Capital Power announces second quarter 2025 results
Press Release
July 30, 2025
EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) today released financial results for the quarter ended June 30, 2025.
Highlights
- Completed previously announced acquisition of the Hummel and Rolling Hills facilities in the PJM1 market for ~$3.0 billion2 (US $2.2 billion), adding ~2.2 GW of capacity to its U.S. flexible generation3 portfolio, the largest acquisition in the Company’s history
- Increased its annual common share dividend, for the 12th consecutive year, by 6%
- Executed a ~$1.7 billion4 (US $1.2 billion) inaugural US private offering of senior notes and obtained a third credit rating with Fitch assigning a BBB- rating
- Raised $667 million of equity capital consisting of an upsized bought deal offering of common shares, for total gross proceeds of $517 million, and a concurrent private placement of $150 million with Alberta Investment Management Corporation (AIMCo)
- Reached commercial operation of the 40MW uprate at Goreway and continued to advance four other long-term contracted projects in Ontario with 310MW of total capacity
- Started construction on two additional solar projects in North Carolina, with commercial operation expected between Q4 2026 and Q1 2027
- Generated AFFO of $235 million and net cash flows from operating activities of $143 million
- Generated adjusted EBITDA of $322 million and a net loss of $131 million
- Pennsylvania-New Jersey-Maryland Interconnection.
- As previously announced, converted from US dollars to Canadian dollars using a 1.3684 exchange rate, as reported by the Bank of Canada on June 9, 2025.
- Flexible generation is defined as natural gas generation assets and energy storage business.
- Converted from US dollars to Canadian dollars using a 1.3933 exchange rate, as reported by the Bank of Canada on May 13, 2025.
“The completion of our PJM acquisition marks an extraordinary milestone for Capital Power as it underscores our ability to execute on our growth strategy and reaffirms our leadership in North American flexible generation. By expanding into North America’s largest and most liquid power market, we have added approximately 2.2 GW of flexible generation capacity. The Hummel Station and Rolling Hills facilities are strategically positioned as young and highly efficient assets with significant commercial optimization potential that enjoy access to low-cost fuel” said Avik Dey, President and CEO of Capital Power. “This transaction enhances the positioning of our US generation fleet on these key metrics, supporting long-term shareholder value creation.”
“This quarter reflects our continued success in delivering on our strategic priorities of growth, disciplined capital allocation, and diversification while maintaining a strong balance sheet. The recent acquisitions of Hummel Station and Rolling Hills significantly expand our U.S. footprint and are accretive to AFFO per share. Over the past year, we executed our largest acquisition, completed our most ambitious organic growth initiative—the Genesee repowering project, increased our dividend, and remain well within our financial guardrails that underpin our investment-grade credit rating. These milestones highlight our disciplined execution and reinforce our confidence in delivering long-term, sustainable value for shareholders.” said Sandra Haskins, SVP Finance and CFO of Capital Power.
Revised 2025 Annual Guidance
| Priority | 2025 target | Status at June 30, 2025 |
|
Priority
|
2025 target
|
Status at June 30, 2025
|
| Execution of major turnarounds | Sustaining capital expenditures3
|
$73 million1,2 |
| Generate financial stability and strength | AFFO3,4
|
$453 million1 |
Adjusted EBITDA3,4
|
$689 million1 |
- For the six months ended June 30, 2025.
- Includes our share of equity-accounted investments sustaining capital expenditures of $32 million net of partner contributions of $6 million.
- Based on the Company’s year-to-date results, expectations for the remainder of the year and the expected results from the acquisition of Hummel Station, LLC and Rolling Hills, LLC for the periods subsequent to the close of the transaction on June 9, 2025, the Company provided updated guidance for 2025.
- AFFO and adjusted EBITDA are non-GAAP financial measures. See Non-GAAP Financial Measures and Ratios.
Operational and Financial Highlights1
| ($ millions, except per share amounts) | Three months ended June 30 | Six months ended June 30 |
||
| 2025 | 2024 | 2025 | 2024 | |
| Electricity generation (Gigawatt hours) 2 | 9,022 | 8,603 | 18,578 | 17,412 |
| Generation facility availability 3 | 93% | 91% | 91% | 92% |
| Revenues and other income | 441 | 774 | 1,429 | 1,893 |
| Adjusted EBITDA 4 | 322 | 323 | 689 | 612 |
| Net (loss) income | (131) | 76 | 19 | 281 |
| Net (loss) income attributable to shareholders of the Company | (132) | 75 | 19 | 280 |
| Basic (loss) earnings per share ($) | (0.92) | 0.51 | 0.03 | 2.06 |
| Diluted (loss) earnings per share ($) 5 | (0.92) | 0.51 | 0.03 | 2.06 |
| Net cash flows from operating activities | 143 | 136 | 353 | 470 |
| Adjusted funds from operations 4 | 235 | 178 | 453 | 327 |
| Adjusted funds from operations per share ($) 4 | 1.55 | 1.37 | 3.12 | 2.58 |
| Purchase of property, plant and equipment and other assets, net | 141 | 226 | 429 | 444 |
| Dividends per common share, declared ($) | 0.6519 | 0.6150 | 1.3038 | 1.2300 |
- The operational and financial highlights in this press release should be read in conjunction with the Management’s Discussion and Analysis and the unaudited condensed interim financial statements for the six months ended June 30, 2025.
