Northland Power Reports Fourth Quarter 2025 Results and 2026 Financial Outlook

Core Insights - Northland Power Inc. reported financial results for the year ended December 31, 2025, highlighting a strategic focus on maximizing long-term shareholder value through a five-year plan and growth initiatives in Canada and Europe [3][6][39]. Financial Performance - In Q4 2025, Northland achieved an Adjusted EBITDA of $1.25 billion, aligning with financial guidance, and Free Cash Flow of $1.46 per share, exceeding expectations [6][12]. - Full-year 2025 revenue from energy sales increased to $2.43 billion from $2.35 billion in 2024, while net income decreased to a loss of $108 million due to a significant impairment expense [12][30]. - Q4 2025 revenue from energy sales was $723 million, up from $572 million in Q4 2024, with net income rising to $290 million from $150 million in the same quarter of the previous year [12][30]. Operational Highlights - The operating fleet availability in Q4 2025 was 96%, with offshore wind assets in Germany achieving record production [4][6]. - Northland is advancing two major offshore wind projects: the 1.0 GW Hai Long project, with 37 out of 73 turbines installed, and the 1.1 GW Baltic Power project, which is on track for commercial operations in the second half of 2026 [7][8][39]. Strategic Developments - A new global strategy was introduced, targeting a doubling of gross operating capacity to 7 GW by 2030, with a focus on cost efficiency and high-quality opportunities [6][8]. - Northland expanded its battery energy storage system pipeline with two late-stage pre-construction projects in Poland, totaling 300 MW / 1.2 GWh [6][8]. Future Outlook - For 2026, Northland expects Adjusted EBITDA to be between $1.45 billion and $1.65 billion, with Free Cash Flow projected at $1.05 to $1.25 per share [41][42]. - The anticipated contributions from the Hai Long and Baltic Power projects are expected to enhance revenue generation, with Hai Long projected to reach commercial operations in 2027 [40][41].