Capital Power Corp

Latest Results (13.05.2026):

Capital Power Corp — Q1 2026: Revenues rose to $1,205 million and adjusted EBITDA was $404 million for the three months ended March 31, 2026, but net income fell to $15 million (from $150 million a year earlier). AFFO was $154 million (AFFO per share $0.98) and operating cash flow was $312 million. Results were aided by the June 2025 acquisitions (Hummel Station and Rolling Hills) and stronger U.S. dispatch, while lower unrealized commodity derivative gains, higher depreciation and finance costs, and increased sustaining activity weighed on net income and AFFO.

Key financials

Revenues and other income: $1,205M (Q1 2026) vs $988M (Q1 2025). Adjusted EBITDA: $404M (up YoY). Net income: $15M (down from $150M). AFFO: $154M; AFFO per share: $0.98. Net cash from operating activities: $312M.

Main drivers of change

Positive: contributions from Hummel Station and Rolling Hills and stronger U.S. flexible generation dispatch (including MCV). Negative: significantly lower unrealized gains on commodity derivatives and emission credits, higher depreciation (from acquisitions), higher net finance expense (additional long‑term borrowings), and increased maintenance/sustaining activity.

AFFO and cash flow details

AFFO declined YoY primarily due to higher sustaining capital expenditures, increased finance costs and higher current income tax, partially offset by higher adjusted EBITDA. Operating cash flow remained strong at $312M for the quarter.

Capital spending and dividends

2026 sustaining capex target $290–$330M; sustaining capex spent YTD (Q1) was $107M. Dividend growth projected at 2% for 2026 with long‑term target of 2–4% thereafter. Dividends declared in the quarter were reported in the MD&A.

Significant corporate/strategic developments

Arlington Valley: summer tolling agreement extended to October 2038 (adds seven years of contracted summer revenue) and a 35 MW summer capacity uprate (10 MW in 2026, 25 MW in 2027); expected ~US$70M annual increase in capacity payments by 2032 (vs 2025). Kevin MacIntosh appointed CFO effective March 16, 2026.

Operational outlook and guidance

2026 guidance ranges for AFFO and adjusted EBITDA remain unchanged. Company expects ~40% increase in outage days for its Canadian flexible generation portfolio in 2026 (adjusted maintenance schedule). Growth pipeline continues (Ontario, North Carolina solar projects, East Windsor expansion) and Capital Power continues to pursue gas, renewables, BESS and SMR evaluation opportunities.