Northland Power Inc.

Northland Power Reports Fourth Quarter 2025 Results and 2026 Financial Outlook

TORONTO, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) today reported financial results for the year ended December 31, 2025. All dollar amounts set out herein are in Canadian dollars, unless otherwise stated.

Highlights

• Record high wind production across German offshore wind assets in the fourth quarter contributed to delivering Adjusted EBITDA¹ of $1.25 billion, in-line with 2025 financial guidance and Free Cash Flow¹ of $1.46 per share, exceeding 2025 financial guidance.

• Introduced a new global strategy and 2030 outlook, targeting a doubling of gross operating capacity to 7 GW, with clear growth and financial priorities and a five-year funding plan.

• Progressed construction on the Baltic Power (1.1 GW) and Hai Long (1.0 GW) offshore wind projects.

• Expanded battery energy storage system (“BESS”) pipeline with the addition of two late-stage pre-construction projects totaling 300 MW / 1.2 GWh in Poland.

• Issued 2026 financial guidance with Adjusted EBITDA expected to be $1.45 - $1.65 billion, and Free Cash Flow expected to be $1.05 - $1.25 per share.

“In 2025, we set a clear direction for Northland through our five-year plan focused on maximizing long-term shareholder value. We are executing on our strategy and advancing our next phase of growth, including delivering our projects in construction and adding two late-stage pre-construction BESS projects in Poland. We also see value-accretive opportunities across our core markets in Canada and Europe,” stated Christine Healy, President and CEO of Northland.

Ms. Healy continued, “In the fourth quarter of 2025, our operating fleet availability was 96%, and our offshore wind assets in Germany set a new production record. Construction progress continues to be on track for our two offshore wind projects.”

Significant Events and Updates

Construction Projects Update:

• Hai Long Offshore Wind Project – Northland continues to advance the 1.0 GW Hai Long project. The project currently has 37 out of 73 turbines installed, with 20 turbines generating power. As reported last quarter, turbine commissioning has been slower than expected and could impact pre-completion revenues in the amount of approximately $150 - $200 million (Northland share). The project is optimizing the commissioning schedule in preparation for in-water activities expected to resume in April 2026. The project is on track for commercial operations in 2027, with overall costs aligned with original expectations.

• Baltic Power Offshore Wind Project – Northland continues to advance the 1.1 GW Baltic Power project. Offshore construction activities are progressing, including the installation of both offshore substations, all turbine monopile foundations, 30 of the turbines, and 2 out of 4 export cables. The local grid operator completed grid interconnection works, a key milestone for energization of the project. The project is on track for commercial operations in the second half of 2026, with overall costs aligned with original expectations.

Others:

• Secured Polish Battery Energy Storage Projects – On November 20, 2025, Northland acquired two late-stage pre-construction battery energy storage projects totaling 300 MW / 1.2 GWh in Poland.

• Announced New Strategic Plan and 2030 Outlook – On November 20, 2025, Northland held its 2025 Investor Day where management presented the Company’s five-year strategic growth and funding plan. Highlights included: targeting to double operating capacity to 7 GW by 2030; implementing a regional operating model with a deepened focus on core markets of Canada and Europe; improving cost efficiency; selectively advancing high-quality opportunities; and raising investment return targets to 12+%.

• Nordsee One Offshore Wind Facility – On November 18, 2025, Northland signed a five-year bilateral power purchase agreement for approximately one-third of the production from its 332 MW Nordsee One offshore wind farm.

• Previously Announced Dividend Change – On November 12, 2025, Northland’s Board of Directors approved an adjustment to Northland’s dividend to $0.72 per share on an annual basis.

• Thorold Natural Gas Facility Upgrade – On November 25, 2025, Northland completed the performance test for a 23 MW capacity upgrade at the Thorold facility and executed an amended PPA extending the contract to April 30, 2035.

Financial Results

Fourth Quarter

Fourth quarter 2025 financial results increased year-over-year, driven by higher production across the International business unit offshore wind facilities, contribution from the Oneida energy storage facility (which commenced operations in the second quarter of 2025), and increased market demand for dispatchable power at natural gas facilities.

• Revenue from energy sales of $723 million in the fourth quarter of 2025 increased from $572 million in 2024.

