EDMONTON, Alberta, Nov. 02, 2026 (GLOBE NEWSWIRE) — Capital Power Corporation (TSX: CPX) today released financial results for the quarter ended September 30, 2026.
Highlights
- Long-term Energy Supply Agreement (ESA) for 250 megawatts of capacity and energy with Meta Platforms, Inc. in support of a data centre
- Subsequent to the quarter, the 100MW expansion at East Windsor received approval to operate in the Ontario market
- Generated net cash flows from operating activities of $381 million and adjusted funds from operations (AFFO)1 of $306 million
- Generated net income of $67 million and adjusted EBITDA1 of $553 million
- Increased annual common share dividend by 2%, representing the 13th consecutive year of increase
CEO Message
Our third-quarter results reflect the continued execution of our strategy and the value of our diversified portfolio, with strong contributions from our Alberta, PJM and Ontario assets. Our portfolio pairs stable contracted cash flows with exposure to markets where growing electricity demand and tightening supply are creating meaningful upside.
Approximately 75% of our expected 2026 adjusted EBITDA is underpinned by long-term contracts. Indicative of our strategy of working with high-quality counterparties, 100% of our power purchase agreements are held with investment grade counterparties and over 70% are utilities or system operators. Our Energy Supply Agreement with Meta is the latest example of these efforts to secure longer-term cash flows across our core markets. Over the past 18 months, we have delivered on ~2 GW of contracted capacity with a weighted average contract life of approximately 15 years.
With a strong balance sheet and disciplined capital allocation, we are also evaluating opportunities to extract additional value from our existing sites through uprates, expansions and co-located battery storage. These opportunities support our focus on growth and shareholder returns. The 2% annual dividend increase announced in the second quarter marks the 13th consecutive year of increase.
Revised 2026 Annual Guidance
| Priority |
2026 targets |
Status at September 30, 2026 |
Generate financial
stabilityand strength
|
AFFO 3 of $890 million to $1,010 million |
$788 million 1 |
Adjusted EBITDA 3 of $1,565 million to
$1,765 million |
$1,308 million 1
|
| Execution of major |
Sustaining capital expenditures 4
|
$270 million 1,2 |
| turnarounds |
Revised target:
$350 million to
$370 million
|
Original target:
$290 million to
$330 million |
|
| Portfolio optimization |
Re-contract/contract natural gas generation
Maximize facility asset life and value |
In July, the Company entered into a long-term ESA with Meta for 250 MW of capacity and energy in support of a data centre in Alberta.
In Q1 2026, the Company extended its summer tolling agreement for Arlington Valley from 2031 to October 2038. As part of this agreement, the facility will undergo a 35 MW capacity uprate.
Discussions with counterparties to supply energy solutions from across our fleet are in progress. |
| Expand flexible generation portfolio |
Continue construction on Ontario growth and commercial initiative projects
Continue to explore opportunities to build or acquire natural gas generation facilities |
Construction is underway and the projects are progressing to meet their targeted completion dates. Subsequent to the quarter, the 100MW expansion at East Windsor received approval to operate in the Ontario market. |
| Grow renewables portfolio |
Continue construction of North Carolina growth projects
Continue to explore opportunities to build or acquire renewables facilities |
Construction for the North Carolina solar projects continued into 2026. Commissioning activities for Hornet and Bear Branch Solar are progressing towards a Q4 2026 completion. |
| Advance balanced energy solutions such as low-carbon solutions |
Evaluate SMRs in Alberta
Continue to explore opportunities to co-locate with data centres across North America |
Pre-feasibility study work for the Alberta SMR project with Ontario Power Generation remains on track, and we continue to evaluate the development opportunity through this project.
We remain in various stages of discussion with several prospective customers about the potential to co-locate or otherwise serve data centre demand at our sites across North America. |
- For the nine months ended September 30, 2026.
- Net of partner contributions of $10 million and including our share of equity-accounted investments sustaining capital expenditures of $38 million.
- AFFO and adjusted EBITDA are non-GAAP financial measures. See Non-GAAP Financial Measures and Ratios.
