Is Algonquin Power / AQN Halal?
Algonquin Power & Utilities Corp. (TSX/NYSE: AQN), headquartered in Oakville, Ontario, is a regulated electric, natural gas and water utility (through Liberty Utilities) plus retained hydroelectric generation. The business passes — but debt of about US$6.6 billion (~CA$9.4 billion) is roughly 173% of the ~CA$5.4 billion market cap — far above the ~33% ceiling. FAIL.
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — passes
Algonquin delivers regulated electricity, natural gas and water to over one million customer connections through its Liberty Utilities subsidiaries, and retains a hydroelectric generation group. The company completed the sale of its renewable-energy business (excluding hydro) to LS Power, and in August 2026 announced an intended redomicile of incorporation to Delaware (shares to continue trading on TSX and NYSE under "AQN"). No verified involvement in weapons/defence, gambling, alcohol, tobacco, pork or adult entertainment was found. Gate one: passes.
Gate two: the ratios — debt fails decisively
The debt gate fails. As at June 30, 2026 (in US dollars): long-term debt about US$6,635.7 million (lease obligations immaterial at roughly US$10 million). Market cap is about CA$5.44 billion (CA$7.09 TSX close on September 28, 2026 × about 769.7 million common shares). At the September 28, 2026 USD/CAD rate of ~1.4165, debt is about CA$9.4 billion — roughly 173% of market cap, far above the ~33% ceiling (and it fails at any plausible exchange rate). Interest income is not disclosed as a standalone line — the Q2 2026 materials report interest expense (US$77.1 million) and note higher investment income on Liberty Utilities senior-note proceeds, but give no standalone interest-income amount — so no figure is published here; the FAIL rests independently on debt. Gate two: fails on debt.
What other screeners say
No Musaffa, Zoya or ShariaPortfolio rating for AQN could be verified as of September 2026. This screener is independent.
The bottom line
This screener gives Algonquin Power & Utilities Corp. (TSX: AQN) a FAIL. The regulated-utility business is permissible, but total debt of ~US$6.6 billion (≈CA$9.4 billion) is roughly 173% of the ~CA$5.4 billion market cap — far above the ~33% ceiling. Snapshot dated September 29, 2026; re-checked quarterly after earnings.
The purification angle: if you hold AQN anyway, run the purification calculator to estimate any non-compliant share of dividends or gains.
Frequently asked questions
Is Algonquin Power stock halal?
This screener gives Algonquin Power & Utilities Corp. (TSX: AQN) a FAIL. The regulated-utility business itself is permissible — delivering electricity, natural gas and water through its Liberty Utilities subsidiaries, plus retained hydroelectric generation — but total long-term debt of about US$6.6 billion (≈CA$9.4 billion) is roughly 173% of the ~CA$5.4 billion market cap, far above the ~33% debt ceiling.
What are Algonquin Power's debt and market-cap figures?
As at June 30, 2026 (Q2 2026, in US dollars): long-term debt about US$6,635.7 million (lease obligations immaterial at roughly US$10 million). Market cap is about CA$5.44 billion (CA$7.09 TSX close on September 28, 2026 × about 769.7 million common shares). Converted at the September 28, 2026 USD/CAD rate of ~1.4165, debt is about CA$9.4 billion — roughly 173% of market cap.
Does Algonquin Power earn interest income?
Interest income is not disclosed as a standalone line. The Q2 2026 materials discuss interest expense (US$77.1 million in the quarter) and note higher investment income on Liberty Utilities senior-note proceeds, but give no standalone interest-income amount — so no figure is published here. The FAIL rests independently on the debt gate.
Do any third-party screeners cover Algonquin Power?
No Musaffa, Zoya or ShariaPortfolio rating for AQN could be verified as of September 2026. This screener is independent.
What could change Algonquin Power's halal screener?
Sustained deleveraging — or a substantially higher share price — that brings debt below roughly a third of market cap would change the debt gate. Algonquin completed the sale of its renewable-energy business (excluding hydro) and, in August 2026, announced an intended redomicile to Delaware. This screener is a snapshot dated September 29, 2026 and is re-checked quarterly after earnings.