Northland Power (TSX:NPI) shares are tumbling in early hours of Thursday morning trading. At the open, the renewable energy provider’s shares dropped as much as 25% after it released its third quarter 2025 results.
A decent quarter, but ominous news for 2026
In the quarter, revenues were up nearly 13% to $554 million. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose 12% to $257 million. However, Northland Power incurred a massive $456 million net loss (or $1.58 per share loss) in the quarter.
Despite generally solid energy production, the major reason for the rapid stock decline was management’s commentary. Its long-anticipated one-gigawatt Hai Long Offshore Wind Project has run into challenges (again).
Commissioning of the project is now expected to take longer than expected. That is going to push 2026 pre-completion revenues of between $150 million and $200 million to a later period.
The delay could have a serious impact on Northland’s anticipated cash flow in 2026. It would put its free cash flow payout ratio near or over 100%. Likewise, the cash pinch could restrict Northland’s ability to continue investing in its renewable development pipeline.
Northland Power slashed its dividend by 60%
To shore up its balance sheet, the company slashed its longstanding $0.10-per-share monthly dividend by 40% to $0.06 per share (or $0.72 per share annualized). At $18.95 per share, that would put Northland’s dividend yield at 3.8% today (versus about 4.6% previously).
Management believes this move will help maintain Northland Power’s credit rating while upholding its growth posture and preventing any costly equity dilution for shareholders.
However, one thing the market and investors do not tolerate is a dividend being slashed. As can be seen by the massive 25% decline, Northland has been put in the penalty box. We will see if it can work its way out of it in the coming quarters and year.
