Polaris Renewable Energy reported significant progress in its latest earnings call, showcasing increased energy output and strategic financial management. Executives Alba Seisdedos Ballesteros (CFO) and Marc (CEO) detailed the company's operational strengths across its diverse portfolio, capital distribution to investors, and upcoming growth initiatives spanning Puerto Rico, Mexico, and other key markets.
The company’s full-year 2025 consolidated energy production reached 810,731 MWh, a 6% increase from 2024's 764,756 MWh. This growth was primarily fueled by the integration of the 26-MW Punta Lima Wind Farm in Puerto Rico, improved hydrological conditions in Peru and Ecuador, and consistent operational efficiency across all facilities. Hydroelectric assets in Peru and Ecuador were standout performers, with Peru achieving a 12% increase in hydro output and Ecuador an impressive 19% year-to-date rise, attributed to strong rainfall and enhanced resource availability. While Puerto Rico benefited from Punta Lima's contribution and Panama saw a 5% increase in solar generation, Nicaragua's geothermal production experienced a 5% dip due to expected normalization. The Dominican Republic faced a 2% output reduction at its Canoa I solar facility, largely due to grid curtailments totaling 5,900 MWh for the year. Seisdedos Ballesteros highlighted the company's diversified asset base—encompassing geothermal, hydro, solar, and wind technologies across six regions—as a critical factor in its resilience and performance. Financially, Polaris reported an adjusted EBITDA of $56.5 million, marking a 3% year-over-year improvement, achieved through stringent cost control despite inflationary pressures and new asset integrations. The company also reaffirmed its commitment to shareholder returns, announcing a quarterly dividend of $0.15 per share and continuing a decade-long track record of consistent payments totaling approximately $105 million. Additionally, Polaris repurchased 169,800 common shares for about $1.5 million under its normal course issuer bid (NCIB) in 2025, demonstrating confidence in its valuation.
Looking ahead, Polaris is focused on expanding its footprint with several key projects and strategic acquisitions. The company entered 2026 with a strong cash position of $93.2 million, allowing for significant financial flexibility. Major maintenance at the San Jacinto facility was successfully completed early in the year, ensuring continued operational integrity. For 2026, the consolidated production budget is set between 775–790 GWh, accounting for planned maintenance and anticipated curtailments. A significant development priority is an energy storage system (ESS) project in Puerto Rico, which is awaiting final approvals from PREPA following a period of board reconstitution. Polaris is also pursuing a non-binding letter of intent to acquire a strategic 10 MW solar project in an existing jurisdiction, expecting a binding agreement by March. In Mexico, an exclusivity agreement with a local developer provides access to approximately 1,000 MW of projects, with near-term contracting pathways for mixed projects and long-term Power Purchase Agreements (PPAs) on the horizon. The company also sees emerging behind-the-meter opportunities in Mexico due to regulatory changes and industrial demand. Addressing concerns about curtailment in the Dominican Republic, management projects a conservative budget of 10,000 MWh for 2026, viewing energy storage as the ultimate solution to absorb excess midday energy and meet evening demand. Marc emphasized that Polaris's robust cash position and conservative balance sheet offer the flexibility to secure capital at favorable rates for future growth, anticipating small acquisitions and the ESS project in Puerto Rico for 2026, with further project commencements planned for later in the year or early 2027.
Polaris Renewable Energy's strategic focus on diversification, operational efficiency, and sustainable growth positions it as a resilient force in the renewable energy sector. By actively pursuing innovative projects and maintaining a strong financial foundation, the company not only contributes to a greener future but also consistently delivers value to its stakeholders. This forward-thinking approach, coupled with prudent management, embodies a commitment to progress and environmental stewardship.
