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EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) today released financial results for the quarter ended June 30, 2026.

1.  AFFO and adjusted EBITDA are non-GAAP financial measures. See Non-GAAP Financial Measures and Ratios.

CEO Message

Our second quarter reinforces continued execution of our strategy and our conviction in Capital Power’s long-term growth outlook. Our long-term (greater than 10 years) supply agreement with Meta represents the achievement of an important milestone for the company and demonstrates that Alberta’s data centre opportunity is translating into real investment and committed load. Combined with increasing clarity around large-load integration, market design and government policy, we see growing market optimism in Alberta’s ability to attract investment, support rising electricity demand and create long-term value.

We also continue to see strong fundamentals across our other core markets. This is reflected in rising energy and capacity pricing, reinforcing our confidence in the long-term value of our assets as we recontract existing assets at higher pricing for longer duration. At the same time, growing demand for reliable, dispatchable and lower-carbon power continues to support opportunities in renewables and energy storage in addition to natural gas thermal power generation.

Backed by a strong balance sheet, disciplined capital allocation and a portfolio with meaningful embedded growth opportunities, we continue to unlock value from our existing assets and increased our annual dividend by 2%, reflecting our balanced and compelling long-term value proposition.

Operational and Financial Highlights¹

($ millions, except per share amounts)	Three months ended June 30,		Six months ended June 30,
	2026	2025	2026	2025
Electricity generation (Gigawatt hours) 2	10,137	9,022	21,605	18,577
Generation facility availability (%) 3	87	93	90	91
Revenues and other income	740	441	1,945	1,429
Net (loss) income	(43)	(131)	(28)	19
Net (loss) income attributable to shareholders of the Company	(44)	(132)	(29)	19
Basic (loss) earnings per share ($)	(0.33)	(0.92)	(0.28)	0.03
Diluted (loss) earnings per share ($) ‎4	(0.33)	(0.92)	(0.28)	0.03
Adjusted EBITDA ‎5	351	322	755	689
AFFO ‎5	328	235	482	453
AFFO per share ($) ‎5	2.09	1.55	3.08	3.12
Net cash flows from operating activities	214	143	526	353
Purchase of property, plant and equipment and other assets, net	211	141	475	429
Dividends per common share, declared ($)	0.6910	0.6519	1.3820	1.3038

1. The operational and financial highlights in this press release should be read in conjunction with the Management’s Discussion and Analysis (MD&A) and the unaudited condensed interim financial statements for the six months ended June 30, 2026.
2. Gigawatt hours (GWh) of electricity generation reflects the Company’s share of facility output and includes GWh discharged from BESS.
3. Facility availability represents the percentage of time in the period that the facility was available to generate power regardless of whether it was running and therefore is reduced by planned and unplanned outages.
4. Diluted earnings per share was calculated after giving effect to outstanding share purchase options.
5. The consolidated financial highlights, except for adjusted EBITDA, AFFO and AFFO per share were prepared in accordance with GAAP. See Non-GAAP Financial Measures and Ratios.

Revenues and other income increased quarter-over-quarter and year-over-year, primarily reflecting contributions from the Hummel Station and Rolling Hills facilities acquired in June 2025, with the quarter also benefiting from favourable unrealized fair value changes on commodity derivatives and emission credits; underlying segment performance was broadly consistent as stronger contributions from the Ontario battery energy storage projects and Alberta portfolio optimization were largely offset by lower Alberta pool prices and generation.

Adjusted EBITDA increased for the same underlying reason — the added contributions from Hummel Station and Rolling Hills — partially offset by higher outage costs in our U.S. flexible generation segment and higher net corporate expenses. Net loss improved quarter-over-quarter as higher adjusted EBITDA and a favourable change in unrealized fair value on commodity derivatives and emission credits and lower acquisition and integration costs more than offset higher depreciation and amortization, increased finance expense and unfavourable foreign exchange; on a year-to-date basis, however, results shifted to a net loss from net income in the prior year due to a smaller favourable fair value change on commodity derivatives and emission credits.

AFFO increased both quarter-over-quarter and year-over-year, driven primarily by the recognition of Clean Technology Investment Tax Credit government grants for eligible Canadian renewables projects — recognized upon completion of the required regulatory filing — and by higher adjusted EBITDA from the U.S. flexible generation portfolio following the June 2025 acquisitions of the Hummel Station and Rolling Hills facilities, partly offset by a heavier sustaining capital program and higher finance and current tax costs. Net cash flows from operating activities also increased year-over-year, reflecting those same acquisition contributions and higher distributions from equity-accounted investments, net of higher interest paid on the related acquisition debt.

Subsequent Events

Meta Platforms, Inc. ESA

In July, Capital Power announced that it entered into a long-term (greater than 10 years) energy supply agreement (ESA) for 250 MW of capacity and energy in support of a data centre in Sturgeon County, Alberta being developed by Meta Platforms, Inc. (Meta). The load from the project is anticipated to be in service in the back half of 2028.

