Canada's Northland Power Q4 revenue beats expectations on higher international production

Overview

• Canada power producer's Q4 revenue rose, beating analyst expectations

• Quarterly adjusted EBITDA beat estimates, driven by record wind production across German offshore assets

• Company introduced new strategy targeting to double gross operating capacity by 2030

Outlook

• Northland Power expects 2026 adjusted EBITDA of C$1.45 bln - C$1.65 bln

• Company anticipates 2026 free cash flow of C$1.05 - C$1.25 per share

• Northland Power targets doubling operating capacity to 7 GW by 2030

Result Drivers

• RECORD WIND PRODUCTION - Record high wind production in German offshore wind assets boosted Q4 results

• CONSTRUCTION PROGRESS - Continued advancement on Baltic Power and Hai Long offshore wind projects, expected to drive future growth

• BATTERY STORAGE EXPANSION - Expanded battery energy storage system pipeline with new projects in Poland

Company press release: ID:nGNEbMM7cT

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the independent power producers peer group is "buy"

• Wall Street's median 12-month price target for Northland Power Inc (Ontario) is C$23.00, about 14.9% above its February 25 closing price of C$20.02

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

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