- Gigawatt hours (GWh) of electricity generation reflects the Company’s share of facility output.
- Facility availability represents the percentage of time in the period that the facility was available to generate power regardless of whether it was running and therefore is reduced by planned and unplanned outages.
- The consolidated financial highlights, except for adjusted EBITDA, AFFO and AFFO per share were prepared in accordance with GAAP. See Non-GAAP Financial Measures and Ratios.
- Diluted earnings per share was calculated after giving effect to outstanding share purchase options.
Significant Events
Acquisition of Hummel Station and Rolling Hills
On June 9, 2025, Capital Power completed its previously announced acquisition of 100% of the equity interests in:
- Hummel Station, LLC, owner of the 1,124MW Hummel combined cycle natural gas facility in Shamokin Dam, Pennsylvania (the Hummel Acquisition); and
- Rolling Hills Generating, LLC, owner of the 1,023MW Rolling Hills Generation plant, a combustion turbine natural gas facility in Wilkesville, Ohio (the Rolling Hills Acquisition and together with Hummel Acquisition, the Acquisition).
The Acquisition expands the Company’s operations into the PJM interconnection market and adds to its U.S. flexible generation fleet.
The total purchase price of the Acquisition was $3.0 billion (US$2.2 billion) in total cash consideration, including working capital and other closing adjustments.
Capital Power partially financed the acquisition with net proceeds from an offering of common shares and a private offering of senior notes, described in further detail below. The balance of the Acquisition was funded with additional cash on hand and a drawdown on the Company’s existing revolving credit facilities.
$1.7 billion (US$1.2 billion) senior notes offering
On May 28, 2025, Capital Power closed a private placement offering of $966 million (US$700 million) aggregate principal amount of 5.257% senior notes due 2028 and $690 million (US$500 million) aggregate principal amount of 6.189% senior notes due 2035 issued by Capital Power (US Holdings) Inc., a U.S. wholly-owned subsidiary of the Company. The notes are guaranteed by the Company and the Company’s subsidiaries that guarantee the Company’s revolving credit facilities. The net proceeds of the offering were used to fund a portion of the Acquisition.
$667 million bought deal offering of common shares
On April 22, 2025, the Company completed its bought deal offering of 11,902,500 common shares of Capital Power, which included 1,552,500 common shares issued pursuant to the full exercise of the over-allotment option, at an offering price of $43.45 per common share (the Offering Price), for total gross proceeds of approximately $517 million (the Public Offering).
Concurrently, the Company issued 3,455,000 common shares at the Offering Price to Alberta Investment Management Corporation on a private placement basis for gross proceeds of approximately $150 million.
The net proceeds of the offerings were used to partially finance the Acquisition.
Analyst conference call and webcast
Capital Power will be hosting a conference call and live webcast with analysts on July 30, 2025 at 9:00 am (MT) to discuss the second quarter financial results.
Conference call details will be sent directly to analysts.
Non-GAAP Financial Measures and Ratios
Capital Power uses (i) earnings before, income tax expense, depreciation and amortization, net finance expense, foreign exchange gains or losses, gains or losses on disposals and other transactions, unrealized changes in fair value of commodity derivatives and emission credits, other expenses from our joint venture interests, acquisition and integration costs, and other items that are not reflective of the Company’s facility operating performance (adjusted EBITDA), and (ii) AFFO as specified financial measures. Adjusted EBITDA and AFFO are both non-GAAP financial measures.
Capital Power also uses AFFO per share as a specified performance measure. This measure is a non-GAAP ratio determined by applying AFFO to the weighted average number of common shares used in the calculation of basic and diluted earnings per share.
These terms are not defined financial measures according to GAAP and do not have standardized meanings prescribed by GAAP and, therefore, are unlikely to be comparable to similar measures used by other enterprises. These measures should not be considered alternatives to net income, net income attributable to shareholders of Capital Power, net cash flows from operating activities or other measures of financial performance calculated in accordance with GAAP. Rather, these measures are provided to complement GAAP measures in the analysis of our results of operations from management’s perspective.
Contact
Media Relations
Katherine Perron
(780) 392-5335
kperron@capitalpower.com
Investor Relations
Roy Arthur
(403) 736-3315
investor@capitalpower.com
IBF4
