Why You Should Consider Adding Algonquin Power & Utilities Stock to Your Portfolio
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 12 2025
0mins
Should l Buy NI?
Source: NASDAQ.COM
Investment Potential: Algonquin Power & Utilities Corp. (AQN) is recognized as a solid investment option in the utility electric power industry, with a Zacks Rank #2 (Buy) and projected revenue growth of 3.7% for Q3 2025.
Financial Health: AQN maintains a favorable financial position with a total debt to capital ratio of 55.25%, a times interest earned ratio of 1.5, and a current ratio of 1.09, indicating its ability to meet short-term liabilities and interest payments.
Shareholder Value: The company has been increasing shareholder value through consistent dividend payments, currently offering a quarterly dividend of 6.5 cents per share, resulting in a dividend yield of 4.64%, significantly higher than the S&P 500 average.
Market Performance: Over the past six months, AQN shares have increased by 14.5%, outperforming the industry average growth of 8.5%, highlighting its strong market performance relative to peers.
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Analyst Views on NI
Wall Street analysts forecast NI stock price to rise
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 45.180
Low
41.88
Averages
47.24
High
50.00
Current: 45.180
Low
41.88
Averages
47.24
High
50.00
About NI
NiSource Inc. is an energy holding company. The Company operates through two segments: Columbia Operations and NIPSCO Operations. Columbia Operations segment, through its wholly owned subsidiary NiSource Gas Distribution Group, Inc, provides natural gas to approximately 2.4 million residential, commercial and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It operates approximately 37,200 miles of distribution main pipeline plus the associated individual customer service lines and 330 miles of transmission main pipeline. NIPSCO Operations segment NIPSCO Operations includes NIPSCO Holdings I and its subsidiaries, including NIPSCO, which has fully regulated gas and electric operations in northern Indiana. The Company has six renewable generation facilities in service: Rosewater, Indiana Crossroads Wind, Indiana Crossroads Solar, Dunns Bridge I Solar, Cavalry Solar and Storage and Dunns Bridge II Solar and Storage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NiSource Q4 2025 Earnings Call Highlights
- Amazon Agreement Impact: NiSource's agreement with Amazon is expected to deliver $1 billion back to NIPSCO customers, translating to an estimated $7 to $9 per customer per month, significantly enhancing customer satisfaction and strengthening market competitiveness.
- Financial Performance Exceeds Expectations: The adjusted EPS for 2025 was reported at $1.90, with a FFO to debt ratio of 16.1%, both surpassing guidance, reflecting the company's excellence in capital management and cost control.
- Infrastructure Investment Plan: The company plans to invest approximately $28 billion over the next five years to modernize infrastructure, ensuring safety and reliability while targeting average annual bill increases of less than 5%, demonstrating a commitment to customer affordability.
- Optimistic Future Outlook: Management reaffirmed the 2026 adjusted EPS guidance of $2.02 to $2.07, with expectations that data center projects will drive an 8% to 9% compound annual growth rate, indicating strong confidence in future growth.
See More
NiSource Reports FY Non-GAAP EPS of $1.93 with Strong Revenue Growth
- Significant Revenue Growth: NiSource reported fiscal year revenue of $2.1 billion, reflecting a robust 17.6% year-over-year increase, which underscores the company's strong demand in the energy market and effective operational strategies, thereby enhancing its competitive position.
- Net Income Surge: The net income soared by 98.3% to $255.2 million, demonstrating the company's success in cost control and revenue growth, further solidifying its financial health and stability.
- Adjusted EBITDA Increase: Adjusted EBITDA rose by 36.0% to $395.3 million, representing 18.8% of net sales, indicating significant improvements in profitability and operational efficiency, which are crucial for sustaining growth.
- Margin Improvement: Gross margin and adjusted gross margin increased by 90 and 40 basis points, respectively, reflecting the company's successful cost management and pricing strategies, which enhance its long-term profitability and investment appeal.
See More
NiSource Reaffirms Q4 Earnings Guidance and Investment Plans
- Earnings Guidance Reaffirmed: NiSource reaffirmed its adjusted earnings guidance for Q4 at $2.02 to $2.07 per share, with analysts expecting an average of $2.05, indicating stable profitability and market confidence.
- Capital Investment Plan: The company plans to invest approximately $28 billion from 2026 to 2030, focusing on utility system modernization and nearly $7 billion in strategic data center infrastructure, aimed at enhancing operational efficiency and service quality.
- Growth Expectations: The anticipated compound annual growth rate (CAGR) for adjusted earnings per share is projected at 8% to 9%, while the consolidated rate base growth is expected to be 9% to 11% from 2026 to 2033, reflecting the company's long-term growth potential.
- Stock Performance: In pre-market trading on Wednesday, NiSource shares traded at $45.59 on the NYSE, up $0.86 or 1.92%, demonstrating a positive market reaction to its financial outlook.
See More
NiSource Reports Fourth Quarter Earnings Growth
- Earnings Growth: NiSource Inc. reported a fourth-quarter net income of $257.8 million, translating to an earnings per share (EPS) of $0.53, which marks a significant increase from last year's $223.9 million and $0.47 EPS, reflecting the company's success in cost management and operational efficiency.
- Adjusted Earnings Stability: Excluding special items, NiSource's adjusted earnings stood at $249.2 million, or $0.51 per share, indicating a robust performance in the core business that enhances investor confidence in the company's financial health.
- Significant Revenue Increase: The company's revenue surged by 18.4% year-over-year to $1.891 billion, up from $1.597 billion last year, showcasing the company's success in meeting market demand and expanding its services.
