The following is a summary of the Algonquin Power & Utilities Corp. (AQN) Q3 2024 Earnings Call Transcript:

Financial Performance:

• AQN third quarter financial performance saw year-over-year growth in revenue and adjusted EBITDA of 1% and 4%, respectively. However, adjusted net earnings and adjusted net earnings per share decreased by 5% and 20%, respectively.

• The decreases were influenced by higher operating expenses and increased depreciation and interest expenses.

• Revenue growth was partially offset by lower pass-through commodity costs.

Business Progress:

• AQN is transitioning to a pure-play regulated utility through strategic divestitures, including the planned sale of its renewables business excluding the Hydro fleet. The expected closure of this transaction is in Q4 2024 or Q1 2025.

• Filed rate cases in key regions aiming to recover investments and improve returns, including significant requests in Empire Electric Missouri and CalPeco Electric in California.

• Implemented a new SAP-based IT platform to optimize regulated utility operations.

• Ongoing restructuring and process standardization within the utility business to enhance performance.

Opportunities:

• With the divestiture of renewable assets and focusing solely on regulated utilities, AQN aims to strengthen its core business model and financial stability.

Risks:

• Potential regulatory delays in the rate case processes might impact financial outcomes.

• Operational disruptions during the IT system transition, which initially caused regulatory lag and impacted the timing of rate cases.

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