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Polaris Infrastructure (TSE:PIF)
:PIF

Polaris Infrastructure (PIF) AI Stock Analysis

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Polaris Infrastructure

(TSX:PIF)

Rating:70Neutral
Price Target:
C$13.50
▲(12.22%Upside)
Polaris Infrastructure's overall stock score of 69.55 reflects a blend of solid technical momentum and robust cash flow management, with ongoing profitability challenges. The earnings call highlighted strategic initiatives that could drive future growth, balancing current financial pressures with potential opportunities in the renewable sector.

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

Polaris Infrastructure Business Overview & Revenue Model

Company DescriptionPolaris Renewable Energy Inc. engages in the acquisition, development, and operation of renewable energy projects in Latin America. The company operates a 72 MW net geothermal facility in Nicaragua; and three run-of-river hydroelectric facilities in Peru with approximately 5 MW net, 8 MW net, and 20 MW net capacity. It also operates a solar project in the Dominican Republic with 32.6 MWdc. The company was formerly known as Polaris Infrastructure Inc. and changed its name to Polaris Renewable Energy Inc. in July 2022. Polaris Renewable Energy Inc. was incorporated in 1984 and is based in Toronto, Canada.
How the Company Makes MoneyPolaris Infrastructure makes money through the generation and sale of electricity from its renewable energy projects. The company's key revenue streams include long-term power purchase agreements (PPAs) with utility companies and governments, which provide a stable and predictable income. These contracts typically ensure that Polaris receives a fixed price for the electricity generated over an extended period. Additionally, the company's earnings are influenced by its strategic partnerships and investments in new projects, which help expand its portfolio and increase capacity. Factors such as government incentives for renewable energy, carbon credits, and the operational efficiency of its plants also contribute to Polaris Infrastructure's financial performance.

Polaris Infrastructure Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 2.30%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive developments and challenges. While there was significant growth in adjusted EBITDA and operational cash flow, alongside strategic acquisitions and dividends, a reported net loss and revenue decline posed concerns. The company is also dealing with operational downtime in some regions, but is optimistic about future projects like the Puerto Rico battery program.
Q1-2025 Updates
Positive Updates
Increased Power Generation
Consolidated power production for the quarter was 216,344 megawatt hours, up from 213,434 megawatt hours in the same period in 2024.
Strong Adjusted EBITDA Growth
Adjusted EBITDA for the quarter was $15 million, a significant increase from $5.7 million in the same period last year.
Cash Generation Improvement
Net cash from operating activities was $11.8 million, higher than $8.7 million for the same period last year.
Punta Lima Acquisition and Production
The acquisition of Punta Lima wind farm in Puerto Rico resulted in 3,558 megawatt hours of production since March 3, 2025.
Dividend Announcement
A quarterly dividend of $0.15 per share is to be paid on May 23 to shareholders of record on May 12.
Puerto Rico Battery Program
Plans for an 80-megawatt battery system in Puerto Rico are progressing, with a targeted signing in mid-June.
Negative Updates
Net Loss for the Quarter
A net loss of $10.4 million was reported for the quarter, mainly due to one-time finance costs related to the paydown of four loans.
Revenue Decline
Revenue for the quarter was $20.3 million, a slight decrease from $20.6 million last year.
Unplanned Downtime in Nicaragua and Peru
Nicaragua experienced unplanned downtime in the binary unit, resulting in 1,200 to 1,500 megawatt hours less production. Peru also faced downtime at 8 de Agosto, affecting 4,000 megawatt hours due to sediment issues.
Increased Cash Used in Investing Activities
Net cash used in investing activities was $14.7 million, up from $1.3 million in the same period in 2024, primarily due to the Punta Lima acquisition.
Company Guidance
During Polaris Renewable Energy's first quarter 2025 earnings call, the company reported consolidated power production of 216,344 megawatt hours, a slight increase from the previous year's 213,434 megawatt hours. Despite a net loss of $10.4 million, attributed to one-time finance costs, the company achieved an adjusted EBITDA of $15 million, significantly up from $5.7 million in Q1 2024. Revenue for the quarter was $20.3 million, slightly down from $20.6 million the previous year. Polaris also generated net cash from operating activities of $11.8 million, with a notable increase in net cash used in investing activities to $14.7 million, primarily due to the acquisition of the Punta Lima wind farm. The company plans to pay a quarterly dividend of $0.15 per share on May 23. Looking ahead, Polaris is focused on its Puerto Rican ASAP battery program, targeting an 80-megawatt battery project with a $70 million gross CapEx and anticipated net CapEx of $50 million after potential ITC grants. The company maintains a strong balance sheet with $225 million in debt and $91 million in cash, positioning it for future growth opportunities.