- The Company revised its guidance range for 2026 sustaining capital expenditures reflecting unplanned outage work, primarily for the U.S. flexible generation fleet, and the advancement of a planned outage from 2027 into the fourth quarter of 2026 to ensure high reliability through 2027. The increase is event-driven, and a significant portion relates to insurable events. Insurance recoveries anticipated in 2026 and 2027, together with concessions from original equipment manufacturers (OEMs), are expected to meaningfully offset the cash impact.
Operational and Financial Highlights1
| ($ millions, except per share amounts) |
Three months ended
September 30, |
Nine months ended
September 30, |
| |
2026 |
2025 |
2026 |
2025 |
| Electricity generation (Gigawatt hours) 2 |
14,485 |
13,374 |
36,090 |
31,951 |
| Generation facility availability (%) 3 |
93 |
93 |
91 |
92 |
| Revenues and other income |
831 |
1,213 |
2,776 |
2,642 |
| Net income |
67 |
153 |
39 |
172 |
| Net income attributable to shareholders of the Company |
67 |
154 |
38 |
173 |
| Basic earnings per share ($) |
0.37 |
0.94 |
0.09 |
1.02 |
| Diluted earnings per share ($) 4 |
0.37 |
0.94 |
0.09 |
1.01 |
| Adjusted EBITDA 5 |
553 |
477 |
1,308 |
1,166 |
| AFFO 5 |
306 |
369 |
788 |
822 |
| AFFO per share ($) 5 |
1.94 |
2.37 |
5.03 |
5.53 |
| Net cash flows from operating activities |
381 |
404 |
907 |
757 |
| Purchase of property, plant and equipment and other assets, net |
167 |
147 |
642 |
576 |
| Dividends per common share, declared ($) |
0.7048 |
0.6910 |
2.0868 |
1.9948 |
- The operational and financial highlights in this press release should be read in conjunction with the Management’s Discussion and Analysis (MD&A) and the unaudited condensed interim financial statements for the nine months ended September 30, 2026.
- Gigawatt hours (GWh) of electricity generation reflects the Company’s share of facility output and includes GWh discharged from BESS.
- 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.
- Diluted earnings per share was calculated after giving effect to outstanding share purchase options.
- 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.
Revenues and other income decreased quarter-over-quarter due to unfavourable changes in unrealized fair value on commodity derivatives and emission credits, primarily in the U.S. flexible generation segment. Excluding these non-cash fair value changes, revenues and other income increased, driven by higher contributions from the U.S. flexible generation segment, where stronger PJM pricing and summer demand at Hummel Station and Rolling Hills and higher contracted revenues at Arlington Valley more than offset less favourable hedge settlements at La Paloma.
Adjusted EBITDA increased quarter-over-quarter primarily due to:
- higher contributions from the Hummel Station and Rolling Hills facilities acquired in June 2025, reflecting stronger PJM power prices and summer demand in the third quarter and a full nine months of operations in 2026,
- higher results in the Canada flexible generation segment, as favourable portfolio optimization, higher generation and pricing at Goreway, and contributions from the Ontario BESS projects that commenced operations in September 2025 more than offset the impact of lower Alberta spot power prices and lower generation,
- partially offset by a lower contribution from La Paloma, where the financial hedges entered into following its acquisition settled less favourably than in 2025.
AFFO was $306 million and $788 million for the three and nine months ended September 30, 2026, respectively, compared with $369 million and $822 million in the corresponding periods in 2025. Despite higher adjusted EBITDA, as described above, AFFO for both the quarter and year-to-date periods was impacted by the following:
- higher sustaining capital expenditures, primarily reflecting the heavy maintenance schedule for the Alberta fleet, rotor replacements at Rolling Hills and Harquahala, and a full year of planned maintenance at Hummel Station and Rolling Hills,
- higher net finance expense,
- current income tax expense of $35 million and $65 million for the three and nine months ended September 30, 2026, respectively, compared with income tax recoveries of $16 million and $72 million in the corresponding periods of 2025, reflecting higher taxable income due to lower tax depreciation, and
- the non-cash straight-line recognition of capacity payments under the Arlington Valley summer tolling agreement, which contributed favourably to adjusted EBITDA, and which did not affect AFFO,
- the year-to-date impacts were partially offset by the recognition of $174 million in Clean Technology ITCs for eligible Canadian renewables projects in the second quarter of 2026.
