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Reasons to Include Algonquin Power & Utilities Stock in Your Portfolio

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Key Takeaways

  • Algonquin Power & Utilities projects Q3 2025 revenue growth of 3.7% and EPS growth of 3.3%.
  • AQN's debt-to-capital ratio of 55.25% is better than the industry average of 59.39%.
  • The company serves 1.27M customer connections across the United States, Canada, Bermuda and Chile.

Algonquin Power & Utilities Corp. (AQN - Free Report) is committed to steadily investing in renewable generation assets to deliver safe, reliable and high-quality services to its customers. Given its growth opportunities, AQN makes for a solid investment option in the Zacks Utility Electric Power industry.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a promising investment pick at the moment.

AQN’s Growth Projections & Surprise History

The Zacks Consensus Estimate for Algonquin Power & Utilities’ third-quarter 2025 revenues stands at $594.5 million, which indicates growth of 3.7%.

The Zacks Consensus Estimate for AQN’s 2025 earnings per share (EPS) is pegged at 31 cents, which implies a year-over-year rise of 3.3%.

The company delivered an average earnings surprise of 4.86% in the last four quarters.

Overview of AQN’s Debt Structure

Currently, AQN’s total debt to capital is 55.25%, better than the industry’s average of 59.39%.

AQN’s times interest earned ratio (TIE) at the end of the second quarter of 2025 was 1.5. The TIE ratio greater than one suggests that the company will be able to make its interest payment obligations in the near term without difficulty.

AQN’s Liquidity Position

AQN’s current ratio at the end of the second quarter of 2025 was 1.09. A current ratio greater than one shows that the company is capable of meeting its future short-term liabilities without difficulty.

AQN’s Return to Shareholders

Algonquin Power & Utilities has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 6.5 cents per share, resulting in an annualized dividend of 26 cents. AQN’s current dividend yield is 4.64%, better than the Zacks S&P 500 Composite's average of 1.13%.

AQN’s Global Customer Reach

Algonquin Power & Utilities’ Regulated Services Group manages a diversified portfolio of regulated utility systems across the United States, Canada, Bermuda and Chile, serving nearly 1,268,000 customer connections as of June 30, 2025. It owns and operates generating assets with a total gross capacity of about 2 gigawatts (GW) and holds investments in assets providing roughly 0.3 GW of net generation capacity.

AQN’s Stock Price Performance

In the past six months, AQN shares have risen 14.5% compared with the industry’s growth of 8.5%.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same industry are Fortis (FTS - Free Report) , Centuri Holdings, Inc. (CTRI - Free Report) and NiSource Inc. (NI - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FTS’ long-term (three to five years) earnings growth rate is 5.1%. The Zacks Consensus Estimate for its 2025 EPS stands at $2.50, which calls for a year-over-year jump of 4.6%.

CTRI’s long-term earnings growth rate is 41.2%. The Zacks Consensus Estimate for its 2025 EPS is pegged at 63 cents, which implies a year-over-year rise of 96.9%.

NiSource’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for its 2025 EPS is pegged at $1.88, which suggests year-over-year growth of 7.4%.

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