Polaris Infrastructure Financial Statement Overview

Summary
Polaris Infrastructure demonstrates solid operational efficiency and strong cash flow management, indicating financial resilience. However, profitability challenges and recent net losses raise concerns about overall financial health despite moderate leverage.
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 Revenue75.43M75.77M78.52M62.60M59.52M74.72M
Gross Profit32.20M32.81M35.92M25.19M22.75M38.77M
EBITDA40.42M49.84M56.99M40.90M45.69M78.59M
Net Income-11.80M2.99M11.74M2.50M501.00K28.84M
Balance Sheet
Total Assets558.22M662.11M519.40M535.10M502.70M491.12M
Cash, Cash Equivalents and Short-Term Investments87.02M213.31M40.05M35.33M97.93M60.06M
Total Debt219.25M317.70M175.12M187.33M170.99M189.99M
Total Liabilities312.42M402.58M249.47M264.89M241.88M264.35M
Stockholders Equity245.99M259.75M269.34M269.68M262.76M228.75M
Cash Flow
Free Cash Flow35.97M31.69M32.57M1.02M32.72M33.42M
Operating Cash Flow38.13M35.05M43.96M33.51M41.13M40.31M
Investing Cash Flow-16.77M-3.31M-11.38M-65.99M-10.15M-2.85M
Financing Cash Flow24.64M141.51M-27.71M-30.13M6.89M-9.99M

Polaris Infrastructure Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.03
Price Trends
50DMA
11.84
Positive
100DMA
11.74
Positive
200DMA
11.99
Positive
Market Momentum
MACD
0.08
Negative
RSI
52.39
Neutral
STOCH
63.89
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 12.03 is above the 20-day moving average (MA) of 12.01, above the 50-day MA of 11.84, and above the 200-day MA of 11.99, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 63.89 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
TSPIF
70
Neutral
C$253.01M59.81-4.70%6.99%-1.45%-210.16%
67
Neutral
$16.35B16.914.45%3.59%4.76%6.21%
TSINE
67
Neutral
C$2.79B69.914.20%2.62%0.97%
TSBLX
59
Neutral
C$3.25B295.230.67%2.09%-16.63%-87.78%
TSGRB
35
Underperform
C$17.61M-90.04%-100.00%-14.57%
AQAQN
$4.41B5.54%4.52%
$4.31B23.246.08%5.33%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PIF
Polaris Infrastructure
12.18
-0.06
-0.49%
TSE:BLX
Boralex Inc Cl A
32.31
-1.65
-4.86%
TSE:GRB
Greenbriar Capital
0.47
-0.12
-20.34%
TSE:INE
Innergex Renewable Energy
13.70
3.34
32.24%
AQN
Algonquin Power & Utilities
5.79
-0.15
-2.53%
NPIFF
Northland Power
16.81
-0.06
-0.36%

Polaris Infrastructure Corporate Events

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.

Dividends
Polaris Renewable Energy Declares Quarterly Dividend
Positive
May 1, 2025

Polaris Renewable Energy Inc. has announced a quarterly dividend of US$0.15 per common share, payable on May 23rd to shareholders of record as of May 12th. The company’s board remains committed to maintaining and potentially increasing these dividends, reflecting its strong financial performance and dedication to shareholder value.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Polaris Renewable Energy Reports Q1 2025 Results with Strategic Acquisitions and Debt Optimization
Neutral
May 1, 2025

Polaris Renewable Energy reported its Q1 2025 results, highlighting a slight increase in energy production due to the acquisition of a Puerto Rican wind farm. Despite a stable revenue stream, the company faced net losses attributed to one-time finance costs. The acquisition of the Punta Lima Wind Farm in Puerto Rico is expected to enhance future production, with a Power Purchase Agreement in place until 2044. The company’s debt optimization strategy, including the settlement of credit facilities, aims to reduce borrowing costs, which is a strategic move to strengthen its financial position.

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: Jul 08, 2025