Northland Power (NPI) Q2 2025 earnings summary

Executive summary

• Achieved major construction milestones, including early completion and operation of the 250 MW Oneida battery storage project, now Canada's largest storage facility, with commercial operations ahead of schedule and under budget.

• Hai Long offshore wind project in Taiwan achieved first power and is on track for full commercial operation by 2027; Baltic Power in Poland installed its first turbine and remains on schedule for 2026.

• Strategic focus sharpened on core markets in Canada and Europe, with selective pipeline adjustments and withdrawal from a South Korean offshore wind project.

• Operational fleet availability exceeded 95% in the quarter, with strong reliability in onshore and natural gas assets.

Financial highlights

• Adjusted EBITDA for Q2 2025 was CAD 245 million, down 9% year-over-year, mainly due to low offshore wind resources and higher curtailments in Germany.

• Free cash flow was CAD 58 million, a 15% decrease from Q2 2024; per-share free cash flow was CAD 0.22 versus CAD 0.27 last year.

• Net loss for the quarter was CAD 53 million, compared to net income of CAD 246 million in Q2 2024, driven by lower operating income and non-cash mark-to-market losses on FX hedges.

• Revenue from energy sales was $509 million, down from $529 million in the same quarter last year.

• Cash provided by operating activities increased to $451 million from $171 million year-over-year.

Outlook and guidance

• Full-year adjusted EBITDA guidance revised to CAD 1.2–1.3 billion (previously CAD 1.3–1.4 billion) due to lower offshore wind resource and scheduled grid outage at DeBu.

• Free cash flow per share guidance lowered to CAD 1.15–1.35 (from CAD 1.30–1.50).

• Guidance includes positive impact from a German tax ruling.

• Continued focus on high-probability, high-value projects in core markets, with further updates expected at the upcoming Investor Day.