Northland Power Raises Adjusted Earnings 9% in Third Quarter, Maintains 2026 Outlook
Key Facts
Northland Power increased adjusted earnings before interest, taxes, depreciation and amortization 9% year over year in the third quarter of 2026, driven by contributions from the Hai Long and Baltic Power projects, according to a company statement issued on November 13. Management reaffirmed its financial outlook for the year, including adjusted earnings of C$1.45 billion to C$1.65 billion. The results show a divergence between growth in operating earnings and pressure on cash flow during the period. The company attributed earnings growth to contributions from new projects, while weaker results at some existing wind facilities reduced the gains.
Adjusted earnings growth extended into the second quarter, when they rose 6% year over year, from C$245 million in the second quarter of 2025 to C$259 million in the same period of 2026. The company said at the time that the increase reflected "strong operating performance," with combined energy sales revenue broadly similar across the two periods. But European offshore wind conditions were weak in the second quarter, the company said. It added that year-to-date generation remained in line with historical averages, supported by strong wind conditions in the first quarter. This comparison provides context for the third-quarter results, as the company continues to report earnings growth while generation conditions remain a variable across periods.
Contributions from Baltic Power and Hai Long came amid operational progress at both projects in October. On October 7, Northland announced that installation of all 76 Baltic Power turbines in Poland was complete. On October 15, it said all 73 Hai Long turbines had been installed and were generating electricity. The Hai Long facility has a capacity of 1.0 gigawatts and is located in the Taiwan Strait. These additions provide a basis for new offshore projects to contribute to the company's results, while weaker results at existing wind facilities limited the scale of third-quarter gains.
The company said financing costs, taxes and hedge settlements affected free cash flow. This highlights the different trajectory of that measure compared with adjusted earnings growth during the quarter. The statement included in the evidence did not provide a separate quantitative breakdown of each item's contribution to the decline.
Management kept its 2026 adjusted earnings outlook at C$1.45 billion to C$1.65 billion and set its expected free cash flow range at C$1.05 to C$1.25 per share. The company also said Baltic Power had entered trial operations, while the Jurassic battery project in Alberta had entered commercial operation. Management is scheduled to discuss third-quarter results and growth developments on a conference call on November 13, 2026, at 9 a.m. Eastern Time. The company said an audio recording of the call was scheduled to be made available on its website on November 16. The call provides investors with another opportunity to hear details on the results and project progress.