- Higher interest costs affecting profitability.