Capital Power reports fourth quarter and year-end 2025 results

Core Insights - Capital Power Corporation reported strong financial results for the year ended December 31, 2025, highlighting significant growth and strategic execution, particularly in the U.S. market [6][7][11] Strategic Highlights - The company completed its largest acquisition to date, entering the PJM market, which now constitutes approximately 60% of its capacity and adjusted EBITDA [7][8] - A long-term contract was executed for the Midland Cogeneration Venture (MCV) through 2040, ensuring additional contracted cash flows [8] - Capital Power entered a binding MOU for a 250 MW Electricity Supply Agreement (ESA) with a data center developer in Alberta, expected to start in 2028 [8][18] - The company commenced construction on two solar projects in North Carolina, with operations anticipated between Q4 2026 and Q1 2027 [8] Financial Highlights - In Q4 2025, Capital Power generated an adjusted EBITDA of $414 million and an AFFO of $244 million, with a net loss of $13 million [8][12] - For the full year 2025, adjusted EBITDA reached $1,580 million, and AFFO totaled $1,066 million, with a net income of $159 million [8][12] - The common share dividend was increased by 6%, marking the 12th consecutive year of dividend growth [8] - The company successfully issued $2.3 billion in senior unsecured notes and raised $667 million in equity capital to support U.S. expansion [8] Operational Highlights - Electricity generation for 2025 was reported at 44,616 GWh, an increase from 37,821 GWh in 2024 [12] - The generation facility availability was 91% for the year, slightly down from 92% in 2024 [12] - The company maintained a reliable and efficient portfolio, optimizing asset life and availability [9] Significant Events - Capital Power formed a $4.2 billion investment partnership with Apollo Funds to acquire U.S. natural gas generation assets, with a total potential equity commitment of up to $3 billion [15][16] - The Arlington Valley facility's summer tolling agreement was extended through October 2038, providing 13 years of contracted revenue [23][24]