- Optimistic Market Outlook: With improved revenue and profitability, NiSource is positioned with a stronger financial foundation for future market competition, which is expected to drive further investments and business expansion, thereby increasing market share.
See More
Movers of the Day: Moderna, Robinhood, Cloudflare, Humana, Lyft, Mattel, Beta Tech, Gilead, and Others
- Stock Market Movement: Stock futures experienced a slight increase on Wednesday.
- Investor Anticipation: Investors are awaiting delayed U.S. jobs data.
- Impact on Federal Reserve: The jobs data is expected to influence the Federal Reserve's decisions regarding interest rate cuts.
- Economic Indicators: The upcoming jobs report is a key economic indicator for market participants.
See More
Stocks Show Mixed Performance Following Disappointing Retail Sales Data
- Market Performance: The S&P 500 was close to achieving its first record of the month but ultimately did not reach that milestone.
- Investor Sentiment: The near-record performance reflects fluctuating investor confidence in the market's direction.
See More
NiSource Q4 2025 Earnings Call Highlights
- Amazon Agreement Impact: NiSource's agreement with Amazon is expected to deliver $1 billion back to NIPSCO customers, translating to an estimated $7 to $9 per customer per month, significantly enhancing customer satisfaction and strengthening market competitiveness.
- Financial Performance Exceeds Expectations: The adjusted EPS for 2025 was reported at $1.90, with a FFO to debt ratio of 16.1%, both surpassing guidance, reflecting the company's excellence in capital management and cost control.
- Infrastructure Investment Plan: The company plans to invest approximately $28 billion over the next five years to modernize infrastructure, ensuring safety and reliability while targeting average annual bill increases of less than 5%, demonstrating a commitment to customer affordability.
- Optimistic Future Outlook: Management reaffirmed the 2026 adjusted EPS guidance of $2.02 to $2.07, with expectations that data center projects will drive an 8% to 9% compound annual growth rate, indicating strong confidence in future growth.
See More
NiSource Reports FY Non-GAAP EPS of $1.93 with Strong Revenue Growth
- Significant Revenue Growth: NiSource reported fiscal year revenue of $2.1 billion, reflecting a robust 17.6% year-over-year increase, which underscores the company's strong demand in the energy market and effective operational strategies, thereby enhancing its competitive position.
- Net Income Surge: The net income soared by 98.3% to $255.2 million, demonstrating the company's success in cost control and revenue growth, further solidifying its financial health and stability.
- Adjusted EBITDA Increase: Adjusted EBITDA rose by 36.0% to $395.3 million, representing 18.8% of net sales, indicating significant improvements in profitability and operational efficiency, which are crucial for sustaining growth.
- Margin Improvement: Gross margin and adjusted gross margin increased by 90 and 40 basis points, respectively, reflecting the company's successful cost management and pricing strategies, which enhance its long-term profitability and investment appeal.
See More
NiSource Reaffirms Q4 Earnings Guidance and Investment Plans
- Earnings Guidance Reaffirmed: NiSource reaffirmed its adjusted earnings guidance for Q4 at $2.02 to $2.07 per share, with analysts expecting an average of $2.05, indicating stable profitability and market confidence.
- Capital Investment Plan: The company plans to invest approximately $28 billion from 2026 to 2030, focusing on utility system modernization and nearly $7 billion in strategic data center infrastructure, aimed at enhancing operational efficiency and service quality.
- Growth Expectations: The anticipated compound annual growth rate (CAGR) for adjusted earnings per share is projected at 8% to 9%, while the consolidated rate base growth is expected to be 9% to 11% from 2026 to 2033, reflecting the company's long-term growth potential.
- Stock Performance: In pre-market trading on Wednesday, NiSource shares traded at $45.59 on the NYSE, up $0.86 or 1.92%, demonstrating a positive market reaction to its financial outlook.
See More
NiSource Reports Fourth Quarter Earnings Growth
- Earnings Growth: NiSource Inc. reported a fourth-quarter net income of $257.8 million, translating to an earnings per share (EPS) of $0.53, which marks a significant increase from last year's $223.9 million and $0.47 EPS, reflecting the company's success in cost management and operational efficiency.
- Adjusted Earnings Stability: Excluding special items, NiSource's adjusted earnings stood at $249.2 million, or $0.51 per share, indicating a robust performance in the core business that enhances investor confidence in the company's financial health.
- Significant Revenue Increase: The company's revenue surged by 18.4% year-over-year to $1.891 billion, up from $1.597 billion last year, showcasing the company's success in meeting market demand and expanding its services.
- Optimistic Market Outlook: With improved revenue and profitability, NiSource is positioned with a stronger financial foundation for future market competition, which is expected to drive further investments and business expansion, thereby increasing market share.
See More
Movers of the Day: Moderna, Robinhood, Cloudflare, Humana, Lyft, Mattel, Beta Tech, Gilead, and Others
- Stock Market Movement: Stock futures experienced a slight increase on Wednesday.
- Investor Anticipation: Investors are awaiting delayed U.S. jobs data.
- Impact on Federal Reserve: The jobs data is expected to influence the Federal Reserve's decisions regarding interest rate cuts.
- Economic Indicators: The upcoming jobs report is a key economic indicator for market participants.
See More
Stocks Show Mixed Performance Following Disappointing Retail Sales Data
- Market Performance: The S&P 500 was close to achieving its first record of the month but ultimately did not reach that milestone.
- Investor Sentiment: The near-record performance reflects fluctuating investor confidence in the market's direction.
See More
