Polaris Renewable Energy (TSE:PIF) executives highlighted higher energy production, year-over-year growth in key financial metrics, and an expanded set of development opportunities during the company’s fourth-quarter 2025 earnings call. Chief Financial Officer Alba Seisdedos Ballesteros and Chief Executive Officer Marc discussed operating performance across the portfolio, capital returns to shareholders, and near- and medium-term growth initiatives in Puerto Rico, Mexico, and other markets.
2025 operating performance: production rose 6%
Management said consolidated energy production for full-year 2025 totaled 810,731 MWh, up from 764,756 MWh in 2024, representing a 6% year-over-year increase. The company attributed the improvement to the addition of the 26-MW Punta Lima Wind Farm in Puerto Rico, stronger hydrology in Peru and Ecuador, and “solid plant availability across our portfolio.”
Elsewhere in the portfolio:
- Puerto Rico: 2025 was the first year including Punta Lima’s contribution, which added 42,056 MWh post-acquisition.
- Panama: Solar generation in the quarter was 5% higher than the comparable 2024 period.
- Nicaragua: Geothermal production declined about 5% year-over-year due to expected normalization and natural steam field decline.
- Dominican Republic: Output at the Canoa I solar facility was down 2% year-to-date, with management pointing to grid-wide curtailment. Curtailments were 3,500 MWh in the quarter and 5,900 MWh for the year.
Seisdedos Ballesteros emphasized the company’s geographic and technology mix—geothermal, hydro, solar, and wind across six jurisdictions—as a key source of resilience.
Financial results and capital returns
On the financial side, management reported adjusted EBITDA of $56.5 million, up 3% year-over-year. The CFO said operating margins held up despite inflationary pressure and the onboarding of new assets, citing “disciplined cost management.”
The company also reiterated its shareholder return program. Polaris announced it will pay a quarterly dividend of $0.15 per share on February 27 to shareholders of record on February 17. Seisdedos Ballesteros said the dividend continues a 10-year track record of consistent payments, totaling approximately $105 million returned to shareholders over that period.
During 2025, Polaris repurchased and canceled 169,800 common shares for approximately $1.5 million under its renewed normal course issuer bid (NCIB). Of that total, 80,000 shares were repurchased in the fourth quarter for approximately $0.8 million.
Management said the company entered the year with a consolidated cash position of $93.2 million, including restricted cash. The CFO also stated that following debt prepayments in the first quarter of 2025 and the integration of Punta Lima, Polaris now has a “simplified debt structure,” ample liquidity, and financial flexibility to pursue growth.
2026 production outlook and San Jacinto maintenance
Marc noted that major maintenance at the San Jacinto facility was shifted from late 2025 into 2026 and has now been completed. He said the work was executed as expected and that there were “no issues with the turbines.”
With no new plants or acquisitions assumed, and factoring in San Jacinto maintenance and Dominican Republic curtailment, management’s consolidated production budget range for the year is approximately 775–790 GWh.
Growth pipeline: ESS progress, small solar LOI, Puerto Rico RFP, and Mexico expansion
Management spent much of the call discussing development priorities, led by an energy storage system (ESS) project in Puerto Rico. Marc said the company received approval from the Energy Bureau in August and the process moved to PREPA, the contracting agent. He explained that PREPA’s board lacked a properly constituted quorum in the fourth quarter, delaying approvals. According to Marc, PREPA is now properly constituted and expected to hold its first board meeting “within the week,” with Polaris’ ESS project on the agenda alongside other projects.
Polaris also disclosed a non-binding letter of intent to acquire a small solar project in an existing jurisdiction. Marc described it as roughly 10 MW, “not big, but strategic,” and said it is co-located with one of the company’s existing solar projects, offering synergies. He said Polaris expects to move to a binding agreement by the end of March.
In Puerto Rico, Marc said the company is participating in an RFP process that began with a request for qualifications in December, which Polaris “successfully passed.” The company is preparing a submission for solar plus BESS with “heavy BESS weighting,” and management described the RFP timeline as aggressive, with a published goal of having contracts signed by June.
In Mexico, Marc said Polaris signed an exclusivity agreement with a local developer that provides access to approximately 1,000 MW of projects. He outlined upcoming contracting pathways, including a near-term submission due the following week for “mixed projects” structured as 25-year build-own-operate-transfer (BOOT) arrangements with CFE as the counterparty, followed by a second process in April/May for more traditional long-term PPAs. He also pointed to potential future contracting routes later in the year or early next year.
Marc added that behind-the-meter opportunities are also emerging in Mexico due to regulatory changes and industrial demand, noting that behind-the-meter projects can reach up to 20 MW.
Dominican Republic curtailment and storage expectations
Asked about Dominican Republic curtailment, Marc said the company experienced about 6,000 MWh of curtailment last year and is conservatively budgeting for 10,000 MWh this year, with the expectation that curtailment could decline afterward. He said management believes storage is the key solution—characterizing it as “storage is transmission” that can absorb excess midday energy—while noting that the market still needs energy at night.
Marc said the company believes Dominican authorities are taking storage “very seriously,” but he did not commit to a specific Polaris storage build there, saying it is difficult to handicap what the company can do near-term.
On capital capacity, Marc said the company’s cash position and conservative balance sheet provide flexibility, and he believes Polaris can raise fixed-income capital at more favorable rates than in the past. He suggested 2026 would likely include a small acquisition and the ESS project, with additional projects more likely to begin later (potentially starting in the fourth quarter) or in the first three quarters of next year, aligning capital spending with a longer-dated ramp in cash flow.
About Polaris Renewable Energy (TSE:PIF)
Polaris Infrastructure Inc is engaged in the acquisition, exploration, development and operation of geothermal and hydroelectric energy projects. The company, through its subsidiaries, owns and operates a 72-megawatt capacity geothermal facility (the San Jacinto Project), located in northwest Nicaragua.