Analyst conference call and webcast
Capital Power will be hosting a conference call and live webcast with analysts on November 2, 2026 at 9:00 a.m. ABT (8:00 a.m. MT / 10:00 a.m. ET) to discuss the third quarter financial results. The webcast can be accessed at: https://edge.media-server.com/mmc/p/z44y8ypg/. Conference call details will be sent directly to analysts.
An archive of the webcast will be available on the Company’s website at www.capitalpower.com following the conclusion of the analyst conference call.
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 equity-accounted investments, acquisition and integration costs, and other items that are not reflective of the Company’s facility operating performance (adjusted EBITDA), and (ii) adjusted funds from operations (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.
Adjusted EBITDA
Capital Power uses adjusted EBITDA to measure the operating performance of facilities and categories of facilities from period to period. Management believes that a measure of facility operating performance is more meaningful if results not related to facility operations are excluded from the adjusted EBITDA measure such as impairments, foreign exchange gains or losses, gains or losses on disposals and other transactions, unrealized changes in fair value of commodity derivatives and emission credits, acquisition and integration costs, and other items that are not reflective of the long-term performance of the Company’s underlying operations.
A reconciliation of adjusted EBITDA to net income is as follows:
| ($ millions) |
Three months ended
September 30, |
Nine months ended
September 30, |
| |
2026 |
|
2025 |
|
2026 |
2025 |
|
| Net income |
67 |
|
153 |
|
39 |
172 |
|
| Depreciation and amortization |
207 |
|
157 |
|
555 |
421 |
|
| Unrealized changes in fair value of commodity derivatives and emission credits |
89 |
|
(13 |
) |
238 |
176 |
|
| Foreign exchange (gain) loss |
(2 |
) |
7 |
|
20 |
(16 |
) |
| Net finance expense |
95 |
|
92 |
|
282 |
217 |
|
| Acquisition and integration costs |
– |
|
4 |
|
– |
41 |
|
| Loss on disposals and other transactions |
17 |
|
5 |
|
17 |
12 |
|
| Other items1 |
45 |
|
37 |
|
142 |
110 |
|
| Other non-recurring items2 |
(2 |
) |
– |
|
– |
4 |
|
| Income tax expense |
37 |
|
35 |
|
15 |
29 |
|
| Adjusted EBITDA |
553 |
|
477 |
|
1,308 |
1,166 |
|
- Includes finance expense, depreciation expense and unrealized changes in fair value of derivative instruments from equity-accounted investments.
- For the three and nine months ended September 30, 2026, other non-recurring items reflect a partial reimbursement for a provision assumed in the acquisition of Hummel Station, LLC, related to overpayments to FERC and legal fees related to a dispute with a contractor regarding construction work on the Genesee Repowering project. The nine months ended September 30, 2025 reflects costs related to the end-of-life of Genesee coal operations.
AFFO and AFFO per share
AFFO and AFFO per share are measures of our ability to generate cash from our operating activities to fund growth capital expenditures, repayment of debt, and payment of common share dividends.
The Company’s AFFO definition includes government grants related to off-coal compensation to be received annually to 2030. During the second quarter of 2026, the Company updated the composition of AFFO and AFFO per share to reflect the introduction of similar government grants where cash grants form part of the operating returns on qualifying capital investment and support the Company’s cash generation and liquidity profile. As a result, AFFO and AFFO per share now include Clean Technology ITCs associated with eligible Canadian renewables projects.
The Company has included $174 million in government grants related to Clean Technology ITCs, representing approximately 30% of eligible Canadian renewables project costs. These amounts are included in AFFO and AFFO per share in the period in which the required filing with the applicable tax authority is completed, rather than when cash is received to eliminate timing variability associated with administrative processing. While Capital Power expects amounts ultimately received to be consistent with amounts filed, actual receipts may differ. The amendment did not impact previously reported AFFO or AFFO per share amounts.
