PowerBank (SUNN) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 marked a strategic shift to asset ownership and recurring IPP revenue, with revenue at CAD 41.5 million, down 29% year-over-year.

• Gross margin improved by 5 percentage points to 25%, driven by a higher share of high-margin IPP revenue.

• IPP revenue surged to CAD 9.3 million, up 1,508% year-over-year, mainly due to the Solar Flow-Through Fund acquisition.

• Net loss widened to CAD 31.1 million (CAD 0.97 per share), mainly from non-cash impairment losses and acquisition costs.

• Asset base increased by 250% to CAD 138 million, and cash position rose to CAD 15 million, up 140% year-over-year.

Financial highlights

• Total revenue declined 29% year-over-year to CAD 41.5 million.

• IPP revenues surged 1,508% to CAD 9.3 million, while EPC services revenue dropped 57% to CAD 23.3 million.

• Gross margin rose to 25% from 20% last year, with IPP gross margin including CAD 2.8 million in depreciation.

• Operating expenses increased to CAD 49.6 million, mainly due to CAD 30.4 million in impairment losses and CAD 3.5 million in acquisition-related costs.

• Adjusted EBITDA was (CAD 0.68) million, down from CAD 0.82 million in the prior year.

Outlook and guidance

• IPP revenue expected to provide a stable CAD 10 million annually for the next 15 years, with upside from new projects and renewals.

• Focus on accelerating U.S. development to qualify for full ITC treatment and leveraging Canadian operations for policy resilience.

• Significant pipeline of solar and battery projects positioned to benefit from U.S. tax credits and market demand through 2030.

• Continued expansion into data center power supply and digital asset ventures, with near-term focus on distributed and behind-the-meter solutions.

• Ongoing deployment of battery storage in Ontario and expansion in Nova Scotia's Community Solar program.