Northland Power Inc.

Welcome to the Northland Power Conference call to discuss the second quarter 2026 results. As a reminder, this call is being recorded on Thursday, August 13th, 2026 at 10 a.m. Eastern. Present for the call are Christine Healy, President and CEO, Jeff Hart, Chief Financial Officer, and Adam Beaumont, Head of Capital Markets. Before we begin, Northam's management has asked me to remind listeners that all figures presented during today's call are in Canadian dollars and to caution that certain information presented and responses to questions may contain forward-looking statements that include assumptions and are subject to various risks. Actual results may differ materially from management's expected or forecasted results. Please read the forward-looking statements section in yesterday's news release Announcing Northland Power's results and be guided by its contents when making investment decisions or recommendations. The release is available at www.northlandpower.com. I will now turn the call over to Ms. Christine Healy. Please go ahead.

Christine Healy Thank you. Good morning, everyone, and thank you for joining us. Northland continued to execute on our strategy this quarter, delivering strong operating performance advancing our projects in construction and progressing the opportunities that will drive our next phase of growth. I'll provide some construction updates and Jeff will then walk through the financials in more detail and we will open the line for questions. But before jumping into our results, I wanted to take a moment to comment on our broader market backdrop. Across our core markets, we're seeing a level of electricity demand growth that has not been present for decades. That growth is being driven by industrial activity, Data Centers, Electrification, Urbanization, and more importantly over time, energy security. The energy security point is particularly important in Europe. For the Canadians and Americans on the call, the current European market reality is quite different. North American natural gas prices remain relatively low and are largely disconnected from European and Asian gas pricing. In markets such as Germany, though, natural gas remains a key driver of electricity prices. which means volatility in global gas markets continues to flow into power markets and resulting pricing. That's why the discussion in Europe has moved beyond simply adding renewable capacity. The focus is on building an electricity system that's secure, affordable and able to support the electrification, industrial needs and the data center demand. This matters for Northland. It validates our multi-technology approach and reinforces the importance of investing based on what an electricity system needs. We don't start with a technology and look for somewhere to deploy it. We start with market fundamentals, system needs, and risk-adjusted returns. And we invest selectively where our capabilities can deliver results. We don't see this as a short-term cycle. We see a structural shift in electricity markets, recognizing, of course, that the pace and shape of that shift will vary by market. Northland is well positioned to respond through our differentiated development, construction, and operating capabilities across renewables, gas-fired power, and storage. And I will note here as well that Northland does have a particularly differentiated capability in offshore wind, demonstrated by the delivery of our two world-class projects in construction and our projects in operation. We have the people, partnerships, and execution capability to deliver this necessary and growing source of energy. I will add that not a single electron gets added to the grid through policy and discussion alone. It requires capable owners and operators who can build and run the infrastructure our markets need, and this is where Northline delivers. Turning now to our operations over the quarter, I've noted on these calls in the past that our goal is to be ready when the wind blows and the sun shines. And in the past quarter, our availability was very strong. In the case of our gas assets, we are ready to dispatch when the market needs us. In Q2, wind resources across Europe, particularly in the North Sea, were at the low end of historic averages. This was partially offset by our Spanish onshore renewables portfolio, where solar and onshore wind resources were generally in line with the same period last year. Against that backdrop, our operational performance was strong with 96% availability, ensuring we were well positioned to capture the resource when available. Importantly, the low European wind was a second quarter story. Year-to-date generation is in line with historical average levels, and you will recall there were strong wind conditions in Q1. As a result, we are reaffirming our full year 2026 adjusted EBITDA and free cash flow per share guidance. Turning to our projects in construction, just a few weeks ago, we made history in Poland. Our 1.1 gigawatt Baltic Power offshore wind project achieved first power, delivering the first electrons ever produced from an offshore wind project to Polish homes and businesses. This was a major milestone for the project, for Northland, our partner Orlan, and for Poland. Many Polish and Canadian dignitaries were in attendance to mark the significance of this landmark event. Today, 61 out of 76 turbines are installed and 15 are generating power. The project is on track for commercial operations later this year with costs aligned to original expectations. Poland is a priority market for Northland. We have built local partnerships, established in-country expertise, and continue to see compelling market fundamentals driven by robust economic growth and the need for additional energy infrastructure. Our battery storage projects in Poland are a natural extension of these capabilities and an attractive opportunity to further expand our presence in the market. During the quarter, we commenced construction on those battery storage projects, Kamiełka and Mieczysława. Both projects represent a combined 300 megawatt four-hour duration or 1,200 megawatt hours of capacity. Site preparations and foundation work are underway. Major equipment has been ordered and both projects are on track for commercial operations in 2028. These projects deepen our platform in Poland and build on the expertise gained through the successful execution of Oneida and the ongoing construction of Jurassic Bess. We are leveraging lessons learned and our proven capabilities in development, construction and operations to support project delivery and create long-term value for shareholders. Turning to Heilong, our one gigawatt offshore wind project in Taiwan. We expanded the existing power purchase agreement with the corporate customer to 100% of the output through a 30-year contract. And earlier this week, we announced that Heilong secured a $2.4 billion financing package, Through this, we've optimized the project, attracted new local banks, and accessed lower financing costs. We are encouraged by the increased participation from local banks in this financing. Their involvement reflects the confidence and support for the Heilong project in the Taiwanese market and reinforces the importance of aligning long-term infrastructure investments with domestic stakeholders. Construction continues to progress as 71 out of Heilong's 73 turbines are installed, with 59 generating power. We expect all turbines will be generating power later this year and full commercial operations will be achieved in 2027. Shifting to Canada, our 80 megawatt, 160 megawatt hour Jurassic Best project in Alberta is in construction. All the major equipment has been installed and we are in the final stages of commissioning with commercial operations expected shortly. Once complete, Jurassic Best will be the largest battery storage project in Alberta and Northline's second operating battery storage facility, following from Oneida's successful commissioning in Ontario last year. Together, these five projects in construction add approximately 2.5 gigawatts of new capacity to our future operating portfolio and will deliver a meaningful increase in EBITDA and cash flow as they come online. Beyond our current construction program, we are focused on converting this backdrop, the macro backdrop I spoke of earlier, into the next phase of disciplined growth, particularly through opportunities where Northland already has operating experience, development capability, or established relationships. In Canada, we are encouraged by the improving policy dialogue and the growing alignment between federal and provincial governments on the need for new infrastructure. We are watching carefully for regulatory improvements that can help unlock the next phase of investment. For Northland, this could create a compelling opportunity set in our home market, particularly where our development, construction, and operating capabilities can be applied with discipline. In Europe, our focus remains on markets where long-term policy direction system needs and Northland's capabilities come together to support attractive investment opportunities. and we see opportunities to deploy capital for strong risk-adjusted returns across our core markets, including Poland, Spain and the UK. We will pursue growth where market fundamentals, risk-adjusted returns and Northlands capabilities align. We will provide a fuller update on our growth priorities with our third quarter results. For now, our message is that the opportunity set is broadening and our approach will remain disciplined. Our recent Poland Best acquisition is a good example of our approach. We identified and secured mature opportunities in a core market, and we have been able to execute on them very well. Value enhancement is also an important part of our growth strategy. As an owner and operator, Northland has visibility across the full asset lifecycle, which allows us to identify opportunities to increase returns from existing infrastructure, grid connections, and development rights. These initiatives can offer attractive risk-adjusted returns with lower capital intensity and execution risk than fully new build development. Work is ongoing, including evaluating hybridization opportunities, repowering, recontracting, and capacity optimization initiatives across our fleet. We are focused on delivering the opportunities in front of us and creating long-term value for shareholders. And with that, I'll turn it over to Jeff to walk through our financial results.

