Boralex : Financial Review Q1-2025

Published: 2025-05-14 07:09:07 ET BLX.TO

Published on 05/14/2025 at 07:09

1st quarter 2025

Driven by disciplined actions

RESULTS PRESENTATION May 14, 2025

President and Chief Executive Officer

Installation of a turbine at Apuiat wind farm

Production in Q1-2025 decreased by 4% (1% on a Combined1 basis) compared to Q1-2024.

EBITDA(A)1 of $176 million ($199 million), down $19 million ($19 million)

compared to Q1-2024:

Strong performance from wind assets in Canada, partially offsetting lower contributions from wind farms in France, which were adversely affected by less favourable wind conditions and the expected impact of less favorable short-term power price agreement prices.

Operating result of $65 million ($99 million), down $41 million (down

$35 million) compared to the corresponding period in 2024.

Commissioning of the Limekiln wind project (106 MW) in the United Kingdom in February 2025.

Installed capacity of over 3.2 GW in Q1 2025 and projects under construction and ready-to-build totaling 660 MW.

Presentation of our 2025-2030 Strategic Plan at our investor day scheduled for June 17, 2025, in Toronto.

1 EBITDA(A) is a total of segments measures. The term Combined is a non-GAAP financial measure and does not have standardized definitions under IFRS. Accordingly, it may not be comparable to similarly named measures used by other companies. For more details, see the Non-IFRS and other financial measures section of the 2025 Interim Report 1.

Canada

Mark Carney's Liberal Party has won the election and will form the next minority

government. He has pledged to maintain clean energy investment tax credits.

The Quebec government has presented the 2025-2026 budget. The proposed bill includes an increase in the public utilities tax (PUT) on energy production assets, starting in 2027.

In Ontario, Premier Doug Ford won a third consecutive majority government in provincial election called in January to secure a strong mandate against U.S. tariffs.

United States

The announcement of significant tariffs by the White House has led to short-term economic volatility in the first quarter of 2025.

The Congressional budget process will result in spending cuts and a review of tax credits. Many Republican legislators advocate for maintaining investment and production tax credits to support domestic energy production.

The State of New York may be forced to rely more on land-based renewable energy to meet its climate goals following a federal order to halt work on the development of the 810 MW Empire Wind facility off the coast of New York.

United Kingdom

The Planning and Infrastructure Bill was published in March and is currently under discussion. It focuses on accelerating essential development to support economic growth and the government's Clean Power 2030 program.

France

The government has managed to stay in power without a clear majority in parliament, which has paved the way for discussions on numerous legislative issues.

The adoption of the Multi-Year Energy Program is suspended, pending a debate in parliament.

Limekiln Wind Farm Project - Scotland

Installed capacity 106 MW.

The 24 Vestas V136-4.5 MW turbines of the park have been operational since February 2025.

A 15-year Contract for Difference (CfD) obtained under AR5, which will start in April 2028.

Power purchase agreement signed with Statkraft to cover the pre-CfD period.

The transition to operational phase of Limekiln is a major step in achieving Boralex's growth objectives in the United Kingdom, a market with high development potential.

Apuiat wind farm project(1) -Québec

Hagersville and Tilbury storage projects - Ontario

Des Neiges Sud wind farm project(2) - Québec

200 MW - 100 MW Boralex, partnership with Innu Communities

Commissioning planned for summer 2025

33/34 Vestas V162/6.0MW turbines installed

30-year power purchase agreement with Hydro-Québec

Financing closed in September 2023

380 MW / 1520 MWh total

Commissioning planned for H2 2025

22-year contract awarded in the accelerated tender in 2023

Financing closed in December 2024

Work progress according to schedules

400 MW - 133 MW Boralex, partnership with Hydro-Québec and Energir

Commissioning planned for late 2026 -early 2027.

57 Nordex N163 turbines

Construction start date end of 2024

(1) The Corporation holds 50% of the shares in the joint venture with a total capacity of 200 MW but does not have control over it.

