Polaris Renewable Energy Announces Q4 and Annual 2025 Results

TORONTO, ONTARIO / ACCESS Newswire / February 19, 2026 / Polaris Renewable Energy Inc. (TSX:PIF) (“Polaris Renewable Energy” or the “Company”), is pleased to report its financial and operating results for the year ended December 31, 2025. This earnings release should be read in conjunction with the Company’s consolidated financial statements and management’s discussion and analysis, which are available on the Company’s website at www.PolarisREI.com and have been posted on SEDAR+ at www.sedarplus.ca. The dollar figures below are denominated in US Dollars unless noted otherwise.

HIGHLIGHTS

• For the quarter ended December 31, 2025 consolidated energy production increased by 1% when compared to the same quarter in 2024, while annual consolidated energy production was 810,731 MWh for the year ended December 31, 2025 versus 764,756 for the year ended December 31, 2024.

• The Company generated $80.5 million in revenue for the year ended December 31, 2025, compared to $75.8 million in the same period in 2024. Revenue increase is mainly attributable to the addition to the Company’s portfolio of Punta Lima Wind Farm in March 2025.

• Adjusted EBITDA was $56.5 million for the year ended December 31, 2025, compared to Adjusted EBITDA of $55.0 million in the same period in 2024.

• Net loss attributable to shareholders, was $2.7 million or $(0.13) per share – basic for the year ended December 31, 2025, compared to net earnings of $3.0 million or $0.14 per share – basic in 2024.

• For the year ended December 31, 2025, the Company generated $35.2 million in net cash flow from operating activities, ending with a cash position of $93.2 million, including restricted cash of $4.6 million.

• In January 2025 the company settled four (4) of its outstanding credit facilities. The early settlement was part of the terms and purpose of the Green Bonds issued on December 3, 2024 and part of the Company’s debt optimization strategy to reduce borrowing costs.

• On March 3, 2025, the Company announced the closing of an Equity Capital Contribution Agreement (“ECCA”) with respect to Punta Lima Wind Farm LLC (“PLWF” or the “Project”), an onshore wind facility with a nameplate capacity of 26.0 MW located in the Municipality of Naguabo, Puerto Rico. The Project is subject to a Power Purchase Agreement (“PPA”) with a term through 2044, with a current contract price of $149.14 per MWh. The PPA includes a variable price inflator during the first 11 years, after which the price resets to $129.36 per MWh and resumes annual escalations. The transaction was completed using a tax-equity structure, under which Polaris operates the Project, while Santander Bank N.A. (“Santander”), retains a tax-equity interest. The equity capital contribution under the ECCA amounted to $20 million.

• On August 11 2025, Polaris completed the submission of the Battery Energy Storage System Standard Offer (“BESS”) Agreement to the Puerto Rico Energy Bureau (“PREB”). On September 30, 2025, PREB directed the Puerto Rico Electric Power Authority (“PREPA”) to file the executed agreement within five days of receiving approval from the Financial Oversight and Management Board (“FOMB”). Since that time, Polaris has continued to actively engage with PREPA and PREB to respond to requests and procedural requirements as part of the ongoing regulatory review process. While the timing of final approvals remains subject to regulatory processes outside of the Company’s control, management remains constructive on the project’s progress. Upon receipt of all required approvals, the BESS project is expected to advance to construction, which is currently estimated to take approximately 12 months, after which Polaris would be entitled to receive monthly fixed and performance-based payments for providing energy storage, capacity and grid support services.

• The Company remains focused on maintaining a quarterly dividend. For the year ended December 31, 2025, the Company declared and paid $12.6 million in dividends. The Company has declared and will pay a quarterly dividend of $0.15 per outstanding common share on February 27, 2026, to shareholders of record as of February 17, 2026.

OPERATING AND FINANCIAL OVERVIEW

During the year ended ended December 31, 2025, power production was 810,731 MWh compared to 764,756 MWh in 2024. The increase was primarily driven by higher production in Peru and Ecuador resulting from favorable hydrology and strong plant availability, as well as incremental production from the Punta Lima wind facility in Puerto Rico. These increases were partially offset by lower production in Nicaragua due to normalized geothermal output and reduced realized generation in the Dominican Republic, mainly attributable to higher curtailment levels.

