Polaris Renewable Energy Announces Q4 and Annual 2025 Results

Executive Summary

• Polaris Renewable Energy reported FY 2025 revenue of $80.5 M, up 6% YoY, driven by the addition of the Punta Lima Wind Farm.
• Adjusted EBITDA increased modestly to $56.5 M (vs $55.0 M in 2024), while net loss widened to $(2.7) M ($0.13 per share) after a profit year prior.
• The company generated $35.2 M of operating cash flow, ending FY 2025 with $93.2 M cash (including $4.6 M restricted).

Key Details

• Energy Production
• Annual consolidated production: 810,731 MWh (up from 764,756 MWh in 2024).

• Q4‑2025 production increased in Peru and Ecuador; declines noted in Nicaragua and the Dominican Republic due to curtailment.

• Revenue & EBITDA

• FY 2025 revenue: $80.5 M (vs $75.8 M in 2024).

• Adjusted EBITDA FY 2025: $56.5 M (vs $55.0 M in 2024).

• Net Income / EPS

• Net loss attributable to shareholders: $(2.7) M, or $(0.13) per share (basic).

• Prior year net earnings: $3.0 M, or $0.14 per share (basic).

• Cash Flow & Liquidity

• Net cash flow from operating activities FY 2025: $35.2 M.

• Year‑end cash balance: $93.2 M (including $4.6 M restricted cash).

• Debt Management

• Early settlement of four credit facilities in Jan 2025 under the terms of Dec 3 2024 Green Bonds, part of a debt‑optimization strategy.

• Total current and long‑term debt as of Dec 31 2025: $217.3 M (down from $328.3 M).

• Equity Capital Contribution

• On Mar 3 2025 closed an Equity Capital Contribution Agreement for the Punta Lima Wind Farm, contributing $20 M equity via a tax‑equity structure; Santander retains the tax‑equity interest.

• Project capacity: 26 MW, PPA price $149.14/MWh (inflated first 11 years, then $129.36/MWh with escalations).

• Battery Energy Storage System (BESS) Progress

• Submitted BESS Standard Offer to Puerto Rico Energy Bureau on Aug 11 2025; awaiting regulatory approvals.

• Expected construction timeline: ~12 months once all permits are secured, after which Polaris will receive fixed and performance‑based payments for storage services.

• Dividends

• FY 2025 dividends paid: $12.6 M.

• Declared quarterly dividend of $0.15 per share, payable Feb 27 2026 to shareholders of record Feb 17 2026.

• Operational Highlights by Region

• Peru & Ecuador: Higher production due to favorable hydrology and plant availability.
• Nicaragua: Q4‑2025 output down from 2024 because of reduced cycling wells and natural steamfield decline.
• Dominican Republic (Canoa 1): Lower Q4 generation despite repowering, caused by increased curtailment.
• Panama (Vista Hermosa I & II): Slight production increase, stable irradiation.
• Puerto Rico (Punta Lima): Modest wind output in Q4 due to lower wind resource.

Notable Quotes

“Our 2025 operating results reflect the diversification and resilience of our operating assets,” said Marc Murnaghan, CEO. “We delivered higher consolidated production, revenue and EBITDA year over year, supported by strong performance in Peru and the contribution from the Punta Lima wind facility following its acquisition in March.”

Materiality Assessment: Material – Neutral (the release contains full-year financial results and operational updates that are material to investors.)