Canada's Capital Power Q2 revenue and AFFO rise, net loss narrows 

Overview

• Canada power producer's Q2 revenue and AFFO rose yr/yr on new assets, government grants

• Company reported Q2 net loss, but loss narrowed from prior year

• Capital Power raised annual dividend by 2% and signed long-term energy deal with Meta

Outlook

• Company expects Meta Platforms data centre load to enter service in H2 2028

• Capital Power sees growing market optimism in Alberta supporting rising electricity demand

• Company expects rising energy and capacity pricing to reinforce asset value

Result Drivers

• ASSET ACQUISITIONS - Contributions from Hummel Station and Rolling Hills facilities acquired in June 2025 boosted revenue and adjusted EBITDA

• GOVERNMENT GRANTS - Recognition of Clean Technology Investment Tax Credit grants for Canadian renewables projects increased AFFO

• MARKET CONDITIONS - Higher energy and capacity pricing supported asset value, but lower Alberta pool prices and increased outage costs offset some gains

Company press release: ID:nGNX7grJ1J

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)