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    The Bull Case For Algonquin Power & Utilities (TSX:AQN) Could Change Following Suralis Stake Sale And North American Refocus

    Simply Wall St·08/29/2026 01:23:20
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    • Algonquin Power & Utilities Corp. has already agreed to sell its approximately 64% stake in Chilean water utility Suralis S.A. to a fund managed by Toesca S.A. Administradora General de Fondos for US$126.5 million, plus an earnout of up to US$1.5 million, with closing expected within the next two quarters.
    • The transaction marks a meaningful step in refocusing Algonquin’s geographic footprint, freeing capital for debt reduction and reinvestment into its US$3.2 billion North American regulated utility capital plan for 2026–2028.
    • Next, we’ll examine how redirecting Suralis sale proceeds into debt paydown and core North American utilities may influence Algonquin’s investment narrative.

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    Algonquin Power & Utilities Investment Narrative Recap

    To own Algonquin Power & Utilities, you need to be comfortable with a company in the middle of a reset toward a regulated-utility focus, while it works through lower-than-allowed returns, operational issues and leadership turnover. The Suralis sale fits this simplification effort and modestly supports the key near term catalyst of balance sheet repair, but it does not remove the central risks around execution, regulatory outcomes and fixing billing and SAP-related challenges.

    Against this backdrop, Algonquin’s recent earnings results matter: Q2 2026 net income of US$3.6 million, compared with US$24.1 million a year earlier, underlines how much work remains to improve profitability and close the gap between actual and allowed returns, even as the company continues to fund its US$3.2 billion North American regulated utility capital plan.

    Yet investors should be aware that if operational fixes to SAP and billing systems take longer or cost more than expected, then...

    Read the full narrative on Algonquin Power & Utilities (it's free!)

    Algonquin Power & Utilities' narrative projects $2.8 billion revenue and $336.4 million earnings by 2029. This requires 3.5% yearly revenue growth and about a $138 million earnings increase from $198.3 million today.

    Uncover how Algonquin Power & Utilities' forecasts yield a CA$9.73 fair value, a 23% upside to its current price.

    Exploring Other Perspectives

    TSX:AQN 1-Year Stock Price Chart
    TSX:AQN 1-Year Stock Price Chart

    Some of the most pessimistic analysts were already assuming only about 2.3% annual revenue growth and US$339.2 million of earnings by 2029, so you should weigh how the Suralis sale and related debt reduction might challenge or reinforce that more cautious view before deciding which narrative feels closer to your own.

    Explore 5 other fair value estimates on Algonquin Power & Utilities - why the stock might be worth over 3x more than the current price!

    Decide For Yourself

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.