Shares of Algonquin Power & Utilities (AQN.TO)(AQN) fell by double digits in Toronto on Friday, after the company cut its profit outlook for 2027.
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.
The company reported financial results before Friday’s opening bell, modestly topping analyst estimates for the final quarter of 2025.
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.
“Algonquin is a different company today than it was a year ago,” West told analysts on a post-earnings conference call on Friday. “We’re advancing towards our goal of becoming a premium pure-play regulated utility.”
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.
“We 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,” chief financial officer Rob Stefani said on Friday’s call.
“We 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.”
Toronto-listed shares fell as much as 13.8 per cent in early trading on Friday.
More to follow.
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist.