Slides
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E Atec 26 L Liberty USDOT 2105453 CA 407582 Liberty Q2 2026 Earnings Conference Call August 7 , 2026 | 8:30 a.m. ET Algonquin Liberty
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Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call 2 Forward -Looking Statements Certain written statements included herein and/or oral statements made in connection with the presentation contained herein c onstitute “forward -looking information” within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies, regulations and rules under such laws and “forward -looki ng statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward -looking statements”). The words “will”, “expects”, “intends”, “should”, “would”, “anticipates”, “project s”, “forecasts”, “plans”, “estimates”, “may”, “look”, “outlook”, “goal”, “aims”, “pending”, “prospective”, “target”, “estimated”, “believes”, “could”, “objective”, “potential”, “opportunities” (and grammatical variations of such ter ms) and similar expressions are often intended to identify forward -looking statements, although not all forward -looking statements contain these identifying words. Specific forward -looking statements contained in or made in connecti on with this presentation include, but are not limited to statements regarding: Algonquin Power & Utilities Corp.’s (“AQN”, “Algonquin” or the “Company”) 2026 strategic priorities; financing plans; equity issuances, expected future growth, results and performance; the Company’s future plans and the expected outcomes thereof; expected annual dividends, expectations regarding regulatory hearings and rate reviews, including expectati ons regarding the timing and outcomes thereof; expectations regarding operational efficiencies and constructive regulatory outcomes; the Company’s forward -looking outlook, including expectations regarding Adjusted Net Earni ngs per share, expected sources and uses of capital, capital expenditures and growth in rate base and the Company’s intention to redomicile to the United States, including the expected strategic and financial bene fit s thereof, the location of the Company’s headquarters and executive leadership and its presence in Oakville, Ontario following the redomicile, the trading of the Company’s common shares, the expected timing of th e s hareholder meeting to approve the redomicile and the tax treatment and estimated costs of the redomicile. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a fo recast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward -looking statements relate to future events and conditions, by their nature they rely on assumptions and involve inherent risks and uncertainties. AQN cautions that although it is believed that the assumptions are reasonable in the circumstances, actual results may differ materially from the expectations set out in the forward -looking statements. Material risk factors and assumptions include those set out in this presentation or contained in AQN’s Management Discussion and Analysis for the three and six months ended June 30, 2026 (the “Interim MD&A”), Management Discussion and Analysis for the three and twelve months ended December 31, 2025 (the “Annual MD&A”), or the Annual Information Form for the year ended December 31, 2025, each filed with securities regulatory authorities in Canada and the United States. Given these assumptions and risks, undue reliance should not be placed on these forward -looking statements, which apply only as of their dates. Other than as specifically required by law, AQN undertakes no obligation to update any forward -looking statements to reflect new information, subsequent or otherwise. Non-GAAP Financial Measures The terms "adjusted net earnings” (“Adjusted Net Earnings”) and “funds from operations” (“FFO”, and together with Adjusted Ne t E arnings, the “Non -GAAP Measures”) are used in this presentation and/or the related discussion. The Non -GAAP Measures are not recognized measures under U.S. GAAP. There is no standardized measure of the Non -GAAP Measures; consequently, AQN's method of calculating the Non -GAAP Measures may differ from methods used by other companies and therefore may not be comparable to similar measures presented by other co mpa nies. The Company believes that presentation of these measures will enhance an investor’s understanding of AQN’s operating performance. Additionally, AQN believes that FFO / debt ratio, which is calculate d i n accordance with Standard & Poor’s Financial Services LLC’s (“S&P”) methodology on a consolidated basis, incorporating both continuing and discontinued operations, is a useful supplemental measure in determinin g A QN’s credit rating and thereby its access to capital. Adjusted Net Earnings is also presented in this presentation on a per common share basis. Adjusted Net Earnings per share (or “Adjusted Net EPS”) is a non -GAAP ratio an d is calculated by dividing Adjusted Net Earnings by the weighted average number of common shares outstanding during the applicable period. An explanation, calculation and analysis of Adjusted Net Earnings can be found in the Interim MD&A under the heading “Caution Concerning Non -GAAP Measures”, which section is incorporated by reference herein. AQN’s Interim MD&A is available on SEDAR+ at www.sedarplus.com and EDGAR at www.sec.gov/edgar. A reconciliation of Adjusted Net Ear nings to the most directly comparable U.S. GAAP measure can also be found in “Appendix – Non-GAAP Financial Measures” on page 21 of this presentation. An explanation and reconciliation of FFO to the most directly comparable U.S. GAAP measure can be found in “Appendix – Non-GAAP Financial Measures” on page 22 of this presentation. Other The term “rate base” is used in this news release. Rate base is a measure specific to rate -regulated utilities and is not intend ed to represent any financial measure as defined by U.S. GAAP. Rate base is used by the regulatory authorities in the jurisdictions where the Company's rate -regulated subsidiaries operate. The calculation of this mea sure as presented may not be comparable to similarly -titled measures used by other companies. In this presentation, unless otherwise specified or the context requires otherwise, all dollar amounts are expressed in U.S. dollars.
