Capital Power Reports Strong Q2 2025 Results
EDMONTON, Alberta, July 30, 2025 - Capital Power Corporation (TSX: CPX) has unveiled its financial performance for the quarter ending June 30, 2025, showcasing remarkable achievements and strategic growth initiatives.
Financial Highlights
Key Takeaways of the Quarter
- Successful completion of the acquisition of Hummel and Rolling Hills facilities within the PJM market, significantly boosting capacity by approximately 2.2 GW for around $3 billion, marking the largest acquisition in the company’s history.
- The company has increased its annual dividend by 6%, achieving this for the 12th consecutive year.
- Capital Power executed a $1.7 billion U.S. private note offering and is proud to have secured a third credit rating from Fitch, underscoring its solid financial standing with a BBB- rating.
- The company raised $667 million in equity capital through an upsized bought deal offering and a private placement with Alberta Investment Management Corporation (AIMCo).
- Commercial operations were reached at Goreway's 40MW uprate, and further advancements were made in other contracted projects in Ontario.
- Two additional solar projects are in the pipeline in North Carolina, with a launch expected between Q4 2026 and Q1 2027.
- Generated Adjusted Funds from Operations (AFFO) of $235 million, with net cash flows from operating activities reaching $143 million.
- Adjusted EBITDA stood at $322 million, despite a net loss of $131 million.
Growth Strategy Remarks
Avik Dey, President and CEO of Capital Power, expressed enthusiasm about the acquisition, noting, "The completion of our PJM acquisition marks an extraordinary milestone for us. It highlights our commitment to execute on our growth strategy and reaffirms our leadership in U.S. flexible generation." He emphasized that the new assets provide optimal access to low-cost fuel, enhancing shareholder value.
Financial Position and Strategic Initiatives
According to Sandra Haskins, SVP Finance and CFO, "This quarter reflects our ongoing success in achieving our strategic goals, maintaining a robust balance sheet while expanding into new markets. Our recent acquisitions will not only enhance our operational footprint but also boost our AFFO per share. We are steadfast in meeting our financial commitments and creating long-term, sustainable value for our stakeholders."
Revised Annual Guidance for 2025
In light of the recent transactions and expected performance, Capital Power has updated its 2025 guidance:
- Sustaining Capital Expenditures: Revised guidance is set between $215 million and $245 million, up from the original target of $195 million to $225 million.
- AFFO guidance is now revised to $950 million to $1,100 million, increased from an earlier forecast of $850 million to $950 million.
- Adjusted EBITDA is now projected between $1,500 million and $1,650 million, a significant push from the original estimation of $1,340 million to $1,440 million.
Operational Efficiencies
Capital Power is dedicated to enhancing its operational efficiency. The company reported a generation facility availability rate of 93% and noted significant improvements in electricity generation, reflecting the consistent commitment to operational excellence.
Recent Acquisitions and Market Entry
The acquisition of Hummel Station and Rolling Hills marked a significant milestone in the company’s expansion into new markets, particularly the PJM interconnection market. The Hummel facility, a 1,124MW combined cycle gas plant, and the Rolling Hills facility, a 1,023MW combustion turbine gas facility, represent strategic additions to Capital Power’s growing portfolio.
Future Outlook
The company remains optimistic about the future, focusing on strategic growth, sustainability, and continued shareholder investment. Capital Power's diverse portfolio positions it well to navigate any market uncertainties with a strong foundation for future growth and innovation.
Frequently Asked Questions
What is the impact of the recent acquisitions on Capital Power's growth?
The acquisitions significantly expand the company’s operational footprint and are expected to enhance AFFO per share, reinforcing its growth strategy.
How has Capital Power improved its financial stability recently?
By executing a substantial bond offering and raising equity, alongside strategic investments and operational efficiencies, Capital Power has bolstered its financial stability.
What is the updated AFFO guidance for 2025?
The revised AFFO guidance is now set between $950 million and $1,100 million for the year.
What are the planned future projects of Capital Power?
The company is set to begin construction on solar projects in North Carolina, aiming for operational readiness between Q4 2026 and Q1 2027.
Who can be contacted for more information about Capital Power?
For media inquiries, refer to Katherine Perron at (780) 392-5335 or via email at kperron@capitalpower.com. For investor queries, please contact Roy Arthur at (403) 736-3315 or investor@capitalpower.com.
