Canada's Capital Power Q1 net income drops

Capital Power

29/04/2026 12:08

Overview

Canada power producer's Q1 revenue rose yr/yr, but net income declined sharply

Q1 adjusted EBITDA increased, while AFFO and AFFO per share decreased yr/yr

Company extended Arlington Valley tolling agreement, adding 7 years of contracted revenue

Outlook

Capital Power sees 2026 AFFO between $890 mln and $1,010 mln

Company expects 2026 adjusted EBITDA of $1,565 mln to $1,765 mln

Capital Power anticipates sustaining capital expenditures of $290 mln to $330 mln in 2026

Result Drivers

PORTFOLIO DIVERSIFICATION - Co said its diversified portfolio and long-term contracts provided resilience during market uncertainty

CONTRACT EXTENSION - Extension of Arlington Valley tolling agreement added 7 years of contracted revenue and expected higher capacity payments

OPERATIONAL IMPROVEMENTS - Higher electricity generation and facility availability compared to prior year

Company press release: ID:nGNX207G85

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
C$0.04
Q1 Net Income
C$15 mln
Q1 Adjusted EBITDA
C$404 mln
Q1 Adjusted FFO
C$154 mln
Q1 Adjusted FFO Per Share
C$0.98
Q1 Basic EPS
C$0.04


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "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$77.00, about 14.1% above its April 28 closing price of C$67.49

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 21 three months ago

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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.)