Northland Power’s (NPI.TO) stock crashed on Thursday as investors responded to a 40 per cent dividend cut and a more than $500 million write-down on the Canadian company’s Nordsee One offshore wind farm.
Toronto-based Northland’s global portfolio of energy assets spans offshore and onshore wind, solar, battery, and natural gas, as well as a regulated utility in Colombia. Toronto-listed shares plunged 27.24 per cent on Thursday to $18.24.
Northland reported third-quarter financial results after Wednesday’s closing bell, booking a net loss that’s more than double the figure from the same period last year. At the same time, Northland announced a $527 million non-cash accounting adjustment for the Nordsee One offshore wind facility located near Germany. The company says this was due to a transition from “subsidized price regime” to market pricing under German regulations in May 2027.
On Thursday, Northland cut its dividend on common shares to $0.72 per share on an annual basis from $1.20. The change will apply to shareholders of record on Dec. 31.
“We are committed to this sustainable dividend and we look forward to providing our plan and outlook to the market at our upcoming Investor Day on November 20, 2025,” CEO Christine Healy stated in a news release.
BMO Capital Markets analyst Ben Pham on Thursday downgraded Northland shares to “market perform” from “outperform”, lowering his price target on the stock to $25 from $31.
“While NPI’s 40 per cent dividend cut should better position the company to accelerate growth self-funded with its ~8.5GW development pipeline, it will likely come as a surprise and disappointment, especially with its major construction projects on track.”
Northland also warned on Thursday that commissioning delays at its Hai Long Offshore Wind Project under construction in the Taiwan Straits may cause a revenue hit of up to $200 million in 2026. The company says the project remains on track for full commercial operations in 2027, with costs aligned with original estimates.
“It was a very challenging update for Northland with the surprise 40% dividend reduction and commissioning issues at Hai Long sending the shares down,” Scotiabank analyst Robert Hope wrote in a note to clients. “The slower-than-expected commissioning at Hai Long adds risk to our unchanged 2027 outlook.”
“We are surprised by the dividend reduction given prior messaging from the company as well as the significant increase in cash flow from its growth projects in 2027,” he added.
Hope on Thursday downgraded the stock to “sector perform” from “sector outperform”, while lowering his target price to $24 per share from $28.