Capital Power (TSE:CPX) Announces Quarterly Earnings Results

Capital Power (TSE:CPX) released its quarterly earnings data on Wednesday. The company reported C($0.33) EPS for the quarter, FiscalAI reports. The business had revenue of C$714.00 million during the quarter. Capital Power had a net margin of 3.05% and a return on equity of 2.31%.

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 Stock Up 2.6%

CPX opened at C$67.72 on Friday. Capital Power has a fifty-two week low of C$56.08 and a fifty-two week high of C$77.02. The company has a debt-to-equity ratio of 150.64, a quick ratio of 0.55 and a current ratio of 0.80. The company has a fifty day moving average of C$71.92 and a two-hundred day moving average of C$66.25. The stock has a market capitalization of C$10.60 billion, a price-to-earnings ratio of -615.64, a PEG ratio of 0.91 and a beta of 0.63.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on CPX. Canadian Imperial Bank of Commerce decreased their target price on shares of Capital Power from C$85.00 to C$83.00 in a research report on Thursday. Desjardins increased their price target on Capital Power from C$82.00 to C$88.00 and gave the stock a “top pick” rating in a research report on Friday, July 3rd. Scotiabank reduced their price objective on Capital Power from C$80.00 to C$79.00 and set a “sector outperform” rating for the company in a research note on Thursday. BMO Capital Markets decreased their price objective on Capital Power from C$85.00 to C$81.00 and set an “outperform” rating for the company in a report on Thursday. Finally, Wells Fargo & Company raised their target price on Capital Power from C$72.00 to C$75.00 and gave the stock an “equal weight” rating in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Capital Power currently has an average rating of “Buy” and a consensus price target of C$80.11.

Insider Activity

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

Key Capital Power News

Here are the key news stories impacting Capital Power this week:

• Positive Sentiment: Capital Power raised its dividend while reporting second-quarter results, signaling confidence in cash flow and supporting the stock’s income-investment appeal. Capital Power raises dividend as it reports $44M loss in second quarter
• Positive Sentiment: Scotiabank maintained a “sector outperform” rating, while BMO Capital Markets kept an “outperform” rating. Their revised targets of C$79 and C$81, respectively, still imply substantial upside from recent trading levels. Capital Power analyst ratings
• Positive Sentiment: Wells Fargo also issued a bullish forecast for Capital Power, adding to the broader analyst support for the shares. Wells Fargo forecasts strong price appreciation for Capital Power
• Neutral Sentiment: Capital Power reported C$714 million in quarterly revenue and a loss of C$0.33 per share. The weak earnings result contrasts with the dividend increase and positive analyst ratings, creating a mixed fundamental picture. Stocks in play: Capital Power Corporation
• Negative Sentiment: CIBC, Scotiabank and BMO each lowered their Capital Power price targets to C$83, C$79 and C$81, respectively. Although the firms retained positive ratings, the reductions suggest more cautious expectations for near-term appreciation. Capital Power analyst price-target changes

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.