Capital Power reports strong third quarter 2025 results, advancing flexible generation Superscript 1 growth and contracting success

Executive Summary

• Capital Power reported Q3 2025 results with AFFO of $369 M, adjusted EBITDA of $477 M and net income of $153 M, reaffirming 2025 guidance despite planned outage adjustments.
• Executed a new long‑term contract for Midland Cogeneration Venture (MCV) through 2040 adding 10 years of incremental revenue and commissioned 170 MW of battery storage in Ontario contracted to 2047.
• Announced CFO Sandra Haskins’ retirement effective 31 Dec 2025; interim SVP Finance & CFO appointed, with a search for a permanent replacement underway.

Key Details

• Financial Highlights (Q3 2025):
• AFFO: $369 M (vs. $315 M YoY)
• Adjusted EBITDA: $477 M (vs. $401 M YoY)
• Net income: $153 M (down from $178 M YoY)
• Cash flow from operations: $404 M
• Long‑Term Contract Updates:
• New MCV contract with Consumers Energy to 2040, adding ~10 years of incremental contracted revenue; expected $140 M (US$100 M) increase in full‑year adjusted EBITDA for the facility.
• Term sheet for a potential 250 MW data centre adjacent to MCV – subject to due diligence and regulatory approvals.
• Battery Storage Projects:
• York Energy (120 MW) and Goreway BESS (50 MW) reached commercial operation on 22 Sep 2025; contracts run to 2047, contributing ~US$35 M of annual adjusted EBITDA.
• Credit Facilities:
• Negotiated a two‑year $600 M revolving credit facility maturing in 2027 (draws available in CAD or USD).
• Earlier in the year terminated a $300 M club facility and expanded committed capacity to $1.5 B, extending term to 2030.
• Leadership Change:
• CFO Sandra Haskins retiring 31 Dec 2025 after 23 years; Scott Manson appointed interim SVP Finance & CFO; successor to be announced later.
• Guidance Reaffirmation:
• Adjusted EBITDA target for 2025: $1.5‑$1.65 B (YTD $1.166 B) – reaffirmed.
• AFFO target for 2025: $950‑$1,100 M (YTD $822 M) – reaffirmed.
• Sustaining capital expenditures target: $215‑$245 M (YTD $134 M).
• Alberta Outage Schedule:
• Genesee 3 outage moved to Q4 2025; Genesee 1 & 2 outages extended into Q2 2026.
• Expected ~40 % increase in outage days for Canadian flexible generation portfolio in 2026.
• VPPA Cancellation Impact:
• Termination of Saputo Inc. VPPA incurred $5 M penalty and $8 M unrealized mark‑to‑market loss; overall impact deemed minimal.

Notable Quotes

• “Our third quarter results reflect the continued execution of our strategy to strengthen our U.S. platform and expand our contracted cash flows,” – Avik Dey, President & CEO
• “These actions reinforce our commitment to stable, contracted cash flows and long‑term value creation for shareholders,” – Sandra Haskins, CFO (retiring)