• Net income increased in the fourth quarter of 2025 to $290 million from $150 million in 2024.

• Adjusted EBITDA (a non-IFRS measure) increased in the fourth quarter of 2025 to $390 million from $312 million in 2024.

• Free Cash Flow per share (a non-IFRS measure) increased in the fourth quarter of 2025 to $0.46 from $0.31 in 2024.

• Cash provided by operating activities was $227 million in the fourth quarter of 2025 compared to $360 million in the same quarter of 2024.

Full-Year 2025

Full-year 2025 Adjusted EBITDA and Free Cash Flow decreased compared to 2024, due to low offshore wind resource in the first half of the year within the International business unit, partially offset by the contribution from Oneida and high wind conditions at the Americas business unit onshore facilities.

• Revenue from energy sales increased on a full-year basis to $2,435 million from $2,346 million in 2024.

• Net loss was $108 million in 2025 compared to net income of $371 million in 2024, primarily due to a $527 million non-cash pre-tax impairment expense for the Nordsee One offshore wind facility recognized in the third quarter of 2025.

• Adjusted EBITDA (a non-IFRS measure) decreased on a full-year basis to $1,253 million from $1,262 million in 2024.

• Free Cash Flow per share (a non-IFRS measure) decreased on a full-year basis to $1.46 from $1.53 in 2024.

• Cash provided by operating activities was $1,426 million on a full-year basis compared to $1,029 million in 2024.

• Available corporate liquidity of $931 million as at December 31, 2025 includes $39 million of cash on hand and approximately $892 million of available capacity on corporate revolving credit facilities.

The following table presents key IFRS and non-IFRS financial measures and operational results. Revenue from energy sales, operating income (loss) and net income (loss), as reported under IFRS, include consolidated results of entities not wholly owned by Northland, whereas Northland’s non-IFRS financial measures include only Northland’s proportionate ownership interest.

Summary of Consolidated Results

Fourth Quarter Highlights

International Business Unit

Northland’s International business unit consists of operating offshore wind facilities located in Germany and the Netherlands, along with onshore wind and solar facilities in Spain.

Offshore wind facilities

Electricity production for the three months ended December 31, 2025 increased 21% or 271 GWh compared to the same quarter of 2024. Commercial availability for the three months ended December 31, 2025 was at 97%.

Revenue from energy sales of $385 million for the three months ended December 31, 2025 increased 38% or $105 million, compared to the same quarter of 2024, due to higher production across offshore wind facilities.

Adjusted EBITDA of $243 million for the three months ended December 31, 2025 increased 34% or $62 million compared to the same quarter of 2024, due to the same factor noted above.

Onshore renewable facilities

Electricity production for the three months ended December 31, 2025 of 248 GWh was in line with the same quarter of 2024. Commercial availability for the three months ended December 31, 2025 was at 97%.

Revenue from energy sales of $45 million for the three months ended December 31, 2025 decreased 17% or $9 million compared to the same quarter of 2024, due to lower market prices at the Spanish facilities.

Adjusted EBITDA of $29 million for the three months ended December 31, 2025 decreased 24% or $9 million compared to the same quarter of 2024, due to the same factor noted above.

Americas Business Unit

Northland’s Americas business unit includes natural gas, onshore wind, solar, and energy storage facilities in Canada, onshore wind projects in the United States, and regulated utility operations in Colombia.

Onshore renewable & energy storage facilities

Electricity production for the three months ended December 31, 2025 of 553 GWh was in line with the same quarter of 2024. Commercial availability for the three months ended December 31, 2025 was at 97%.

Revenue from energy sales of $91 million for the three months ended December 31, 2025 increased 30% or $21 million compared to the same quarter of 2024, due to the contribution from the Oneida energy storage facility commencing operations in the second quarter of 2025.

Adjusted EBITDA of $52 million for the three months ended December 31, 2025 increased 16% or $7 million compared to the same quarter of 2024, due to the same factor noted above.

Natural gas facilities

Electricity production of 1,088 GWh for the three months ended December 31, 2025 increased 42% or 324 GWh compared to the same quarter of 2024, due to higher market demand for dispatchable power. Commercial availability for the three months ended December 31, 2025 was at 90%.

