Capital Power (TSE:CPX) Issues Earnings Results

Capital Power (TSE:CPX) released its quarterly earnings results on Monday. The company reported C$0.37 EPS for the quarter, FiscalAI reports. Capital Power had a net margin of 3.05% and a return on equity of 2.31%. The business had revenue of C$806.00 million during the quarter.

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

• Record adjusted EBITDA reached CAD 553 million in Q3, up CAD 76 million year over year, driven by stronger PJM power prices and summer demand at Hummel Station and Rolling Hills, as well as improved Canadian flexible-generation results.
• AFFO fell to CAD 306 million from CAD 369 million a year earlier despite higher EBITDA, reflecting increased sustaining capital, finance costs and taxes. The 2026 sustaining-capital forecast was raised to CAD 350–370 million from CAD 290–330 million, although management expects insurance recoveries and OEM concessions to offset much of the impact.
• Management identified up to CAD 1.25 billion of annual adjusted EBITDA upside from re-contracting, uprates and merchant exposure across Alberta and PJM, with most of the value expected to be captured by 2030 and requiring limited capital and no new equity or project debt.
• Capital Power reaffirmed its 2026 adjusted EBITDA guidance of CAD 1.565–1.765 billion and AFFO guidance of CAD 890 million–1.010 billion, while raising its dividend 2% for a 13th consecutive annual increase.
• Management expects M&A activity to remain subdued in 2026 but potentially become more active in 2027, with a sharper focus on single-plant opportunities in PJM, MISO and WECC that offer embedded growth. It also sees expanding development potential at existing sites such as Genesee, though Alberta’s Phase 2 regulatory framework and turbine availability remain timing uncertainties.

Capital Power Price Performance

Shares of TSE CPX opened at C$63.41 on Tuesday. Capital Power has a fifty-two week low of C$56.48 and a fifty-two week high of C$77.02. The company has a market cap of C$9.96 billion, a PE ratio of 111.25, a P/E/G ratio of 0.91 and a beta of 0.60. The company has a debt-to-equity ratio of 150.64, a quick ratio of 0.55 and a current ratio of 0.80. The business has a 50-day simple moving average of C$62.70 and a two-hundred day simple moving average of C$65.38.

Analyst Ratings Changes

A number of brokerages have recently issued reports on CPX. Royal Bank Of Canada set a C$80.00 price objective on shares of Capital Power and gave the stock an “outperform” rating in a research report on Thursday, September 17th. Wells Fargo & Company increased their target price on shares of Capital Power from C$72.00 to C$75.00 and gave the company an “equal weight” rating in a research report on Monday, July 27th. Scotiabank lowered their target price on shares of Capital Power from C$80.00 to C$79.00 and set a “sector outperform” rating for the company in a research note on Thursday, July 30th. TD set a C$80.00 price target on shares of Capital Power and gave the stock a “buy” rating in a report on Thursday, September 17th. Finally, BMO Capital Markets reduced their price target on Capital Power from C$85.00 to C$81.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Buy” and an average target price of C$80.00.

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.