Canada's Capital Power Q3 revenue falls on derivative losses

Capital Power

02/11/2026 12:12

Overview
Canada power producer's Q3 revenue declined yr/yr due to unfavorable derivative and emission credit changes
Q3 adjusted EBITDA rose yr/yr, driven by higher U.S. and Canadian flexible generation contributions
Q3 AFFO declined yr/yr, impacted by higher sustaining capital expenditures and finance expense

Outlook
Company sees 2026 AFFO of C$890 mln to C$1,010 mln
Capital Power expects 2026 adjusted EBITDA of C$1,565 mln to C$1,765 mln
Company raises 2026 sustaining capital expenditure target to C$350 mln–C$370 mln

Result Drivers
U.S. AND CANADIAN GENERATION - Higher contributions from U.S. flexible generation and Canadian assets, including Goreway and Ontario battery storage projects, drove adjusted EBITDA
MAINTENANCE AND TAXES - Higher sustaining capital expenditures and increased income tax expense weighed on AFFO
DERIVATIVE AND EMISSION CREDIT CHANGES - Unfavourable changes in unrealized fair value on commodity derivatives and emission credits reduced revenue

Company press release: ID:nGNX8dxlTV

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
C$0.37
 
Q3 Net Income
 
C$67 mln
 
Q3 Adjusted EBITDA
 
C$553 mln
 
Q3 Adjusted FFO
 
C$306 mln
 
Q3 Adjusted FFO Per Share
 
C$1.94
 
Q3 Basic EPS
 
C$0.37
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the independent power producers peer group is "buy"
Wall Street's median 12-month price target for Capital Power Corp is C$80.00, about 26.9% above its October 30 closing price of C$63.04
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 27 three months ago

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Oct 30 - Greece's Capital Clean Energy Q3 revenue rises 44% on fleet growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)