Revenue from energy sales of $102 million for the three months ended December 31, 2025 increased 29% or $23 million compared to the same quarter of 2024, due to higher market demand for dispatchable power.

Adjusted EBITDA of $52 million for the three months ended December 31, 2025 increased 11% or $5 million compared to the same quarter of 2024, due to the factor noted above.

Utility

Revenue from energy sales of $97 million for the three months ended December 31, 2025 increased 6% or $5 million compared to the same quarter of 2024, due to growth in the asset base.

Adjusted EBITDA of $40 million for the three months ended December 31, 2025 was in line with the same quarter of 2024.

Consolidated statements of income (loss)

General and administrative (“G&A”) costs of $33 million increased $6 million compared to the same quarter of 2024, due to certain non-recurring administrative expenses.

Development costs of $21 million were in line with the same quarter of 2024.

Finance costs of $83 million decreased $14 million compared to the same quarter of 2024, due to scheduled principal repayments on facility-level loans.

Fair value gain on financial instruments was $50 million, due to net movement in the fair value of derivatives related to foreign exchange and interest rate contracts.

Foreign exchange loss of $8 million was due to fluctuations in foreign exchange rates.

Share of profit from joint ventures of $118 million was due to the gains on fair value of derivatives, partially offset by the foreign exchange losses, at the joint ventures.

Net income of $290 million in the fourth quarter of 2025 compared to net income of $150 million in the same quarter of 2024, as a result of the factors described above.

Adjusted EBITDA

The following table reconciles net income (loss) to Adjusted EBITDA:

Adjusted EBITDA of $390 million for the three months ended December 31, 2025 increased 25% or $77 million compared to the same quarter of 2024. The factors increasing Adjusted EBITDA include:

• $62 million increase in operating results at the International business unit offshore wind facilities, due to higher production, as described above;

• $14 million increase due to the pre-completion revenue from the Hai Long offshore wind project and lower joint venture project costs; and

• $11 million increase due to the contribution from the Oneida energy storage facility commencing operations in the second quarter of 2025.

The factor partially offsetting the increase in the Adjusted EBITDA was:

• $9 million decrease in operating results from the International business unit onshore wind facilities, as described above.

Free Cash Flow

The following table reconciles cash flow from operations to Free Cash Flow:

Free Cash Flow of $121 million for the three months ended December 31, 2025 was 51% or $41 million higher than the same quarter of 2024.

The factor increasing Free Cash Flow was:

• $76 million increase in Adjusted EBITDA (gross of growth expenditures) due to the factors described above.

The factors offsetting the increase in Free Cash Flow were:

• $13 million increase in current taxes as a result of higher operating results;

• $12 million decrease from foreign exchange hedges, lease payments, and other settlements; and

• $10 million increase in scheduled debt repayments on facility-level loans and net movement in funds set aside for maintenance and decommissioning reserves.

The following table reconciles Adjusted EBITDA to Free Cash Flow:

Outlook

The Company’s outlook focuses on execution during a period of elevated construction activity. Near‑term priorities include the safe construction and delivery of Hai Long and Baltic Power projects. The Company has also implemented a simplified, regionally focused operating structure to enhance efficiency and align strategic and financial objectives.

Northland anticipates generating revenue from Hai Long and Baltic Power in 2026. For Hai Long, the revenue generated will be used to fund the construction of the project and will not be included in Free Cash Flow until the project reaches commercial operations, anticipated in 2027. Baltic Power is expected to achieve commercial operations in the second half of 2026.

Adjusted EBITDA

Management expects 2026 Adjusted EBITDA of $1.45 - $1.65 billion, representing an increase from 2025 Adjusted EBITDA of $1.25 billion. Several factors are expected to contribute to this increase:

• Hai Long contribution of $150 - $200 million;

• Baltic Power contribution of $70 - $120 million expected to start in the second half of 2026; and

• Full year contribution from Oneida and partial year contribution from Jurassic BESS of approximately $15 million.

Increase in Adjusted EBITDA is expected to be partially offset by:

• Lower Nordsee One contribution of approximately $20 million due to scheduled contract step-down.

Northland has assumed development expenditures will be approximately $50 million. The Company intends to be selective and pursue only those projects that meet its strategic objectives and targeted returns.