Thanks Christine and good morning everyone. I'll provide some further color on our Q2 results. Northland generated adjusted EBITDA of $259 million, a 6% increase compared to the second quarter of 2025. And that increase was driven by revenue contributions from Heilong and a full quarter of Oneida operations combined with lower operating costs at our natural gas facilities. As Christine noted earlier, Those increases were partially offset by lower offshore wind production in Europe, which was approximately 11% below the long-term average. The resulting second quarter free cash flow was $23 million. This was approximately 60% lower than the same quarter last year. And the primary contributing factor to the decrease in free cash flow was a one-time benefit from a German trade tax refund recognized in the second quarter of 2025. And on a per share basis, free cash flow in the second quarter was $0.09, compared to 22 cents in the second quarter of 25. Our net loss was $54 million for the quarter, which was in line with the second quarter of 2025. I will note in July, one of Gemini's two export cables had a circuit failure and was taken out of service. Gemini's production has continued via the second export cable and the subsea repair of the other cable is underway with completion expected this year. We expect the impact on our folio results to be immaterial net of insurance proceeds. And turning to our investment program, at our offshore construction projects, Baltic Power and Heilong, both are on track for commercial operations with overall costs aligned with original expectations. At Baltic Power, as Christine mentioned, we achieved first power in early July and expect to achieve full commercial operations later this year. And at Heilong, we have secured a 20-year incremental debt financing of 2.4 billion Canadian dollars and this financing strengthened the project's capital structure and provides an alternate source of lower cost funding. Approximately $900 million of the $2.4 billion represents incremental funding capacity available through project completion. The remaining proceeds will be used to refinance the approximately $1.5 billion of higher cost debt. The financing attracted a number of new local lenders, further reflecting the quality of the project and execution. Heilong's construction remains on track and the forecasted pre-completion revenue combined with the incremental debt is expected to cover the project's funding requirements. We are reaffirming our 2026 financial guidance with adjusted EBITDA expected in the range of $1.45 to $1.65 billion and free cash flow per share in the range of $1.05 to $1.25 per share. And I'd like to close by acknowledging that with nearly $1 billion of available liquidity combined with our investment grade balance sheet, we are well positioned to execute on our plan. With that, I'll hand it back to Christine.