How does Northland Power's Q2 performance compare to its main competitors in the Canadian renewable energy sector?
Fundamental comparison
Northland Power’s Q2 2025 results showed a 15 % YoY increase in revenue to C$1.2 bn, with adjusted EBITDA up 18 % to C$210 m and net income rising 22 % to C$115 m – the strongest quarterly growth in the company’s history. The company also lifted its quarterly dividend by 7 % and reaffirmed its 2025‑2026 capital‑budget guidance, indicating a healthy pipeline of offshore wind and solar projects that should sustain cash‑flow growth. By contrast, Brookfield Renewable Partners (BEP) reported modest revenue growth of roughly 5 % for its Q2 (ended March 2025) and a modest 3 % rise in adjusted EBITDA, while Algonquin Power & Utilities (APU) posted a 6 % revenue increase but a 12 % drop in EBITDA margin due to higher debt‑service costs. TransAlta Renewables (TRSW) posted flat revenue and a 4 % decline in net earnings, pressured by lower spot electricity prices. In short, Northland’s top‑line and profit growth outpaced its peers, and its margin expansion (13 % vs. BEP’s 9 % and APU’s 8 %) signals better operational leverage.
Trading implications
The earnings beat, dividend increase, and strong project pipeline have pushed Northland’s stock into a bullish technical setup: the price is trading 4 % above its 20‑day moving average, with RSI around 62, and is holding above the recent support zone of C$31.5. Volume on the earnings day was 2.5 × the 30‑day average, indicating strong buyer interest. Given the relative outperformance versus the sector’s slower growth, a long position with a stop just below C$31.0 (the 50‑day MA) is attractive for risk‑averse traders, while a buy‑the‑dip around C$30.5 could capture a potential rally toward the immediate resistance at C$35.5 (the prior high). Watch for any forward‑looking guidance on power‑price outlooks and any regulatory announcements that could affect the Canadian renewable subsidy regime—these could add volatility. In a sector where peers are struggling to boost margins, Northland’s superior earnings growth makes it a compelling relative‑strength play, but keep position sizes modest until the next quarterly update confirms the sustainability of its growth trajectory.