Free Cash Flow

Management expects 2026 Free Cash Flow of $1.05 - $1.25 per share, which is lower than the 2025 Free Cash Flow of $1.46 per share. Several factors contributing to this variance include:

• One-time 2025 items including the non-recurrence of the German tax benefit ($0.12), deferral of Spanish debt repayments ($0.07), and other items ($0.03) that combine to approximately $0.22 per share;

• Foreign exchange hedging costs ($0.10) and higher debt service for the natural gas business ($0.05) are anticipated to total approximately $0.15 per share; and

• Lower capitalized interest on hybrid debt as Oneida has commenced operations and Baltic Power assets will have commenced operations ($0.10), along with other costs ($0.05) that combines to approximately $0.15 per share.

Decrease in Free Cash Flow is expected to be partially offset by:

• Baltic Power contribution net of debt repayments and other various items by approximately $0.20 per share.

The information in this Outlook constitutes forward-looking information within the meaning of applicable Canadian securities laws, is based on several assumptions and is subject to risks and uncertainties. See Forward-Looking Statements in this document as well as the Risk Factors in the 2025 AIF.

Fourth-Quarter Earnings Conference Call

Northland will hold an earnings conference call on February 26, 2026, to discuss its fourth quarter 2025 results. The call will be hosted by Northland’s Senior Management, who will discuss the Company’s financial results and developments and answer questions from analysts.

Conference call details are as follows:

Thursday, February 26, 2026, 10:00 a.m. ET

Participants wishing to join the call and ask questions must register using the following URL below:

https://register-conf.media-server.com/register/BIa0157d1deac442dda5e66371e5e79582

For all other attendees, the call will be broadcast live on the internet, in listen-only mode and can be accessed using the following link:

Webcast URL: https://edge.media-server.com/mmc/p/au4w68kp

For those unable to attend the live call, an audio recording will be available on northlandpower.com on Friday, February 27, 2026.

Northland’s audited consolidated financial statements for the year ended December 31, 2025, and related MD&A can be found on SEDAR+ at www.sedarplus.ca under Northland’s profile and on northlandpower.com.

ABOUT NORTHLAND POWER

Northland Power is a Canadian-owned global power producer dedicated to accelerating the global energy transition. Founded in 1987, with almost four decades of experience, Northland has a long history of developing, owning and operating a diversified mix of energy infrastructure assets including offshore and onshore wind, solar, battery energy storage, and natural gas. Northland also supplies energy through a regulated utility.

Headquartered in Toronto, Canada, with global offices in seven countries, Northland owns or has an economic interest in 3.5 GW of gross operating generating capacity, 2.2 GW under construction and a significant inventory of early to mid-stage development opportunities encompassing approximately 9 GW of potential capacity.

Publicly traded since 1997, Northland's Common Shares, and Series 1 and Series 2 Preferred Shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B, respectively.

NON-IFRS FINANCIAL MEASURES

This press release includes references to the Company’s adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”), Free Cash Flow and applicable payout ratios and per share amounts, which are measures not prescribed by International Financial Reporting Standards (“IFRS”), and therefore do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. Non-IFRS financial measures are presented at Northland’s share of underlying operations. These measures should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. Instead, these measures are provided to complement IFRS measures in the analysis of Northland’s results of operations from management’s perspective. Management believes that Northland’s non-IFRS financial measures and applicable payout ratio and per share amounts are widely accepted and understood financial indicators used by investors and securities analysts to assess the performance of a company, including its ability to generate cash through operations.

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that are provided for the purpose of presenting information about management’s current expectations and plans. Readers are cautioned that such statements may not be appropriate for other purposes. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, the events anticipated by the forward-looking statements may or may not transpire or occur. Forward-looking statements include statements that are not historical facts and are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could”. These statements may include, without limitation, statements regarding future Adjusted EBITDA and Free Cash Flow, including respective per share amounts, dividend payments and dividend payout ratios, the implementation, timing and anticipated benefits of Northland’s new strategic plan, the timing for and attainment of the Hai Long and Baltic Power offshore wind projects, Jurassic BESS battery energy storage project and other growth activity and the anticipated contributions therefrom to Adjusted EBITDA and Free Cash Flow, the expected generating capacity of certain projects, guidance, anticipated dates of commercial operations, forecasts as to overall project costs, the completion of construction, acquisitions, dispositions, whether partial or full, investments or financings and the timing thereof, the timing for and attainment of financial close and commercial operations for each project, the potential for future production from project pipelines, cost and output of development projects, the all-in interest cost for debt financing, the impact of currency and interest rate hedges, Northland’s anticipated credit rating, litigation claims, future funding requirements, and the future operations, business, financial condition, financial results, priorities, ongoing objectives, strategies and the outlook of Northland, its subsidiaries and joint ventures.

