PowerBank (NASDAQ:PBK) reported lower fiscal 2026 revenue as reduced engineering, procurement and construction, or EPC, services and development-fee revenue outweighed growth in recurring independent power producer, or IPP, production revenue.
For the year ended June 30, 2026, revenue totaled CAD 27.4 million, down 34% from CAD 41.5 million in fiscal 2025. CFO Nicole Rusaw said the decline primarily reflected lower EPC services and development-fee revenue.
Shift Toward Owned Renewable Assets
Rusaw characterized the company’s recent financial results as reflecting a transition away from a model driven primarily by development and EPC activities toward a more diversified platform with a growing base of owned IPP and battery energy storage system, or BESS, assets.
“This transition has resulted in lower EPC and development revenue in the near term, while increasing recurring IPP production revenue and significantly expanding the company’s asset base and related project financing,” Rusaw said.
Gross margin improved to about 35% in fiscal 2026, from 25% in fiscal 2025 and 20% in fiscal 2024.
However, the company’s adjusted EBITDA loss widened. PowerBank reported an adjusted EBITDA loss, a non-IFRS measure, of CAD 3.5 million for fiscal 2026, compared with a loss of CAD 846,000 in fiscal 2025. Rusaw attributed the increase in the loss primarily to lower gross profit from EPC services and higher underlying operating expenses.
Net loss narrowed to CAD 24.3 million, or CAD 0.58 per share, from a net loss of CAD 31.1 million, or CAD 0.97 per share, in fiscal 2025. The prior-year loss included a CAD 30.4 million non-cash impairment loss related to the SFF, OFIT GM and OFIT RT cash-generating units, according to Rusaw.
Balance Sheet and Cash Flow
Net cash used in operating activities was CAD 12.8 million during fiscal 2026, compared with CAD 17.3 million in the prior year. The lower use of operating cash reflected a smaller net loss and a lower use of cash from changes in non-cash operating assets and liabilities, Rusaw said.
As of June 30, PowerBank had current assets of CAD 40.9 million and current liabilities of CAD 39.4 million, resulting in working capital of CAD 1.6 million. Cash, restricted cash and short-term investments totaled about CAD 18 million, up from CAD 14.2 million at the end of fiscal 2025. The company said a portion of that balance was restricted under credit agreements assumed in its Solar Flow-Through Funds Ltd. acquisition.
Long-term debt stood at CAD 65.4 million, increasing approximately CAD 2.4 million year over year due to drawdowns on RBC financing for BESS projects.
Project Progress and Tax-Credit Eligibility
CEO Richard Lu said PowerBank continued to advance development and construction activities across its North American solar and storage portfolio. All three community solar projects in Nova Scotia secured interconnection agreements, advancing a 12.4-megawatt pipeline in the province.
The company also announced three new battery-storage projects in Upstate New York in May, adding 60 megawatt-hours to its BESS portfolio. Over the summer, all three community solar projects and a 21-megawatt Upstate New York project entered commercial operation, according to Lu.
Lu said PowerBank procured equipment and began physical work for eight distributed solar and energy-storage projects in New York before the July 4, 2026 deadline under the One Big Beautiful Bill Act. The actions positioned the projects to remain eligible for U.S. federal investment tax credits, he said.
- Estimated investment tax credit value for the safe-harbored projects: approximately CAD 30 million.
- Estimated portfolio construction value: approximately CAD 74 million.
- Total development pipeline: approximately 200 megawatts and 756 megawatt-hours.
- Projects under construction: 15.5 megawatts.
- Projects in advanced development: 130 megawatts across solar photovoltaic and battery storage.
Ontario Operations and AI Infrastructure Initiative
PowerBank’s SFF 06 battery-storage project in Ontario reached commercial operation on April 20, 2026, Lu said. He called the project a significant milestone that adds recurring IPP revenue under a long-term contract with Ontario’s Independent Electricity System Operator.
The timing for the company’s remaining two Ontario projects remains dependent on permitting processes, according to Lu.
In June, PowerBank announced a joint development agreement with Nodiac Corp. to use the company’s solar and battery-storage sites across North America for distributed artificial-intelligence computing infrastructure. Lu said the company is also examining opportunities to co-locate modular edge data centers with solar and battery sites in Canada and the United States as power demand increases.
Separately, PowerBank was awarded a CAD 2.95 million federal contract involving the U.S. Department of Defense and Department of the Army for covered parking-canopy solar projects.
About PowerBank (NASDAQ:PBK)
PowerBank Corporation (NASDAQ: PBK) is a renewable energy company that develops, constructs, owns and operates solar power and energy-storage projects. Its activities include distributed-generation and community-solar projects designed to supply electricity to residential, commercial and utility customers.
The company’s project portfolio has included solar installations and related energy-storage assets in the United States and Canada. PowerBank is involved throughout the project lifecycle, including site development, permitting, engineering, procurement, construction management, financing and ongoing asset operations.
The company was previously known as SolarBank Corporation and is headquartered in Toronto, Canada.
