Capital Power announces second quarter 2025 results

Executive Summary

• Capital Power reported financial results for the quarter and six months ended June 30, 2025, highlighting the completion of its largest-ever acquisition: the Hummel and Rolling Hills facilities in the PJM market for ~$3.0 billion, adding ~2.2 GW of flexible generation capacity.
• The company raised $1.7 billion via an inaugural US private offering of senior notes and $667 million via equity capital (bought deal and private placement) to partially fund the acquisition.
• Q2 2025 results included an AFFO of $235 million, adjusted EBITDA of $322 million, and a net loss of $131 million. The company also increased its annual common share dividend by 6% for the 12th consecutive year.
• Management revised 2025 annual guidance upward, increasing sustaining capital expenditure guidance to $215–$245 million, AFFO guidance to $950–$1,100 million, and adjusted EBITDA guidance to $1,500–$1,650 million.

Key Details

• Acquisition Details:
  • Completed acquisition of Hummel Station (1,124MW combined cycle) and Rolling Hills (1,023MW combustion turbine) in the PJM interconnection market.
  • Total purchase price: $3.0 billion (US $2.2 billion) in cash consideration.
  • Assets are strategically positioned as young, highly efficient natural gas assets with access to low-cost fuel.
• Financing Activities:
  • Senior Notes: Closed a $1.7 billion (US $1.2 billion) private placement of senior notes, including $966 million (US $700 million) of 5.257% notes due 2028 and $690 million (US $500 million) of 6.189% notes due 2035. Obtained a third credit rating from Fitch (BBB-).
  • Equity Offering: Completed a bought deal offering of 11,902,500 common shares at $43.45 per share for gross proceeds of ~$517 million.
  • Private Placement: Concurrently issued 3,455,000 common shares to Alberta Investment Management Corporation (AIMCo) for gross proceeds of ~$150 million.
  • Total equity capital raised: $667 million.
• Financial Performance (Three Months Ended June 30, 2025):
  • Adjusted EBITDA: $322 million.
  • Adjusted Funds from Operations (AFFO): $235 million ($1.55 per share).
  • Net Loss: $(131) million.
  • Net Loss Attributable to Shareholders: $(132) million.
  • Basic Loss Per Share: $(0.92).
  • Net Cash Flows from Operating Activities: $143 million.
  • Revenues and Other Income: $441 million.
• Financial Performance (Six Months Ended June 30, 2025):
  • Adjusted EBITDA: $689 million.
  • AFFO: $453 million ($3.12 per share).
  • Net Income: $19 million.
  • Net Income Attributable to Shareholders: $19 million.
  • Basic Earnings Per Share: $0.03.
  • Net Cash Flows from Operating Activities: $353 million.
  • Revenues and Other Income: $1,429 million.
• Operational Metrics:
  • Electricity Generation: 9,022 GWh (Q2) and 18,578 GWh (YTD).
  • Generation Facility Availability: 93% (Q2) and 91% (YTD).
  • Dividends Declared: $0.6519 per common share for Q2 (6% increase over prior year).
• Project Updates:
  • Reached commercial operation of the 40MW uprate at Goreway.
  • Advanced four long-term contracted projects in Ontario with 310MW total capacity.
  • Started construction on two additional solar projects in North Carolina (commercial operation expected Q4 2026 – Q1 2027).
• Revised 2025 Annual Guidance:
  • Sustaining Capital Expenditures: Revised to $215–$245 million (Original: $195–$225 million). YTD spend: $73 million.
  • AFFO: Revised to $950–$1,100 million (Original: $850–$950 million). YTD AFFO: $453 million.
  • Adjusted EBITDA: Revised to $1,500–$1,650 million (Original: $1,340–$1,440 million). YTD Adjusted EBITDA: $689 million.

Notable Quotes

• Avik Dey, President and CEO: “The completion of our PJM acquisition marks an extraordinary milestone for Capital Power as it underscores our ability to execute on our growth strategy and reaffirms our leadership in North American flexible generation. By expanding into North America’s largest and most liquid power market, we have added approximately 2.2 GW of flexible generation capacity.”
• Sandra Haskins, SVP Finance and CFO: “This quarter reflects our continued success in delivering on our strategic priorities of growth, disciplined capital allocation, and diversification while maintaining a strong balance sheet... These milestones highlight our disciplined execution and reinforce our confidence in delivering long-term, sustainable value for shareholders.”