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Agenda 1. Introductory Remarks 2. Business Update 3. Financial Update 4. Closing Remarks 5. Q&A 3 Rob Stefani Chief Financial Officer Today’s Speakers Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call Rod West Chief Executive Officer
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Q2 2026 Earnings Conference Call Business Update 4
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2026 Strategic Priorities 5 Operational • Execute planned operational efficiencies initiatives • Implement centralized capital projects team to improve our execution performance and reduce risk • Invest to enhance reliability, compliance, support customer outcomes, and maintain affordability • Drive improvements to customer experience: o Better service through end-to-end process design o Focusing on the moments that matter most to customers o More accurate billing o Information during outages Regulatory ✓ Empire Electric Missouri settlement approved and implemented ✓ New England Gas settlement approved ✓ CalPeco settlement approved and Wildfire Expense Memorandum Account (“WEMA”) proposed decision pending approval ✓ Suralis tariff agreement reached ✓ Empire Electric Kansas settlement approved ✓ Apple Valley & Park Water decision • Litchfield Recommended Opinion and Order (“ROO”) issued and commission decision pending Corporate ✓ Onboard new executive team of experienced utility executives including Chief Financial Officer, Chief Operating Officer, and Chief Human Resources Officer ✓ Liberty Utilities Co. (“LUCo”) completed an offering of $1.15 billion aggregate principal amount of senior unsecured notes, issued in two tranches (the “Bond Offering”); the proceeds from the Bond Offering were used to refinance AQN’s $1.15 billion senior unsecured note due June 2026 ✓ Board approval to pursue redomicile to United States Selected rate cases and tariffs to be filed by approximately year end: ✓ New York Water (filed May 2026) ✓ Empire Electric Arkansas (filed May 2026) ✓ EnergyNorth Gas (filed July 2026) ✓ FERC filings requesting forward-looking test year & other incentives (filed July 2026) o Granite State Electric o Missouri large load tariff o Empire Electric Oklahoma Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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82% 11% 4% 3% 6 Algonquin has announced its intention to redomicile to the United States; expected to deliver strategic and financial benefits: U.S. Bermuda Chile Canada Regulated Revenue by Geographic Area Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call Redomicile • Better aligning Algonquin’s corporate structure with its asset footprint, as over 80% of the Company’s operations are in the U.S., with less than 5% in Canada; • Reducing cross-border tax inefficiencies and supporting a stronger long-term financial profile; and • Broadening access to capital and creating a potential path for inclusion in certain U.S. equity indices and funds over time. Additionally: • The redomicile is expected to strengthen the Company’s long-term profile while supporting the continued delivery of local utility operations, regulatory obligations, and customer service; • AQN common shares expected to continue trading on the TSX and NYSE; • The Company expects to maintain its significant presence in Oakville, Ontario and establish its headquarters in Chicago, Illinois where AQN senior executive leadership would be based; and • The Company currently expects to seek shareholder approval in the first half of 2027. Data as at December 31, 2025
