Algonquin Power & Utilities plans to shift its corporate domicile from Canada to the US, establish its headquarters in Chicago, and continue the company into Delaware, extending a restructuring that has already included the disposal of most of its renewable-energy business and a major reshuffling of debt.
The Oakville-based utility said Friday that it expects to ask shareholders to approve the redomicile in the first half of 2027. The proposal would also require court and other approvals under a plan of arrangement governed by the Canada Business Corporations Act. Algonquin expects to retain a significant presence in Oakville.
The company said more than 80% of its operations are in the United States while less than 5% are in Canada. In a May investor presentation, Algonquin put the U.S. share of regulated revenue at about 82%. Management had spent several quarters evaluating a potential redomicile before formally announcing its intention Friday.
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Algonquin said the change could reduce cross-border tax inefficiencies, better align its legal structure with its asset base, and broaden its access to U.S. capital. It also sees a potential route toward inclusion in additional US equity indices and investment funds. Those benefits remain company projections rather than completed financial outcomes.
The move would not end Algonquin’s Canadian public listing. The company said its common shares are expected to remain on both the TSX and NYSE under the ticker AQN, while its listed preferred shares and Series 2019-A subordinated notes would also remain on their respective exchanges, subject to approvals.
The redomicile announcement came alongside weaker Q2 earnings. Algonquin reported net earnings from continuing operations attributable to common shareholders of $4.9 million, or $0.01 per share, compared with $14.8 million, or $0.02 per share, a year earlier.
Adjusted net earnings fell to $29.2 million from $33.6 million, while adjusted earnings remained at $0.04 per share.
The company’s financial structure has also been moving south of the border. Liberty Utilities issued $1.15 billion of unsecured senior notes during the second quarter and used the proceeds to repay $1.15 billion of Canadian holding-company debt that matured June 15. Algonquin explicitly described the refinancing as supporting its tax-optimization initiatives.
The corporate domicile is now the next piece of that restructuring. In May, management said no definitive redomicile decision had been made and disclosed that it had approached the Internal Revenue Service for a private letter ruling on the potential tax consequences. Three months later, Algonquin has formally stated its intention to proceed, subject to the approvals required to turn the plan into a completed move.
