Capital Power (TSE:CPX) Announces Quarterly Earnings Results

Capital Power (TSE:CPX) posted its quarterly earnings data on Wednesday. The company reported C($0.33) earnings per share (EPS) for the quarter, FiscalAI reports. Capital Power had a net margin of 0.66% and a return on equity of 0.49%. The firm had revenue of C$714.00 million for the quarter.

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

• Embedded annual adjusted EBITDA upside increased to approximately C$1.25 billion from C$1 billion, driven by stronger recontracting prospects, PJM opportunities, Alberta pricing expectations, and facility uprates.
• Capital Power signed a 250-MW, 10-plus-year energy supply agreement with Meta beginning in the second half of 2028, converting merchant generation into contracted cash flows without requiring capital investment.
• Second-quarter adjusted EBITDA rose 9% year over year to C$351 million, while AFFO increased to C$328 million, supported by the expanded PJM portfolio and Clean Tech investment tax credit grants.
• The company reaffirmed 2026 guidance of C$1.565 billion-C$1.765 billion in adjusted EBITDA, C$890 million-C$1.01 billion in AFFO, and C$290 million-C$330 million in sustaining capital.
• Capital Power increased its dividend by 2% for 2026, below its historical approximately 6% annual growth rate, while higher maintenance spending, finance costs, taxes, and planned outages weighed on portions of quarterly results.

Capital Power Trading Down 3.2%

TSE CPX opened at C$66.00 on Thursday. The company has a debt-to-equity ratio of 146.00, a quick ratio of 0.55 and a current ratio of 0.69. Capital Power has a one year low of C$56.08 and a one year high of C$77.02. The company has a 50-day simple moving average of C$71.86 and a 200-day simple moving average of C$66.19. The firm has a market capitalization of C$10.33 billion, a PE ratio of -600.00, a price-to-earnings-growth ratio of 0.91 and a beta of 0.63.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Wells Fargo & Company lifted their target price on Capital Power from C$72.00 to C$75.00 and gave the stock an “equal weight” rating in a research report on Monday. BMO Capital Markets upped their price target on shares of Capital Power from C$75.00 to C$85.00 and gave the company an “outperform” rating in a report on Thursday, July 9th. Desjardins raised their price objective on shares of Capital Power from C$82.00 to C$88.00 and gave the stock a “top pick” rating in a report on Friday, July 3rd. Finally, National Bank Financial upped their target price on shares of Capital Power from C$75.00 to C$82.00 and gave the company an “outperform” rating in a research note on Monday, June 1st. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of C$80.56.

Insiders Place Their Bets

In other Capital Power news, insider Jason Daniel Comandante sold 1,500 shares of the firm’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of C$74.88, for a total value of C$112,320.00. Following the transaction, the insider owned 8,711 shares of the company’s stock, valued at C$652,279.68. This trade represents a 14.69% decrease in their ownership of the stock. 0.17% of the stock is currently owned by company insiders.

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.