Capital Power (CPX) investor relations material

Executive summary

• Closed the largest U.S. acquisition, adding 2.2 GW and expanding total capacity to 12 GW, transforming the business and increasing U.S. flexible generation to 60%.

• Achieved commercial operation on a 40MW Goreway uprate, extended contract to 2035, and advanced 310MW of Ontario projects and two North Carolina solar projects.

• Delivered 9 TWh of power in Q2 2025, with portfolio now spanning five core markets and reducing single-market exposure.

• Maintained investment grade credit ratings and positioned as the 5th largest North American gas-focused IPP.

• Increased annual dividend by 6% for the 12th consecutive year.

Financial highlights

• Q2 2025 adjusted EBITDA was $322M (flat year-over-year); AFFO was $235M, up $57M; revenues ranged from $441M to $769M due to acquisition timing.

• H1 2025 adjusted EBITDA was $689M, up $77M; AFFO totaled $453M, up $126M.

• Net cash flows from operating activities were $143M in Q2 2025.

• Dividend increased by 6%, maintaining payout and leverage guardrails.

• Net loss of $(131)M in Q2 2025, compared to net income of $76M in Q2 2024, mainly due to unrealized derivative losses.

Outlook and guidance

• 2025 adjusted EBITDA guidance raised to $1.5B–$1.65B; AFFO guidance increased to $950M–$1.1B; sustaining capital forecasted at $215M–$245M.

• Dividend payout ratio targeted at 30–50%, with 6% CAGR for dividends and 7% for AFFO per share (2020–2025).

• Integration of Hummel and Rolling Hills is a key priority for 2025.

• Guidance reflects nearly seven months of PJM asset contributions and stable to rising power prices in key markets.

• Board approved a 6% dividend increase for 2025, with targeted long-term dividend growth of 2–4% after 2025.