Capital Power reports C$67M profit and raises maintenance budget
The generator kept its cash-flow and adjusted EBITDA forecasts while raising 2026 sustaining capital spending to C$350M to C$370M.
Ines Halvorsen
For the quarter ended Sept. 30, net income fell to C$67 million at Capital Power Corporation TSECPX, according to results released on Monday. The generator raised its 2026 sustaining capital budget to C$350 million to C$370 million because of outage work.
Third-quarter adjusted funds from operations, or AFFO, declined to C$306 million from C$369 million in 2025. Net cash from operating activities was C$381 million in the quarter ended Sept. 30, 2026.
Capital Power retained its 2026 AFFO forecast of C$890 million to C$1.01 billion. By Sept. 30, 2026, the company had generated C$788 million in AFFO. Its annual adjusted EBITDA target also stayed at C$1.565 billion to C$1.765 billion, while Hornet and Bear Branch solar commissioning remained targeted for the fourth quarter.
Shares TSECPX were C$63.04 on the Toronto Stock Exchange as of 20:00 UTC on Oct. 30, before Monday's results.
The Edmonton-based power producer operates generation assets in Alberta, Ontario and U.S. markets. Management attributed the third-quarter performance to strong contributions from its Alberta, PJM and Ontario assets.
Revenue and other income fell to C$831 million in the third quarter of 2026 from C$1.213 billion a year earlier. Net income had been C$153 million in the comparable 2025 quarter, while basic earnings per share fell to C$0.37 from C$0.94.
Adjusted EBITDA rose to C$553 million from C$477 million in the third quarter of 2025. Both adjusted EBITDA and AFFO are non-GAAP financial measures, distinct from reported net income and cash from operating activities.
"Our portfolio pairs stable contracted cash flows with exposure to markets where growing electricity demand and tightening supply are creating meaningful upside," the company said in its chief executive's message.
Outage Work Raises The Maintenance Budget
The Nov. 2 guidance update replaces a 2026 sustaining capital forecast of C$290 million to C$330 million. Capital Power cited unplanned outage work, primarily in its U.S. flexible generation fleet.
The increase also reflects a planned outage moved from 2027 into the fourth quarter of 2026 to support reliability. Management expects insurance recoveries during 2026 and 2027, together with equipment-maker concessions, to meaningfully offset the cash impact.
Capital Power said long-term contracts underpin approximately 75 per cent of expected 2026 adjusted EBITDA. All its power purchase agreements are with investment-grade counterparties, and more than 70 per cent are with utilities or system operators.
The company's East Windsor operating page identifies a 100-megawatt peaking unit in Windsor, Ontario, that began operating in 2026. It is contracted with Ontario's Independent Electricity System Operator until 2040.
Read more: National Grid secures 73.3 acres for planned Teesside substation
Among other power owners reporting on Monday, Public Service Enterprise Group NYSEPEG maintained its five-year capital plan of US$24 billion to US$28 billion. PSEG expects to fund that plan without new equity or asset sales.
Commissioning activities at Hornet and Bear Branch Solar are progressing toward completion in the fourth quarter of 2026, according to Monday's update.
