Boralex Q4 Earnings Call Highlights

Core Insights - Boralex reported a mixed performance for fiscal 2025, with total combined production up 8% year-over-year but 10% below expectations, primarily due to unfavorable weather conditions and lower selling prices in France [3][6][12] Production and Financial Performance - Fourth-quarter combined production rose 17% year-over-year, driven by favorable wind conditions and new sites in Europe and North America, but was still 7% lower than anticipated [1] - Combined operating income for 2025 was CAD 248 million, and combined EBITDA was CAD 655 million, down 2% from 2024 [2][6] - Total combined production for fiscal 2025 was 8% higher than 2024 but fell short of internal expectations [3] Regional Performance - North American wind production increased by 9% year-over-year but was 6% below expectations, mainly due to lower contributions from U.S. wind farms [8] - Hydro production decreased by 23% year-over-year and was 30% below anticipated levels, attributed to unfavorable weather [8] - European production rose by 40% year-over-year but was still 4% below expectations [8] Strategic Developments - Boralex's development portfolio now exceeds 8.2 GW, with installed capacity reaching 3.8 GW, an increase of 615 MW during the year [5][8] - The company is advancing projects across multiple regions, including the U.K., France, the U.S., and Canada [5] Battery Storage Initiatives - Boralex became the largest battery operator in Canada with the commissioning of projects adding a combined 380 MW [4][11] - The company launched its first operational battery storage project in North America, the Sanjgon Battery Energy Storage System, and began operations for the Hagersville Battery Energy Storage Project [10][11] Liquidity and Debt Management - As of December 31, 2025, Boralex had CAD 681 million in available liquidity, up CAD 158 million from the previous year, with total debt at CAD 4.4 billion [12] - The company secured CAD 1 billion in project financing and closed CAD 250 million in corporate financing [12] Future Outlook - Management indicated that 2026 would see a less significant negative pricing effect in France compared to 2025, with expectations for normalization thereafter [14] - Boralex is actively participating in multiple RFPs for new projects, including in Ontario, New York State, and the U.K. [9]