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Proactive Stakeholder Engagement Drives Constructive Regulatory Outcomes 7 Approved In Process Pending ✓ Empire Electric Missouri rates implemented • Missouri Public Service Commission approved settlement in January 2026 of $97.0 million • July 15 order approved authorizing August 3 implementation of $97.0 million following three months of satisfactory customer performance metrics ✓ Empire Electric Kansas settlement approved • Settlement includes $8.8 million revenue increase and retention of 50% of wind revenues sold into the Southwest Power Pool in the first year of rate implementation • Under black box Return on Equity (“ROE”) and equity ratio provision ✓ Apple Valley & Park Water (CA) order • On May 14, 2026 the California Public Utilities Commission voted to approve an alternate proposed decision for both utilities resulting in a revenue decrease of a combined ($2.7) million.1 • Decision includes revenue reduction true up of approximately ($3.1) million, recorded in Q2 2026 results ✓ Litchfield Park Water & Sewer (AZ) ROO pending commission decision • $15.0M revenue adjustment • 9.75% ROE and 54.0% equity • Formula rate mechanism recommended in ROO • ROO issued by Administrative Law Judge (“ALJ”); final commission decision pending ✓ CalPeco WEMA proposed decision pending approval • Proposed decision authorizes $58.1 million in wildfire costs, or approximately 75% of CalPeco’s requested $77.4 million • Costs consist of claim settlements in excess of wildfire insurance coverage, outside legal expenses incurred in defense of claims, and costs of financing these amounts • Proposed decision indicates case may be heard no earlier than California Public Utilities Commission’s (“California PUC”) August 2026 business meeting 1. Liberty submitted a request for correction in Decision 26-05-032; ALJ proposed decision was issued August 3, 2026 ✓ New York Water filing • $38.1M revenue increase request based on 10.0% ROE and 48.0% equity ratio • Rate case filed May 2026 for May 2027 – April 2028 rate year • Rate request reflects $127 million of capital investments made since last rate case filing, and additional $144 million in investments expected through end of April 2028 ✓ Empire Electric Arkansas filing • $8.4 million request based on 10% ROE and approximately 53.4% equity ratio • Rate case filed on May 15, 2026 for proposed implementation in Spring 2027 ✓ EnergyNorth (NH) filing • $35.8 million request based on 10.25% ROE and 52.0% equity ratio • Rate case filed on July 30, 2026 for proposed implementation date of permanent rates in August 2027 ✓ Empire Electric Missouri additional revenues • Has ability to earn additional $13.7 million annually if additional customer performance metrics are met that have been agreed to and filed with the Commission • Filed initial metrics on May 30, 2026 and are tracking performance against those metrics Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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Snapshot of Rate Cases 1 8 1. For more details, please see the Interim MD&A and Annual MD&A 2. Settlement approved; $97M annual revenue increase implemented as of August 3, 2026; $13.7M annual revenue increase after addi tional performance metrics satisfied 3. Settlement approved and includes a net adjustment in total customer rates of $23.8 million and an increase of $48.6 million i n revenues; September 2024 filing requested a net change in total customer rates of $39.8 million and a change of $64 million in revenues 4. Allowed ROE and equity ratio under black box settlement; 50% of wind revenues sold into Southwest Power Pool 5. Reflects extension of interim rates 6. Reflects revenue increase in rate years 1, 2, and 3, with each rate year commencing on November 1 Approved Utility Jurisdiction Rate Request Authorized Increase Date of Rate Implementation Empire Electric2 Missouri $168.0 million $97.0 million (plus $13.7 million opportunity)2 Aug 3, 2026 CalPeco Electric3 California $64.0 million $48.6 million Jan 1, 2025 (retroactive) New England Natural Gas Massachusetts $55.8 million $45.3 million April 1, 2026 Empire Electric4 Kansas $15.8 million $8.8 million + 50% of wind revenues in Year 1 Aug 1, 2026 EnergyNorth Gas5 New Hampshire $27.5 million $8.7 million Sept 1, 2025 St. Lawrence Gas6 New York $2.2 million $0.4 / $1.9 / $1.6 million Nov 1, 2025 Various Water & Wastewater7 Arizona $6.0 million $4.2 million July 1, 2025 Suralis8 Chile N/A $4.0 million Sept 13, 2026 Park Water9 California $9.3 million ($0.3) million July 1, 2025 (retroactive) Apple Valley Water9 California $3.1 million ($2.4) million July 1, 2025 (retroactive) BELCO10 Bermuda $2.9 million ($3.6) million Jan 1, 2026 Pending Utility Jurisdiction Docket No. Initial