Why did AQN's Q4 2024 earnings fall short of forecasts?

Algonquin Power & Utilities Corp.'s (AQN) Q4 2024 earnings fell short of forecasts due to several key factors: 1. **Sale of Atlantica Stake**: The company's sale of its 42.2% equity interest in Atlantica Sustainable Infrastructure had a significant negative impact on earnings. This sale, which was part of a strategic shift to become a pure-play regulated utility, resulted in a net loss of $189.1 million for the quarter, including discontinued operations. 2. **Higher Borrowing Costs**: Algonquin Power & Utilities Corp. faced higher borrowing costs to fund growth, which contributed to the decline in earnings. 3. **Higher Effective Tax Rates**: The company also encountered higher effective tax rates, adding to the financial pressure and resulting in a shortfall in earnings compared to forecasts. 4. **Settlement of Purchase Contracts**: The settlement of purchase contracts underlying the company’s green equity units further affected the company's financial performance, leading to a decrease in earnings. In summary, the combination of the sale of Atlantica Stake, higher borrowing costs, higher effective tax rates, and settlement of purchase contracts significantly impacted Algonquin Power & Utilities Corp.'s Q4 2024 earnings, causing them to fall short of forecasts.