(2) The Corporation holds 50% of the shares in the joint venture with a total capacity of 400 MW but does not have control over it. A minority shareholder holds an interest in the project entity, bringing the Corporation's

net economic interest to 33%.

Fontaine-Lès-Boulans wind farm project

Febvin-Palfart wind farm project

Les Cent Mencaudées wind farm project

18 MW

Commissioning planned in H1 2025

5 Vestas V112 turbines

20-year CRAO contract obtained in 2023

11 MW

Commissioning planned in H2 2025

5 Vestas V100 turbines

15-year CPPA contract

18 MW

Commissioning planned in H2 2026

5 Nordex N117 turbines

20-year CRAO contract obtained in 2024

Construction start date in Q2 2025

MAIN VARIANCES IN THE PORTFOLIO OF PROJECTS UNDER DEVELOPMENT

Highlights

The Corporation's development project portfolio amounts to 7,086 MW, which is 72 MW more than at the end of fiscal year 2024.

Early stage registration of projects in North America and Europe, for an addition of 129 MW.

MAIN VARIANCES IN THE GROWTH PATH

Highlights

The growth path represents a capacity of 887 MW compared to 991 MW at the end of fiscal 2024, a decrease of 104 MW mainly explained by the transition to the operational phase of a wind farm project in the United Kingdom.

Executive Vice President and Chief Financial Officer

For Q1-2025, total production down 4% (1% on a Combined basis) compared to Q1-2024 and 10% (11%) lower than anticipated production1.

EBITDA(A) of $176 million ($199 million) in Q1-2025, down

$19 million ($19 million) from Q1-2024.

Operating income of $65 million ($99 million) in Q1-2025, down

$41 million ($35 million) from Q1-2024.

Net cash outflows related to operating activities of $172 million in Q1-2025 compared to inflows of $230 million in Q1-2024.

Discretionary cash flows2 of $74 million in Q1-2025, down

$4 million from Q1-2024.

Installation of a turbine at the Limekiln wind farm in Scotland

1 The anticipated production is an additional financial measure. For more details, see the Non-IFRS financial measures and other financial measures section in the 2025 Interim Report 1.

2 The term discretionary cash flow is a non-GAAP financial measures and does not have a standardized definition under IFRS. Therefore, this measure may not be comparable to similar measures used by other companies. For more details, see the Non-IFRS financial measures and other financial measures section of the 2025 Interim Report 1.

Q1 2025

Anticipated (1)(2)

Q1 2024

GWh

North America

Wind comparable - Canada Wind comparable - United-States Wind commissioning - Canada

925

422

797

476

775

402

Total wind - North America

1,347

1,338

1,177

Hydro comparable - Canada

Hydro comparable - United-States

106

138

Total hydro - North America

161

184

226

Solar comparable - United-States

Total North America

1,588

1,593

1,471

Europe

Wind comparable - France

668

869

866

Wind commissioning - France

Wind commissioning - UK

Total wind - Europe

729

1,011

871

Solar comparable - France

Solar commissioning - France

Total solar - France

Total Europe

746

1,032

884

Total

2,334

2,625

2,355

Q1 2025 vs

anticipated(1)(2)

Q1 2025 vs Q1 2024

GWh

128

150

(54)

(11)

(65)

(100)

170

(5)

(6)

(28)

(27)

(60)

(43)

(23)

(13)

(65)

(29)

(5)

117

(201)

(23)

(198)

(23)

(16)

(31)

>100

(65)

(72)

(282)

(28)

(142)

(16)

(3)

(17)

(1)

(24)

(4)

(18)

(286)

(28)

(138)

(16)

(291)

(11)

(21)

(1)

(1) Calculated based on adjusted historical averages of planned commissioning and shutdowns for the older sites and for other sites, based on the deliverables studies performed.

(2) See Notice concerning forward-looking statements in the 2025 Interim Report 1.

