TORONTO, Nov. 20, 2025 (GLOBE NEWSWIRE) -- Northland Power Inc. ("Northland" or the "Company") (TSX: NPI) today announced its strategic update and 2030 outlook. The Company's executive team will provide further details on Northland's strategic direction, growth priorities, and key initiatives at its Investor Day on November 20, 2025 at 9:30am EST.
Strategic Highlights:
- Targets doubling gross operating capacity to 7 GW by 2030;
- Deepens focus on core markets to unlock additional value from the portfolio;
- Re-aligns the organization into two regional hubs: Americas and International, establishing a centralized growth and delivery function to leverage expertise and streamline investment decision making;
- Implements a cost optimization program targeting over $50 million in annual corporate and operational savings by 2028;
- Introduces a financial framework to support disciplined growth, deliver sustainable shareholders returns, and maintain an investment-grade credit rating without external equity issuances;
- Increases project returns target thresholds to a minimum 12%; and
- Targets a 10% total shareholder return and a 6% Free Cash Flow per share compound annual growth rate, forecasted to be $1.55 to $1.75 FCF/share by 2030.
"We look forward to presenting our strategy, built on a track record of successfully delivering power projects globally," said Christine Healy, President and CEO. "Rising demand for energy is creating opportunities across our business. By maintaining a steadfast focus on safety, operational excellence, and disciplined capital allocation, we are positioning Northland to deliver sustainable, profitable growth. This strategic update highlights three key horizons - Deliver, Strengthen, and Grow - to ensure the Company remains resilient while driving value for shareholders."
As part of the Company's efforts to simplify its operating structure, Northland is transitioning from three technology-based business units to two regional hubs, the Americas and International, working with a global project delivery team. This structure will eliminate duplication, focus operational teams on delivering value, and ensure capital is deployed to the most value accretive opportunities. Toby Edmonds, formerly EVP of Offshore Wind, will lead the International hub, Calvin MacCormack, formerly EVP of Natural Gas will oversee the Americas hub, and Pierre-Emmanuel Frot, formerly EVP Project Management Office, will head the newly established Project Development and Delivery function.
Business Update
Acquired Poland battery storage projects - Earlier today, Northland announced the acquisition of two late-stage pre-construction battery energy storage systems totaling 300 MW / 1.2 GWh in Poland. The projects Mieczyslawów (200 MW / 800 MWh) and Kamionka (100 MW / 400 MWh) each have a four-hour duration and are located in western Poland. A portion of revenue is secured under 17-year capacity auction contracts indexed to inflation, and additional revenue is expected to be realized through energy arbitrage and participation in ancillary service markets. Financing and the start of construction are expected in 2026 with an estimated total cost of €200 million. This acquisition strengthens Northland's growing presence in its core market of Poland and builds on battery storage capabilities.
Nordsee One offshore wind farm signed a five-year Power Purchase Agreement (PPA) with Shell - Earlier this week, Northland announced one of its subsidiaries Nordsee One offshore wind farm signed a five-year bilateral PPA with Shell Energy Europe Ltd for approximately one-third of the production from its 332 MW Nordsee One offshore wind farm. The PPA, secured through a structured tendering process, starts in June 2027.
Financial Framework and Future Outlook
Northland has established a financial framework aimed at ensuring the financial flexibility to deliver disciplined growth by increasing the target levered returns on projects to 12% or greater. In addition, and as part of a new operating model, the Company is targeting annual cost savings across General & Administrative, Operating, and Development expenditures of approximately $50 million by 2028.
As a global energy leader, Northland is in a strong position to achieve attractive profitable growth by 2030, with over 2.2 GW of projects in construction and a pipeline of organic and value enhancement projects underway with 2.7 GW in the mid-to-late stage development gates. The Company established a long-term outlook for its average annual free cash flow per share growth of 6% by 2030.
Northland intends to utilize non-recourse project level financing as the primary source of funding, supported by other funding tools including proceeds from asset sell-downs, partner equity, as well as corporate hybrid debt. Northland's Investor Day materials will provide more details on its growth and funding plan.
The Company also reaffirms its 2025 financial guidance for adjusted EBITDA and FCF per share.
Details of Northland's Investor Conference
Management will host a hybrid investor conference today at 9:30 a.m. ET. The conference will be webcast live and can be accessed through Northland's website at https://reg.lumiengage.com/northland-power/northland-power-registration/Site/Register.
Details of the webcast:
| When: | Thursday, November 20, 2025 |
| 9:30 a.m. ET | |
| Webcast: | https://meetings.400.lumiconnect.com/r/participant/live-meeting/400749835777 |
Presentations and supporting materials will be posted on Northland's website at www.northlandpower.com/-
A webcast replay will be available after the conclusion of the conference and posted to Northland's website on Friday November 21, 2025.
All dollar amounts in this press release are in Canadian dollars, unless otherwise stated.
ABOUT NORTHLAND POWER
Northland Power is a Canada-based global power producer dedicated to accelerating the global energy transition. Founded in 1987, with almost four decades of experience, Northland has a long history of developing, owning and operating a diversified mix of energy infrastructure assets including offshore and onshore wind, solar, battery energy storage, and natural gas. Northland also supplies energy through a regulated utility.
Headquartered in Toronto, Canada, with global offices in seven countries, Northland owns or has an economic interest in 3.5 GW of gross operating generating capacity, 2.2 GW under construction and an inventory of early to mid-stage development opportunities encompassing approximately 9 GW of potential capacity.
Publicly traded since 1997, Northland's Common Shares, Series 1 and Series 2 Preferred Shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B, respectively.