Filing: Rate Request / ROE / Equity Ratio Settlement / ROO Terms: Revenue Change / ROE / Equity Ratio New York Water New York 26-W-0358 $38.1 million / 10.0% / 48.0% Litchfield Park Water & Sewer Arizona 25-0126 and 25-0127 $17.8 million / 10.8% / 54.0% $15.0 million / 9.75% / 54.0%11 Empire Electric Arkansas 26-020-U $8.4 million / 10.0% / ~53.4% EnergyNorth Gas New Hampshire DG-26-037 $35.8 million / 10.25% / 52.0% 7. Liberty Utilities (Beardsley Water) Corp., Liberty Utilities (Bella Vista Water) Corp., Liberty Utilities (Cordes Lake Water) Corp., Liberty Utilities (Rio Rico Water & Sewer) Corp. 8. Other gradual tariff changes to year end 2028 based on execution of certain projects 9. On May 14, 2026 the California PUC voted to approve an alternate proposed decision for both Apple Valley and Park Water resul ting in a revenue decrease that is retroactively effective to July 1, 2025; Liberty submitted a request for correction in Decision 26 -05-032; ALJ issued proposed decision on August 3, 2026 10. Rate decline includes fuel cost passthroughs reflecting lower fuel costs 11. The assigned ALJ issued a ROO on July 24, 206 for a rate adjustment of $15.0 million with a 9.75% ROE and 54.0% equity ratio Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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Constructive Regulatory Mechanisms Support Long-term Investments and Timely Recovery 9 1. Company formula rate plan awaiting ACC approval. On December 3 2024, the ACC approved a policy statement that could potentially allow utilities, as an option, to operate under streamlined formula rate plans. The policy is being challenged in Arizona superior court. In February 2026, the ACC approved a formula rate mechanism for a gas utility – the first such approval in Arizona. Applications for Rehearing have been filed regarding this approval. ✓ Electric ✓ Gas ✓ Water MO CA NH AZ NY GA Tracker Mechanisms ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Multi-Year Rate Plan ✓ ✓ ✓ ✓ Forecasted Test Year ✓ ✓ ✓ ✓ ✓ ✓ ✓ Recent Regulatory & Legislative UpdatesConstructive Regulatory Frameworks GA • Georgia Rate Adjustment Mechanism (“GRAM”) NH • Depreciation Deferral • Electric Reconciliation Adjustment Mechanism (“ERAM”) AZ • Formula Rates per ROO1 • Depreciation Deferral OK • CWIP for New Gas Generation • Plant-In-Service Accounting CA California Senate Bill 254 Phase 2 • Explores more sustainable approaches to handling natural disasters • Goals include providing for insurance access, reducing litigation costs, fair compensation for claimants, and lower utility costs of capital MO Senate Bill 4 • Plant-In-Service-Accounting (“PISA”) Enhanced and Extended • Future Test Year for Natural Gas and Water Utilities • Statutory Integrated Resource Planning Framework with 4-Year Planning Cycle • Construction Work in Progress (“CWIP”) for New Gas Generation Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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Financial Update 10 Q2 2026 Earnings Conference Call
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Net Earnings by Business Unit and Total Adjusted Net Earnings 1 1. Please see “Non-GAAP Financial Measures” on page 2 of this presentation 11Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call Three months ended June 30 Six months ended June 30 (all dollar amounts in $ millions except per share information) 2026 2025 2026 2025 Net earnings by business units Net earnings for Regulated Services Group $30.0 $43.9 $149.4 $167.5 Net earnings for Hydro Group 3.1 8.9 5.2 25.5 Net loss for Corporate Group (28.2) (38.0) (66.6) (85.4) Net earnings attributable to common shareholders $4.9 $14.8 $88.0 $107.6 Adjusted Net Earnings1 $29.2 $33.6 $128.8 $142.6 Per common share Basic and diluted net earnings $0.01 $0.02 $0.11 $0.14 Adjusted Net Earnings1 $0.04 $0.04 $0.17 $0.19
