Capital Power reports fourth quarter and year-end 2025 results

Executive Summary

• Capital Power reported strong 2025 results: AFFO of $1.07 B, adjusted EBITDA of $1.58 B and a net income of $159 M, marking a turnaround from a $13 M loss in Q4 2025.
• Completed the $3.0 B acquisition of the Hummel and Rolling Hills facilities (≈2.2 GW) – the largest deal in company history, expanding U.S. capacity to ~60% of total fleet.
• Raised $2.3 B of senior unsecured notes (including a $1.7 B U.S. private placement) and $667 M of equity capital to fund U.S. growth; also issued medium‑term notes ($600 M) and redeemed $300 M of January 2026 notes.

Key Details

• Acquisition: Hummel & Rolling Hills facilities, PJM1 market – approx. $3.0 B (US$2.2 B), adding ~2.2 GW natural‑gas generation.
• New Contract: Long‑term ESA for Midland Cogeneration Venture through 2040, delivering an additional 10 years of contracted cash flow.
• MOU with Apollo Funds: Up to US$3 B equity commitment (including $750 M from Capital Power) to acquire merchant U.S. natural‑gas assets; partnership includes management and performance fees.
• Data Centre MOU: Binding agreement for a 250 MW Energy Supply Agreement in Alberta, 10+‑year term expected to start 2028; termination fee provision included.
• Financing Activity:
• Senior unsecured notes – $2.3 B total (≈$1.7 B U.S. private placement).
• Equity raise – $667 M for U.S. expansion and balance‑sheet strengthening.
• Medium‑term notes – $600 M issued (4.231% interest, maturing Jan 14 2033); proceeds used to repay/redeem existing debt and fund general corporate purposes.
• Redemption of January 2026 medium‑term notes – $300 M principal redeemed at par plus accrued interest.
• Operational Milestones:
• Commercial operation of ~604 MW long‑term contracted projects + 170 MW battery storage in Ontario (contracted to 2047).
• Commissioning of Halkirk 2 Wind Facility.
• Construction started on two North Carolina solar projects (~MW not disclosed), slated for commercial operation Q4 2026–Q1 2027.
• Dividend: Common‑share dividend increased 6% (12th consecutive year of growth).
• Financial Highlights – FY 2025 vs FY 2024:
• AFFO: $1,066 M vs $824 M.
• Adjusted EBITDA: $1,580 M vs $1,343 M.
• Net income: $159 M vs $701 M loss (2024).
• Cash flow from operations: $962 M vs $1,144 M (2024).
• Leadership Change: Kevin MacIntosh appointed Chief Financial Officer effective March 16 2026 (formerly Interim CFO).
• Arlington Valley Tolling Extension: Agreement extended to Oct 2038; 35 MW capacity uprate (10 MW in 2026, 25 MW in 2027) with expected adjusted EBITDA uplift of ≈US$70 M annually by 2032.

Notable Quotes

• Avik Dey, President & CEO: “Our 2025 achievements—including the largest acquisition in our history and a robust financing program—position Capital Power to thrive amid unprecedented electricity demand growth across North America.”
• Kevin MacIntosh (incoming CFO): [Quote not provided in release]

Materiality Assessment: Material – Positive** (The release contains full‑year financial results, a major acquisition, significant financing activities and strategic partnerships that are likely to influence investor decisions.)