Algonquin Power & Utilities Cor Q2 FY2025 earnings call

• Q2 financial results were solid and on track to meet 2025 financial outlook. - Regulatory schedule proceeding as expected with rate case filings at Arizona Litchfield Park Water, New England natural gas totaling $73.6 million in combined rate adjustment requests. - Strengthened executive team with appointments of Noel Black as Chief Regulatory and External Affairs Officer and Amy Walt as Chief Customer Officer. - On June 3, announced 3-year financial outlook and Back to Basics customer-centric plan focused on improving customer outcomes, driving operational efficiencies, and achieving constructive regulatory outcomes. - Operational updates: Arizona Corporation Commission approved a $4.2 million revenue adjustment at 4 water and wastewater facilities with rates effective July 1; settlement agreement with New Hampshire Public Utilities Commission pending approval.

Regulated Services group: Net earnings were essentially flat year-over-year, affected by weather normalization, lack of a make-whole adjustment, higher effective tax rate, and lower HLBV income. Hydro group: Net earnings increased by $5.8 million primarily due to the finalization of a one-time tax recovery. Corporate: Adjusted net earnings decreased by $10.2 million primarily related to the removal of Atlantica dividends. Revenue contribution details not explicitly provided in terms of percentages but segment-specific financials are outlined as above.

• Q2 financials put the company on track to meet its 2025 financial outlook. - Announced 3-year financial outlook on June 3, including estimated adjusted net EPS outlook for 2025-2027, expected improvements to earned ROE and operating expenses as a percent of revenues, anticipated organic capital investment deployment, continued maintenance of BBB investment-grade credit rating, and expectation of no common equity financings needed through 2027.

Q: Richard Sunderland asks if Rod is still anticipating a portfolio update this year and about investment plans for economic progress.

A: Rod states they'll give a strategy update on the portfolio later in the year and that they aim to be a catalyst for economic development in service territories but conversations are in early stages.

Q: Nelson Ng asks Brian about tax recoveries in Q3 and if there will be additional hires near term.

A: Brian says no further tax recoveries expected for Hydro as majority of tax adjustments were taken in Q1 and Q2; Roderick West says hires will be announced as needed and they're constantly evaluating if they have the right team.

Q: Jessica Hoyle asks about progress on cost reining and hydro asset monetization.

A: Roderick West says cost discipline efforts are underway in early innings; Brian says no updates on hydro asset monetization at this time.

Q: Ollie Primak asks about cost focus level and Empire Electric settlement timelines.

A: Roderick West says cost-out program updates will be shown via jurisdiction outcomes and it's an enterprise effort; on Empire Electric, says settlement process is underway with negotiations likely beginning after initial postures and rebuttals in coming weeks