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Second Quarter 2026 Adjusted Net EPS 1 Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call Q2 Adjusted Net EPS1 Drivers Increases in Adjusted Net Earnings1 primarily due to: ▲ CalPeco approved rates of $12.1 million, partially offset by higher wildfire insurance expenses of $5.7 million ▲ Favourable net revenue primarily driven by approved rates at water utilities in New York Water, Arizona, and Chile, customer growth, and slightly favourable weather at Empire totaling $7.5 million ▼ Partly offset by a rate reduction at Apple Valley and Park Water retroactive to Q3 2025 of $3.1 million Offset by: ▼ Increased interest expense of $9.3 million related to impact from new financing and higher commercial paper usage, partially offset by additional $3.1 million of investment income ▼ Other gains and losses decreased due higher gains on disposal of assets in 2025 ▼ Higher operating expenses due primarily to $3.3 million of increased gas safety and excellence costs Q2 2025A Adjusted Net EPS1 CalPeco rates net of higher wildfire insurance expense Net revenue Interest Other Opex Q2 2026A Adjusted Net EPS1 12 1. Please see “Non-GAAP Financial Measures” on page 2 of this presentation Total Increase Decrease $0.04 $0.01 $0.00 $0.04 ($0.01) ($0.01) ($0.00)
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YTD 2026 Adjusted Net EPS 1 Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call YTD Adjusted Net EPS1 Drivers Increased Adjusted Net Earnings1 primarily due to: ▲ CalPeco rate case increased pre-tax earnings by $38.6 million including retroactive rate recognition ▲ Net revenue primarily driven by new rates at New York Water, Arizona, Peach State, and Chile, and customer growth of $11.0 million ▼ Partly offset by a rate reduction at Apple Valley and Park Water retroactive to Q3 2025 of $3.1 million Offset by: ▼ Non-recurrence of favourable items in 2025 consisting of: depreciation deferrals, pension adjustments, and tax basis step-up recoveries totaling ($25.7) million ▼ Operating expenses unfavorable primarily due to ($6.3) million of gas safety and excellence costs and ($14.1) million of higher labor, maintenance costs, and property taxes ▼ Unfavourable weather versus prior year of ($9.9) million ▼ Interest expense increased primarily due to impact from new financing and higher commercial paper usage to fund organic growth YTD 2025A Adjusted Net EPS1 Favourable 2025 items CalPeco rates net of higher wildfire insurance expense Net revenue Opex Weather Interest YTD 2026A Adjusted Net EPS1 13 1. Please see “Non-GAAP Financial Measures” on page 2 of this presentation Total Increase Decrease $0.19 ($0.03) $0.04 $0.17 ($0.02)$0.01 ($0.01)($0.01)
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AQN Standard & Poor’s Moody’s Fitch Total Debt ~$6,650 Ratings Outlook Ratings Outlook Ratings Outlook Cash ~$50 AQN BBB Stable — — BBB Stable Net Debt ~$6,600 LUCo BBB Stable Baa2 Stable BBB Stable Less: Equity credit 50% of ~$1.4 billion hybrid debt ~$700 Less: Empire securitization bonds ~$270 Add: Preferred equity 50% of ~$180 million ~$90 Strong Investment Grade Balance Sheet 14 No expected equity issuances through 2027 | LTM S&P FFO/Debt2 ~11.9% as at June 30, 2026 1. Adjustments for hybrid bonds, securitization bonds, and preferred equity are used by S&P, Moody’s, and Fitch; please refer to their respective reports for additional adjustments; amounts as at June 30, 2026 2. Please see “Non-GAAP Financial Measures” on page 2 of this presentation, and Appendix - Non-GAAP Financial Measures; figures reflect AQN’s estimate of S&P Global’s credit metric methodology; BBB downgrade threshold estimated at ~11% Selected Consolidated Debt Balances ($millions)1 Issuer Credit Ratings and Outlook Liberty Utilities Co. (“LUCo”) completed an offering of $1.15 billion aggregate principal amount of senior unsecured notes, issued in two tranches (the “Bond Offering”); the proceeds from the Bond Offering were used to refinance AQN’s $1.15 billion senior unsecured note due June 15, 2026 Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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Financial Outlook 1 15 1. The outlook set out herein is based on, and should be read in conjunction with, the assumptions set out under “Financial Outl ook” and “Caution Concerning Forward-Looking Statements and Forward-Looking Information” in the Annual MD&A, which is available on SEDAR and EDGAR; please also refer to “Forward-Looking