{"id":519122,"date":"2026-03-06T23:10:13","date_gmt":"2026-03-06T23:10:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/519122\/"},"modified":"2026-03-06T23:10:13","modified_gmt":"2026-03-06T23:10:13","slug":"algonquin-power-cuts-2027-guidance-stock-sinks-double-digits","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/519122\/","title":{"rendered":"Algonquin Power cuts 2027 guidance; stock sinks double digits"},"content":{"rendered":"\n

Shares of Algonquin Power & Utilities (AQN.TO<\/a>)(AQN<\/a>) fell by double digits in Toronto on Friday, after the company cut its profit outlook for 2027.<\/p>\n

Oakville, Ont.-based Algonquin owns gas, water, and electric assets mainly located in North America, with the bulk of its footprint in the United States. A major strategic transformation in recent years saw Algonquin sell its large-scale renewable energy business in order to focus on growing its footprint as a regulated utility.<\/p>\n

The company reported financial results before Friday\u2019s opening bell, modestly topping analyst estimates for the final quarter of 2025.<\/p>\n

Rod West has led Algonquin as CEO since March 2025. The company has undergone a series of executive changes in recent years as it faced pressure from activist investors to simplify its business, and repair its debt-heavy balance sheet.<\/p>\n

\u201cAlgonquin is a different company today than it was a year ago,\u201d West told analysts on a post-earnings conference call on Friday. \u201cWe’re advancing towards our goal of becoming a premium pure-play regulated utility.\u201d<\/p>\n

On Friday, Algonquin reiterated its 2026 guidance for adjusted earnings per share (EPS) in the range of $0.35 to $0.37. However, it dropped its EPS estimate for 2027 to $0.38 to $0.42 from prior guidance of $0.42 to $0.46. The change was blamed on new tax assumptions for next year.<\/p>\n

\u201cWe updated our assumptions regarding the company’s effective tax rate in 2027 which is now expected to be in the mid to high 20s per cent range, as compared to the previously anticipated low to mid 20s per cent range,\u201d chief financial officer Rob Stefani said on Friday\u2019s call.<\/p>\n

\u201cWe are continuing to evaluate tax strategies to optimize the tax rate, but expect the majority of the benefits from such strategies to be realized after 2027.\u201d<\/p>\n

Toronto-listed shares fell as much as 13.8 per cent in early trading on Friday. The stock closed 11.55 per cent lower, at $8.35 per share.<\/p>\n

Responding to a question from a stock analyst, West says \u201credomiciling\u201d Algonquin as a potential solution to taxation headwinds is being discussed at the company.<\/p>\n

\u201cI won\u2019t be in a position to announce anything on the redomicile question other than to say we are advancing our analytics around answering those types of questions,\u201d he said on Friday.<\/p>\n

\u201cWe\u2019re taking that type of analysis to our board,\u201d West added. \u201cWe don\u2019t have announcements to make. Think those are premature. But the work is without question underway.\u201d<\/p>\n

Scotiabank Global Equity Research analyst Robert Hope maintained his US$7 per share target on Algonquin\u2019s New York-listed stock on Friday, along with a \u201csector outperform\u201d rating. He says the company continues to trade at a meaningful discount to major Canadian utilities like Emera (EMA.TO<\/a>), Fortis (FTS.TO<\/a>)(FTS<\/a>), and Hydro One (H.TO<\/a>) on a 2027 estimated price-to-earnings basis.<\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Algonquin Power & Utilities (AQN.TO)(AQN) fell by double digits in Toronto on Friday, after the company…\n","protected":false},"author":2,"featured_media":519123,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[116660,205026,45,49,48,205028,205027,205029],"class_list":{"0":"post-519122","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-algonquin","9":"tag-algonquin-power","10":"tag-business","11":"tag-ca","12":"tag-canada","13":"tag-renewable-energy-business","14":"tag-rod-west","15":"tag-stock-analyst"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/519122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=519122"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/519122\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/519123"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=519122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=519122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=519122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}