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1. Company Snapshot

1.a. Company Description

Boralex Inc., together with its subsidiaries, engages in the development, construction, and operation of renewable energy power facilities primarily in Canada, France, and the United States.As of December 31, 2021, the company had interests in 90 wind power stations with an installed capacity of 2,032 megawatts (MW); 16 hydroelectric power stations with a capacity of 181 MW; 12 solar power stations with an installed capacity of 244 MW; and one thermal power station with an installed capacity of 35 MW.It also operates two hydroelectric power stations on behalf of R.S.P. Énergie Inc.


Boralex Inc.was incorporated in 1982 and is headquartered in Kingsey Falls, Canada.

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1.b. Last Insights on BLX

Boralex's recent performance was negatively impacted by weak power prices, which offset the 7% increase in production. The company's Q3 loss widened due to revenue decline. Despite commissioning large-scale projects in Canada, EBITDA, operating income, and net earnings declined. Unfavorable weather conditions in North America and lower-than-anticipated production also contributed to the negative performance. The company's Apuiat Wind Farm JV reached commercial operation, but this was not enough to offset the weaker prices. Boralex's Q3 results reflect challenges in the renewable energy market.

1.c. Company Highlights

2. Boralex's Q3 2025 Earnings: A Mixed Bag

Boralex reported a 9% increase in combined production, driven by new sites in Europe, but combined EBITDA was $108 million, down $1 million from Q3 2024, due to lower prices of short-term power purchase agreements in France. The company's EPS came out at -$0.26, missing estimates of $0.703. Discretionary cash flows were $9 million, down $7 million from Q3 2024. The company's financial performance was mixed, with growth in production offset by lower prices and decreased discretionary cash flows.

Publication Date: Nov -16

📋 Highlights
  • Production Growth:: 9% increase in combined production driven by new European sites.
  • EBITDA Decline:: Combined EBITDA at $108 million, down $1 million YoY due to lower French power purchase agreement prices.
  • Project Expansion:: Added 395 MW of new projects and advanced 250 MW AC solar in the US, with 7 GW of wind/solar/storage projects in development.
  • Liquidity & Debt:: $811 million in available liquidity and $4.4 billion total debt, reflecting strategic financing for growth.
  • Market Progress:: Secured 125 MW onshore wind in France and submitted bids in Ontario/Quebec, with 3.4 GW operational and 558 MW under construction.

Operational Highlights

Boralex added 395 megawatts of new projects and advanced its growth path with a 250-megawatt AC solar project in the US. The company has 3.4 gigawatts of assets in operation and 558 megawatts of projects under construction or ready-to-build. Boralex's development project portfolio stands at 7 gigawatts, with a strong presence in the UK, US, and Ontario.

Balance Sheet and Financing

Boralex's balance sheet shows $811 million in available liquidity and authorized financing, with total debt of $4.4 billion. The company's net debt to EBITDA ratio stands at 8.71, indicating a significant debt burden. Management continues to advance its financing strategy, supporting its growth initiatives and capital diversification.

Market Updates and Outlook

Quebec is expected to release a detailed assessment of its energy needs, potentially introducing more ambitious targets. Ontario's Independent System Operator launched its long-term RFP, and Boralex submitted a proposal. In the US, NYSERDA's 2025 renewable energy solicitation is underway, and Boralex is preparing to submit bids. Management expressed optimism about the company's position in the market, citing a strong development project portfolio and solid financial flexibility.

Valuation and Estimates

Boralex's P/E Ratio stands at -273.54, indicating that the company is not profitable on a trailing twelve-month basis. The EV/EBITDA ratio is 14.4, suggesting that the company's enterprise value is roughly 14 times its EBITDA. Analysts estimate next year's revenue growth at 16.5%. Given the company's current valuation multiples and growth estimates, it appears that the market is pricing in a significant improvement in Boralex's financial performance.

