Northland Power (NPI) AI Stock Analysis

• Market Cap: $6.68B
• Dividend Yield: 4.84%
• Average Volume (3M): 900.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -8.39%
• EPS Growth: -180.67%
• Country: CA
• Employees: 1,150
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.25
• Shares Outstanding: 261,502,040
• 10 Day Avg. Volume: 731,328
• 30 Day Avg. Volume: 900,079
• PEG Ratio: -0.07
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 35.17
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 5.63
• Enterprise Value/Gross Profit: 8.01
• Enterprise Value/Ebitda: 9.00
• 1Y Price Target: $28.60
• Price Target Upside: 11.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$27.00 ▲(5.68% Upside)

Northland Power's overall score reflects strong technical momentum and cash flow generation, offset by valuation concerns due to negative earnings and revised financial guidance. The company's operational achievements in project completions provide a positive outlook, but financial challenges remain significant.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation indicates robust operational efficiency and provides the company with the flexibility to invest in new projects and manage debt effectively, supporting long-term growth and stability.

Project Completion and Expansion

Successful project completions and ongoing expansions in renewable energy enhance Northland Power's market position and capacity, driving future revenue growth and competitive advantage in the renewable sector.

Strong Gross Profit Margin

A strong gross profit margin reflects efficient cost management and operational effectiveness, which are crucial for sustaining profitability and competitiveness in the renewable energy industry.

Negative Factors

High Debt-to-Equity Ratio

A high debt-to-equity ratio indicates significant leverage, which could pose financial risks if not managed properly, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Declining Revenue Growth

Declining revenue growth suggests challenges in market expansion and sales performance, which could hinder the company's ability to achieve long-term financial targets and maintain its competitive edge.

Revised Financial Guidance

Revised financial guidance reflects operational challenges and market conditions, potentially impacting investor confidence and the company's strategic planning for future growth and profitability.

Northland Power Business Overview & Revenue Model

Company Description

Northland 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 generates revenue primarily through the sale of electricity produced by its renewable energy assets under long-term power purchase agreements (PPAs) and feed-in tariffs. These agreements often provide a stable and predictable cash flow, as they typically span 10 to 25 years. The company also earns revenue from the operation and maintenance of its facilities, in addition to contributing to various energy markets and programs that promote renewable energy. Significant partnerships with governments, utility companies, and other stakeholders enhance its ability to secure funding and support for new projects, while its strategic focus on expanding its portfolio of renewable assets drives further growth and profitability.

Northland Power Financial Statement Overview

Summary

Northland Power shows strong cash flow generation and gross profit margins, but faces challenges with declining revenue growth and profitability in the TTM period. The high debt-to-equity ratio indicates leverage risks, although improvements in equity position are noted.

Income Statement

Northland Power's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth, with a negative growth rate of -8.86%. However, the company maintains a strong gross profit margin of 71.24% in the TTM, indicating efficient cost management. The net profit margin is negative in the TTM, reflecting recent profitability challenges. Historical data shows fluctuating EBIT and EBITDA margins, with a notable decline in EBIT margin from 2022 to the TTM period. Overall, while the company has strong gross margins, the recent decline in revenue and net income poses concerns.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.67 in the TTM, indicating significant leverage, which could pose risks if not managed properly. However, the company has improved its equity ratio over time, suggesting a strengthening balance sheet. Return on equity has decreased in the TTM, reflecting recent profitability issues. Despite the high leverage, the company's ability to maintain a stable equity ratio is a positive sign of financial stability.

Cash Flow

Northland Power's cash flow statement shows strong free cash flow growth of 63.48% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio is also strong, highlighting effective cash management. Despite recent profitability challenges, the company's cash flow metrics demonstrate resilience and potential for future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.24B	2.35B	2.24B	2.45B	2.09B	2.06B
Gross Profit	1.57B	2.35B	1.62B	1.83B	1.55B	1.56B
EBITDA	1.40B	1.53B	1.38B	1.65B	1.41B	1.42B
Net Income	-45.78M	271.82M	-175.19M	827.73M	189.56M	381.08M
Balance Sheet
Total Assets	13.69B	13.60B	13.63B	14.22B	12.88B	11.40B
Cash, Cash Equivalents and Short-Term Investments	737.51M	613.32M	740.24M	1.46B	673.81M	434.99M
Total Debt	7.33B	7.44B	7.44B	7.17B	8.14B	8.25B
Total Liabilities	8.96B	9.05B	9.14B	9.50B	9.91B	9.40B
Stockholders Equity	4.31B	4.19B	4.19B	4.39B	2.76B	1.79B
Cash Flow
Free Cash Flow	939.39M	130.97M	18.26M	1.04B	858.02M	785.95M
Operating Cash Flow	1.08B	683.18M	459.37M	1.50B	1.33B	1.01B
Investing Cash Flow	21.54M	-468.77M	-1.21B	-677.09M	-975.41M	-935.93M
Financing Cash Flow	-1.17B	-372.66M	111.42M	-271.34M	-20.26M	-89.80M

Northland Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NPI, the sentiment is Positive. The current price of 25.55 is above the 20-day moving average (MA) of 25.08, above the 50-day MA of 23.73, and above the 200-day MA of 20.65, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 63.57 is Neutral, neither overbought nor oversold. The STOCH value of 53.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NPI.

