# Algonquin Power & Utilities (AQN.US)

Canonical: https://gigainvestors.com/s/AQN

Analysis as of: 2026-10-16T07:26:33.885Z. Financial observations: FY1997–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $5.20 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 2

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.21×

- FY2017: 0.24×

- FY2018: 0.23×

- FY2019: 0.23×

- FY2020: 0.23×

- FY2021: 0.18×

- FY2022: 0.15×

- FY2023: 0.19×

- FY2024: 0.19×

- FY2025: 0.21×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.8%

- ROIC, second-lowest year: 2.8%

- Typical minus recent gross margin: -0.8 pp

- Typical gross margin (annual median): 72.9%

- Recent gross margin (lower of latest and 3-year median): 73.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 37.2%

- ROIC including acquisitions, ten-year median: 2.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.6%

- FY2017: 5.1%

- FY2018: 4.4%

- FY2019: 4.8%

- FY2020: 4.2%

- FY2021: 3.8%

- FY2022: 2.8%

- FY2023: 3.3%

- FY2024: 2.9%

- FY2025: 3.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$2.2B

- Net income, five-year total: -$1.1B

- Return on incremental invested capital: 5.5%

- Working capital / revenue, annual change: 1.2 pp

- Working capital / revenue, change between three-year averages: 7.7 pp

- Working capital / revenue, final three-year average: 20.9%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $265M

- FY2022: -$212M

- FY2023: -$637M

- FY2024: -$1.8B

- FY2025: $181M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 4.4% vs 3.3%

- Per-share earnings: 0.31 to 0.04 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 11.0%

- Ordinary dilution, 5-year annual growth: 6.5%

- Market cap gain: $1.8B

- Cumulative retained earnings: -$2.5B

- Diluted shares, 10-year annual growth: 11.0%

- Diluted shares, 5-year annual growth: 6.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -22.3%

- Per-share value change: -$0.27

- Per-share value, starting three-year median: $0.31

- Per-share value, ending three-year median: $0.04

- Buybacks concentrated in cheaper years (correlation): -0.47

- Average buyback yield: 0.1%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.3B

- Cumulative net income, 10 years: $631M

- ROIC, first three-year median: 4.4%

- ROIC, last three-year median: 3.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.28

- FY2017: $0.40

- FY2018: $0.40

- FY2019: $1.05

- FY2020: $1.39

- FY2021: $0.42

- FY2022: -$0.31

- FY2023: $0.04

- FY2024: -$1.88

- FY2025: $0.23

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.34×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.30×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.9%

- FY2017: -2.5%

- FY2018: -3.7%

- FY2019: -0.7%

- FY2020: 2.1%

- FY2021: 0.6%

- FY2022: -4.7%

- FY2023: -3.3%

- FY2024: -10.8%

- FY2025: -3.0%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 66% since Mar 2022 · "Atlantica Dividends: Elimination resulted in a $10.2 million decrease in adjusted net earnings." (finance.yahoo.com, Aug 2025) · sales +4.9%

Story as of 2026-10-16T09:58:19.248Z; price observation 2026-10-15.

- 2025-06-03: Algonquin Power pushes higher after issuing upbeat financial outlook through 2027 ([seekingalpha.com](https://seekingalpha.com/news/4454990-algonquin-power-pushes-higher-after-issuing-upbeat-financial-outlook-through-2027?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +4.9%; source https://www.sec.gov/Archives/edgar/data/1174169/000117416926000015/aqunf-20251231_d2.htm; observed 2026-03-06.

- FY2016: $815M 

- FY2017: $1.6B 

- FY2018: $1.6B 

- FY2019: $1.6B 

- FY2020: $1.7B 

- FY2021: $2.3B 

- FY2022: $2.8B 

- FY2023: $2.4B 

- FY2024: $2.3B 

- FY2025: $2.4B 

### Gross margin · FY2025

gross margin 73.7%; source https://www.sec.gov/Archives/edgar/data/1174169/000117416926000015/aqunf-20251231_d2.htm; observed 2026-03-06.

