tiprankstipranks
Trending News
More News >
Northland Power (NPIFF)
OTHER OTC:NPIFF

Northland Power (NPIFF) AI Stock Analysis

Compare
214 Followers

Top Page

Positive Factors
Financial Outlook
EBITDA growth is expected to accelerate next year with new projects coming online and a permanent CEO appointment anticipated soon.
Growth Opportunities
NPI is uniquely positioned to capitalize on the significant growth expected in the offshore wind market.
Valuation
Analyst rates NPI shares Outperform due to the under-appreciated growth pipeline and attractive relative valuation.
Negative Factors
Financial Performance
NPI reported Q3/24 adjusted EBITDA below expectations, primarily due to issues in Offshore Wind and Natural Gas performance.
Market Perception
Given the ~7% adj. EBITDA miss and less positive directional tone on the 2024 guide, shares could trade heavy in the near term.
Performance Issues
Lower offshore wind speeds and curtailments at the German offshore wind facilities have led to reduced 4Q estimates.

Northland Power (NPIFF) vs. SPDR S&P 500 ETF (SPY)

Northland Power Business Overview & Revenue Model

Company DescriptionNorthland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects in North America, Europe, Latin America, and Asia. The company produces electricity from renewable resources, such as wind, solar, or hydropower, as well as clean-burning natural gas and biomass for sale under power purchase agreements and other revenue arrangements. It owned or had an economic interest in 3.2 gigawatts of operating generating capacity. The company was founded in 1987 and is headquartered in Toronto, Canada.
How the Company Makes Money

Northland Power Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q1-2025)
|
% Change Since: 7.83%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as the completion of the Oneida Battery Storage Project and progress on offshore wind projects, which demonstrate Northland Power's operational capabilities and strategic growth. However, financial performance was impacted by historically low offshore wind resources, leading to decreased EBITDA and free cash flow. The company maintains a strong financial position and remains on track to meet its financial guidance, balancing the challenges with strategic achievements.
Q1-2025 Updates
Positive Updates
Successful Completion of Oneida Battery Storage Project
Completed ahead of schedule and under budget. It's the largest energy storage project in Canada, generating revenue and supporting over 180 jobs during peak construction.
Progress on Offshore Wind Projects
Hai Long and Baltic Power projects are on track, with significant milestones achieved including turbine installations and foundation completions. Total investment for these projects is approximately $15 billion.
Recognition for Safety Innovation
EBSA utility in Colombia received the CCS Award for Innovation in Safety, demonstrating Northland Power's commitment to safety and innovation.
Strong Financial Position
Northland Power maintains a strong balance sheet with $1.1 billion of available corporate liquidity, supporting its ability to pursue growth opportunities.
Maintained Financial Guidance
Despite challenges, Northland Power is on track to meet its financial guidance set earlier this year.
Negative Updates
Decrease in Adjusted EBITDA
Adjusted EBITDA decreased by 20% compared to the same quarter in 2024, primarily due to historically low offshore wind resources in the North Sea.
Decline in Free Cash Flow
Free cash flow for Q1 was $157 million, 30% lower than the same quarter last year, with per share free cash flow decreasing from $0.88 to $0.60.
Impact of Low Offshore Winds
The low wind resource was the lowest seen across Northland's time invested in European offshore wind assets, impacting financial performance.
Company Guidance
During the Northland Power Conference Call held on May 14, 2025, the management provided guidance on the company's operations and financial performance for the first quarter of 2025. Christine Healy, President and CEO, highlighted the successful completion of the Oneida Battery Storage project, which was finished ahead of schedule and under budget, and marked as Canada's largest energy storage project. The company also advanced its offshore wind projects, Hai Long and Baltic Power, with a combined investment of approximately $15 billion and 2.2 gigawatts of capacity. Despite a significant 20% decrease in adjusted EBITDA to $361 million, primarily due to historically low offshore wind resources, the company maintained robust operational performance with a 95% commercial availability rate. Free cash flow for the quarter was $157 million, representing a 30% decline from the previous year. The management reiterated their commitment to meeting the financial guidance set earlier in the year, emphasizing a strong balance sheet with $1.1 billion in available corporate liquidity. Northland Power is actively pursuing growth through a diversified portfolio, including new battery storage projects and participating in procurement processes, while remaining resilient to macroeconomic challenges such as U.S. tariffs.

