Northland Power TSE: NPI reported higher adjusted EBITDA in the second quarter of 2026, supported by contributions from projects in Taiwan and Ontario and lower costs at its natural-gas facilities, while weak European offshore wind resources and a year-earlier tax benefit weighed on free cash flow.
The company generated adjusted EBITDA of C$259 million, up 6% from the second quarter of 2025. Chief Financial Officer Jeff Hart said the increase reflected revenue from the Hai Long offshore wind project and a full quarter of operations from the Oneida battery storage facility, partially offset by offshore wind production in Europe that was about 11% below the long-term average.
Free cash flow totaled C$23 million, down about 60% year over year, or C$0.09 per share compared with C$0.22 per share in the prior-year period. Hart attributed the decline primarily to a one-time German trade-tax refund recorded in the second quarter of 2025. Northland recorded a net loss of C$54 million, consistent with the loss reported a year earlier.
Guidance Reaffirmed Despite Weak Second-Quarter Wind
President and CEO Christine Healy said wind conditions across Europe, particularly in the North Sea, were at the low end of historic averages during the quarter. However, the company reported 96% availability across its operating portfolio, while Spanish solar and onshore wind resources were generally in line with the prior year.
Healy said the weaker wind performance was limited to the second quarter, with year-to-date generation in line with historical average levels after stronger conditions in the first quarter. As a result, Northland reaffirmed its full-year 2026 outlook:
- Adjusted EBITDA of C$1.45 billion to C$1.65 billion.
- Free cash flow per share of C$1.05 to C$1.25.
The company also said it has nearly C$1 billion of available liquidity and an investment-grade balance sheet.
Baltic Power Reaches First Power; Hai Long Financing Secured
Northland’s 1.1-gigawatt Baltic Power offshore wind project in Poland achieved first power in early July, marking the first electricity generated by an offshore wind project for Polish homes and businesses, Healy said. The project is being developed with partner ORLEN.
As of the call, 61 of Baltic Power’s 76 turbines had been installed and 15 were generating electricity. Northland expects the project to reach commercial operations later in 2026, with costs aligned with original expectations.
At the 1-gigawatt Hai Long offshore wind project in Taiwan, 71 of 73 turbines had been installed and 59 were generating power. The company expects all turbines to be generating later this year, followed by full commercial operations in 2027.
Hai Long also secured a C$2.4 billion financing package, including approximately C$900 million of incremental funding capacity through project completion. The remaining proceeds will refinance about C$1.5 billion of higher-cost debt, Hart said. The project’s corporate power purchase agreement was expanded to cover 100% of output under a 30-year contract.
Hart said Northland expects Hai Long’s forecast pre-completion revenue and incremental debt capacity to cover its funding needs and does not expect to require an equity injection. He said fourth-quarter wind conditions remain an important factor in the project’s cash generation.
Northland previously identified a C$150 million to C$200 million, on its share basis, impact from project completion reserve requirements at Hai Long. Hart said strong wind performance in the fourth quarter could reduce that impact, while the added funding capacity provides flexibility.
Battery Storage Construction Advances
Northland said its 80-megawatt, 160-megawatt-hour Jurassic battery energy storage system in Alberta is in the final stages of commissioning. All major equipment has been installed, and commercial operations are expected shortly. The company said Jurassic will be Alberta’s largest battery storage project once complete and Northland’s second operating battery facility after Oneida in Ontario.
During the quarter, Northland also began construction on the Kamionka and Mieczysławów battery projects in Poland. Together, the projects represent 300 megawatts of capacity with four-hour duration, or 1,200 megawatt-hours. Site preparation and foundation work are underway, major equipment has been ordered, and commercial operations are expected in 2028.
Healy said Northland is applying lessons from Oneida and Jurassic to its Polish projects and continues to evaluate battery opportunities in Spain, where she said storage could benefit from significant daily power-price variability. The company’s five projects under construction are expected to add about 2.5 gigawatts of capacity to its operating portfolio.
Growth Focus Remains Selective
Management said it sees expanding electricity demand from industrial activity, data centers, electrification, urbanization and energy-security needs across its core markets. Healy said the company is concentrating on opportunities where market fundamentals, risk-adjusted returns and Northland’s operating capabilities align.
Poland remains a priority market, while Northland is also evaluating opportunities in Spain, the United Kingdom, Canada and, over a longer horizon, Asia. In the U.K., the company’s Spiorad na Mara offshore wind project in Scotland has entered the consent process.
Healy said Northland was not prepared to compromise on return thresholds in Ontario’s LT2 procurement process, where its bids did not advance. She said the company would like to deploy more capital in Canada but currently sees better risk-adjusted returns in other markets.
Northland is also considering value-enhancement initiatives across its existing fleet, including hybridization, repowering, recontracting and capacity optimization. Healy said the company expects to provide a fuller update on its growth priorities alongside third-quarter results in November.
Separately, Hart said one of Gemini offshore wind farm’s two export cables experienced a circuit failure in July. Production has continued through the second cable, and a subsea repair is underway with completion expected this year. Northland expects the full-year financial effect to be immaterial after insurance proceeds.
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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