This Canadian Energy Stock Could Have its Biggest Year Yet

Northland Power’s pullback could be setting up a comeback as big offshore wind projects ramp and the dividend reset makes its payout easier to sustain.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 18, 4:50 pm EDT

| More on: NPI

Key Points

Northland isn’t an oil bet, it owns power assets like offshore wind, gas, storage, and utilities tied to rising electricity demand.
Q1 2026 showed improving momentum, with higher revenue, EBITDA, and free cash flow per share year over year.
The dividend was cut to a smaller monthly payout, so the key now is project execution and hitting 2026 guidance.

Energy stocks don’t all need oil to win. That’s the interesting part of Northland Power (TSX:NPI) right now. While many investors focus on crude prices, pipelines, and gas producers, Northland sits in a different lane. It owns and develops power assets, including offshore wind, onshore renewables, battery storage, natural gas facilities, and utilities. That mix gives it exposure to one of the biggest themes in the market today: the world needs more electricity.

Aerial view of a wind farm — Source: Getty Images

NPI

That need keeps growing. Artificial intelligence (AI), data centres, electric vehicles, re-shoring, and air conditioning all push power demand higher. Governments also want cleaner power. Companies want long-term contracts. Investors want cash flow. NPI stock doesn’t solve all those needs at once, but it sits closer to the centre of the conversation than it did a few years ago.

NPI stock in 2026 could mark a major step up in its earnings base. The company already entered the year with big projects moving forward, including the Hai Long offshore wind project in Taiwan and the Baltic Power offshore wind project in Poland. Offshore wind can create large, contracted cash flows once it moves from construction into operation.

Into earnings

The latest results gave investors a stronger reason to pay attention. In the first quarter of 2026, NPI stock reported revenue from energy sales of $775 million, up from $665 million last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $427 million, up from $361 million. Free cash flow per share increased to $0.70 from $0.60.

Those numbers tell a cleaner story than the stock has told in recent years. NPI stock struggled with low wind conditions, higher interest rates, construction complexity, and investor frustration over its dividend. The company finally reset the payout. It now pays $0.06 per share each month, or $0.72 annually. That cut hurt income investors, but it also made the dividend more manageable.

That’s why 2026 matters. A lower dividend gives NPI stock more room to fund growth, manage debt, and support large projects. It also shifts the story away from stretching for yield and toward rebuilding confidence. Investors may not love a dividend cut, but they should care more about whether the new payout can last.

Looking ahead

The catalyst is execution. NPI stock reaffirmed its 2026 guidance for adjusted EBITDA of $1.45 billion to $1.65 billion and free cash flow per share of $1.05 to $1.25. If management hits that range, it would show the company can move past the rough patch and start proving out its growth pipeline.

Hai Long offers one important piece of that story. NPI stock announced first power from the project in 2025, and project updates show ongoing offshore progress. Baltic Power also keeps advancing, with major installation work underway. Together, they could reshape NPI stock’s profile if construction stays on track and operating performance follows.

The business snapshot is simple enough. Northland builds and owns power assets that can produce contracted revenue over long periods. That can create stable cash flow, especially when projects run well. It also gives the company exposure to clean power demand without relying entirely on one region or one technology.

Bottom line

The setup looks better than it has in a while. NPI stock now has a leaner payout, stronger first-quarter results, and major projects moving closer to full contribution. The stock may still carry baggage, but baggage can create opportunity when the business starts turning. And right now could mean you get even more income from an investment while share prices are down, even with $7,000.

COMPANY	RECENT PRICE	NUMBER OF SHARES	ANNUAL DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
NPI	$22.65	309	$0.72	$222.48	Monthly	$6,998.85

For investors looking beyond oil, NPI stock offers a different energy bet. It’s a power-demand stock, a renewable-growth stock, and a monthly dividend stock all in one. If 2026 guidance holds and its big projects keep advancing, this Canadian energy name could have its biggest year yet.