AFFO represents net cash flows from operating activities adjusted to:
- exclude timing impacts of cash receipts and payments that may impact period-to-period comparability by including deductions for net finance expense and current income tax expense, and excluding deductions for interest paid, deductions for income taxes paid and changes in operating working capital,
- include our share of AFFO of equity-accounted investments and exclude distributions received from our equity-accounted investments which are calculated after the effect of non-operating activity equity-accounted investments debt payments,
- include government grants which represent a portion of operating returns on capital investment recognized in the period that they are either contractually obligated to be received by Capital Power or the period in which Capital Power has completed the necessary filing with the applicable tax authority to eliminate timing uncertainty due to administrative filing processes,
- exclude the tax equity financing project investors’ shares of AFFO associated with assets under tax equity financing structures so only Capital Power’s share is reflected in the overall metric,
- deduct sustaining capital expenditures and preferred share dividends,
- exclude the impact of fair value changes in certain unsettled derivative financial instruments that are charged or credited to our bank margin account held with a specific exchange counterparty,
- exclude acquisition and integration costs, and
- exclude other typically non-recurring items affecting cash flows from operating activities that are not reflective of the long-term performance of the Company’s underlying business.
A reconciliation of net cash flows from operating activities to AFFO is as follows:
| ($ millions except per share amounts) |
Three months ended
September 30, |
Nine months ended
September 30, |
| |
2026 |
|
2025 |
|
2026 |
|
2025 |
|
| Net cash flows from operating activities |
381 |
|
404 |
|
907 |
|
757 |
|
| Add (deduct): |
|
|
|
|
| Interest paid |
95 |
|
87 |
|
254 |
|
202 |
|
| Change in fair value of derivatives reflected as cash settlement |
4 |
|
— |
|
10 |
|
7 |
|
| Realized gain on settlement of interest rate derivatives |
(12 |
) |
— |
|
(12 |
) |
(17 |
) |
| Distributions received from equity-accounted investments |
(7 |
) |
(9 |
) |
(72 |
) |
(47 |
) |
| Miscellaneous financing charges1 |
4 |
|
4 |
|
11 |
|
(2 |
) |
| Income taxes recovered |
(12 |
) |
(11 |
) |
(12 |
) |
(14 |
) |
| Change in non-cash operating working capital |
(26 |
) |
(77 |
) |
(39 |
) |
(23 |
) |
| |
46 |
|
(6 |
) |
140 |
|
106 |
|
| Net finance expense 2 |
(87 |
) |
(81 |
) |
(258 |
) |
(192 |
) |
| Current income tax (expense) recovery 3 |
(35 |
) |
16 |
|
(65 |
) |
72 |
|
| Sustaining capital expenditures 4 |
(87 |
) |
(44 |
) |
(232 |
) |
(85 |
) |
| Preferred share dividends paid |
(7 |
) |
(7 |
) |
(22 |
) |
(20 |
) |
| Government grants 5 |
50 |
|
50 |
|
224 |
|
60 |
|
| Remove tax equity interests’ respective shares of AFFO |
1 |
|
(1 |
) |
— |
|
(4 |
) |
| AFFO from equity-accounted investments |
43 |
|
38 |
|
98 |
|
101 |
|
| Acquisition and integration costs 6 |
— |
|
3 |
|
(1 |
) |
41 |
|
| Other non-recurring items 7 |
1 |
|
(3 |
) |
(3 |
) |
(14 |
) |
| AFFO |
306 |
|
369 |
|
788 |
|
822 |
|
| Weighted average number of common shares outstanding (millions) |
157.4 |
|
155.3 |
|
156.8 |
|
148.6 |
|
| AFFO per share ($) |
1.94 |
|
2.37 |
|
5.03 |
|
5.53 |
|
- Included in other cash items on the condensed interim consolidated statements of cash flows to reconcile net income to net cash flows from operating activities.
- Excludes unrealized changes on interest rate derivative contracts, amortization, accretion charges, and non-cash implicit interest on tax equity investment structures.
- For the three and nine months ended September 30, 2025, excludes current income tax expense related to the partial divestiture of Quality Wind and Port Dover and Nanticoke Wind in 2024 as the amount is classified as an investing activity.
- Sustaining capital expenditures net of partner contributions of $1 million and $10 million for the three and nine months ended September 30, 2026, respectively, compared with $2 million and $8 million for the three and nine months ended September 30, 2025.
- For the nine months ended September 30, 2026, reflects recognition of $174 million in Clean Technology ITCs filed with the applicable tax authority, representing approximately 30% of eligible Canadian renewables project costs. For the three and nine months ended September 30, 2026 and September 30, 2025, reflects payments received from the Government of Alberta for the settlement of previously disputed off-coal compensation payments as described in the Company’s 2025 annual consolidated financial statements.