During the three months ended December 31, 2025, quarterly consolidated power production was similar to the same period in 2024 despite the addition on PLWF, primarily reflecting lower generation in Nicaragua and increased curtailment in the Dominican Republic.

In Nicaragua, fourth quarter 2025 production was lower compared to same period in 2024, primarily due to reduced output from cycling wells, and natural decline of the steamfield.

Consolidated production in Peru for the three months ended December 31, 2025, was in line with the comparative period in 2024 due to greater water availability at both 8 de Agosto and El Carmen, partially offsetting a lower hydrology resource for Canchayllo.

In Ecuador, fourth quarter 2025 production increased compared to the prior-year period, driven by favorable hydrological conditions and high plant availability at San José de Minas. Similar to Peru, generation in Ecuador is highly seasonal, with production typically increasing during the rainy season, which generally runs from October-November through May-June.

In the Dominican Republic, production at the Canoa 1 facility decreased during the fourth quarter of 2025 compared to the same period in 2024. While the repowering project completed in 2024 has improved plant efficiency, higher levels of curtailment during the quarter limited realized generation despite adequate solar resource availability.

In Panama, production at the Vista Hermosa I and II solar plants was modestly higher than the comparative period in 2024, reflecting stable operations and consistent irradiation levels during the quarter.

In Puerto Rico, production at the Punta Lima wind facility was modest, primarily due to lower wind resource availability during the quarter.

“Our 2025 operating results reflect the diversification and resilience of our operating assets”, said Marc Murnaghan, Chief Executive Officer of Polaris Renewable Energy. “We delivered higher consolidated production, Revenue and EBITDA year over year, supported by strong performance in Peru and the contribution from the Punta Lima wind facility following its acquisition in March. We are actively advancing our project development pipeline on numerous fronts and look forward to progressing key initiatives while maintaining disciplined capital and cost allocation and operational reliability”.

About Polaris Renewable Energy Inc.

Polaris Renewable Energy Inc. is a Canadian publicly traded company engaged in the acquisition, development, and operation of renewable energy projects in Latin America & the Caribbean. We are a high-performing and financially sound contributor to the energy transition.

The Company’s operations include a geothermal plant (82 MW), four run-of river hydroelectric plants (39 MW), three solar (photovoltaic) projects in operation (35 MW) and an onshore wind farm (26 MW).

For more information, contact :

Investor Relations
Polaris Renewable Energy Inc.
Phone: +1 647-245-7199
Email: info@PolarisREI.com

Cautionary Statements

This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws, which may include , but is not limited to, financial and other projections as well as statements with respect to future events or future performance, management’s expectations regarding the Company’s growth, results of operations, business prospects and opportunities. n addition, statements relating to estimates of recoverable energy “resources” or energy generation capacities are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that electricity can be profitably generated from the described resources in the future. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “estimates”, “goals”, “intends”, “targets”, “aims”, “likely”, “typically”, “potential”, “probable”, “projects”, “continue”, “strategy”, “proposed”, or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved.

Forward-looking information in this MD&A includes, but is not limited to: the expected production capacity of the Binary Unit at San Jacinto; additional changes to the wells and steamfield to increase production; the ability to successfully capitalize on expansion opportunities in Puerto Rico and the Dominican Republic and to increase the load factor on Canoa Solar Park in Dominican Republic; future dividends; expected annual energy production; sufficiency of cash flows from operations; the ability to satisfy capital requirements and the replacement of debt; the result of changes to the re-injection system over the long-term; and the verification process and timing regarding the sale of carbon emission credits.

