PowerBank Returns to Profitability with 106% Year-Over-Year Gross Profit Growth in Q1, 145% Adjusted EBITDA Increase
Executive Summary
- PowerBank Corp. reported FY 2026 Q1 net income of C$1.01 M, reversing a C$26.49 M loss year‑over‑year and achieving profitability for the first time since FY 2025.
- Gross profit rose 106% YoY to C$8.54 M (44.62% margin) and Adjusted EBITDA more than doubled to C$4.84 M, reflecting strong revenue growth of 27% to C$19.15 M.
- The company highlighted operational milestones: the 3.79 MW Geddes Solar Project is now fully online with a US$1.47 M COP payment and additional US$0.245 M incentive; multiple new lease/PPA agreements for up to 20 MW of solar & storage projects were executed, and several New York‑based projects advanced toward permitting and financing.
Key Details
- Financial Highlights (Q1 FY 2026 vs Q1 FY 2025):
- Revenue: C$19.15 M vs C$15.06 M (+27%).
- Gross profit: C$8.54 M vs C$4.14 M (+106%); margin 44.62% vs 27.47%.
- Adjusted EBITDA: C$4.84 M vs C$1.97 M (+145%).
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Net income: C$1.01 M (C$0.03 per basic share) vs net loss of C$26.49 M (‑C$0.87 per basic share).
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Balance Sheet Highlights:
- Current assets: C$35.46 M (incl. C$9.01 M cash/short‑term investments).
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Current liabilities: C$36.43 M, down from C$43.11 M.
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Operational Milestones:
- Geddes Solar Power Project (3.79 MW) fully operational; received US$1.47 M COP payment and will receive an additional US$0.245 M community solar adder.
- Executed lease & PPA agreements with NY State Division of Military and Naval Affairs for a portfolio totaling ~20 MW DC (ground‑mount, rooftop, canopy) with 20‑year terms or community solar subscriptions.
- Lease agreement for 6.9 MW DC NY‑Crawford Rd ground‑mount project; permitting and financing in progress.
- Completed Coordinated Electric System Interconnection Review for 5.7 MW North Main St ground‑mount project; permitting/financing pending.
- Nova Scotia community solar projects (Sydney, Brooklyn, Petpeswick) awarded C$1.74 M funding from provincial Net Zero Atlantic program.
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Installed 4.99 MW Battery Energy Storage System in Cramahe, Ontario (project SFF‑06).
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Financing Update:
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Post‑quarter, extended maturity of outstanding project financing loan with RE Royalties to 2026‑11‑26 at 12% interest; royalty rate on certain BESS projects set at 0.80% (reducible to 0.65% if repaid by 2026‑05‑26).
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Management Commentary:
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CEO Dr. Richard Lu emphasized the return to profitability, the impact of the Geddes project coming online, and the focus on rapid project development, financing, and strategic sales to drive revenue growth.
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Conference Call:
- Scheduled for 2025‑11‑17 at 4:30 PM ET; webcast registration available.
Notable Quotes
“I am pleased that PowerBank has returned to profitability this quarter with increased revenues and a further improvement in gross margin… PowerBank remains focused on rapidly advancing its project development pipeline through completion of project financings to support IPP portfolio growth, and project sales to strategic partners to drive revenues.” – Dr. Richard Lu, President & CEO
All forward‑looking statements are subject to risks and uncertainties detailed in the release.