Capital Power reports strong third quarter 2025 results, advancing flexible generation¹ growth and contracting success

CFO Sandra Haskins announces retirement after 23 years of leadership and financial excellence

EDMONTON, Alberta, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Capital Power Corporation (TSX: CPX) today released financial results for the quarter ended September 30, 2025.

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 million^1,2
Generate financial stability and strength	AFFO^3,4 of $950 million to $1,100 million	$822 million¹
	Adjusted EBITDA^3,4 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,
($ millions, except per share amounts)	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 of draw, plus margin.

Analyst conference call and webcast

Capital Power will be hosting a conference call and live webcast with analysts on October 29, 2025 at 9:00 am (MT) to discuss the third quarter financial results. The webcast can be accessed at: https://edge.media-server.com/mmc/p/pfzzokqy/. Conference call details will be sent directly to analysts.

An archive of the webcast will be available on the Company’s website at www.capitalpower.com following the conclusion of the analyst conference call.

Non-GAAP Financial Measures and Ratios

Capital Power uses (i) earnings before, income tax expense, depreciation and amortization, net finance expense, foreign exchange gains or losses, gains or losses on disposals and other transactions, unrealized changes in fair value of commodity derivatives and emission credits, other expenses from our joint venture interests, acquisition and integration costs, and other items that are not reflective of the Company’s facility operating performance (adjusted EBITDA), and (ii) AFFO as specified financial measures. Adjusted EBITDA and AFFO are both non-GAAP financial measures.

Capital Power also uses AFFO per share as a specified performance measure. This measure is a non-GAAP ratio determined by applying AFFO to the weighted average number of common shares used in the calculation of basic and diluted earnings per share.

These terms are not defined financial measures according to GAAP and do not have standardized meanings prescribed by GAAP and, therefore, are unlikely to be comparable to similar measures used by other enterprises. These measures should not be considered alternatives to net income, net income attributable to shareholders of Capital Power, net cash flows from operating activities or other measures of financial performance calculated in accordance with GAAP. Rather, these measures are provided to complement GAAP measures in the analysis of our results of operations from management’s perspective.

Adjusted EBITDA

During the second quarter of 2025, the Company amended the composition of adjusted EBITDA to exclude acquisition and integration costs, as these costs are not reflective of facility operating performance. The Company has applied this change to all historical amounts reported. Capital Power uses adjusted EBITDA to measure the operating performance of facilities and categories of facilities from period to period. Management believes that a measure of facility operating performance is more meaningful if results not related to facility operations are excluded from the adjusted EBITDA measure such as impairments, foreign exchange gains or losses, gains or losses on disposals and other transactions, unrealized changes in fair value of commodity derivatives and emission credits, acquisition and integration costs, and other items that are not reflective of the long-term performance of the Company’s underlying operations.

A reconciliation of adjusted EBITDA to net income is as follows:

($ millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net income	153		178		172		459
Depreciation and amortization	157		124		421		366
Unrealized changes in fair value of commodity derivatives and emission credits	(13	)	(78	)	176		(286	)
Other non-recurring items					4		4
Acquisition and integration costs	4		–		41		10
Impairment	–		27		–		27
Foreign exchange loss (gain)	7		(5	)	(16	)	9
Net finance expense	92		65		217		160
Loss on disposals and other transactions	5		5		12		20
Other items¹	37		32		110		91
Income tax expense	35		53		29		153
Adjusted EBITDA	477		401		1,166		1,013

¹	Includes finance expense, depreciation expense and unrealized changes in fair value of derivative instruments from equity-accounted investments.

AFFO and AFFO per share

AFFO and AFFO per share are measures of our ability to generate cash from our operating activities to fund growth capital expenditures, repayment of debt, and payment of common share dividends. During the second quarter of 2025, the Company amended the composition of AFFO and AFFO per share to exclude acquisition and integration costs, as these costs are not reflective of cash generated from facility operations. The Company has applied this change to all historical amounts reported.

