Capital Power (TSE:CPX) Posts Quarterly Earnings Results

Capital Power (TSE:CPX) announced its quarterly earnings data on Wednesday. The company reported C($0.13) earnings per share (EPS) for the quarter, reports. Capital Power had a net margin of 13.71% and a return on equity of 8.64%. The firm had revenue of C$1.06 billion during the quarter.

Here are the key takeaways from Capital Power’s conference call:

• Acquisitions and generation growth: Capital Power closed a PJM acquisition adding 2.2 GW, produced a record 45 TWh in 2025 (52% from the U.S.), materially diversifying its portfolio and increasing exposure to U.S. flexible generation.
• Commercial wins and recontracting roadmap: Management highlighted major recontracts — MCV extended to 2040 expected to add ~CAD 100M in annual adjusted EBITDA and Arlington Valley extended to 2038 with pricing reset ~+140% — and said multiple additional recontracting opportunities are being pursued.
• Strong cash metrics: 2025 adjusted EBITDA rose to CAD 1.58B (+18%) and AFFO to CAD 1.07B (+29%), with management saying underlying cash generation supports the dividend and they reaffirmed 2026 guidance and their 2030 targets.
• Planned sustaining capital is higher in 2026 (described as deliberate to maintain reliability and extend asset life); funding growth led to increased borrowings and higher finance expense, which could weigh on near‑term cash but is presented as long‑term investment.
• Reported net income declined versus 2024 due to non‑cash unrealized fair‑value losses, higher depreciation/amortization and absence of prior divestiture gains, though management stressed cash strength; the company also named Kevin MacIntosh as incoming CFO to lead finance execution.

Capital Power Trading Down 2.0%

Shares of TSE:CPX traded down C$1.25 during mid-day trading on Friday, reaching C$61.67. 93,467 shares of the company’s stock were exchanged, compared to its average volume of 833,484. The company has a debt-to-equity ratio of 136.06, a quick ratio of 0.55 and a current ratio of 0.74. Capital Power has a twelve month low of C$41.87 and a twelve month high of C$73.80. The firm has a market capitalization of C$9.60 billion, a price-to-earnings ratio of 22.18, a PEG ratio of 0.91 and a beta of 0.65. The business’s fifty day moving average price is C$60.33 and its 200-day moving average price is C$62.67.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. National Bank Financial set a C$74.00 target price on Capital Power and gave the company an “outperform” rating in a report on Wednesday, December 17th. Canadian Imperial Bank of Commerce raised their price objective on Capital Power from C$81.00 to C$82.00 in a research note on Wednesday, January 21st. Desjardins lifted their target price on Capital Power from C$80.00 to C$82.00 and gave the company a “buy” rating in a research report on Thursday, January 8th. BMO Capital Markets dropped their target price on shares of Capital Power from C$79.00 to C$78.00 and set an “outperform” rating for the company in a report on Thursday, December 11th. Finally, ATB Cormark Capital Markets set a C$75.00 price target on shares of Capital Power and gave the company an “outperform” rating in a research note on Tuesday, December 23rd. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, Capital Power has an average rating of “Moderate Buy” and an average target price of C$76.56.

About Capital Power

Capital Power (TSX: CPX) is a growth-oriented power producer with approximately 12 GW of power generation at 32 facilities, plus battery energy storage across North America. We prioritize safely delivering reliable and affordable power communities can depend on, building lower-carbon power systems, and creating balanced solutions for our energy future.