These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary is a party, management’s current plans and its perception of historical trends, current conditions and expected future developments, the ability to obtain necessary approvals, satisfy any closing conditions, satisfy any project finance lender conditions to closing sell-downs or obtain adequate financing regarding contemplated construction, acquisitions, dispositions, investments or financings, as well as other factors, estimates and assumptions that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management’s current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include, but are not limited to, risks associated with further regulatory and policy changes which could impair current guidance and expected returns, risks associated with merchant pool pricing and revenues, risks associated with sales contracts, Northland’s ability to execute on its growth strategy, the emergence of widespread health emergencies or pandemics, Northland’s reliance on the performance of its offshore wind facilities at Gemini, Nordsee One and Deutsche Bucht for over 50% of its Adjusted EBITDA, counterparty and joint venture risks, contractual operating performance, variability of sales from generating facilities powered by intermittent renewable resources, wind and solar resource risk, unplanned maintenance risk, offshore wind concentration, natural gas and power market risks, commodity price risks, operational risks, recovery of utility operating costs, Northland’s ability to resolve issues/delays with the relevant regulatory and/or government authorities, permitting, construction risks, project development risks, integration and acquisition risks, procurement and supply chain risks, financing risks, disposition and joint-venture risks, competition risks, interest rate and refinancing risks, liquidity risk, inflation risks, commodity availability and cost risk, construction material cost risks, impacts of regional or global conflicts, credit rating risk, currency fluctuation risk, variability of cash flow and potential impact on dividends, taxation, natural events, environmental risks, unforeseeable site conditions, including geological and geotechnical risks, climate change, health and worker safety risks, market compliance risk, government regulations and policy risks, utility rate regulation risks, international activities, cybersecurity, data protection and reliance on information technology, labour relations, labour shortage risk, management transition risk, geopolitical risk in and around the regions Northland operates in, large project risk, reputational risk, insurance risk, risks relating to co-ownership, bribery and corruption risk, terrorism and security, litigation risk and legal contingencies, and the other factors described in the “Risks Factors” section of Northland’s MD&A and 2025 AIF, which can be found at www.sedarplus.ca under Northland’s profile and on Northland’s website at northlandpower.com.

Northland has attempted to identify important factors that could cause actual results to materially differ from current expectations; however, there may be other factors that cause actual results to differ materially from such expectations. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, and Northland cautions you not to place undue reliance upon any such forward-looking statements.

The forward-looking statements contained in this release are, unless otherwise indicated, stated as of the date hereof and are based on assumptions that were considered reasonable as of the date hereof. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Certain forward-looking information in this release and the MD&A may also constitute a “financial outlook” within the meaning of applicable securities laws. Financial outlook involves statements about Northland’s prospective financial performance, financial position or cash flows and is based on and subject to the assumptions about future economic conditions and courses of action and the risk factors described above in respect of forward-looking information generally, as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this release and the MD&A. Such assumptions are based on management’s assessment of the relevant information currently available and any financial outlook included in this release and the MD&A is provided for the purpose of helping readers understand Northland’s current expectations and plans. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above or other factors may cause actual results to differ materially from any financial outlook. The actual results of Northland’s operations will likely vary from the amounts set forth in any financial outlook and such variances may be material.

For further information, please contact:

Alison Holditch, Investor Relations

416-989-8734

investorrelations@northlandpower.com

northlandpower.com

¹ Adjusted EBITDA and Free Cash Flow are non-IFRS financial measures. Non-IFRS financial measures do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. See “Non-IFRS Financial Measures”, and sections entitled “5.5: Adjusted EBITDA” and “5.6: Free Cash Flow” in the Management’s Discussion and Analysis for the year ended December 31, 2025, dated February 25, 2026 (“MD&A”) incorporated by reference herein for more information about each of these measures.