Algonquin Power & Utilities Corp. Q4 FY2024 earnings call

• Leadership Transition: Chris Huskilson introduced Rod West as the incoming CEO. Darren Myers is leaving as CFO, with Brian Chin stepping in as interim CFO.
• Strategic Review Closure: The company completed the sale of its renewables business and Atlantica stake, marking milestones in its transition to a pure-play regulated utility.
• Regulatory Updates: Progress in Missouri Water, Arkansas Water, Gas New Brunswick, and Arizona water cases; delay in Empire Electric Missouri rate case; transmission projects in Southwest Power Pool.
• Financial Results: Q4 adjusted net earnings were $45.2 million, down from $81.3 million in 2023. Full-year adjusted net earnings were $232.1 million, down from $279.4 million in 2023.

Darren Myers discussed financial results, noting that Q4 consolidated adjusted EBITDA was $248.6 million, down 5.2% year-over-year. Regulated adjusted EBITDA in the quarter was $234.4 million, up 2.4% from the prior quarter. Full-year consolidated adjusted EBITDA was approximately $1.04 billion, up 2.6% from 2023. Regulated adjusted EBITDA for the full year was $940.2 million, up 4.2% from 2023. The rate base as of year-end 2024 was estimated at approximately $7.8 billion, up from $7.2 billion the previous year.

No 2025 guidance provided currently. Rod West will provide more detail on outlooks and performance acceleration plan in approximately 90 days. Focus on accelerating operating efficiency and transitioning to a pure-play regulated utility, with plans to exercise discipline in capital spending.

• Missouri rate case delay due to late revision in tariff calculations, pushing resolution to first half of 2026.
• Missouri Commission investigation into customer service and billing issues related to SAP implementation.
• Regulatory uncertainties affecting rate case timelines and outcomes.

Q: Sean Steuart asked about focus areas for utility platform optimization.

A: Chris Huskilson mentioned working on service codes and changing accountability structure, with utility leaders now as primary focal points.

Q: Nelson Ng asked about the Hydro sales process.

A: Chris Huskilson said they'll go to market within the half year, aiming for an accretive transaction if possible.

Q: Rob Hope asked about 2025 outlook delay.

A: Brian Chin said it's due to new CEO Rod West needing time to assess the business.

Q: Rupert Merer asked about Rod West's first 90 days focus.

A: Rod West said aligning people and focusing on productive capital to create value.

Q: Ben Pham asked about bridging the ROE gap.

A: Brian Chin advised looking at segmented footnotes in financial statements, and Rod West emphasized internal cost management and regulatory experience.

Q: Mark Jarvi asked about Missouri rate case and SAP system.

A: Sarah MacDonald talked about cooperating with the investigation, and Chris Huskilson discussed SAP implementation challenges in the more complex Missouri utility.