Statements” on slide 2 of this presentation; the outlook provided herein is given a s of March 6, 2026, and the Company undertakes no obligation to update such outlook, except as required by applicable law. 2. The Company reported full year 2025 net earnings from continuing operations per common share of $0.27 and Adjusted Net EPS of $0.34 3. Please see “Non-GAAP Financial Measures” on page 2 of this presentation 4. Assumes base year of 2025 rate base of $8.2B Estimates 2026E Adjusted Net EPS2 3 $0.35 - $0.37 2027E Adjusted Net EPS3 $0.38 - $0.42 2026E Utility Capital Expenditures Approximately $0.8 billion 2026E – 2028E Aggregate Utility Capital Expenditures Approximately $3.2 billion 2025A – 2028E Compound Annual Growth in Rate Base4 5% - 6% Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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Closing Remarks Q2 2026 Earnings Conference Call 16
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17 A Clear & Compelling Investment Thesis Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call Diversified Portfolio, Operating across High Quality, Constructive Jurisdictions Singularly Focused, Pure Play Regulated Utility1 Strong Balance Sheet and Credit Rating Profile5 Back-to-Basics Execution Expected to Drive Attractive Near-Term Financial Profile 2 Medium-Term Organic Growth Opportunities 3 4
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18 Q&A Q2 2026 Earnings Conference Call
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19 Appendix Q2 2026 Earnings Conference Call
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Investor Summary – Redomicile Tax Considerations 20 What is FIRPTA? Why was a PLR requested from the IRS? Sources of Tax ► In general terms, FIRPTA: Foreign Investment in Real Property Tax Act, is a rule set that seeks to tax non-US residents on gains realized on the disposition of US real property. ► The Company believes that its currently contemplated redomicile may trigger a FIRPTA “Toll Charge” at the company level (i.e., to AQN) on any disposals of its shares and related instruments over a 10-year lookback period. ► This FIRPTA toll charge is paid by the Company rather than the shareholders who disposed of the Company’s shares ► The Company is required to apply judgment and make various assumptions in computing the FIRPTA toll charge ► Therefore, AQN is seeking a Private Letter Ruling (“PLR”) from the IRS to confirm that the assumptions made and methodology applied in identifying 5% holders is reasonable (and meets the “reasonable efforts” test as laid out in IRS Notice 2025-45) ► Obtaining the PLR would give AQN greater certainty over the potential US tax liability (i.e., the FIRPTA toll charge) associated with its redomicile ► The redomicile is expected to be taxable in Canada, and subject to a FIRPTA toll charge in the U.S. Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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Non-GAAP Financial Measures 21 Reconciliation of Adjusted Net Earnings1 to Net Earnings The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted Net Earnings1 and provides additional information related to the operating performance of AQN. Investors are cautioned that this measure should not be construed as an alternative to U.S. GAAP consolidated net earnings. The following table shows the reconciliation of net earnings to Adjusted Net Earnings1 exclusive of these items: Three months ended June 30 Six months ended June 30 (all dollar amounts in $ millions except per share information) 2026 2025 2026 2025 Net earnings attributable to common shareholders $1.0 $21.5 $84.6 $115.7 Add (deduct): Earnings (loss) from discontinued operations, net of tax 3.9 (6.7) 3.4 (8.1) Loss (gain) on derivative financial instruments - (0.3) - 6.9 Restructuring costs2 9.7 6.8 28.9 12.4 WEMA write-off2 17.2 - 17.2 - Loss on foreign exchange 3.8 14.0 3.8 17.9 Adjustment for taxes related to above (6.4) (1.7) (9.1) (2.2) Adjusted Net Earnings $29.2 $33.6 $128.8 $142.6 Adjusted Net Earnings per common share $0.04 $0.04 $0.17 $0.19 Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call 1. Please see “Non-GAAP Financial Measures” on page 2 of this presentation 2. See Note 12 in the Unaudited Interim Condensed Consolidated Financial Statements