Forward-Looking Information
This press release contains certain forward-looking statements concerning the business and operations of Northland that constitute forward-looking information within the meaning of Canadian securities laws. Such forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans. Readers are cautioned that such statements may not be appropriate for other purposes. Northland's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, the events anticipated by the forward-looking statements may or may not transpire or occur. The forward-looking statements contained in this press release are, unless otherwise indicated, stated as of the date hereof and are based on assumptions that were considered reasonable as of the date hereof. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Forward-looking statements include statements that are not historical facts and are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "predicts", "believes", "estimates", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions or future or conditional verbs such as "may", "will", "should", "would" and "could". These statements may include, without limitation, statements regarding future Adjusted EBITDA and Free Cash Flow, including respective per share amounts; dividend payments and dividend payout ratios; the expected generating capacity and output of certain projects; potential for future production from project pipelines; targeted markets for deepening presence or expansion opportunities; potential growth-oriented acquisitions; cost and output of development projects; construction costs; the all-in interest cost for debt financing; the completion of construction, acquisitions, dispositions, whether partial or full, investments or financings and the timing thereof; the timing for and attainment of financial close, commercial operations and other significant milestones for each project; the impact of currency and interest rate hedges, future funding requirements; and the future operations, business, financial condition, financial results, priorities, ongoing objectives (including ESG-related objectives and targets), strategies and outlook (including all outlook targets) of Northland, its subsidiaries and joint ventures. These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary or joint venture is a party, management's current plans and its perception of historical trends, current conditions and expected future developments, the ability to obtain necessary approvals, satisfy any closing conditions, satisfy any project finance lender conditions to closing sell-downs or obtain adequate financing regarding contemplated construction, acquisitions, dispositions, investments or financings, as well as other factors, estimates and assumptions that are believed to be appropriate in the circumstances.
Although these forward-looking statements are based upon management's current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include, but are not limited to, risks associated with sales contracts, the emergence of widespread health emergencies or pandemics, Northland's reliance on the performance of its offshore wind facilities at Gemini, Nordsee One and Deutsche Bucht for over 50% of its Adjusted EBITDA, counterparty and joint venture risks, contractual operating performance, variability of sales from generating facilities powered by intermittent renewable resources, wind and solar resource risk, unplanned outage or maintenance risk, offshore wind concentration, natural gas and power market risks, commodity price risks, operational risks, recovery of utility operating costs, Northland's ability to resolve issues/delays with the relevant regulatory and/or government authorities, permitting, construction risks, project development risks, integration and acquisition risks, procurement and supply chain risks, financing risks, disposition and joint-venture risks, competition risks, interest rate and refinancing risks, liquidity risk, inflation risks, commodity availability and cost risk, construction material cost risks, impacts of regional or global conflicts, credit rating risk, currency fluctuation risk, variability of cash flow and potential impact on dividends, taxation, natural events, environmental risks, climate change, health and worker safety risks, including investigations related thereto, market compliance risk, government regulations and policy risks, utility rate regulation risks, international activities, cybersecurity, data protection and reliance on information technology, labor relations, labor shortage risk, management transition risk, geopolitical risk in and around the regions Northland operates in, large project risk, reputational risk, insurance risk, risks relating to co-ownership, bribery and corruption risk, terrorism and security, litigation risk and legal contingencies, and the other factors described in Northland's management's discussion and analysis (MD&A) for the three and nine months ended September 30, 2025 and Northland's annual information form for the year ended December 31, 2024, both of which are filed electronically on Northland's SEDAR+ profile at www.sedarplus.com and Northland's website www.northlandpower.com.
Certain forward-looking statements in this press release, including but not limited to our projected Adjusted EBITDA and Free Cash Flow, also constitute a "financial outlook" within the meaning of applicable Canadian securities laws. Financial outlook involves statements about Northland's prospective financial performance, financial position or cash flows and is based on and subject to the assumptions about future economic conditions and courses of action and the risk factors described above in respect of forward-looking information generally, as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this press release. Such assumptions are based on management's assessment of the relevant information currently available, and any financial outlook included in this press release is provided for the purpose of helping readers understand Northland's current expectations and plans for the future. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above, or other factors may cause actual results to differ materially from any financial outlook. The actual results of Northland's operations will likely vary from the amounts set forth in any financial outlook and such variances may be material.
Non-IFRS Financial Measures
This press release includes references to the Northland's adjusted earnings before interest, income taxes, depreciation and amortization ("Adjusted EBITDA"), Free Cash Flow and applicable payout ratios and per share amounts, which are measures not prescribed by International Financial Reporting Standards ("IFRS"), and therefore do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. Non-IFRS financial measures are presented at Northland's share of underlying operations. These measures should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. Rather, these measures are provided to complement IFRS measures in the analysis of Northland's results of operations from management's perspective. Management believes that Northland's non-IFRS financial measures and applicable payout ratio and per share amounts are widely accepted and understood financial indicators used by investors and securities analysts to assess the performance of a company, including its ability to generate cash through operations.
Readers should refer to the disclosure under "Non-IFRS Financial Measures" in Sections 1, 4.5 and 4.6 of Northland's management's discussion and analysis (MD&A) for the three and nine months ended September 30, 2025, which sections are incorporated by reference herein, for an explanation of key non-IFRS measures, and for a reconciliation of consolidated net income (loss) under IFRS to reported Adjusted EBITDA, and a reconciliation of cash provided by operating activities under IFRS to reported Free Cash Flow.
For further information, please contact:
Adam Beaumont, Senior Vice President, Capital Markets
+1 (647) 288-1019
investorrelations@northlandpower.com
Victor Gravili, Chief of Staff and Global Head of Brand & Communications
+1 (647) 288-1105
communications@northlandpower.com