A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others: failure to discover and establish economically recoverable and sustainable resources through exploration and development programs; imprecise estimation of probability simulations prepared to predict prospective resources or energy generation capacities; variations in project parameters and production rates; defects and adverse claims in the title to the Company’s properties; failure to obtain or maintain necessary licenses, permits and approvals from government authorities; the impact of changes in foreign currency exchange and interest rates; changes in government regulations and policies, including laws governing development, production, taxes and global tariffs, labour standards and occupational health, safety, toxic substances, resource exploitation and other matters; availability of government initiatives to support renewable energy generation; increase in industry competition; fluctuations in the market price of energy; impact of significant capital cost increases; the ability to file adjustments in respect of applicable power purchase agreements; unexpected or challenging geological conditions; changes to regulatory requirements, both regionally and internationally, governing development, geothermal or hydroelectric resources, production, exports, taxes and global tariffs, labour standards, occupational health, waste disposal, toxic substances, land use, environmental protection, project safety and other matters; economic, social and political risks arising from potential inability of end-users to support the Company’s properties; insufficient insurance coverage; inability to obtain equity or debt financing; fluctuations in the market price of the common shares; inability to retain key personnel; the risk of volatility in global financial conditions, as well as a significant decline in general economic conditions; uncertainty of political stability in countries and territories in which the Company operates; uncertainty of the ability of Nicaragua, Peru, Panama, Dominican Republic, Ecuador and Puerto Rico to sell power to neighbouring countries; economic insecurity in Nicaragua, Peru, Panama, Dominican Republic, Ecuador and Puerto Rico. These factors are not intended to represent a complete list of the risk factors that could affect us.

Such forward-looking information is based on a number of material factors and assumptions, including: the Company’s historical financial and operating performance; that contracted parties provide goods and/or services on the agreed timeframes; the success and timely completion of planned exploration and expansion programs, including the Company’s ability to comply with local, state and federal regulations dealing with operational standards and environmental protection measures; the Company’s ability to negotiate and obtain PPAs on favourable terms; the Company’s ability to obtain necessary regulatory approvals, permits and licenses in a timely manner; the availability of materials, components or supplies; the Company’s ability to solicit competitive bids for drilling operations and obtain access to critical resources; the growth rate in net electricity consumption; continuing support and demand for renewables; continuing availability of government initiatives to support the development of renewable energy generation; the accuracy of volumetric reserve estimation methodology and probabilistic analysis used to estimate the quantity of potentially recoverable energy; environmental, administrative or regulatory barriers to the exploration and development of geothermal or hydroelectric resources of the Company’s properties; geological, geophysical, geochemical and other conditions at the Company’s properties; the reliability of technical data, including hydrological, extrapolated temperature gradient, geophysical and geochemical surveys and geothermometer calculations; the accuracy of capital expenditure estimates; availability of all necessary capital to fund exploration, development and expansion programs; the Company’s competitive position; the ability to continue as a going concern and general economic conditions.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is provided as at the date of this MD&A and the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information due to the inherent uncertainty therein.

Additional information about the Company, including the Company’s AIF for the year ended December 31, 2024 is available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.polarisREI.com.

Non-GAAP Performance Measures

Certain measures in this press release do not have any standardized meaning as prescribed by IFRS and, therefore, are not considered GAAP measures. Where non-GAAP measures or terms are used, definitions are provided. In this document and in the Company’s consolidated financial statements, unless otherwise noted, all financial data is prepared in accordance with IFRS.

This news release includes references to the Company’s adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) and adjusted EBITDA per share, which are non-GAAP measures. These measures should not be considered in isolation or as an alternative to net earnings (loss) attributable to the owners of the Company or other measures of financial performance calculated in accordance with IFRS. Rather, these measures are provided to complement IFRS measures in the analysis of Polaris Renewable Energy’s results since the Company believes that the presentation of these measures will enhance an investor’s understanding of Polaris Renewable Energy’s operating performance. Management’s determination of the components of non-GAAP performance measures are evaluated on a periodic basis in accordance with its policy and are influenced by new transactions and circumstances, a review of stakeholder uses and new applicable regulations. When applicable, changes to the measures are noted and retrospectively applied.

Descriptions and reconciliations of the above noted non-GAAP performance measures are included in Section 13: Non-GAAP Performance Measures in the Company’s MD&A for the period ended September 30, 2025 and on the Company’s website www.polarisREI.com/Non-GAAP.

SOURCE: Polaris Renewable Energy Inc.

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