[Management View]
Adjusted net earnings reached $71.7 million, a 10% increase from $64.9 million, driven by rate implementations, favorable weather, and lower operating and interest expenses. Adjusted EPS rose 13% to $0.09. CEO Roderick West emphasized the company's commitment to a "pure-play regulated utility" model and highlighted ongoing restructuring efforts and leadership transitions.

[Outlook]
The 2025 financial guidance remains unchanged. The company has $326.4 million in pending rate requests, with significant cases in New England and Litchfield Park. Future updates to financial guidance may align with the integration of the new CFO and decisions from current rate cases.

[Financial Performance]
YoY trends show a 10% increase in adjusted net earnings and a 13% rise in adjusted EPS. The Regulated Services Group saw growth from rate implementations and favorable weather, while the Corporate Group experienced a $14.7 million decrease in net earnings due to the absence of Atlantica dividend income.

[Q&A Highlights]
Question 1: Congratulations on the strong quarter. Just looking at the OpEx improvement, could you share any color as to what were the main drivers of this and if it's sustainable? Looking in the MD&A, you had highlighted favorable timing as a factor.
Answer: We have been improving our cost discipline, with cost-cutting measures across the board. We do expect a little bit of reversal on OpEx timing in Q4, but overall, we are pleased with the trajectory.

Question 2: If you can provide some color on, if there's been any incremental conversations with data center players and/or if you expect any large-sized projects that would or could meaningfully contribute to your system or rate base?
Answer: We focus on creating conditions to serve multiple customers, especially increasing transmission capacity in Southern Missouri and stabilizing our generation portfolio. We do not disclose specific customer conversations unless aligned with them.

Question 3: Just a quick follow-up on the operating costs. So I think out of the $11 million of cost reductions we saw in Q3, $9 million was due to timing. Should we expect to see the $9 million all get pushed into Q4?
Answer: The timing aspect for Q4 will crop up, but the exact amount may vary. The order of magnitude is correct.

Question 4: In the quarter, restructuring costs were about $9.6 million, and $22 million year-to-date. When do you expect to see restructuring costs gradually roll off?
Answer: We are in the early innings of our restructuring efforts, with opportunities to provide value across our cost curve. It is a multiyear process.

Question 5: As part of the portfolio optimization review, do you take a look at the domicile of the company given the majority is now in the U.S.?
Answer: It is an active conversation and consideration. We are doing due diligence to answer these questions and will opine on it in the future.

Question 6: Are the settlements at the various utilities better or worse than expected in your financial update in June? How would you do things differently in future regulatory filings?
Answer: Our outlook remains unchanged. We aim to engage with stakeholders long before regulatory filings to reduce contested issues and improve regulatory outcomes.

Question 7: On the activities at Empire, you had a nonunanimous settlement. Are you able to negotiate a revised settlement in parallel to the public hearings?
Answer: We aim to resolve disputes with all stakeholders, including OPC, to gain commission support.

Question 8: How do you plan to update the market on cost-cutting and rate cases? Would you update 2026 and 2027 guidance early next year?
Answer: We will update if there is a material change. The arrival of the new CFO in January provides an opportunity for fresh eyes on our outlook.

Question 9: Are you tracking above the 2025 guidance on EPS?
Answer: Our guidance remains unchanged.

Question 10: Can you elaborate on the risk reduction commentary in the portfolio optimization process?
Answer: It encompasses all risks that affect our ability to achieve steady, predictable outcomes.

Question 11: How is the customer and billing data system operating across your utility footprint?
Answer: We are making progress in improving customer outcomes, particularly in Missouri, with ongoing efforts to ensure sustainable improvements.

[Sentiment Analysis]
Analysts were positive about the company's strong quarter and cost discipline. Management maintained a confident and strategic tone, emphasizing long-term value creation and regulatory engagement.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---------------------------|---------------|---------------|------------|
| Adjusted Net Earnings | $71.7 million | $64.9 million | +10% |
| Adjusted EPS | $0.09 | $0.08 | +13% |
| Restructuring Costs | $9.6 million | N/A | N/A |
| Corporate Group Net Earnings | -$14.7 million | N/A | N/A |

[Risks and Concerns]
- Potential reversal of $9 million in Q3 operating cost reductions in Q4.
- Ongoing restructuring costs, currently at $22 million year-to-date.
- Regulatory challenges and the need for improved customer service metrics at Empire Electric.

[Final Takeaway]
Algonquin Power delivered a strong Q3 2025 performance with double-digit growth in adjusted net earnings and EPS. The company remains focused on its pure-play regulated utility strategy, with ongoing restructuring efforts and significant pending rate cases. Management's commitment to regulatory engagement and cost discipline is expected to drive long-term value creation. The arrival of a new CFO in January 2026 may provide further strategic insights and updates to financial guidance.