11:16 AM EDT, 07/30/2025 (MT Newswires) -- (Adds comment and updates shares.)

Capital Power ( CPXWF ) said Wednesday it swung to a loss in the second quarter after booking lower revenues and other income, but revised its 2025 guidance after expanding and enhancing its U.S. flexible generation portfolio with its largest acquisition to date.

The company booked an attributable loss of $132 million, or $0.92 per share, compared with a year-prior profit of $75 million, or $0.51.

Revenues and other income fell to $441 million from $774 million while adjusted EBITDA edged down to $322 million from $323 million.

The company completed the acquisition of the Hummel and Rolling Hills facilities in the U.S. PJM market for near $3.0 billion (US$2.2 billion), adding near 2.2 gigawatts of capacity to its U.S. flexible generation portfolio, the largest acquisition in the company's history.

Capital Power ( CPXWF ) raised its 2025 financial guidance, including an increase in adjusted EBITDA target to a range of $1.50 billion to $1.65 billion from the previous target of $1.34 billion to $1.44 billion.

On Tuesday the company announced a 6% quarterly dividend increase for its shares.

"The recent acquisitions of Hummel Station and Rolling Hills significantly expand our U.S. footprint and are accretive to AFFO per share. Over the past year, we executed our largest acquisition, completed our most ambitious organic growth initiative, the Genesee repowering project, increased our dividend, and remain well within our financial guardrails that underpin our investment grade credit rating," said chief financial officer Sandra Haskins.

National Bank of Canada maintained its outperform rating and $62.00 price target on the company's shares following the release.

The bank based the target on a risk-adjusted dividend yield of 4.50% applied to the estimated 2026 dividend of $2.81 per share, an 11.0x multiple of the estimated 2026 Free-EBITDA and DCF valuation of $63.00.

Capital Power ( CPXWF ) shares were last seen up $0.21 to $62.49 on the Toronto Stock Exchange.

Price: 62.96, Change: +0.68, Percent Change: +1.09