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1. Company Snapshot

1.a. Company Description

Boralex Inc., together with its subsidiaries, engages in the development, construction, and operation of renewable energy power facilities primarily in Canada, France, and the United States.As of December 31, 2021, the company had interests in 90 wind power stations with an installed capacity of 2,032 megawatts (MW); 16 hydroelectric power stations with a capacity of 181 MW; 12 solar power stations with an installed capacity of 244 MW; and one thermal power station with an installed capacity of 35 MW.It also operates two hydroelectric power stations on behalf of R.S.P. Énergie Inc.


Boralex Inc.was incorporated in 1982 and is headquartered in Kingsey Falls, Canada.

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1.b. Last Insights on BLX

Boralex's recent performance was negatively impacted by weak power prices, despite a 7% increase in production, mainly due to newly commissioned sites in Europe. The company's Q3 loss widened, and revenue fell, driven by unfavorable weather conditions in North America. However, the commissioning of large-scale projects in Canada and the Apuiat wind farm's commercial operation are positives. The appointment of new executives, including Ted Di Giorgio and Jean-Christophe Dall'Ava, may bring fresh perspectives to the company. RBC Capital Markets expects company headlines to overshadow softer results.

1.c. Company Highlights

2. Boralex's 2025 Earnings: A Mixed Bag

Boralex's financial performance in 2025 was below expectations, with a combined operating income of CAD 248 million and a combined EBITDA of CAD 655 million, down 2% from 2024. The actual EPS came out at $0.1362, significantly lower than the estimated $0.4871. Revenue growth was 8% higher than in 2024, driven by more favorable wind conditions and the impact of newly commissioned sites in Europe and North America. However, the financial results were negatively impacted by lower prices of short-term contracts in France, contributing to a 22% year-over-year drop in realized European wind prices.

Publication Date: Mar -03

📋 Highlights
  • 2025 Financial Performance:: Combined operating income CAD 248M and EBITDA CAD 655M, down 2% YoY, with production 8% higher than 2024 but 10% below expectations.
  • Development Pipeline:: Portfolio exceeds 8.2 GW, with 3.8 GW installed capacity (up 615 MW from organic growth) and 1.1 GW of wind, solar, and battery projects in growth trajectory.
  • Balance Sheet Strength:: Liquidity and authorized financing rose to CAD 681M (+CAD 158M YoY), with total debt at CAD 4.4B (85% project debt).
  • Market Policy Momentum:: NYSERDA’s authority expanded to procure 5.6 TWh/year by 2029, and Hydro-Quebec’s Southern Quebec wind tender expected in Q1 2026, targeting 150 MW+ projects.
  • Short-Term Contract Impact:: French short-term contracts caused a 22% YoY drop in realized wind prices, with a smaller decline expected in 2026 due to phased contract expiration.

Operational Highlights

Boralex's operational performance was strong, with total combined production 8% higher than in 2024. The company has been active in submitting projects in various RFPs, with a strong pipeline of projects to benefit from in the coming years. As Patrick Decostre mentioned, "the demand for renewable remains very solid in our different markets, and we're counting on a very strong pipeline of projects to benefit from for years to come."

Growth Prospects

Boralex's growth prospects remain promising, with a portfolio of development projects now exceeding 8.2 gigawatts and an installed capacity of 3.8 gigawatts, representing an increase of 615 megawatts driven entirely by organic growth. The company is well-positioned to capture upcoming opportunities in Quebec, with Hydro-Quebec set to launch a new call for wind power tenders in spring 2026.

Valuation

Based on the current valuation metrics, Boralex's P/E Ratio stands at 418.92, indicating a potentially overvalued stock. The EV/EBITDA ratio is 13.88, suggesting a relatively reasonable valuation. However, the Net Debt / EBITDA ratio is 8.66, indicating a significant debt burden. Analysts estimate next year's revenue growth at -0.1%, which may put further pressure on the stock.

Dividend Yield

Boralex's Dividend Yield stands at 2.42%, providing some support to the stock. However, the Free Cash Flow Yield is -9.36%, indicating that the company may struggle to generate sufficient cash to support its dividend payments.