- FY2016: 73.1% 

- FY2017: 74.2% 

- FY2018: 70.6% 

- FY2019: 72.7% 

- FY2020: 76.1% 

- FY2021: 68.6% 

- FY2022: 68.7% 

- FY2023: 69.1% 

- FY2024: 74.4% 

- FY2025: 73.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities diversified; annual sales are USD 2.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1174169/000117416926000015/aqunf-20251231_d2.htm (filed 2026-03-06); FY2025: revenue 2433600000; grossProfit 1793800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AQN.US: Algonquin Power & Utilities Corp. operates in the power and utility industries. It owns and operates a portfolio of regulated electric, water distribution and wastewater collection, and natural gas utility systems and transmission operations. As of December 31, 2025, it operated a portfolio of regulated utility systems in the United States, Canada, Bermuda, and Chile, serving approximately 1,272,000 customer connections. Its regulated electrical distribution utility systems and related transmission and generation assets are located in the states of Arkansas, California, Kansas, Missouri, Nevada, New Hampshire, and Oklahoma, as well as in Bermuda with approximately 311,000 electric customer connections. Its regulated water distribution and wastewater utility systems are located in the states of Arizona, Arkansas, California, Illinois, Missouri, New York, and Texas, as well as in Chile with approximately 583,000 customer connections. It's regulated natural gas distribution utility systems are located in the states of Georgia, Illinois, Iowa, Massachusetts, Missouri, New Hampshire, and New York; and in the Canadian province of New Brunswick with approximately 378,000 natural gas customer connections. It also owns and operates generating assets with a gross capacity of approximately 2.0 gigawatt (GW) and has investments in generating assets with approximately 0.3 GW of net generation capacity. It generates and sells hydroelectric energy in Canada, and capacity and renewable attributes are produced by its portfolio of 14 hydroelectric power generation facilities located in the provinces of Alberta, Ontario, New Brunswick, and Quebec. As of December 31, 2025, it had a combined gross generating capacity of approximately 112 megawatts (MW) and a combined net generating capacity of approximately 105 MW. The company was formerly known as Traduction Militech Translation Inc. in October 2009. The company was incorporated in 1988 and is headquartered in Oakville, Canada.

### Why customers stay

Margins ranged from 69.1% to 74.4% during 2023–25; it earns 3.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2023: grossProfit / revenue = 69.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2024: grossProfit / revenue = 74.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1174169/000117416926000015/aqunf-20251231_d2.htm (filed 2026-03-06); FY2025: grossProfit / revenue = 73.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); 10-year return on capital observations [[2016,0.02583086294453484],[2017,0.05142411510460889],[2018,0.04448922790623436],[2019,0.04774596070101072],[2020,0.041831749497401365],[2021,0.038449657021598437],[2022,0.02797521584165253],[2023,0.03298820015318256],[2024,0.028823905171074367],[2025,0.03685956454262549]]; median 0.037654610782111964. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 69% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1174169/000117416926000015/aqunf-20251231_d2.htm (filed 2026-03-06); Gross margin observations: [[2021,0.6860728133951178],[2022,0.6866727208877499],[2023,0.6907123519711937]]; range within 2 percentage points.

### Where the cash goes

Earns 5.5% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2016: growth capex 162501993.56; upkeep 139367659; owner earnings 97406442. Growth capex / owner earnings = 1.668287951221953.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2017: growth capex 327944756.15; upkeep 260542719; owner earnings 153553876. Growth capex / owner earnings = 2.1356983274717205.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2018: growth capex 218895635; upkeep 247473365; owner earnings 184988000. Growth capex / owner earnings = 1.183296403009925.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2019: growth capex 0; upkeep 581332000; owner earnings 233856000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2020: growth capex 219686054.13648546; upkeep 566343945.8635145; owner earnings 530242054.13648546. Growth capex / owner earnings = 0.4143127698429174.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); FY2021: growth capex 942082000; upkeep 402963000; owner earnings 264859000. Growth capex / owner earnings = 3.556918964430131.

- Source: https://www.sec.gov/Archives/edgar/data/1174169/000117416926000015/aqunf-20251231_d2.htm (filed 2026-03-06); FY2025: growth capex 385112519; upkeep 400300000; owner earnings 180800000. Growth capex / owner earnings = 2.130047118362832.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); Incremental return on capital 0.05455884769177643, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); Dividend observations: [[2016,95636485.38],[2017,143617495.03],[2018,174411000],[2019,204877000],[2020,262163000],[2021,316118000],[2022,387317000],[2023,330824000],[2024,281361456],[2025,215507672]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AQN.US SharesStats.PercentInsiders = 0.029 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.7 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-06); Closing price 5.2 USD; reporting-to-trading FX 1; FY2025 annual sales per share 3.150670052207675; price multiple 1.6504425769230768. FY2025 cash earnings/share 0.23407344898058333. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $8.85 per share

