Algonquin Power & Utilities Corp. (NYSE: AQN, TSX: AQN), based in Oakville, Ontario, is a diversified international utility company focused on generating, transmitting, and distributing energy and water across North America. The company operates primarily through its Regulated Services Group, managing numerous electric, water distribution, and wastewater systems, along with a Hydro Group, which comprises hydroelectric generation facilities.

For the fourth quarter of 2024, Algonquin reported a decline in adjusted net earnings, registering $45.2 million, a decrease of 44% from $81.3 million in the fourth quarter of 2023. Adjusted net earnings per common share decreased 50%, from $0.12 to $0.06. The company’s total revenue for the quarter was $584.8 million, down 1% from $588.2 million a year prior. Annual net utility sales for 2024 increased by 4%, totaling $1.687 billion, compared to $1.625 billion in 2023.

The fourth quarter’s consolidated adjusted EBITDA was $248.6 million, reflecting a 5% decrease year-over-year. Within the Regulated Services Group, adjusted EBITDA increased 2.4% to $234.4 million, driven by new rate implementations, while the Hydro Group’s adjusted EBITDA fell to $6.1 million, a 13% decline. Full-year consolidated adjusted EBITDA for 2024 was approximately $1.039 billion, a 3% increase from 2023.

Long-term debt stood at $6.7 billion as of December 31, 2024, which reflects an 11% reduction from the previous year’s $7.5 billion. The company anticipates a decrease in overall debt by approximately $1.95 billion following the $2.1 billion sale of its Renewables business, set to close on January 8, 2025. In addition, Algonquin estimates its year-end rate base at approximately $7.8 billion, showing a rise from $7.2 billion in 2023.

Operating expenses increased due to the transition and consolidation of its operations, with notable non-recurring costs of about $18 million recorded in 2024 associated with the exit from its Renewables business. The company noted a higher interest expense attributed to the growth funding, alongside a $8.6 million increase in adjusted taxes from the previous year.

For 2025, Algonquin is transitioning to a pure-play regulated utility infrastructure, which they represent as a disciplined measure to improve efficiency and return on equity (ROE). As of the year-end, earned ROE was reported to be in the mid-5% range. The company has committed to improve its operational performance in pursuit of reaching the authorized ROE target of 9.2%.

Algonquin has not provided specific financial guidance for 2025; however, it indicated an aim to accelerate its performance measures and operational efficiencies ahead, particularly in light of recent leadership transitions within the company.