Algonquin Power & Utilities Corp. (AQN) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Algonquin Power & Utilities Corp. (AQN) Utility Operations & Dividend Profile

Algonquin Power & Utilities Corp. is a diversified utility company with regulated and non-regulated assets, providing essential services like electricity, natural gas, and water to over a million customers. The company's renewable energy portfolio and geographic diversification across North America and beyond position it within a growing sector.

What Is the Investment Thesis for AQN?

The company's regulated operations provide a stable revenue stream, while its renewable energy segment offers growth potential driven by increasing demand for clean energy. With a market capitalization of $4.18B and a dividend yield of 4.16%, AQN offers a blend of stability and income. Key catalysts include ongoing investments in renewable energy projects and expansion of its regulated utility base. Potential risks include regulatory changes and fluctuations in commodity prices. The company's beta of 0.85 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

AQN Key Highlights

Algonquin Power & Utilities Corp. serves approximately 1,093,000 customer connections through its regulated utilities.

• The company's Renewable Energy Group generates power from hydroelectric, wind, solar, and thermal facilities.
• AQN's market capitalization stands at $4.18B, reflecting its significant presence in the utilities sector.
• The company's dividend yield of 4.16% provides an attractive income stream for investors.
• Algonquin Power & Utilities Corp. maintains a profit margin of 7.4%, indicating solid profitability within the utility industry.

Who Are AQN's Competitors?

AQN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are AQN's Key Strengths?

Diversified portfolio of regulated and non-regulated assets.

• Strong presence in the renewable energy sector.
• Geographic diversification across North America, Chile, and Bermuda.
• Stable revenue stream from regulated utility operations.

What Are AQN's Weaknesses?

Exposure to regulatory risks in multiple jurisdictions.

• Dependence on weather conditions for renewable energy generation.
• Potential for cost overruns on large infrastructure projects.
• Sensitivity to changes in interest rates and commodity prices.

What Could Drive AQN Stock Higher?

Investments in renewable energy projects, driving growth in the Renewable Energy Group segment.

• Expansion of the regulated utility base through strategic acquisitions.
• Potential regulatory approvals for new infrastructure projects.
• Implementation of smart grid technologies to improve grid reliability and efficiency.
• Increasing demand for clean energy, supporting growth in the renewable energy sector.

What Are the Key Risks for AQN?

Financial-distress signal — its Altman Z-Score of 0.29 sits in the distress zone (elevated bankruptcy risk).

• Rich valuation — a P/E of 29.77 runs well above the Utilities sector’s ~16.60x, leaving little room for a miss.
• Changes in government regulations and environmental policies impacting renewable energy projects.
• Increased competition from other utility and renewable energy companies.
• Economic downturns that reduce demand for utility services.
• Cybersecurity threats and potential disruptions to critical infrastructure.
• Fluctuations in interest rates and commodity prices impacting profitability.

What Are the Growth Opportunities for AQN?

• Expansion of Renewable Energy Portfolio: Algonquin has the opportunity to further expand its renewable energy portfolio through strategic acquisitions and greenfield projects. The global renewable energy market is projected to reach $1.1 trillion by 2027, creating a significant market for AQN to capitalize on. By investing in new wind, solar, and hydroelectric facilities, Algonquin can increase its renewable energy generation capacity and reduce its reliance on fossil fuels. This expansion aligns with the growing demand for clean energy and positions AQN as a leader in the renewable energy sector.
• Strategic Acquisitions in Regulated Utilities: Algonquin can pursue strategic acquisitions of regulated utilities in North America and other regions to expand its customer base and increase its regulated asset base. The regulated utility sector provides stable and predictable cash flows, making it an attractive investment for AQN. By acquiring utilities in growing markets, Algonquin can increase its revenue and earnings while also diversifying its geographic footprint. These acquisitions can provide synergies and cost savings, further enhancing AQN's profitability.
• Investment in Grid Modernization: Algonquin can invest in grid modernization projects to improve the reliability and efficiency of its electricity distribution networks. The aging infrastructure of many utilities requires significant upgrades to meet the growing demand for electricity and to integrate renewable energy sources. By investing in smart grid technologies, Algonquin can reduce energy losses, improve grid stability, and enhance customer service. These investments can also qualify for regulatory incentives and rate increases, providing a positive return on investment for AQN.
• Development of Water and Wastewater Infrastructure: Algonquin can expand its water and wastewater infrastructure business through strategic acquisitions and greenfield projects. The demand for clean water and reliable wastewater treatment is growing due to population growth and increasing environmental regulations. By investing in water and wastewater infrastructure, Algonquin can provide essential services to communities and generate stable and predictable cash flows. This expansion aligns with the company's focus on providing essential utility services and positions AQN as a leader in the water and wastewater sector.
• Geographic Diversification: Algonquin can continue to diversify its geographic footprint by expanding into new markets and regions. The company currently operates in the United States, Canada, Chile, and Bermuda, providing a diversified revenue stream. By expanding into new markets, Algonquin can reduce its reliance on any one region and mitigate the impact of regulatory changes or economic downturns. This geographic diversification can also provide access to new growth opportunities and enhance AQN's long-term sustainability.

