Strategic highlights
Executed a new long-term contract for Midland Cogeneration Venture (MCV)2 through to 2040, with improved economic terms, adding 10 years of incremental contracted revenue
Commissioned 170 MW of battery storage in Ontario contracted through to 2047
MCV entered into a term sheet with a leading colocation data centre developer for the potential development of a 250 MW data centre adjacent to the facility. The proposed project is subject to due diligence, execution of definitive agreements, and the requisite regulatory approvals
Financial highlights
Generated AFFO of $369 million and net cash flows from operating activities of $404 million
Generated adjusted EBITDA of $477 million and net income of $153 million
Negotiated a two-year, $600 million revolving credit facility maturing in 2027
On October 29, 2025, Sandra Haskins, SVP Finance & CFO announced her plans to retire from her role on December 31, 2025 after a 23-year tenure. Sandra has played a pivotal role in shaping the strategic direction and successful growth of Capital Power. Scott Manson, Chief Accounting Officer, & Treasurer will transition to Interim SVP Finance & CFO. A search for a new SVP Finance & CFO is underway, and a successor will be announced in due course. Sandra will support a smooth leadership transition by remaining in an advisory capacity until the end of Q1 2026.
"Our third quarter results reflect the continued execution of our strategy to strengthen our U.S. platform and expand our contracted cash flows," said Avik Dey, President and Chief Executive Officer. "The MCV contract is a prime example of the critical role natural gas will continue to play in meeting the needs of grids. With scale, diversification, and unmatched operational and commercial excellence and a surging demand for reliable power, we are well positioned to deliver sustained value for shareholders."
"Capital Power delivered multiple projects through to 2040 and beyond in the third quarter, demonstrating our strong execution on high-value growth opportunities and financial discipline. Our established track record of securing and delivering long-term partnership contracts enhances cash flow stability, which we only expect to continue. Additionally, our two Ontario battery storage assets further strengthens our balance sheet and the new $600 million credit facility enhances our liquidity," said Sandra Haskins, Senior Vice President, Finance and Chief Financial Officer. "These actions reinforce our commitment to stable, contracted cash flows and long-term value creation for shareholders."
"On behalf of the entire executive team and Board of Directors, I also want to express our gratitude to Sandra Haskins for her exceptional service and dedication over the past 23 years," continued Avik Dey. "Sandra has been instrumental in driving our company forward, building a strong culture, and delivering outstanding results. While we will greatly miss her leadership, we wish Sandra only the best in this well-deserved next chapter ahead."
1
References to flexible generation are defined as natural gas generation assets and energy storage
2
Jointly owned with 50% working interest with Manulife Investment Management
Reaffirming 2025 Guidance
Capital Power is reaffirming revised guidance ranges across Adjusted EBITDA, AFFO and Sustaining Capital for 2025 despite updates to planned outages and delays on Alberta projects.
To ensure portfolio reliability, and best position the assets to capitalize on stronger market fundamentals beyond 2026, our updated Alberta maintenance schedule is planned as follows:
Genesee 3 (G3) unit is advancing its planned outage to Q4 2025. This strategic decision ensures that G3 is fully available in 2026 to provide system support and mitigate the impact of concurrent outages elsewhere in the fleet.
The recently commissioned Genesee 1 (G1) and Genesee 2 (G2) units are scheduled for incremental maintenance that require us to extend the previously scheduled outages in Q2 2026 to balance reliability and growing dispatch requirements heading into 2027, which is typical for newly installed turbines.
Shepard Energy Centre, Joffre Cogeneration, and Clover Bar Energy Centre have routine planned outages scheduled in 2026.
In 2026, we expect approximately a 40% increase in outage days for our Canada flexible generation portfolio.
As part of its ongoing Alberta fleet optimization, Capital Power remains focused on dispatching as much of its existing capacity at the Genesee site as possible. Further to that, incremental performance testing of Capital Power's technical solution for generation above the Most Single Severe Contingency limit (MSSC) will continue including additional tuning, operational refinement, and extended runtime evaluations. Furthermore, Capital Power will also continue its proactive engagement with the AESO pursuant to the Phase 2 Large Load Allocation process to potentially unlock as much as the full nameplate capacity of the G1 and G2 units. Capital Power will update on the timing and quantum of incremental capacity above the MSSC that can be dispatched from the Genesee site once it is able to do so.
2025 Annual Guidance
Priority
2025 targets
Status at September 30, 2025
Execution of major turnarounds
Sustaining capital expenditures of $215 million to $245 million3
$134 million1,2
Generate financial stability and strength
AFFO3,4 of $950 million to $1,100 million
$822 million1
Adjusted EBITDA3,4 of $1,500 million to $1,650 million
$1,166 million1
1
For the nine months ended September 30, 2025.
2
Includes our share of equity-accounted investments sustaining capital expenditures of $49 million net of partner contributions of $8 million.