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1. Reflects AQN’s estimate of S&P Global’s credit metric methodology 2. Last Twelve Months (“LTM”) 6/30/2026 reflects AQN’s estimate of S&P Global’s credit metric methodology 3. Based on subordinated debt and interest rate as disclosed in Note 8(f) of the 2025 audited consolidated financial statements (for FY2025) and Note 6(b) of the unaudited interim condensed consolidated financial statements FY20251 LTM, 6/30/20262 Operating Income $504.7 $525.4 Depreciation and Amortization 400.3 412.2 EBITDA $905.0 $937.6 Asset-Retirement Obligations Accretion 3.2 6.1 Share-Based Compensation Expense 13.0 11.5 Distributions from equity investments - 1.7 Foreign Exchange Losses 18.4 4.3 Cash received during the year for income taxes 73.4 (2.8) Cash paid during the year for interest expense (312.1) (299.1) Subordinated unsecured notes interest (50%)3 35.1 35.3 Dividends on preferred shares (50%) (5.3) (5.3) S&P Adjusted Funds From Operations $730.8 $689.4 Debt, Pre-Adjusted 6,532.9 6,635.7 Reported Lease Liabilities 10.5 10.1 Subordinated unsecured notes (50%) (687.6) (682.4) Preferred shares (50%) 92.2 92.2 Cash and cash equivalents (32.7) (55.0) Securitized Bond (280.5) (268.7) Asset-Retirement Obligations 78.8 78.2 S&P Debt Adjustments (819.3) (825.6) S&P Debt $5,713.6 $5,810.1 FFO to Debt 12.8% 11.9% Non-GAAP Financial Measures 22 Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call Reconciliation of Funds From Operations to Operating Income The following table is derived from and should be read in conjunction with the consolidated financial statements. This supplementary disclosure is intended to more fully explain disclosures related to FFO and provides additional information related to the operating performance of AQN. Investors are cautioned that these measures should not be construed as an alternative to U.S. GAAP Operating Income.
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Rate base & ROE as of year end by major utility and commodity 1. Includes total assets as a proxy for Suralis 2. As at December 31, 2025; totals reflect rounding Facility 2025 Rate Base ($mm) Authorized ROE Empire Electric $3,388 9.3% CalPeco $ 671 10.0% New York Water $ 602 9.1% EnergyNorth Gas $ 522 9.3% BELCO $ 525 8.6% New England Gas $ 322 9.6% Park Water & Apple Valley $ 275 9.6% Granite State Electric $ 227 9.1% All Other1 $1,709 9.1% Total $8,242 9.3% Commodity 2025 Rate Base ($mm) Authorized ROE Electric $4,825 9.3% Water $1,708 8.8% Gas $1,709 9.6% Total Utility Rate Base2 $8,242 9.3% Utility by Jurisdiction & Commodity 23Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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Executing through the Rate Case Cycle 24 1. Amounts reflect annualized authorized revenue changes unadjusted for seasonality, levelized rate implementation, and other it ems; these amounts reflect the rates that were approved by the corresponding regulatory body and are not representative of the r evenue recognized in each quarter of the financial statements, due to seasonality of revenue consumption and levelization of rates 2. On January 22, 2026, the New York Public Service Commission approved a joint proposal settlement for St. Lawerence Gas, effec tive November 1, 2025 with a multi -year rate adjustment; more details are disclosed in the Interim MD&A 3. On November 3, 2025, the Regulatory Authority of Bermuda approved an incremental revenue decrease for BELCO of $3.6 million r eflecting lower fuel costs for 2026 and increase of $2.0 million for 2027 4. On March 20, 2026, the California PUC approved revenue increase of $48.6 million. This adjustment includes retroactive annua lized revenues to the first quarter of 2025 of $60.7 million, partially offset by higher wildfire insurance expenses recovered i n rates of $28.5 million including expenses of $22.7 million relating to 2025; these amounts were previously incurred by the Company and defer red using its WEMA mechanism 5. On March 27, 2026 the Massachusetts Department of Public Utilities approved a settlement