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Can Northland Power (TSX:NPI) Look Undervalued As Hai Long Funding And Q2 Results Land?

Simply Wall St · 1d ago

Northland Power (TSX:NPI) is back in focus after securing new long term project debt for its Hai Long offshore wind project in Taiwan and releasing second quarter 2026 results that highlight steady operations and first half progress.

See our latest analysis for Northland Power.

At a share price of CA$21.68, Northland Power has delivered an 18.73% year to date share price return. The 1 year total shareholder return of 2.21% and 5 year total shareholder return decline of 35.83% indicate that a longer term recovery is still incomplete, with the recent Hai Long financing and Q2 update helping to rebuild momentum after weaker 90 day share price performance.

If Northland Power’s recent moves in offshore wind have your attention, it can be useful to see what else is shaping the energy transition. Take a look at 39 power grid technology and infrastructure stocks

After Hai Long’s funding milestone and a solid first half, the share price rebound is only part of the story. Has most of Northland Power’s valuation reset already played out, or is meaningful upside still on the table?

Most Popular Narrative: 14% Undervalued

Northland Power’s most followed narrative places fair value at CA$25.21, above the recent CA$21.68 close. This frames the Hai Long and Baltic Power build out as central to the story.

The imminent commissioning of Hai Long (Taiwan) and Baltic Power (Poland), which will together add over 2 GW of gross capacity and diversify Northland's offshore wind exposure geographically, aligns with robust long term government decarbonization mandates and strong policy support across Europe and Asia. As these large projects reach commercial operation, they are expected to drive significant step changes in EBITDA and revenue growth.

Read the complete narrative.

Want to understand why this narrative sees room above today’s price? The whole case leans on a future profit profile and margin reset that look very different to Northland Power’s current loss making position. The assumptions around flat revenue, rising profitability and the earnings multiple doing the heavy lifting are where the real story sits.

Result: Fair Value of CA$25.21 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still need to weigh risks, including Northland Power’s sensitivity to weak offshore wind conditions and the pressure that high project spending and debt can place on cash flow.

Find out about the key risks to this Northland Power narrative.

Next Steps

With both risks and rewards in the mix for Northland Power, it makes sense to move quickly and review the underlying data yourself. To see how others weigh both sides, check out the 3 key rewards and 2 important warning signs

Looking for more investment ideas beyond Northland Power?

If Northland Power has sharpened your interest in the energy transition, do not stop here. Use the Simply Wall St screener to compare other potential opportunities.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.