3
The Company provided updated guidance for 2025 based on the Company's year-to-date results, expectations for the remainder of the year and the expected results from the acquisition of Hummel Station, LLC and Rolling Hills Generating, LLC for the periods subsequent to the close of the transaction on June 9, 2025.
4
AFFO and adjusted EBITDA are non-GAAP financial measures. See Non-GAAP Financial Measures and Ratios.
Operational and Financial Highlights1
($ millions, except per share amounts)
Three months ended September 30,
Nine months ended September 30,
2025
2024
2025
2024
Electricity generation (Gigawatt hours) 2
13,374
11,001
31,952
28,413
Generation facility availability 3
93%
94%
92%
94%
Revenues and other income
1,213
1,030
2,642
2,923
Adjusted EBITDA 4
477
401
1,166
1,013
Net income
153
178
172
459
Net income attributable to shareholders of the Company
154
179
173
459
Basic earnings per share ($)
0.94
1.32
1.02
3.39
Diluted earnings per share ($) 5
0.94
1.32
1.01
3.38
Net cash flows from operating activities
404
236
757
706
Adjusted funds from operations 4
369
315
822
642
Adjusted funds from operations per share ($) 4
2.37
2.42
5.53
5.00
Purchase of property, plant and equipment and other assets, net
147
231
576
675
Dividends per common share, declared ($)
0.6910
0.6519
1.9948
1.8819
1
The operational and financial highlights in this press release should be read in conjunction with the Management's Discussion and Analysis and the unaudited condensed interim financial statements for the nine months ended September 30, 2025.
2
Gigawatt hours (GWh) of electricity generation reflects the Company's share of facility output.
3
Facility availability represents the percentage of time in the period that the facility was available to generate power regardless of whether it was running and therefore is reduced by planned and unplanned outages.
4
The consolidated financial highlights, except for adjusted EBITDA, AFFO and AFFO per share were prepared in accordance with GAAP. See Non-GAAP Financial Measures and Ratios.
5
Diluted earnings per share was calculated after giving effect to outstanding share purchase options.
Significant Events
York Energy and Goreway Battery Energy Storage Systems commissioned and contracted to 2047
On September 22, 2025, 120 MW York BESS and 50 MW Goreway BESS projects successfully achieved commercial operations. A leader of Ontario's BESS development, Capital Power delivered both projects on time, under budget and with an excellent safety record. The projects are contracted until 2047 with the IESO (part of their Expedited Long-Term 1 RFP process) and will add approximately $35 million in annual adjusted EBITDA over the contract term. These facilities enhance our portfolio of flexible generation sources that provide grid stability, support the integration of renewable resources, and meet the province's unprecedented, growing demand for electricity.
MCV new contract with Consumers Energy to 2040
In September 2025, Capital Power successfully executed a new long-term contract with improved economic terms for MCV with Consumers Energy, extending to 2040 and providing 10 years of incremental contracted revenue, subject to customary regulatory approvals. MCV is the largest natural gas-fired combined electric and steam generation facility in the United States, and a cornerstone of reliable power generation in Michigan. MCV will receive payments for 1,240 MW, approximately 75% of the facility's capacity starting in June 2030 under the new power purchase agreement (PPA), creating long-term revenue stability throughout the contract term. The contract is expected to generate a gross increase in full year adjusted EBITDA for the facility of approximately $140 million (US$100 million)1 annually representing an 85% increase over current contract pricing.
1
Jointly owned with 50% working interest with Manulife Investment Management.
MCV data center
In September 2025, MCV1 entered into a term sheet with a leading colocation data centre developer for the potential development of a data centre adjacent to the facility. Subject to due diligence, execution of formal agreements, and the requisite regulatory approvals, the proposed project would see 250 MW of power sold under a PPA agreement of up to 15-years.
1
Jointly owned with 50% working interest with Manulife Investment Management.
Virtual power purchase agreement cancellation
As a result of delayed commissioning on Halkirk 2 Wind, Saputo Inc. (Saputo) elected to terminate the VPPA with Capital Power, resulting in a $5 million penalty paid in the third quarter of 2025. The termination also resulted in an unrealized mark to market loss of $8 million upon unwinding of the VPPA in the third quarter of 2025. Despite the contract with Saputo representing 45% of plant output, Capital Power expects the financial impact to be minimal due to forecasted merchant pricing exceeding the Saputo VPPA pricing.
$1.5 billion credit facility and $600 million revolving credit facility
On June 30, 2025, the Company terminated its $300 million unsecured club credit facility, increased the capacity of its committed credit facility from $700 million to $1.5 billion, and extended the term from 2029 to 2030. On August 8, 2025, the Company entered into a 2-year revolving credit agreement with a total commitment of $600 million, maturing in 2027. The funds can be drawn in Canadian or US dollars. Interest is floating and is based on the type ...