Consolidated Combined

(in millions of Canadian dollars) (unaudited)

Change

Q1 2025

Q1 2024

$ %

Operating Income

106

(41)

(39)

EBITDA(A)

North America

Wind

120

Hydro

(5)

(34)

Solar

>100

Overhead - BU North America

(7)

(8)

Total North America

126

100

Europe

Wind

114 (46) (41)

Solar

1 - 60

Overhead - BU Europe

(11)

(12) 1 7

Total Europe

103

(45)

(44)

Corporate

Administration

(8)

(7)

Total corporate

(8)

(7)

Total - EBITDA(A)

176

195

(19)

(10)

Net earnings

(32)

(44)

Change

Q1 2025

Q1 2024

$ %

134

(35) (26)

142

116

26 23

(5) (34)

4 >100

(7)

(8)

1 12

148

122

26 22

114 (46) (41)

1 - 60

(11)

(12) 1 7

103

(45) (44)

(7)

- (8)

(7)

- (8)

199

218

(19) (9)

(32) (44)

(1) EBITDA(A) is a total of segments measures. For more details, see the Non-IFRS financial measures and other financial measures section of the 2025 Interim Report 1.

Quarter LTM

(in millions of Canadian dollars, unless otherwise specified) (unaudited)

Change

Q1 2025

Q1 2024 $ %

Net cash flows related to operating activities

Change in non-cash items related to operating activities

172

(37)

230 (58)

(73) 36

(25)

Cash flows from operations(1)

Repayments on non-current debt (projects)(2)

Adjustment for non-operational items(3)

135

(64)

157 (22)

(65) 1

- 5

(14)

>100

(16)

(18)

Principal payments related to lease liabilities - IFRS 16(4)

(7)

(6)

(1)

(14)

Distributions paid to non-controlling shareholders(5)

(4)

(18)

Additions to property, plant and equipment (operational maintenance)

(2)

(4)

Development costs (from statement of earnings)

(1)

(2)

Discretionary cash flows

(4)

(5)

Dividends paid to shareholders of Boralex

Weighted average number of outstanding shares basic (in thousands)

102,770

102,766

Discretionary cash flows per share

$0.72

$0.76

($0.04)

(5)

Dividends paid to shareholders per share

$0.1650

Payout ratio

Reinvestment ratio(1)

Change

Mar 31, 2025

Dec 31, 2024 $ %

157

215 (58) (27)

236

200 36 18

393

415 (22) (5)

(238)

(240) 2 1

7 4 68

166

182 (16) (9)

(20)

(19) (1) (4)

(38)

(52) 14 27

(10)

(10) - (1)

57 (1) -

154

158 (4) (2)

68 - -

102,767

102,766 1 -

$1.50

$1.54 ($0.04) (2)

$0.66

$0.66 - -

44%

43%

56%

57%

(1) The terms Cash flows from operations, Discretionary cash flow and Reinvestment ratio are non-GAAP financial measures and do not have a standardized meaning under IFRS. Accordingly, they may not be comparable to similarly named measures used by other companies. For more details, see the Non-IFRS financial measures and other financial measures section in the 2025 interim report 1.

(2) Includes repayments on non-current debt (projects) and repayments to tax equity investors, and excludes VAT bridge financing, early debt repayments and repayments under the construction facility - Boralex Energy Investments portfolio.

(3) For the twelve-month periods ended March 31, 2025 and December 31, 2024, favourable adjustment consisting mainly of acquisition and restructuring costs.

(4) Excludes the principal payments related to lease liabilities for projects under development and construction.

(5) Includes distributions paid to non-controlling shareholders as well as the portion of discretionary cash flows attributable to the non-controlling shareholder of Boralex Europe Sàrl.

Debts - Principal balance (Consolidated)

(in millions of Canadian dollars) (unaudited)

Cash and cash equivalents of $388 million and good financial flexibility with available liquidity and authorized financing1 of

$504 million in Q1-2025.

Extension of the term of the revolving credit facility until 2030.

Increase in the letter of credit facility guaranteed by Export Development Canada (EDC) from $350 million to $470 million until April 2027.