- 2016-11: $8.29 per share

- 2016-12: $8.48 per share

- 2017-01: $8.70 per share

- 2017-02: $9.09 per share

- 2017-03: $9.58 per share

- 2017-04: $9.46 per share

- 2017-05: $10.33 per share

- 2017-06: $10.54 per share

- 2017-07: $10.73 per share

- 2017-08: $10.85 per share

- 2017-09: $10.57 per share

- 2017-10: $10.69 per share

- 2017-11: $10.99 per share

- 2017-12: $11.16 per share

- 2018-01: $10.85 per share

- 2018-02: $9.87 per share

- 2018-03: $9.92 per share

- 2018-04: $9.74 per share

- 2018-05: $9.75 per share

- 2018-06: $9.67 per share

- 2018-07: $9.82 per share

- 2018-08: $10.35 per share

- 2018-09: $10.36 per share

- 2018-10: $9.98 per share

- 2018-11: $10.59 per share

- 2018-12: $10.05 per share

- 2019-01: $11.04 per share

- 2019-02: $11.09 per share

- 2019-03: $11.27 per share

- 2019-04: $11.40 per share

- 2019-05: $11.65 per share

- 2019-06: $12.11 per share

- 2019-07: $12.45 per share

- 2019-08: $13.07 per share

- 2019-09: $13.70 per share

- 2019-10: $13.72 per share

- 2019-11: $13.96 per share

- 2019-12: $14.15 per share

- 2020-01: $15.31 per share

- 2020-02: $14.92 per share

- 2020-03: $13.40 per share

- 2020-04: $13.85 per share

- 2020-05: $14.00 per share

- 2020-06: $12.94 per share

- 2020-07: $13.79 per share

- 2020-08: $13.83 per share

- 2020-09: $14.54 per share

- 2020-10: $15.15 per share

- 2020-11: $15.68 per share

- 2020-12: $16.46 per share

- 2021-01: $16.62 per share

- 2021-02: $15.46 per share

- 2021-03: $15.84 per share

- 2021-04: $16.14 per share

- 2021-05: $15.28 per share

- 2021-06: $14.88 per share

- 2021-07: $15.97 per share

- 2021-08: $15.53 per share

- 2021-09: $14.66 per share

- 2021-10: $14.43 per share

- 2021-11: $13.53 per share

- 2021-12: $14.45 per share

- 2022-01: $14.29 per share

- 2022-02: $14.48 per share

- 2022-03: $15.52 per share

- 2022-04: $14.45 per share

- 2022-05: $14.56 per share

- 2022-06: $13.43 per share

- 2022-07: $13.99 per share

- 2022-08: $13.71 per share

- 2022-09: $10.91 per share

- 2022-10: $11.06 per share

- 2022-11: $7.55 per share

- 2022-12: $6.52 per share

- 2023-01: $7.30 per share

- 2023-02: $7.63 per share

- 2023-03: $8.40 per share

- 2023-04: $8.52 per share

- 2023-05: $8.43 per share

- 2023-06: $8.26 per share

- 2023-07: $8.26 per share

- 2023-08: $7.56 per share

- 2023-09: $5.92 per share

- 2023-10: $5.03 per share

- 2023-11: $6.15 per share

- 2023-12: $6.32 per share

- 2024-01: $5.93 per share

- 2024-02: $5.85 per share

- 2024-03: $6.32 per share

- 2024-04: $6.11 per share

- 2024-05: $6.31 per share

- 2024-06: $5.86 per share

- 2024-07: $6.24 per share

- 2024-08: $5.41 per share

- 2024-09: $5.45 per share

- 2024-10: $4.84 per share

- 2024-11: $4.95 per share

- 2024-12: $4.45 per share

- 2025-01: $4.44 per share

- 2025-02: $4.78 per share

- 2025-03: $5.14 per share

- 2025-04: $5.38 per share

- 2025-05: $5.49 per share

- 2025-06: $5.73 per share

- 2025-07: $5.90 per share

- 2025-08: $5.80 per share

- 2025-09: $5.37 per share

- 2025-10: $5.58 per share

- 2025-11: $6.16 per share

- 2025-12: $6.15 per share

- 2026-01: $6.55 per share

- 2026-02: $6.98 per share

- 2026-03: $6.14 per share

- 2026-04: $6.28 per share

- 2026-05: $5.89 per share

- 2026-06: $5.86 per share

- 2026-07: $5.84 per share

- 2026-08: $5.66 per share

- 2026-09: $5.03 per share

- 2026-10: $5.11 per share

## Annual estimated value (USD per share)

- FY2016: low $1.81 per share, central $2.04 per share, high $2.34 per share

- FY2017: low $3.67 per share, central $4.26 per share, high $4.95 per share

- FY2018: low $4.27 per share, central $5.48 per share, high $6.40 per share

- FY2019: low $4.01 per share, central $4.56 per share, high $5.29 per share

- FY2020: low $4.55 per share, central $5.90 per share, high $6.88 per share

- FY2021: low $5.55 per share, central $7.45 per share, high $8.71 per share

- FY2022: low $6.38 per share, central $8.99 per share, high $10.56 per share

- FY2023: low $4.58 per share, central $5.40 per share, high $6.28 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/1174169/000117416926000015/aqunf-20251231_d2.htm); period 2025-12-31, filed 2026-03-06.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.