Northland Power TSE: NPI reported higher first-quarter 2026 earnings and reaffirmed its full-year guidance, citing strong wind conditions in Northern Europe, high fleet availability and contributions from energy storage and projects under construction.
President and CEO Christine Healy said the company is operating against a backdrop of rising electricity demand, tightening supply and increased focus on energy security. She said those trends are supporting demand for long-term contracted power solutions that offer price certainty and reliability.
“Across markets, we see a clear and consistent theme: tightening supply and growing demand, driven in part by accelerating electrification,” Healy said. She added that renewables remain “a scalable, domestically sourced, and increasingly cost-competitive solution” for energy systems.
Northland owns and operates a diversified portfolio across offshore wind, onshore renewables, natural gas-fired power and grid-scale battery storage in Canada, Europe and Asia. Healy said the company has 3.5 gigawatts of gross operating capacity and 2.2 gigawatts under construction.
Adjusted EBITDA rises 18%
Chief Financial Officer Jeff Hart said Northland generated first-quarter Adjusted EBITDA of CAD 427 million, up 18% from the first quarter of 2025. Net income rose to CAD 161 million from CAD 111 million a year earlier, while Free Cash Flow per share increased to CAD 0.70 from CAD 0.60.
Hart said operational availability was 96%, allowing the company to capture strong wind resources across its European offshore fleet. Results were also helped by lower curtailments related to negative pricing and grid outages, contributions from the Oneida Energy Storage Facility, which began operations in May 2025, and pre-completion revenues from the Hai Long offshore wind project in Taiwan.
Those factors were partly offset by lower production from onshore wind and solar facilities in Spain, Canada and the United States.
Northland reaffirmed its 2026 guidance, with Adjusted EBITDA expected between CAD 1.45 billion and CAD 1.65 billion, and Free Cash Flow per share expected between CAD 1.05 and CAD 1.25. Hart said the company’s first-quarter performance was a constructive start given that the first and fourth quarters are typically key periods for Northland’s seasonally affected business.
The company ended the quarter with nearly CAD 1 billion of available liquidity and an investment-grade credit rating, Hart said.
Construction advances at Hai Long, Baltic Power and Jurassic Solar+
Healy said Northland continued to advance three major construction projects: the 1 gigawatt Hai Long offshore wind project in Taiwan, the 1.1 gigawatt Baltic Power offshore wind project in Poland and the 80 megawatt two-hour Jurassic Solar+ project in Alberta.
At Hai Long, fabrication of remaining major components has been completed, and turbine installation resumed after the weather window opened April 1. Healy said 51 of 73 turbines have been installed, 32 turbines are generating power and all cabling work is complete. The project remains on track for commercial operation in 2027.
Northland also signed a new 30-year corporate power purchase agreement with its current corporate offtaker for Hai Long, covering 100% of the project’s generating capacity. Hart said the agreement extends the project’s weighted average contract length and creates incremental capacity for further project-level optimizations. He said Northland and its partners expect to provide an update later this summer.
At Baltic Power, Healy said Northland completed fabrication of remaining components and installation of all four export cables, all inter-array cables, all transition pieces and 38 of 76 turbines. The project remains on track for commercial operation in the second half of 2026.
At Jurassic Solar+ in Alberta, the company installed all 39 battery packs and 20 medium-voltage transformers during the quarter and energized the project’s main transformer. Northland expects commercial operations in the second half of 2026.
Hart said Baltic Power and Hai Long remain on track for planned commercial operations, with overall costs aligned with original expectations. He also said around CAD 3 billion remains to be spent on the two projects, subject to factors including foreign exchange.
Development pipeline narrowed as capital discipline remains focus
Healy said disciplined capital allocation remains central to Northland’s strategy, and the company continues to prioritize projects that meet its return and execution criteria.
During the quarter, Northland discontinued the 100 megawatt High Bridge onshore wind project in New York after the government suspended permit applications. Healy said the company had previously minimized spending on the project while waiting for clarity on permitting, but concluded the issues were unlikely to reverse in the near term.
Hart said the overall profit-and-loss impact related to High Bridge was approximately CAD 35 million, including about CAD 25 million of historical cost write-offs and roughly CAD 10 million related to closeout penalties and related items.
Northland also chose not to renew a permit for a 990 megawatt offshore wind project in South Korea because it did not meet the company’s investment criteria. Healy said the remainder of Northland’s 1.6 gigawatt development portfolio in South Korea remains paused while the company assesses the regulatory environment.
“Our objective is disciplined growth, supported by strong returns and execution certainty,” Healy said.
Battery storage and natural gas opportunities discussed
Northland is also advancing two battery energy storage projects in Poland. Healy said construction is expected to start on one project in the coming weeks, with the second beginning in the coming months. She said the Polish model includes a contracted revenue stream for grid availability and stability, along with a merchant component tied to trading opportunities.
Hart said Northland remains confident in the economics of the Polish battery projects, but expects project financing leverage to reflect the merchant exposure. He said the gearing ratio would likely be lower than at Oneida, where the revenue profile was described as roughly 60% contracted and 40% merchant.
In response to analyst questions about natural gas opportunities, Healy said Northland is speaking with major equipment manufacturers and potential new suppliers. She said the company’s approach depends on the site and jurisdiction, and that Northland does not make commitments to system operators unless it knows how and when it can deliver.
Healy also said Northland continues to review its portfolio to determine whether it is the best owner of each asset, while also evaluating potential acquisition opportunities. She declined to provide details on possible acquisitions.
Safety incident in Colombia
Healy also addressed a fatal incident during the quarter at Northland’s EBSA utility in Colombia, where a contractor died while working on a transmission line. She said the company took immediate action to support the contractor’s family and colleagues, completed an investigation and implemented an action plan aimed at strengthening safety culture.
“This terrible incident reinforces the importance and the need for relentless focus on improving safety culture,” Healy said.
Looking ahead, Healy said Northland’s priorities for 2026 are to bring Baltic Power and Jurassic BESS to commercial operation, advance Hai Long toward 2027 commissioning and continue value enhancement work across the company’s fleet.
About Northland Power TSE: NPI
Northland Power develops, constructs, and operates maintainable infrastructure assets across a range of clean and green technologies, such as wind (offshore and onshore), solar, and supplying energy through a regulated utility. Offshore wind is expected to remain the company's largest segment over the long term. Northland's growth opportunities are global and span North America, Europe, Latin America, and Asia.
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