- 2025 Financial Performance: Combined operating income CAD 248M and EBITDA CAD 655M, down 2% YoY, with production 8% higher than 2024 but 10% below expectations.
- Development Pipeline: Portfolio exceeds 8.2 GW, with 3.8 GW installed capacity (up 615 MW from organic growth) and 1.1 GW of wind, solar, and battery projects in growth trajectory.
- Balance Sheet Strength: Liquidity and authorized financing rose to CAD 681M (+CAD 158M YoY), with total debt at CAD 4.4B (85% project debt).
- Market Policy Momentum: NYSERDA’s authority expanded to procure 5.6 TWh/year by 2029, and Hydro-Quebec’s Southern Quebec wind tender expected in Q1 2026, targeting 150 MW+ projects.
- Short-Term Contract Impact: French short-term contracts caused a 22% YoY drop in realized wind prices, with a smaller decline expected in 2026 due to phased contract expiration.
Operational Highlights
Boralex's operational performance was strong, with total combined production 8% higher than in 2024. The company has been active in submitting projects in various RFPs, with a strong pipeline of projects to benefit from in the coming years. As Patrick Decostre mentioned, "the demand for renewable remains very solid in our different markets, and we're counting on a very strong pipeline of projects to benefit from for years to come."
Growth Prospects
Boralex's growth prospects remain promising, with a portfolio of development projects now exceeding 8.2 gigawatts and an installed capacity of 3.8 gigawatts, representing an increase of 615 megawatts driven entirely by organic growth. The company is well-positioned to capture upcoming opportunities in Quebec, with Hydro-Quebec set to launch a new call for wind power tenders in spring 2026.
Valuation
Based on the current valuation metrics, Boralex's P/E Ratio stands at 418.92, indicating a potentially overvalued stock. The EV/EBITDA ratio is 13.88, suggesting a relatively reasonable valuation. However, the Net Debt / EBITDA ratio is 8.66, indicating a significant debt burden. Analysts estimate next year's revenue growth at -0.1%, which may put further pressure on the stock.
Dividend Yield
Boralex's Dividend Yield stands at 2.42%, providing some support to the stock. However, the Free Cash Flow Yield is -9.36%, indicating that the company may struggle to generate sufficient cash to support its dividend payments.