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Polaris Infras J (TSE:PIF)
TSX:PIF
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Polaris Infrastructure (PIF) AI Stock Analysis

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TSE:PIF

Polaris Infrastructure

(TSX:PIF)

Rating:60Neutral
Price Target:
C$13.50
▲(7.48% Upside)
Polaris Infrastructure's overall stock score is driven by positive earnings call sentiment and technical momentum, despite financial performance challenges and valuation concerns. The company's strategic initiatives and strong dividend yield provide additional support, but profitability issues and potential technical pullbacks temper the outlook.

Polaris Infrastructure (PIF) vs. iShares MSCI Canada ETF (EWC)

Polaris Infrastructure Business Overview & Revenue Model

Company DescriptionPolaris Infrastructure Inc. (PIF) is a renewable energy company primarily engaged in the acquisition, development, and operation of renewable energy projects in Latin America. The company focuses on geothermal and hydroelectric power generation, providing sustainable and reliable energy solutions. Polaris Infrastructure is committed to expanding its portfolio of energy assets and contributing to clean energy initiatives.
How the Company Makes MoneyPolaris Infrastructure makes money by generating and selling electricity generated from its renewable energy projects. The company operates geothermal and hydroelectric plants, where it harnesses natural resources like geothermal heat and water flow to produce electricity. This electricity is then sold to national grids or directly to large consumers under long-term power purchase agreements (PPAs), ensuring a steady revenue stream. Key revenue streams include the sale of electricity under these PPAs, which often include fixed pricing terms, providing predictable income. Additionally, the company may benefit from government incentives for renewable energy production and strategic partnerships aimed at expanding its energy capacity and market reach.

Polaris Infrastructure Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: 3.37%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong revenue and earnings growth, successful diversification benefits, and progress in strategic projects, despite some production challenges and higher financing costs.
Q2-2025 Updates
Positive Updates
Increased Power Generation
Consolidated power production for the quarter was 215,797 megawatt hours versus 186,886 megawatt hours for the same period in 2024.
Revenue Growth
Revenue was $21.6 million during the 3 months ended June 30, compared to $18.7 million in the same period in 2024.
Adjusted EBITDA Improvement
Adjusted EBITDA of $15.4 million for the quarter, compared to $13.3 million last year.
Net Earnings Increase
Net earnings for the quarter was $2.2 million compared to $985,000 for Q2 '24.
Dividend Announcement
A quarterly dividend of $0.15 per share will be paid on August 22 to shareholders of record on August 11.
Positive Diversification Impact
Full quarter benefits from the Punta Lima Wind Project and improved hydrology in Peru and Ecuador.
Efficiency Gains
Costs continue to be contained and below inflation due to efficiency gains.
Battery Project Progress in Puerto Rico
Confidence in the ASAP program contract submission with the expectation of approval and potential COD by mid-next year.
Development Initiatives
Potential expansion in Puerto Rico and Dominican Republic with strategic initiatives in brownfield development.
Negative Updates
Nicaragua Production Decline
Production in Nicaragua was 110,895 megawatt hours, slightly lower than the same period last year at 114,046 megawatt hours.
Maintenance Impact at San Jacinto
Unplanned maintenance led to a production impact of about 2,200 megawatt hours in the quarter.
Delayed Developments in Dominican Republic
The Canoa 1 expansion has been delayed, though progress is being made with approvals.
Higher Financing Costs
Net cash used in financing activities was higher than the comparative period in 2024, reflecting early debt repayment of 4 credit facilities totaling $120.6 million.
Company Guidance
During the second quarter of 2025, Polaris Renewable Energy Inc. demonstrated significant growth in several key metrics. The company reported consolidated power production of 215,797 megawatt hours, a substantial increase from 186,886 megawatt hours in the same period of 2024. Key contributors included the Punta Lima Wind Project in Puerto Rico, which produced 17,814 megawatt hours, and the hydroelectric facilities in Peru, which generated 54,778 megawatt hours. Revenue for the quarter reached $21.6 million, up from $18.7 million in the previous year, while adjusted EBITDA improved to $15.4 million from $13.3 million. Net earnings also rose significantly to $2.2 million from $985,000 in Q2 2024. The company announced a quarterly dividend of $0.15 per share to be paid on August 22. Additionally, Polaris is focusing on growth and development projects, particularly the ASAP battery program in Puerto Rico and the Canoa 1 expansion in the Dominican Republic, aiming to enhance shareholder value through strategic initiatives.