AFFO represents net cash flows from operating activities adjusted to:

remove timing impacts of cash receipts and payments that may impact period-to-period comparability which include deductions for net finance expense and current income tax expense, the removal of deductions for interest paid and income taxes paid and removing changes in operating working capital,
include our share of AFFO of joint venture interests and exclude distributions received from our joint venture interests which are calculated after the effect of non-operating activity joint venture debt payments,
include cash from off-coal compensation received annually through to 2030,
remove the tax equity financing project investors’ shares of AFFO associated with assets under tax equity financing structures so only Capital Power’s share is reflected in the overall metric,
deduct sustaining capital expenditures and preferred share dividends,
exclude the impact of fair value changes in certain unsettled derivative financial instruments that are charged or credited to our bank margin account held with a specific exchange counterparty,
exclude acquisition and integration costs, and
exclude other typically non-recurring items affecting cash flows from operating activities that are not reflective of the long-term performance of the Company’s underlying business.

A reconciliation of net cash flows from operating activities to AFFO is as follows:

($ millions)	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net cash flows from operating activities per condensed interim consolidated statements of cash flows	404		236		757		706
Add (deduct):
Interest paid	87		73		202		132
Change in fair value of derivatives reflected as cash settlement	—		2		7		(17	)
Realized gain on settlement of interest rate derivatives			(28	)	(17	)	(42	)
Distributions received from joint ventures	(9	)	(13	)	(47	)	(24	)
Miscellaneous financing charges paid ¹	4		1		(2	)	(6	)
Income taxes (recovered) paid	(11	)	(3	)	(14	)	17
Change in non-cash operating working capital	(77	)	63		(23	)	(7	)
	(7	)	95		105		53
Net finance expense²	(81	)	(56	)	(192	)	(136	)
Current income tax recovery (expense) ³	16		(7	)	72		(29	)
Sustaining capital expenditures ⁴	(44	)	(35	)	(85	)	(96	)
Preferred share dividends paid	(7	)	(6	)	(20	)	(24	)
Cash received for off-coal compensation⁵	50		50		60		50
Remove tax equity interests’ respective shares of AFFO	(1	)	(1	)	(4	)	(4	)
AFFO from joint ventures	38		40		101		99
Acquisition and integration costs ⁶	3				41		7
Other non-recurring items ⁷	(3	)	(1	)	(14	)	16
AFFO	369		315		822		642
Weighted average number of common shares outstanding (millions)	155.3		130.3		148.6		127.8
AFFO per share ($)	2.37		2.42		5.53		5.00

¹	Included in other cash items on the condensed interim consolidated statements of cash flows to reconcile net income to net cash flows from operating activities.
²	Excludes unrealized changes on interest rate derivative contracts, amortization, accretion charges, and non-cash implicit interest on tax equity investment structures.
³	Excludes current income tax expense related to the partial divestiture of Quality Wind and Port Dover and Nanticoke Wind as the amount is classified as an investing activity.
⁴	Includes sustaining capital expenditures net of partner contributions of $2 million and $8 million for the three and nine months ended September 30, 2025, respectively, compared with $2 million and $8 million for the three and nine months ended September 30, 2024, respectively.
⁵	Reflects annual off-coal compensation payments received from the Government of Alberta (GoA). For the nine months ended September 30, 2025, an additional payment was received for the settlement of previously disputed off-coal compensation payments as described in the Company’s 2024 annual consolidated financial statements.
⁶	For the three and nine months ended September 30, 2025, net of current income tax recoveries of $1 million and $2 million, respectively, compared with $3 million for the three and nine months ended September 30, 2024.
⁷	For the three months ended September 30, 2025, other non-recurring items reflect costs related to the termination of the Halkirk 2 Wind VPPA of $5 million (see Significant Events), net of current income tax recoveries of $8 million related to other non-recurring items recognized in the current and prior periods. For the nine months ended September 30, 2025, other non-recurring items reflect costs related to the termination of the Halkirk 2 Wind VPPA and end-of-life of Genesee coal operations of $5 million each, net of current income tax recoveries of $24 million related to other non-recurring items recognized in the current and prior periods. For the three and nine months ended September 30, 2024, other non-recurring items reflects costs related to the end-of-life of Genesee coal operations of $1 million and $5 million, respectively, and a provision of $18 million for the discontinuation of the Genesee carbon capture and storage project related to the termination of sequestration hub evaluation work, net of current income tax recoveries of $2 million and $7 million for the three and nine months ended September 30, 2024, related to other non-recurring items recognized in the prior and current periods, respectively.

