Capital Power (CPX) Q2 2025 earnings summary

Executive summary

• Closed the largest acquisition in company history, adding 2.2 GW of capacity through the $3.0 billion purchase of Hummel and Rolling Hills, expanding into PJM and increasing U.S. flexible generation to 60% of the portfolio.

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

• Delivered 9 TWh of power in Q2 2025, with significant contributions from newly acquired U.S. assets, and completed 62% of scheduled outage days.

• Portfolio now spans five core markets and totals 12 GW of capacity, reducing single-market exposure and enhancing cash flow stability.

• Maintained investment-grade credit ratings and increased the annual dividend by 6% for the 12th consecutive year.

Financial highlights

• Q2 2025 adjusted EBITDA was $322 million (flat year-over-year), with AFFO at $235 million (up $57 million), and revenues of $769 million (up $64 million); H1 2025 adjusted EBITDA was $689 million and AFFO $454 million.

• Net cash flows from operating activities were $143 million in Q2 2025, and $353 million for six months.

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

• Basic and diluted EPS for Q2 2025 was $(0.92), and $0.03 for six months.

• Facility availability reached 93% in Q2 2025, up from 91% in Q2 2024.

Outlook and guidance

• 2025 adjusted EBITDA guidance raised to $1,500–$1,650 million, AFFO to $950–$1,100 million, and sustaining capital to $215–$245 million, reflecting PJM asset contributions.

• Dividend payout ratio targeted at 30–50%, with a 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 for 2025–2027 anticipates 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.