3. NewsRoom

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Boralex announces the appointment of Jean-Christophe Dall’Ava as Executive Vice President and General Manager, Europe

Dec -04

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Is Boralex an Opportunity After Recent 13% Price Drop and Clean Energy Project Updates?

Dec -02

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Media Invitation ─ Talk by Patrick Decostre, President and CEO of Boralex

Dec -02

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Boralex Q3 Loss Widens on Weak Power Prices Despite Higher Output

Nov -07

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Boralex announces its third quarter results and commissioning of large-scale projects in Canada

Nov -07

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REMINDER -- Boralex will release its 2025 third quarter financial results on November 7, at 11 a.m.

Nov -05

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Boralex (TSX:BLX) Valuation in Focus After Landmark Apuiat Wind Farm Milestone and Innu Partnership

Oct -29

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Boralex's Apuiat Wind Farm JV Reaches Commercial Operation

Oct -29

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (19.20%)

6. Segments

Europe - Wind Farms

Expected Growth: 20.0%

The European wind energy market is expected to continue growing due to the EU's ambitious renewable energy targets and the need to reduce carbon emissions. Boralex's established presence in this market positions it for growth.

North America - Wind Farms

Expected Growth: 19.5%

The North American wind energy market is expected to grow steadily, driven by the need for clean energy and the extension of tax credits. Boralex's diversified portfolio and development pipeline support its growth prospects.

North America - Hydroelectric Power Stations

Expected Growth: 18.0%

While the growth rate for hydroelectric power may be lower than other renewable energy sources, Boralex's existing assets and potential for optimization and upgrades support a stable growth trajectory.

North America - Solar Power Stations

Expected Growth: 21.0%

The North American solar market is expected to continue growing rapidly, driven by declining costs and increasing demand for clean energy. Boralex's solar development pipeline and operating assets position it for strong growth.

Europe - Solar Power Stations

Expected Growth: 20.5%

The European solar market is expected to grow, driven by the EU's renewable energy targets and the need to reduce carbon emissions. Boralex's presence in this market and its development pipeline support its growth prospects.

7. Detailed Products

Wind Power

Boralex Inc. develops, constructs, and operates wind farms to generate electricity from wind energy.

Solar Power

Boralex Inc. designs, builds, and operates solar farms to generate electricity from solar energy.

Hydroelectric Power

Boralex Inc. develops, constructs, and operates hydroelectric power plants to generate electricity from water energy.

Thermal Power

Boralex Inc. develops, constructs, and operates thermal power plants to generate electricity from natural gas and biomass.

Energy Storage

Boralex Inc. develops, constructs, and operates energy storage systems to stabilize the grid and provide backup power.

Power Distribution

Boralex Inc. develops, constructs, and operates power distribution systems to deliver electricity to consumers.

8. Boralex Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Boralex Inc. operates in the renewable energy industry, which has a moderate threat of substitutes. While there are alternative sources of energy, such as fossil fuels, the shift towards renewable energy is increasing, reducing the threat of substitutes.

Bargaining Power Of Customers

Boralex Inc. has a diverse customer base, including utilities, municipalities, and commercial and industrial customers. The bargaining power of customers is low due to the lack of concentration in the customer base.

Bargaining Power Of Suppliers

Boralex Inc. relies on a few key suppliers for equipment and services. While there are some alternative suppliers, the bargaining power of suppliers is moderate due to the specialized nature of the industry.

Threat Of New Entrants

The renewable energy industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants and provides a competitive advantage to established players like Boralex Inc.

Intensity Of Rivalry

The renewable energy industry is highly competitive, with many established players competing for market share. Boralex Inc. faces intense competition from other renewable energy companies, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 68.96%
Debt Cost 4.55%
Equity Weight 31.04%
Equity Cost 6.02%
WACC 5.01%
Leverage 222.16%

11. Quality Control: Boralex Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.41$

Current Price

24.41$

Potential

-0.00%

Expected Cash-Flows