Northland Power Lowers 2025 Outlook as Offshore Wind Output Falls

Northland Power Inc. (TSX: NPI) reported a Q2 2025 net loss of C$53 million versus a C$262 million profit a year earlier, as below-average wind across its European offshore portfolio weighed on results. The company cut its full-year Adjusted EBITDA guidance to C$1.2–C$1.3 billion, down from C$1.3–C$1.4 billion, and lowered Free Cash Flow per share expectations to C$1.15–C$1.35.

Operational Highlights

Oneida Energy Storage: Canada’s largest operating battery facility (250 MW/1 GWh) entered service on May 7 ahead of schedule and under budget, operating under a 20-year contract with Ontario’s IESO. Hai Long Offshore Wind: Achieved first power; 1.0 GW project in Taiwan Strait remains on track for 2027 completion with construction progressing on turbines and cabling. Baltic Power Offshore Wind: Installed first turbine for the 1.1 GW project in the Baltic Sea; full operations expected H2 2026.

Financial Performance

Revenue: C$509 million, down from C$529 million in Q2 2024. Adjusted EBITDA: C$245 million, down 9% year-on-year. Free Cash Flow per share: C$0.22, down from C$0.27. Operating cash flow: C$451 million, up sharply from C$171 million last year. Liquidity: C$1.05 billion, including C$107 million in cash and C$941 million in credit capacity.

Segment trends showed a 19% drop in offshore wind generation, mainly from low wind resource and curtailments in Germany, partly offset by strong output from Canadian and New York onshore wind farms and the start-up of Oneida. Natural gas output fell 26% on planned maintenance.

Market Context

Northland’s results underscore the earnings volatility inherent in wind-dependent portfolios, especially in Europe where prolonged low-wind periods have hit multiple operators in recent years. However, the company’s expansion into battery storage and diversified geographies — from the Taiwan Strait to the Baltic Sea — is aimed at smoothing output variability and tapping growing demand for grid stability solutions.

The early completion of Oneida reinforces Northland’s capabilities in delivering complex projects, while the Hai Long and Baltic Power wind farms represent strategic moves into high-growth offshore markets.

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