1 Available cash resources and authorized financing is a non-GAAP financial measure and doesn't have a standardized definition under IFRS. Therefore, this measure may not be comparable to similar measures used by other companies. For more details, see the Non-IFRS financial measures and other financial measures section in the 2025 Interim Report 1.

Decrease in financial results in the first quarter of 2025, mainly due to unfavorable wind conditions in France.

Maintaining good financial flexibility with available liquidity and authorized financing of $504 million in Q1-2025.

Continued development and successful execution of our projects in our target markets:

Start of operations at the Limekiln wind farm (106 MW) in the United Kingdom;

Completion of construction work on the Apuiat wind farm project (200 MW total, 100 MW Boralex's share)

in Québec;

Progress in the construction of the Hagersville (300 MW) and Tilbury (80 MW) storage projects in Ontario, with commissioning expected by the end of the year.

Power production - Consolidated

Q1 2025 Anticipated(1)(2) Q1 2024

Power Production - Consolidated | Quarter (in GWh)

GWh

North America

Wind comparable - Canada

704

601

589

Total wind - North America

704

601

589

Hydro comparable - Canada

Hydro comparable - United-States

106

138

Total hydro - North America

161

184

226

Solar comparable - United-States

Total North America

945

856

883

Europe

Wind comparable - France

668

869

866

Wind commissioning - France

Wind commissioning - UK

Total wind - Europe

729

1,011

871

Solar comparable - France

Solar commissioning - France

Total solar - France

Total Europe

746

1,032

884

Total

1,691

1,888

1,767

Q1 2025 vs

Anticipated(1)(2)

Q1 2025 vs Q1 2024

GWh

103

115

103

115

(5)

(6)

(28)

(27)

(60)

(43)

(23)

(13)

(65)

(29)

(201)

(23)

(198)

(23)

(16)

(31)

>100

(65)

(72)

(282)

(28)

(142)

(16)

(3)

(17)

(1)

(24)

(4)

(18)

(286)

(28)

(138)

(16)

(197)

(10)

(76)

(4)

(1) Calculated based on adjusted historical averages of planned commissioning and shutdowns for the older sites and for other sit es, based on the deliverables studies performed.

(2) See Notice concerning forward-looking statements in the 2025 Interim report 1.

(in millions of Canadian dollars) (unaudited)

Consolidated

Change

Q1 2025

Q1 2024

$ %

North America

Wind

Hydro

(3)

(15)

Solar

Total North America

123

106

Europe

Wind

101

151

(50)

(33)

Solar

Total Europe

103

153

(50)

(33)

Total

226

259

(33)

(13)

Combined

Change

Q1 2025

Q1 2024

$ %

140

112

28 24

(3) (15)

1 28

164

138

26 18

101

151

(50) (33)

- 36

103

153

(50) (33)

267

291

(24) (8)

(1) Includes feed-in premium.

(in millions of Canadian dollars, unless otherwise specified) (unaudited)

Consolidated

Change

Mar 31, 2025

Dec 31, 2024

$ %

Total cash, including restricted cash

452

611

(159)

(26)

Property, plant and equipment and right-of-use assets

4,611

4,446

165

Goodwill and intangible assets

1,204

1,200

Financial net assets

100

(46)

Total assets

7,582

7,604

(22)

Debt - Principal balance

4,095

4,032

Total Projects debt(1)

3,630

3,608

Total Corporate debt

465

424

Average rate - total debt (%)

4.19

4.02

0.17

Equity attributable to shareholders

1,601

Net debt to market capitalization ratio (%)(2)

52%

50%

(1) Project loans are normally amortized over the life of the energy contracts of the related sites and are without recourse to Boralex.

(2) The Net Debt Ratio is a capital management measure. For more details, see the Non-IFRS financial measures and other financial measures section of the 2025 Interim Report 1.

Vice President - Investor Relations and Financial Planning

[email protected]

(514) 213-1045

BORALEX.COM

Disclaimer

Boralex Inc. published this content on May 14, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2025 at 11:08 UTC.