Capital Power (CPX) Q2 2026 earnings summary

Executive summary

• Secured a 250 MW, 10+ year energy supply agreement with Meta, enhancing contracted cash flow and supporting a new Alberta data centre expected in service in late 2028, with no capital investment required.

• Strong Q2 results driven by demand capture, commercial optimization, disciplined capital allocation, and U.S. acquisitions.

• Embedded growth potential highlighted by portfolio diversification, ongoing optimization, and major U.S. and Canadian project advancements.

• Continued focus on risk-adjusted returns, cash flow growth, and a growing dividend, with a 2% increase marking 13 consecutive years of growth.

• Net loss for Q2 was $43 million, a significant improvement from a $131 million loss in Q2 2025.

Financial highlights

• Q2 adjusted EBITDA was $351 million, up $29 million year-over-year, mainly from the expanded PJM portfolio and U.S. acquisitions.

• AFFO reached $328 million in Q2, up $93 million, aided by Clean Tech ITC government grants and acquisitions.

• Q2 revenues and other income rose to $740 million from $441 million in Q2 2025, with YTD at $1,945 million, up $516 million.

• Net cash flows from operating activities were $214 million in Q2, up $71 million year-over-year.

• Portfolio generated 10.1 TWh in Q2, up 12% year-over-year, with 60% from the U.S. fleet.

Outlook and guidance

• 2026 guidance reaffirmed: adjusted EBITDA of $1,565–$1,765 million, AFFO of $890–$1,010 million, sustaining capital of $290–$330 million.

• Embedded annual adjusted EBITDA upside estimate increased to $1.25 billion, with $400–$550 million from contracted upside and $375–$700 million from merchant upside.

• 2030 targets include 8–10% AFFO/share CAGR, 13–15% annual TSR, and 3.5 GW additional U.S. capacity.

• Ongoing focus on portfolio optimization, data centre-driven growth, and renewables expansion.