Tax equity financing

On July 10, 2026, Capital Power’s Hornet Solar project reached mechanical completion. Subsequently, the Company received approximately $26 million (US$18 million) in tax equity financing, net of issue costs of $5 million (US$3 million) associated with the financing, from a U.S. financial institution in exchange for Class A interests of a subsidiary of the Company. A further $104 million (US$73 million) will be received at substantial completion of the project, which is expected within the fourth quarter of 2026.

Tax equity financing represents the contribution made by the project investor, adjusted for earnings, tax benefits and cash distributions realized/paid over time. The maturity dates of these obligations are subject to change and are driven by the dates on which the project investor reaches the agreed upon target rate of return. In accordance with the Company’s material accounting policies (as described in the 2025 annual consolidated financial statements), the amounts paid by the project investors for their equity stakes are classified as loans and borrowings on the consolidated statements of financial position until the projects have yielded an agreed-upon target rate of return to the project investors.

Non-GAAP Financial Measures and Ratios

Capital Power uses (i) earnings before income tax expense, depreciation and amortization, net finance expense, foreign exchange gains or losses, gains or losses on disposals and other transactions, unrealized changes in fair value of commodity derivatives and emission credits, other expenses from our equity-accounted investments, acquisition and integration costs, and other items that are not reflective of the Company’s facility operating performance (adjusted EBITDA), and (ii) adjusted funds from operations (AFFO) as specified financial measures. Adjusted EBITDA and AFFO are both non-GAAP financial measures.

Capital Power also uses AFFO per share as a specified performance measure. This measure is a non-GAAP ratio determined by applying AFFO to the weighted average number of common shares used in the calculation of basic and diluted earnings per share.

These terms are not defined financial measures according to GAAP and do not have standardized meanings prescribed by GAAP and, therefore, are unlikely to be comparable to similar measures used by other enterprises. These measures should not be considered alternatives to net income, net income attributable to shareholders of Capital Power, net cash flows from operating activities or other measures of financial performance calculated in accordance with GAAP. Rather, these measures are provided to complement GAAP measures in the analysis of our results of operations from management’s perspective.

Forward-looking information

Forward-looking information or statements (collectively, “forward-looking information”) included in this press release are provided to inform our shareholders, potential investors and other stakeholders about Management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this press release is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes.

Material forward-looking information in this press release includes, among other things, expectations regarding:

• our priorities and strategies, including our strategy of securing durable, long-term contracts from creditworthy counterparties across a broad opportunity set,
• our 2026 performance targets, including sustaining capital expenditures, AFFO and adjusted EBITDA,
• the construction by Meta of the data centre and the timing of Meta’s project’s load entering service,
• the outcomes resulting from the Arlington Valley tolling agreement extension and capacity uprate project, including expectations regarding the anticipated capacity payment increase from the facility and the anticipated timing and realization of such financial benefits, and
• the construction of the solar projects in North Carolina and the timing of their expected commercial operation.

These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate including its review of purchased businesses and assets. The material factors and assumptions used to develop this forward-looking information relate to:

• electricity and other energy (including natural gas) and carbon prices,
• the Company’s performance,
• the Company’s business prospects (including potential re-contracting of facilities) and opportunities including expected growth and capital projects,
• the energy needs of certain jurisdictions,
• the status and impact of policy, legislation and regulations,
• effective tax rates,
• the development and performance of technology,
• the outcome of claims and disputes,
• foreign exchange rates, and
• other matters discussed under the Performance Outlook and Risks and Risk Management sections of the MD&A.

Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from our expectations. Such material risks and uncertainties include:

• Meta’s completion of a data centre as contemplated in the ESA,
• changes in electricity, natural gas and carbon prices in markets in which we operate and the use of derivatives,
• regulatory and political environments including changes to environmental, climate, financial reporting, market structure and tax legislation,
• disruptions, or price volatility within our supply chains,
• generation facility availability, wind capacity factor and performance including maintenance expenditures,
• ability to fund current and future capital and working capital needs,
• acquisitions and developments including timing and costs of regulatory approvals and construction,
• changes in market prices and the availability of fuel,
• ability to realize the anticipated benefits of acquisitions,
• limitations inherent in our review of acquired assets,
• changes in general economic and competitive conditions, including inflation and recession,
• changes in the performance and cost of technologies and the development of new technologies, new energy efficient products, services and programs, and
• risks and uncertainties discussed under the Risks and Risk Management section of the MD&A.

See Risks and Risk Management in our 2025 Integrated Annual Report, for further discussion of these and other risks.

Readers are cautioned not to place undue reliance on any such forward-looking information, which speak only as of the date made and that other events or circumstances, although not listed above, could cause Capital Power’s actual results to differ materially from those estimated or projected and expressed in, or implied by the forward-looking information. Capital Power does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking information to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

About Capital Power

Capital Power is one of North America’s leading independent power producers, with approximately 12 GW of generation capacity across 35 facilities. Our portfolio includes natural gas, renewables, and battery energy storage solutions. We deliver power generation at utility-scale through a flexible and resilient fleet built to meet growing electricity demand. Backed by an investment-grade credit rating, we provide safe, reliable power communities can depend on. We are Powering Change by Changing Power^TM.

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Supporting Document

• Full 2026 Q2 Report