Algonquin Power & Utilities Corporation (AQN) is engaged in the regulated utility sector, focusing on the operation of electric, natural gas, water distribution, and wastewater systems across the US, Canada, Bermuda, and Chile. The company reported notable financial improvements in its first quarter of 2025, indicating a substantial recovery following prior losses associated with its discontinued renewable energy segment.

For the first quarter ending March 31, 2025, AQN’s revenue reached $692.4 million, up 7% from $646.2 million in the same period last year. During this timeframe, adjusted net earnings from continuing operations amounted to $111.6 million, a 39% increase over $80.1 million reported in Q1 2024. The growth in net earnings for the company was notably driven by the Regulated Services Group, which saw net earnings increase by 43% to $134.6 million, bolstered by new rates and lower interest expense.

Earnings per share (EPS) remained stable at $0.14 for Q1 2025, consistent with the previous year when including renewable operations, but showing improvement from $0.11 on a continuing basis when excluding those operations from last year’s results. Operating income for the quarter was reported at $178.9 million, a significant increase from $143.6 million in the previous year.

The company also recorded a net loss of $81.6 million from long-term investments, predominantly due to the discontinued operations from the renewable energy business sold earlier in January 2025. The removal of dividends from Atlantica significantly impacted net earnings for the Corporate Group, leading to an adjusted net earnings decline in that segment of $22.7 million.

Operating metrics reflected consistent growth across core utility services. Regulated electricity distribution revenue increased from $305.9 million to $330.4 million, and gas distribution revenue rose from $234.0 million to $246.7 million, highlighting an improved operational performance. Cost of sales did see an uptick, but they remained manageable, with operating expenses at $209.3 million for the quarter compared to $206.5 million in Q1 2024.

The total interest expense also saw a reduction, decreasing to $71.4 million from $89.6 million a year prior, primarily due to proactive debt repayment actions following asset sales. These financial indicators collectively suggest a recovery trajectory for the company, although challenges related to billing investigations and the integration of new technology remain.

As a result, AQN’s financial outlook for 2025 seems cautiously optimistic, with continued focus on improving operational efficiencies in its utility segment while adapting to regulatory and market changes. The next several quarters will be critical to assess how well these strategies will stabilize earnings and enhance profitability following the recent restructuring.

Overall, Algonquin Power & Utilities Corporation shows signs of recovery with improved revenues and earnings reflecting a transition back to stability, even as it navigates challenges post-renewable business divestiture.