- For the nine months ended September 30, 2026, current income tax recoveries of $1 million related to prior period acquisition and integration costs. For the three and nine months ended September 30, 2025, net of current income tax recoveries of $1 million and $2 million.
- For the three months ended September 30, 2026, other non-recurring items included $3 million of legal costs related to a contractor dispute concerning construction work at the Genesee Repowering project, offset by a $5 million recovery from the settlement of the FERC reactive supply and voltage control service overpayment provision and current income tax expense of $3 million. For the nine months ended September 30, 2026, other non-recurring items included $5 million of legal costs related to a contractor dispute at the Genesee Repowering project, offset by a $5 million recovery from the settlement of the FERC reactive supply and voltage control service overpayment provision and current income tax recoveries of $3 million associated with non-recurring items recognized in prior periods. For the three months ended September 30, 2025, other non-recurring items reflect costs related to the termination of the Halkirk 2 Wind virtual power purchase agreement (VPPA) of $5 million, net of current income tax recoveries of $8 million related to other non-recurring items recognized in the current and prior periods. For the nine months ended September 30, 2025, other non-recurring items reflect costs related to the termination of the Halkirk 2 Wind VPPA and end-of-life of Genesee coal operations of $5 million each, net of current income tax recoveries of $24 million related to other non-recurring items recognized in the current and prior periods.
Forward-looking information
Forward-looking information or statements (collectively, “forward-looking information”) included in this press release are provided to inform our shareholders, potential investors and other stakeholders about management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this press release is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes.
Material forward-looking information in this press release includes, among other things, expectations regarding:
- our 2026 adjusted EBITDA and revised sustaining capital expenditures targets, and
- recoverability of insurance proceeds for submitted claims.
These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate including its review of purchased businesses and assets. The material factors and assumptions used to develop this forward-looking information relate to:
- electricity and other energy (including natural gas) and carbon prices,
- the Company’s performance,
- the Company’s business prospects (including potential re-contracting of facilities) and opportunities including expected growth and capital projects,
- the energy needs of certain jurisdictions,
- the status and impact of policy, legislation and regulations,
- effective tax rates,
- the development and performance of technology,
- the outcome of claims and disputes,
- foreign exchange rates, and
- other matters discussed under the Performance Outlook and Risks and Risk Management sections of the MD&A.
Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from our expectations. Such material risks and uncertainties include:
- Meta’s completion of a data centre as contemplated in the ESA,
- changes in electricity, natural gas and carbon prices in markets in which we operate and the use of derivatives,
- regulatory and political environments including changes to environmental, climate, financial reporting, market structure and tax legislation,
- disruptions, or price volatility within our supply chains,
- generation facility availability, wind capacity factor and performance including maintenance expenditures,
- ability to fund current and future capital and working capital needs,
- acquisitions and developments including timing and costs of regulatory approvals and construction,
- changes in market prices and the availability of fuel,
- ability to realize the anticipated benefits of acquisitions,
- limitations inherent in our review of acquired assets,
- changes in general economic and competitive conditions, including inflation and recession,
- changes in the performance and cost of technologies and the development of new technologies, new energy efficient products, services and programs, and
- risks and uncertainties discussed under the Risks and Risk Management section of the MD&A.
See Risks and Risk Management in our 2025 Integrated Annual Report, for further discussion of these and other risks.
Readers are cautioned not to place undue reliance on any such forward-looking information, which speak only as of the date made and that other events or circumstances, although not listed above, could cause Capital Power’s actual results to differ materially from those estimated or projected and expressed in, or implied by the forward-looking information. Capital Power does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking information to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
About Capital Power
Capital Power is one of North America’s leading independent power producers, with approximately 12 GW of generation capacity across 35 facilities. Our portfolio includes natural gas, renewables, and battery energy storage solutions. We deliver power generation at utility-scale through a flexible and resilient fleet built to meet growing electricity demand. Backed by an investment-grade credit rating, we provide safe, reliable power communities can depend on.
For more information, please contact:
1 AFFO and adjusted EBITDA are non-GAAP financial measures. See Non-GAAP Financial Measures and Ratios.
