AQN

Algonquin Power & Utilities is a regulated water and electric utility (a Canadian-domiciled foreign filer) in the late stages of a painful restructuring. The five-year earnings history tells the story: a -$212M loss in FY2022, a -$1.38B loss in FY2024 (driven by large impairments/write-downs), bracketing a return to a $181M profit in FY2025 (EPS $0.22, +111.6%). Total assets fell 16.7% to $14.1B as the company divested non-core assets (notably its renewables business) to refocus on the regulated utility, and it cut its dividend 29.4% to $201M to shore up the balance sheet — a necessary but value-destructive move for income holders.

The FY2025 results show a business stabilizing: revenue grew 4.9% to $2.43B, operating income rose 13.1% to $505M (a 20.7% operating margin typical of regulated utilities), and operating cash flow improved 23.2% to $594M. But the quality metrics remain weak — return on equity is just 3.9%, and the company is still heavily levered with $6.17B of long-term debt against $4.64B of equity (negative retained earnings of -$2.96B reflect the accumulated losses). Capex of $772M exceeds operating cash flow net of the dividend, so the utility still depends on external funding, and the share count rose 13.9% — meaningful dilution.