Forward-looking information

Forward-looking information or statements included in this MD&A are provided to inform our shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this MD&A is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes.

Material forward-looking information in this MD&A includes expectations regarding:

our priorities and long-term strategies, including our corporate, and decarbonization strategies,
our 2025 performance targets, including sustaining capital expenditures, adjusted funds from operations (AFFO) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA),
future revenues, expenses, earnings, adjusted EBITDA and AFFO,
the future pricing of electricity and market fundamentals in existing and target markets,
our future cash requirements including interest and principal repayments, capital expenditures, dividends and distributions,
our sources of funding, adequacy and availability of committed bank credit facilities and future borrowings, various aspects around existing, planned and potential development projects and acquisitions. This includes expectations around timing, generation capacity, costs of technologies selected, environmental and sustainability benefits, and commercial and partnership arrangements,
our 2025 estimated capital expenditures for previously announced growth projects,
the performance of future projects and the performance of such projects in comparison to the market,
the timing of 2026 planned maintenance outages at the Company's Alberta facilities,
the increase in outage days in 2026 expected for the Company's Canadian flexible generation portfolio,
plans and results related to the acquisition of Hummel Station, LLC (Hummel Station) and Rolling Hills Generating, LLC (Rolling Hills),
the return to operation of the out of service unit at the Rolling Hills facility,
re-bidding the Halkirk 2 Wind facility into future requests for proposals and the financial impact of the VPPA cancellation,
anticipated pricing trends, growth opportunities, market conditions, and future power demand in the Pennsylvania-New Jersey-Maryland market,
legislative developments regarding carbon pricing in Pennsylvania and Ohio,
future growth and emerging opportunities in our target markets,
market and regulation designs and regulatory and legislative proposals and changes, regulatory updates, initiatives, projects and the impact thereof on the Company’s core markets and business, and
the impact of climate change, including our assumptions relating to our identification of future risks and opportunities from climate change, our plans to mitigate transition and physical climate risks, and opportunities resulting from those risks.

These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate including its review of purchased businesses and assets. The material factors and assumptions used to develop these forward-looking statements relate to:

electricity and other energy and carbon prices,
performance,
business prospects (including potential re-contracting of facilities) and opportunities including expected growth and capital projects,
the status and impact of policy, legislation and regulations,
effective tax rates,
the development and performance of technology,
the outcome of claims and disputes,
foreign exchange rates, and
other matters discussed under the Performance Outlook and Risks and Risk Management sections of the MD&A.

Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from our expectations. Such material risks and uncertainties are:

changes in electricity, natural gas and carbon prices in markets in which we operate and the use of derivatives,
regulatory and political environments including changes to environmental, climate, financial reporting, market structure and tax legislation,
disruptions, or price volatility within our supply chains,
generation facility availability, wind capacity factor and performance including maintenance expenditures,
ability to fund current and future capital and working capital needs,
acquisitions and developments including timing and costs of regulatory approvals and construction,
changes in the availability of fuel,
ability to realize the anticipated benefits of acquisitions,
limitations inherent in our review of acquired assets,
changes in general economic and competitive conditions, including inflation and recession,
changes in the performance and cost of technologies and the development of new technologies, new energy efficient products, services and programs, and
risks and uncertainties discussed under the Risks and Risk Management section of the MD&A.

See Risks and Risk Management in our 2024 Integrated Annual Report, for further discussion of these and other risks.

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Capital Power does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Territorial Acknowledgement

In the spirit of reconciliation, Capital Power respectfully acknowledges that we operate within the ancestral homelands, traditional and treaty territories of the Indigenous Peoples of Turtle Island, or North America. Capital Power’s head office is located within the traditional and contemporary home of many Indigenous Peoples of the Treaty 6 Territory and Métis homeland. We acknowledge the diverse Indigenous communities that are located in these areas and whose presence continues to enrich the community.

About Capital Power

Capital Power is a growth-oriented power producer with approximately 12 GW of owned power generation at 32 power generation facilities and two BESS facilities 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. We are Powering Change by Changing Power^TM.

For more information, please contact:

Media Relations: Katherine Perron (780) 392-5335 kperron@capitalpower.com	Investor Relations: Roy Arthur (403) 736-3315 investor@capitalpower.com

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