Northland Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INE	72 Outperform	―	―	―	―	0.97%	―
NPI	67 Neutral	$6.68B	―	-1.19%	4.84%	-8.39%	-180.67%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
BEP.UN	58 Neutral	$28.84B	―	-5.58%	4.79%	14.78%	-9.37%
BLX	57 Neutral	C$2.89B	-288.59	-1.47%	2.31%	-11.91%	-132.41%
PIF	54 Neutral	C$265.76M	-16.40	-4.69%	6.63%	8.26%	-267.17%
AQN	54 Neutral	$6.70B	―	2.04%	4.20%	-4.72%	96.98%

Northland Power Corporate Events

Northland Power to Release Q3 2025 Financial Results and Host Investor Call

Northland Power announced it will release its third quarter 2025 financial results on November 12, 2025, followed by an investor conference call and webcast on November 13, 2025. This announcement is crucial for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:NPI) stock is a Hold with a C$24.00 price target. To see the full list of analyst forecasts on Northland Power stock, see the TSE:NPI Stock Forecast page.

Northland Power Announces 2025 Investor Day

Northland Power announced it will host its 2025 Investor Day in Toronto on November 20, 2025, where the company’s leadership will present an overview of its performance, growth strategy, and updates on construction projects. The event will be available in a hybrid format, allowing both in-person and virtual attendance, with pre-registration required for participation. This event underscores Northland Power’s commitment to transparency and engagement with the investment community, potentially influencing investor confidence and market positioning.

The most recent analyst rating on (TSE:NPI) stock is a Hold with a C$24.00 price target. To see the full list of analyst forecasts on Northland Power stock, see the TSE:NPI Stock Forecast page.

Northland Power Announces Board Changes: Sébastien Clerc Joins as Director

Northland Power has announced the retirement of John Brace from its Board of Directors and the appointment of Sébastien Clerc as a new board member. Clerc brings over 25 years of global leadership experience in the energy and infrastructure sectors, having previously led Voltalia to significant growth. His expertise is expected to enhance Northland’s strategic positioning in complex energy markets and contribute to value creation for investors.

The most recent analyst rating on (TSE:NPI) stock is a Hold with a C$23.50 price target. To see the full list of analyst forecasts on Northland Power stock, see the TSE:NPI Stock Forecast page.

Northland Power’s Earnings Call: Successes and Challenges

Northland Power’s recent earnings call painted a mixed picture of significant project achievements alongside financial challenges. The company celebrated the successful completion of major construction projects, such as the Oneida battery storage facility, while also grappling with lower offshore wind resources and adverse market conditions in Germany, which led to a revised financial outlook and a net loss for the quarter.

Northland Power Announces Dividend Rate Reset for Preferred Shares

Northland Power Inc. has announced the reset of dividend rates for its Cumulative Rate Reset Preferred Shares, Series 1 and Series 2, effective from September 30, 2025. The fixed dividend rate for Series 1 Shares will be 5.70% annually, while the Series 2 Shares will have a floating rate of 2.80% over the annual yield on 90-day Government of Canada treasury bills. Shareholders have the option to convert their shares between the two series, with automatic conversion if fewer than 1,000,000 shares remain in either series. This announcement reflects Northland’s ongoing commitment to providing stable returns to its investors while managing its financial operations effectively.

The most recent analyst rating on (TSE:NPI) stock is a Hold with a C$23.50 price target. To see the full list of analyst forecasts on Northland Power stock, see the TSE:NPI Stock Forecast page.

Northland Power Reports Q2 2025 Financial Results

Northland Power Inc., a Canadian-owned global power producer, specializes in developing, owning, and operating a diversified mix of energy infrastructure assets, including offshore and onshore wind, solar, battery energy storage, and natural gas facilities. The company operates in the global energy sector and is committed to accelerating the global energy transition.

Northland Power Advances Key Projects Amidst Challenging Wind Conditions

Northland Power reported its second quarter 2025 results, highlighting significant progress in its major projects. Despite experiencing below-average wind levels in Europe, the company achieved key construction milestones, including the early and cost-effective completion of the Oneida energy storage project, first power at the Hai Long offshore wind project, and the installation of Baltic Power’s first wind turbine. Financially, Northland saw a decrease in revenue and net income compared to the previous year, attributed to low wind resources affecting its offshore wind facilities. However, the company maintained strong operational performance with 95% commercial availability and substantial liquidity, positioning itself well for future growth.

The most recent analyst rating on (TSE:NPI) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Northland Power stock, see the TSE:NPI Stock Forecast page.