Polaris Infrastructure Financial Statement Overview

Summary
Polaris Infrastructure shows operational efficiency but faces profitability challenges with a recent net loss impacting overall financial health. Strong cash flow management provides financial resilience, crucial for navigating profitability pressures in the renewable utilities industry.
Income Statement
55
Neutral
The company displays a decrease in revenue from $75.77M in 2024 to $75.43M in TTM, indicating a slight negative growth trend. The EBIT and EBITDA margins remain stable, but the net profit margin has turned negative at -15.63% due to a net loss in the TTM period. This suggests profitability challenges despite stable operational efficiency.
Balance Sheet
60
Neutral
The debt-to-equity ratio is at a moderate level, reflecting balanced leverage. However, the declining equity ratio from previous years indicates a reduced cushion against liabilities. The ROE has turned negative, emphasizing profitability issues and potential risks in financial stability.
Cash Flow
75
Positive
The company shows strong free cash flow growth with a significant increase from the previous year. The operating cash flow to net income ratio highlights robust cash generation capabilities despite the net loss. This reflects solid cash flow performance, providing financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue78.37M75.77M78.52M62.60M59.52M74.72M
Gross Profit34.28M32.81M35.92M25.19M22.75M38.77M
EBITDA43.34M49.84M56.99M40.90M45.69M78.59M
Net Income-10.58M2.99M11.74M2.50M501.00K28.84M
Balance Sheet
Total Assets549.59M662.11M519.40M535.10M502.70M491.12M
Cash, Cash Equivalents and Short-Term Investments86.09M213.31M40.05M35.33M97.93M60.06M
Total Debt220.22M317.70M175.12M187.33M170.99M189.99M
Total Liabilities304.85M402.58M249.47M264.89M241.88M264.35M
Stockholders Equity244.86M259.75M269.34M269.68M262.76M228.75M
Cash Flow
Free Cash Flow32.89M31.69M32.57M1.02M32.72M33.42M
Operating Cash Flow34.60M35.05M43.96M33.51M41.13M40.31M
Investing Cash Flow-16.27M-3.31M-11.38M-65.99M-10.15M-2.85M
Financing Cash Flow27.19M141.51M-27.71M-30.13M6.89M-9.99M

Polaris Infrastructure Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.56
Price Trends
50DMA
12.10
Positive
100DMA
11.82
Positive
200DMA
12.05
Positive
Market Momentum
MACD
0.12
Negative
RSI
63.74
Neutral
STOCH
72.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PIF, the sentiment is Positive. The current price of 12.56 is above the 20-day moving average (MA) of 12.25, above the 50-day MA of 12.10, and above the 200-day MA of 12.05, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 63.74 is Neutral, neither overbought nor oversold. The STOCH value of 72.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PIF.

Polaris Infrastructure Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$5.85B22.456.08%5.53%-5.33%
67
Neutral
$17.69B17.896.85%3.50%6.34%4.32%
60
Neutral
C$262.72M59.81-4.34%6.70%4.98%-244.98%
56
Neutral
$6.23B5.54%4.48%-4.74%-213.24%
55
Neutral
C$3.16B287.200.67%2.16%-16.63%-87.78%
35
Underperform
C$15.73M-90.04%-100.00%-14.57%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PIF
Polaris Infrastructure
12.56
1.21
10.66%
TSE:NPI
Northland Power
22.36
0.22
0.98%
TSE:AQN
Algonquin Power & Utilities
8.11
1.06
15.00%
TSE:GRB
Greenbriar Capital
0.42
-0.10
-19.23%
TSE:BLX
Boralex Inc Cl A
30.61
-3.12
-9.25%

Polaris Infrastructure Corporate Events

Dividends
Polaris Renewable Energy Declares Quarterly Dividend
Positive
Jul 31, 2025

Polaris Renewable Energy Inc. has announced a quarterly dividend of US$0.15 per common share, payable on August 22nd to shareholders of record as of August 11th. This move underscores the company’s commitment to providing consistent returns to its shareholders while maintaining a strong position in the renewable energy sector. The board is open to evaluating further dividend increases, reflecting confidence in the company’s financial health and operational performance.

The most recent analyst rating on (TSE:PIF) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on Polaris Infrastructure stock, see the TSE:PIF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Polaris Renewable Energy Reports Strong Q2 2025 Results with Increased Production and Revenue
Positive
Jul 31, 2025

Polaris Renewable Energy Inc. reported a 15% increase in energy production for Q2 2025, driven by favorable hydrological conditions in Peru and the acquisition of the Punta Lima Wind Farm in Puerto Rico. The company achieved $21.6 million in revenue and $15.4 million in adjusted EBITDA for the quarter, reflecting strong operational efficiency despite inflationary pressures. The company’s financial performance was bolstered by improved productivity in its Dominican Republic facility and strong results from the newly acquired wind farm, although challenges such as system-wide curtailment and technical issues in Panama were noted.

The most recent analyst rating on (TSE:PIF) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Polaris Infrastructure stock, see the TSE:PIF Stock Forecast page.

Financial Disclosures
Polaris Renewable Energy to Host Q2 2025 Earnings Call
Positive
Jul 7, 2025

Polaris Renewable Energy Inc. announced that it will hold its Earnings Conference Call and Webcast to report its Q2 2025 Earnings Results on July 31, 2025. This announcement highlights the company’s ongoing commitment to transparency and engagement with its investors, which may positively impact its operations and industry positioning.

The most recent analyst rating on (TSE:PIF) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on Polaris Infrastructure stock, see the TSE:PIF Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Polaris Renewable Energy Confirms Director Elections at Annual Meeting
Positive
Jun 19, 2025

Polaris Renewable Energy Inc. announced the successful election of all six director nominees at its annual shareholder meeting. This election ensures continuity in leadership as the company continues its operations in the renewable energy sector, potentially strengthening its position in the market and reassuring stakeholders of its strategic direction.

The most recent analyst rating on (TSE:PIF) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on Polaris Infrastructure stock, see the TSE:PIF Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 06, 2025