Northland Power Financial Statement Overview

Summary
Northland Power showcases a strong financial position with consistent revenue growth and improved profitability. High leverage is a concern, but effective cash flow management supports operations and growth initiatives. The improvement in net income and free cash flow suggests a positive trajectory, though attention to debt levels is important.
Income Statement
75
Positive
Northland Power demonstrates solid revenue growth with a 5.1% increase from 2023 to 2024 and a recovery in net income from a loss in 2023 to a profit in 2024. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin is relatively low at 11.6% due to high interest and tax expenses, suggesting room for profitability improvements.
Balance Sheet
70
Positive
The balance sheet shows a relatively high debt-to-equity ratio of 1.72, indicating significant leverage, which could pose risks if not managed well. However, the company has maintained solid equity growth over the years, and the equity ratio of 30.8% suggests a reasonable proportion of assets financed by shareholders' equity. The return on equity improved to 6.5% in 2024, which is a positive sign.
Cash Flow
80
Positive
Northland Power's cash flow statement reflects a robust operating cash flow, which increased significantly from 2023 to 2024. The free cash flow growth of 38.9% is impressive, indicating effective capital expenditure management. The operating cash flow to net income ratio is high, showing strong cash generation relative to reported profits.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.35B2.23B2.45B2.09B2.06B
Gross Profit
1.01B1.61B2.18B1.88B1.86B
EBIT
812.89M741.16M1.05B808.65M900.21M
EBITDA
1.59B1.26B2.22B1.41B1.54B
Net Income Common Stockholders
271.82M-175.19M827.73M269.88M381.08M
Balance SheetCash, Cash Equivalents and Short-Term Investments
613.32M813.50M1.30B673.69M434.99M
Total Assets
13.60B13.63B14.22B12.88B11.40B
Total Debt
7.20B7.20B7.17B7.63B7.59B
Net Debt
6.59B6.55B5.87B6.96B7.15B
Total Liabilities
9.05B9.14B9.50B9.91B9.40B
Stockholders Equity
4.19B4.19B4.39B2.76B1.58B
Cash FlowFree Cash Flow
476.75M343.05M1.31B1.14B1.10B
Operating Cash Flow
1.03B785.21M1.83B1.61B1.32B
Investing Cash Flow
-448.81M-1.17B-629.68M-1.03B-839.27M
Financing Cash Flow
-720.25M-262.04M-604.84M-225.68M-389.53M

Northland Power Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$3.96B21.186.08%5.74%
64
Neutral
$8.53B10.344.24%4.37%4.14%-13.04%
BEBEP
$15.87B-5.97%6.03%
TSINE
67
Neutral
C$2.79B69.914.20%2.62%0.97%
TSBLX
63
Neutral
C$3.27B297.570.67%2.07%-16.63%-87.78%
TSPIF
62
Neutral
C$248.26M59.81-4.70%7.09%-1.45%-210.16%
AQAQN
$4.49B5.54%5.21%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NPIFF
Northland Power
15.29
-1.42
-8.50%
BEP
Brookfield Renewable Partners
25.80
1.17
4.75%
TSE:BLX
Boralex Inc Cl A
31.81
-2.01
-5.94%
TSE:INE
Innergex Renewable Energy
13.74
3.56
34.97%
TSE:PIF
Polaris Infrastructure
11.82
-0.55
-4.45%
AQN
Algonquin Power & Utilities
5.79
0.29
5.27%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.