3. NewsRoom

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Boralex annonce la nomination de Jean-Christophe Dall’Ava au poste de premier vice-président et directeur général, Europe

Dec -04

Source: globenewswire.com

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Boralex announces the appointment of Jean-Christophe Dall’Ava as Executive Vice President and General Manager, Europe

Dec -04

Source:

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Boralex announces the appointment of Jean-Christophe Dall'Ava as Executive Vice President and General Manager, Europe

Dec -04

Source: globenewswire.com

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Is Boralex an Opportunity After Recent 13% Price Drop and Clean Energy Project Updates?

Dec -02

Source:

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Media Invitation ─ Talk by Patrick Decostre, President and CEO of Boralex

Dec -02

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Boralex Q3 Loss Widens on Weak Power Prices Despite Higher Output

Nov -07

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Boralex announces its third quarter results and commissioning of large-scale projects in Canada

Nov -07

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REMINDER -- Boralex will release its 2025 third quarter financial results on November 7, at 11 a.m.

Nov -05

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (19.20%)

6. Segments

Europe - Wind Farms

Expected Growth: 20.0%

The European wind energy market is expected to continue growing due to the EU's ambitious renewable energy targets and the need to reduce carbon emissions. Boralex's established presence in this market positions it for growth.

North America - Wind Farms

Expected Growth: 19.5%

The North American wind energy market is expected to grow steadily, driven by the need for clean energy and the extension of tax credits. Boralex's diversified portfolio and development pipeline support its growth prospects.

North America - Hydroelectric Power Stations

Expected Growth: 18.0%

While the growth rate for hydroelectric power may be lower than other renewable energy sources, Boralex's existing assets and potential for optimization and upgrades support a stable growth trajectory.

North America - Solar Power Stations

Expected Growth: 21.0%

The North American solar market is expected to continue growing rapidly, driven by declining costs and increasing demand for clean energy. Boralex's solar development pipeline and operating assets position it for strong growth.

Europe - Solar Power Stations

Expected Growth: 20.5%

The European solar market is expected to grow, driven by the EU's renewable energy targets and the need to reduce carbon emissions. Boralex's presence in this market and its development pipeline support its growth prospects.

7. Detailed Products

Wind Power

Boralex Inc. develops, constructs, and operates wind farms to generate electricity from wind energy.

Solar Power

Boralex Inc. designs, builds, and operates solar farms to generate electricity from solar energy.

Hydroelectric Power

Boralex Inc. develops, constructs, and operates hydroelectric power plants to generate electricity from water energy.

Thermal Power

Boralex Inc. develops, constructs, and operates thermal power plants to generate electricity from natural gas and biomass.

Energy Storage

Boralex Inc. develops, constructs, and operates energy storage systems to stabilize the grid and provide backup power.

Power Distribution

Boralex Inc. develops, constructs, and operates power distribution systems to deliver electricity to consumers.

8. Boralex Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Boralex Inc. operates in the renewable energy industry, which has a moderate threat of substitutes. While there are alternative sources of energy, such as fossil fuels, the shift towards renewable energy is increasing, reducing the threat of substitutes.

Bargaining Power Of Customers

Boralex Inc. has a diverse customer base, including utilities, municipalities, and commercial and industrial customers. The bargaining power of customers is low due to the lack of concentration in the customer base.

Bargaining Power Of Suppliers

Boralex Inc. relies on a few key suppliers for equipment and services. While there are some alternative suppliers, the bargaining power of suppliers is moderate due to the specialized nature of the industry.

Threat Of New Entrants

The renewable energy industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants and provides a competitive advantage to established players like Boralex Inc.

Intensity Of Rivalry

The renewable energy industry is highly competitive, with many established players competing for market share. Boralex Inc. faces intense competition from other renewable energy companies, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 68.96%
Debt Cost 4.55%
Equity Weight 31.04%
Equity Cost 6.02%
WACC 5.01%
Leverage 222.16%

11. Quality Control: Boralex Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.43$

Current Price

27.43$

Potential

-0.00%

Expected Cash-Flows