Boralex (TSE:BLX) reported fourth-quarter and full-year 2025 results, highlighting higher year-over-year production but results that fell short of internal expectations due to resource variability and weaker pricing in France. Management also emphasized progress on its 2030 strategic plan, a growing development pipeline, and major milestones in battery storage in Ontario.
2025 results: production up, but below expectations
President and CEO Patrick Decostre said 2025 reflected “strong execution” despite “greater quarterly volatility in resource generation” and an “unfavorable year-over-year pricing comparison in France.”
Decostre said the company’s 2025 financial performance was below expectations, citing combined operating income of CAD 248 million and combined EBITDA of CAD 655 million, which was down 2% from 2024. He said higher production did not offset lower selling prices in France, particularly due to lower prices on short-term contracts.
Fourth quarter: stronger production and EBITDA, but weather impacts persisted
Executive Vice President and Interim CFO Stéphane Milot said fourth-quarter combined production rose 17% from the same quarter last year, driven by more favorable wind conditions and contributions from newly commissioned sites in Europe and North America. However, production was still 7% lower than anticipated due to unfavorable weather conditions, primarily in North America.
Boralex reported combined EBITDA of CAD 203 million in Q4, up CAD 12 million year over year. Consolidated discretionary cash flows totaled CAD 56 million, up CAD 9 million from the fourth quarter of 2024. Milot said results benefited from better wind and newly commissioned sites in Europe and Canada, partially offset by lower prices on short-term contracts in France.
Milot provided detail on quarterly production by region and technology:
- North America: total combined production was up 5% year over year but 9% below anticipated.
- North American wind: production was up 9% year over year and 6% below expectations, mainly due to lower contributions from U.S. wind farms.
- Hydro: production was down 23% versus last year and 30% below anticipated, attributed to unfavorable weather across North America.
- U.S. solar: production was down 9% year over year and 5% below anticipated.
- Europe: total production was up 40% year over year but 4% below anticipated.
Strategic plan progress and project execution across markets
Decostre said Boralex’s development portfolio and growth trajectory now exceeds 8.2 GW. Installed capacity reached 3.8 GW, an increase of 615 MW during the year, which management said was driven entirely by organic growth.
He outlined market-specific milestones:
- United Kingdom: Limekiln Wind Farm was commissioned. Boralex also received ministerial approval for the 189 MW Clashindarroch extension (including wind and battery storage) and was awarded a contract for difference for the 44 MW Sallachy Wind Farm through the AR7 process.
- France: Boralex commissioned two wind farms—Fontaine-Lès-Boulans and Febvin-Palfart—totaling 29 MW. The company said it ranked first by cumulative capacity in the most recent French wind auction, securing two projects totaling 100 MW (described on the call as 20 MW and 25 MW projects).
- United States: Boralex signed two NYSERDA contracts for the Fort Covington and Two Rivers solar projects totaling 450 MW, and said both advanced to the secured stage during the year.
- Canada: The Apuiat wind farm was commissioned. Boralex said it continues construction on Des Neiges – Secteur sud (with financing secured earlier in the year) and Des Neiges Wind Farm – Charlevoix.
Decostre also said Boralex was active in the fall, submitting projects into four RFPs: two in Ontario, one in New York State, and one in the U.K.
Battery storage expansion and liquidity update
A major highlight of the quarter was the ramp-up in battery storage. Decostre said Boralex commissioned the Sanjgon Battery Energy Storage System, its first operational storage project in North America, developed with Walpole Island First Nation. The Hagersville Battery Energy Storage Project also began operations in Q4 2025, and the company said it received retroactive confirmation from the ISO effective February 18.
Decostre described Hagersville as the largest battery storage project in Canada and said it was developed in partnership with the Six Nations of the Grand River. Combined, the two projects add 380 MW to installed capacity, making Boralex “the largest battery storage operator in Canada,” he said.
On the balance sheet, Milot said available liquidity and authorized financing totaled CAD 681 million as of December 31, 2025, up CAD 158 million from the prior year. Total debt stood at CAD 4.4 billion, with project debt representing 85% of the total. Milot also said the company secured CAD 1 billion in project financing and closed CAD 250 million in corporate financing jointly led by La Caisse and Fondaction.
In response to analyst questions about funding options, Milot said asset recycling is part of the plan presented last June but “not necessarily in the near future.” He also referenced corporate debt and potential refinancing, including work on a “large one in France.”
France pricing and repowering; Québec tender timing; U.S. solar next steps
During Q&A, management discussed France’s focus on repowering and its implications for Boralex. Decostre said the team has been working on roughly 450 MW of repowering projects that would add about 200 MW of new capacity. He said about half of these projects have already been authorized, positioning them to be bid in upcoming RFPs. As an example, he cited the Ally-Mercoeur project, described as a repowering and extension of an older facility, moving from 39 MW to 104 MW with an in-service target of 2028.
On French pricing, Milot said 2026 should still see a negative pricing effect versus prior periods, but “much less important” than in 2025. He added that 2026 would be the last year for that effect, after which it should normalize.
In Québec, Decostre described two processes: Hydro-Québec’s partnership selection process for a large development zone (Wocawson) and a separate call for tenders for projects with a minimum size of 150 MW in southern Québec. He said bids for the southern Québec tender are due February 27, with awards scheduled for August 27 next year.
For the two New York solar projects (Fort Covington and Two Rivers), management said work is ongoing to finalize supplier negotiations, engineering, and optimization ahead of a final investment decision, with more details to be provided when ready. In a separate exchange, Decostre confirmed the company remains focused on completing those projects in 2028. Management also said the Oxford battery project is targeted for mid-2027 and that its kickoff meeting took place this week, with financing “in line.”
Boralex also announced a leadership transition, with Decostre noting the appointment of Philippe Bonin as the company’s new CFO and thanking Milot for his interim work. The company said its next conference call to report first-quarter results is scheduled for May 14, 2026.
About Boralex (TSE:BLX)
Boralex Inc is an electric utility company involved in the development, construction, and operation of renewable energy power facilities. The company controls a portfolio of electricity producing plants that utilize wind, hydroelectric, thermal, and solar fuel sources. Most of Boralex’s plants rely on wind power, while a significant number also employ hydroelectric power. The company generates the vast majority of its revenue from the sale of energy through long-term contracts to customers in Canada, France, and the United States.
