Valued at a market cap of $2.8 billion, Boralex (TSX: BLX) is down over 50% from its all-time high. Despite the ongoing pullback, the TSX stock has returned 123% to shareholders in the past decade. If we adjust for dividend reinvestments, cumulative returns are closer to 184%.
Boralex develops, builds, and operates power-generating and storage facilities in North America and Europe. It generates electricity from wind, solar, and hydroelectric resources. The company ended 2024 with 103 wind farms, 13 solar energy facilities, 15 hydro power stations, and two storage units with an installed capacity of over 2,100 megawatts.
Let’s see why I am bullish on this beaten-down TSX stock in 2025.
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Is Boralex stock a good buy right now?
In Q2 2025, Boralex reported an EBITDA (earnings before interest, tax, depreciation, and amortization) of $145 million, down $7 million year over year despite a 10% increase in total production. The decline was tied to lower prices on short-term power purchase agreements in France, which offset strong operational performance in North America.
Moreover, the quarter was marked by executive changes, with Chief Financial Officer Bruno Guilmette announcing his departure after serving in the role for seven years. Stéphane Milot will serve as interim CFO, bringing financial experience and deep knowledge of Boralex’s operations. Additionally, André Courville was named the new Board Chair, replacing Alain Rheaume after 15 years of service.
Operationally, Boralex made notable progress on its growth strategy. It secured two major contracts with NYSERDA for the Fort Covington and Two Rivers solar projects, totalling 450 megawatts in New York State.
These projects benefit from safe harbour provisions under recent U.S. legislation, providing clarity on tax credit eligibility. Construction milestones included the commissioning of two wind farms in France ahead of schedule and the advancement of battery storage projects in Ontario.
Boralex strengthened its position through multiple successful financings totalling over $1.2 billion, including a $960 million financing for the Des Neiges wind project and a $250 million corporate financing from La Caisse and Fondaction. However, the company decided against selling its hydro assets after receiving offers that fell short of valuation expectations.
Boralex reaffirmed its 2030 strategic plan targeting seven gigawatts of installed capacity through organic growth. With nearly 7.3 gigawatts in the development pipeline across four core markets, Boralex appears well-positioned for expansion. Management emphasized maintaining financial discipline while capitalizing on the strong fundamentals of renewable energy demand.
Is the TSX stock undervalued?
Analysts tracking the TSX stock forecast revenue to increase from $817 million in 2024 to $1.6 billion in 2028. Moreover, adjusted earnings per share are estimated to expand from $0.62 in 2024 to $1.96 in 2029.
Boralex should benefit from economies of scale and operating leverage, which will help it end 2029 with a free cash flow of $600 million, up from just $157 million in 2025.
Additionally, Boralex is on track to pay shareholders an annual dividend of $0.66 per share in 2025, which indicates a yield of 2.4%. Given its outstanding share count, the company’s annual dividend expense is around $68 million, translating to a payout ratio of less than 50%. A sustainable payout ratio will enable Boralex to reduce outstanding debt, raise dividends, and target accretive acquisitions.
If the TSX stock is priced at 10 times forward FCF, which is relatively cheap, it could almost triple over the next four years. Analysts remain bullish, expecting Boralex stock to gain 39% over the next 12 months, based on consensus price targets.