agreement reflecting 81% of the orig inal revenue request; settlement includes $17.9 million in non -Gas System Enhancement Program recovery revenues 6. On May 14, 2026 the California PUC voted to approve an alternate proposed decision for both Apple Valley and Park Water resul ting in a revenue decrease that is retroactively effective to July 1, 2025; Liberty submitted a request for correction in Decisi on 26-05-032; ALJ issued proposed decision on August 3, 2026 Approved Rates from Completed Rate Cases1 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Arizona (various water & wastewater) $4.2 million St Lawrence Gas2 $0.4 million BELCO3 ($3.6) million CalPeco4 $48.6 million New England Gas5 $45.3 million Apple Valley/Park Water6 $(2.7) million Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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Rate Base View by Commodity 1 1. As at December 31, 2025 Electric 25 Gas - 1,000 2,000 3,000 4,000 5,000 6,000 Water Granite State (NH) Empire Electric (MO, KS, OK, AR, FERC) Tinker (Canada) BELCO (Bermuda) CalPeco (CA) St Lawrence Gas (NY) Midstates Gas (MO, IL, IA) New England Gas (MA) EnergyNorth (NH) Gas New Brunswick Empire Gas (MO) Peach State (GA) New York Water Park Water & Apple Valley (CA) Water & Wastewater (AZ & TX) Missouri Water Arkansas Water Utilities Suralis (Chile) Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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$- $0.5 $1.0 $1.5 $2.0 $2.5 2025A 2026E 2027E 2028E Investing in Safety, Reliability, and Service for Our Customers 26 Expected Total Rate Base3 2026E 2027E 2028E ~$3.2 Billion Total Regulated Capital Investment Planned From 2026 – 20281 ~$0.8B ~$1.1B ~$1.3B Electric Gas Water Other 53% 21% 19% 7% 1. Utility capital expenditures 2. Based on ~$3.2 billion expected total regulated capital investment from 2026 – 2028 3. Management’s rate base estimates are based on last approved rate base adjusted for assumed changes in major rate base compone nts, including construction work in progress, deferred taxes, and other adjustments 4. As at December 31, 2025 ~$9.0B ~$9.7B ~$8.5B~$8.2B4 Anticipated Annual Capital Expenditures Capital Expenditures by Commodity2 Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call
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100 40 210 1,250Uses AQN (Ex-LUCo) 1 ($M) Expected 2026 Sources and Uses 27Algonquin Power & Utilities Corp. | Q2 2026 Earnings Conference Call Commentary • $1.15B of maturing debt at AQN was refinanced through $1.15B of bond issuances at LUCo, with proceeds upstreamed to address maturing bond • Expect to maintain a dividend of $0.26 per share on an annualized basis, subject to Board approval 1. Cash Flow from Operations ("CFO") 2. Bond issuance proceeds were used indirectly to repay the existing bond maturity at AQN 3. In 2026, LUCo is expected to meet AQN’s financing needs through intercompany transactions LUCo ($M) 1. Includes AQN and international entities (including LUCA, Hydro, BELCO and Suralis) 2. Cash Flow from Operations ("CFO") 3. Proceeds received from LUCo via intercompany transactions 4. Principal repayment of $1.15 B AQN bond and ~$100 M Suralis term loan ~$2.2B Principal Repayment4 ~$1.6B Capex3 500 1,150 500Sources 700 1,450 Uses Credit FacilityBond Issuance2CFO1 Existing Interco Debt repayment and Dividend3 ~$1.6B Capex 100 1,450 Sources Intercompany Debt and Dividend3Bond Issuance (ESSAL)CFO2 50 Dividend (Common and Preferred) ~$2.2B Pension and Other Capex NOTE: All figures on this slide are approximate.
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28 Corporate Information Head Office Greater Toronto Area, Ontario Toronto Stock Exchange AQN, AQN.PR.A, AQN.PR.D New York Stock Exchange AQN, AQNB Shares Outstanding* 769,747,684 Share Price* $5.86 Market Capitalization* $4.5 B Common Share Dividend** $0.26 per share annually * Shares outstanding, closing price (NYSE), and market capitalization as of June 30, 2026 ** Annualized using Q2 2026 dividend rate Contact Information Brian Chin Vice President, Investor Relations Amanda Bersing Manager, Investor Relations Tel : 905-465-4500 Email: Investorrelations@apucorp.com