Maxim Power Corp. Announces 2025 First Quarter Financial and Operating Results

Core Viewpoint - Maxim Power Corp. reported a significant decline in financial performance for Q1 2025 compared to Q1 2024, primarily due to lower revenues from reduced power prices and generation volumes [2][3]. Financial Highlights - Revenue for Q1 2025 was $20.3 million, down from$34.8 million in Q1 2024, representing a decrease of approximately 41% [2]. - Net income decreased to $3.3 million in Q1 2025 from$10.5 million in Q1 2024, a decline of about 69% [2]. - Basic earnings per share fell to $0.05 from$0.21 year-over-year [2]. - Adjusted EBITDA dropped to $5.2 million from$15.9 million, a decrease of approximately 67% [2]. - Total generation in MWh was 413,031, down from 476,531 in the previous year, indicating a reduction of about 13% [2]. - Average Alberta market power price decreased to $39.78 per MWh from$99.30 per MWh, a decline of approximately 60% [2]. - Free cash flow decreased to $3.3 million from$13.0 million, a decline of about 75% [2]. Operating Results - The decrease in net income and Adjusted EBITDA was attributed to lower revenues driven by reduced realized power prices and generation volumes compared to 2024 [3]. - Free cash flow was negatively impacted by increased capital spending and lower interest income, despite lower debt servicing outflows [3]. Sale of Summit - On April 29, 2025, Maxim completed the sale of its subsidiaries Summit Coal Limited Partnership and Summit Coal Inc. for $14.2 million, which included$10.2 million in cash and a $4.0 million convertible note [4][5]. - The sale resulted in net cash proceeds of$8.0 million after accounting for $2.2 million of restricted cash [4]. Company Overview - Maxim Power Corp. is one of Canada's largest independent power producers, focusing on power projects in Alberta [14]. - The company's core asset is the 300 MW H.R. Milner Plant, which began operations in Q4 2023 [14].