What Are AQN's Competitive Advantages?

• Regulated Utility Operations: Provides a stable and predictable revenue stream with regulated rates of return.
• Diversified Portfolio: Reduces risk through a mix of regulated and non-regulated assets and geographic diversification.
• Renewable Energy Focus: Aligns with the growing demand for clean energy and provides access to government incentives.
• Essential Services: Provides essential utility services that are critical to communities and businesses.

What Does AQN Do?

Algonquin Power & Utilities Corp. was incorporated in 1988 and is headquartered in Oakville, Canada. The company has evolved into a diversified utility player with operations spanning regulated and non-regulated assets. Algonquin operates through two primary segments: the Regulated Services Group and the Renewable Energy Group. The Regulated Services Group focuses on rate-regulated utilities in the United States, Canada, Chile, and Bermuda, distributing electricity, natural gas, and water/wastewater services to approximately 1,093,000 customer connections. The Renewable Energy Group generates and sells electrical energy, capacity, ancillary products, and renewable attributes from its portfolio of renewable power generation facilities, primarily in the United States and Canada. These facilities include hydroelectric, wind, solar, and thermal plants. Algonquin's strategic focus on both regulated utilities and renewable energy positions it to capitalize on the growing demand for sustainable and reliable energy solutions.

What Products and Services Does AQN Offer?

• Owns and operates regulated utilities in the United States, Canada, Chile, and Bermuda.
• Distributes electricity, natural gas, and water/wastewater services to over one million customers.
• Generates and sells electrical energy from renewable sources.
• Operates hydroelectric, wind, solar, and thermal power generation facilities.
• Owns and operates clean energy and water infrastructure assets.
• Provides ancillary products and renewable attributes from its renewable energy facilities.
• Manages a portfolio of rate-regulated utilities.

How Does AQN Make Money?

• Generates revenue through regulated utility operations, earning a return on invested capital.
• Sells electricity, capacity, and renewable attributes from its renewable energy facilities.
• Acquires and develops new utility and renewable energy assets.
• Operates and maintains its infrastructure assets to ensure reliable service.

What Industry Does AQN Operate In?

Algonquin Power & Utilities Corp. operates within the utilities sector, which is undergoing a significant transformation driven by the increasing adoption of renewable energy sources. The industry is characterized by a mix of regulated and non-regulated markets, with a growing emphasis on sustainability and grid modernization. Companies like Pacific Gas & Electric Co. (PCG) and Black Hills Corporation (BKH) represent key competitors in the utility space. The global renewable energy market is projected to reach $1.1 trillion by 2027, presenting substantial growth opportunities for companies like Algonquin.

Who Are AQN's Key Customers?

• Residential customers who receive electricity, natural gas, and water/wastewater services.
• Commercial and industrial customers who require reliable utility services.
• Utility companies that purchase electricity and capacity from Algonquin's renewable energy facilities.
• Municipalities and government agencies that rely on Algonquin for water and wastewater treatment.

Company Profile

Algonquin Power & Utilities Corp. operates in the Diversified Utilities industry within the Utilities sector. It is headquartered in Oakville, CA. The company is led by CEO Roderick K. West. AQN has traded publicly since 2009.

Return on equity for Algonquin Power & Utilities Corp. stands at 3.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.2%, showing how much profit it generates from its asset base. AQN trades at a trailing price-to-earnings ratio of 29.77, above the Utilities sector average of ~16.60x. Its free cash flow yield is -2.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.05 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.7%, the inverse of the P/E and a quick read on earnings relative to price.

AQN Valuation & Market Position

With a $4.18B market cap, Algonquin Power & Utilities Corp. sits in the mid-cap segment of the market. Analyst price targets span from $6.50 to $6.50, with a consensus of $6.50. At the current price of $5.43, that implies approximately 20% upside potential. Relative to its peer group, AQN's quantitative score of 35/100 is below the peer average of 57/100.

Quarterly Financial Performance: Algonquin Power & Utilities Corp.

Revenue for Algonquin Power & Utilities Corp. came in at $543.9M during Jun 2026, a 31.4% contraction versus the preceding quarter. The company recorded net income of $3.6M, with diluted EPS of $0.00. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Utilities. Across the four most recent quarters, AQN averaged $0.05 in diluted EPS.

Algonquin Power & Utilities Corp.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.29 places it in the distress zone, a signal of elevated financial risk.

Algonquin Power & Utilities Corp. has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 12.8% above estimates on average.

Wall Street analysts project Algonquin Power & Utilities Corp. revenue of about $2.62B for fiscal 2026, with EPS near $0.36. The estimate reflects 6 contributing analysts.

AQN Financials

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AQN Analyst Consensus

AQN MoonshotScore

Common Questions About AQN (Utilities)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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