Domicile Decision Awaits IRS Ruling; Slight Beat on Calpeco Retroactive Rates

Research evidence excerpt

Domicile Decision Awaits IRS Ruling; Slight Beat on Calpeco Retroactive Rates

Power & Utilities

Algonquin Power & Utilities Corp.

TD SECURITIES INC. - CANADA EARNINGS UPDATE

May 11, 2026

Price: $6.09 (05/8/2026) Domicile Decision Awaits IRS Ruling; Slight

Price Target: $6.00 Beat on Calpeco Retroactive Rates

HOLD (2)

ESG SCORE: 69/100

John Mould, CFA^ THE TD COWEN INSIGHT

416 944 6832

Q1/26 EPS was slightly ahead of expectations, benefiting from retroactive revenues resulting

john.mould@tdsecurities.com

from the Calpeco rate case & rate base growth. Clarity from the IRS on tax treatment is

Ben Fullarton^ likely a 6-9 month process; we don't anticipate clarity on a possible redomicile before that is

416 308 8209 complete, with AQN continuing its evaluation of the change in the meantime. Our HOLD rating

ben.fullarton@tdsecurities.com

and $6 PT are unchanged.

Key Data

Symbol NYSE: AQN Event

12-Month Div (Est.): $0.26

AQN reported Q1/26 results on May 8 before market open. Adjusted EPS of $0.13 was slightly

Beta: 0.88

ahead of our $0.12 estimate (we matched consensus).

12-Month Total

2.8%

Return:

Impact: NEUTRAL

52-Week Range: $6.99-$5.35

Market Cap: $4.7B Q1/26 results were slightly better than expectations. Clarity from the IRS on tax treatment

Net Debt (MM): $6,630.5 is likely a 6-9 month process; we don't anticipate clarity on a possible redomicile before that

Cash/Share: $0.07 timeline, with AQN continuing its evaluation of the change in the meantime.

Dil. Shares Out (MM): 770.0 Details

Float Shares (mm): 766.9

■Redomicile clarity likely to take 6-9 months. The private letter of ruling that AQN has

Float Cap ($mm): $4,672

requested from the IRS regarding the tax implications of a potential redomiciling is

Enterprise Value

$11,568.4 expected to take 6-9 months.