By Robb M. Stewart

Algonquin Power & Utilities launched a "back to basics" capital plan aimed delivering steady returns to investors and which envisages earnings growth in the years ahead.

The electricity-and-water utility said on Tuesday that its customer-centric plan focuses on improving its customer experience, driving operational efficiencies, and achieving constructive outcomes with regulators.

The Oakville, Ontario company expects utility capital expenditures of about $2.5 billion for 2025 through 2027, focused on organic capital investment.

It forecast adjusted per-share earnings in a range of 30 cents to 32 cents for this year, after adjusted earnings fell 23% to 30 cents per share for 2024. It also projected earnings of between 35 cents and 37 cents for 2026, and 42 cents to 46 cents for 2027.

Algonquin said it expects operating expenses as a percentage of revenue to improve by 5% to 7% by the end of 2027, and anticipates its earned return on equity improving by about 3 percentage points to roughly 8.5% by 2027.

The company said it sees no need to issue equity through 2027 and it expects to maintain a BBB investment-grade rating.

Algonquin has taken steps recently to streamline and strengthen its balance sheet, including a decision last year to sell the majority of its renewable energy business to investment company LS Power for $2.5 billion. At the end of January, Algonquin appointed Rod West, a 25-year industry veteran, to lead the company, succeeding Chris Huskilson as chief executive.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

June 03, 2025 07:00 ET (11:00 GMT)

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