This Canadian Energy Stock Could Have its Biggest Year Yet

Energy stocks don’t all need oil to win. That’s the interesting part of Northland Power (TSX:NPI) right now. While many investors focus on crude prices, pipelines, and gas producers, Northland sits in a different lane. It owns and develops power assets, including offshore wind, onshore renewables, battery storage, natural gas facilities, and utilities. That mix gives it exposure to one of the biggest themes in the market today: the world needs more electricity.

NPI

That need keeps growing. Artificial intelligence (AI), data centres, electric vehicles, re-shoring, and air conditioning all push power demand higher. Governments also want cleaner power. Companies want long-term contracts. Investors want cash flow. NPI stock doesn’t solve all those needs at once, but it sits closer to the centre of the conversation than it did a few years ago.

NPI stock in 2026 could mark a major step up in its earnings base. The company already entered the year with big projects moving forward, including the Hai Long offshore wind project in Taiwan and the Baltic Power offshore wind project in Poland. Offshore wind can create large, contracted cash flows once it moves from construction into operation.

Into earnings

The latest results gave investors a stronger reason to pay attention. In the first quarter of 2026, NPI stock reported revenue from energy sales of $775 million, up from $665 million last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $427 million, up from $361 million. Free cash flow per share increased to $0.70 from $0.60.

Those numbers tell a cleaner story than the stock has told in recent years. NPI stock struggled with low wind conditions, higher interest rates, construction complexity, and investor frustration over its dividend. The company finally reset the payout. It now pays $0.06 per share each month, or $0.72 annually. That cut hurt income investors, but it also made the dividend more manageable.

That’s why 2026 matters. A lower dividend gives NPI stock more room to fund growth, manage debt, and support large projects. It also shifts the story away from stretching for yield and toward rebuilding confidence. Investors may not love a dividend cut, but they should care more about whether the new payout can last.

Looking ahead

The catalyst is execution. NPI stock reaffirmed its 2026 guidance for adjusted EBITDA of $1.45 billion to $1.65 billion and free cash flow per share of $1.05 to $1.25. If management hits that range, it would show the company can move past the rough patch and start proving out its growth pipeline.

Hai Long offers one important piece of that story. NPI stock announced first power from the project in 2025, and project updates show ongoing offshore progress. Baltic Power also keeps advancing, with major installation work underway. Together, they could reshape NPI stock’s profile if construction stays on track and operating performance follows.

The business snapshot is simple enough. Northland builds and owns power assets that can produce contracted revenue over long periods. That can create stable cash flow, especially when projects run well. It also gives the company exposure to clean power demand without relying entirely on one region or one technology.

Bottom line

The setup looks better than it has in a while. NPI stock now has a leaner payout, stronger first-quarter results, and major projects moving closer to full contribution. The stock may still carry baggage, but baggage can create opportunity when the business starts turning. And right now could mean you get even more income from an investment while share prices are down, even with $7,000.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTNPI$22.65309$0.72$222.48Monthly$6,998.85

For investors looking beyond oil, NPI stock offers a different energy bet. It’s a power-demand stock, a renewable-growth stock, and a monthly dividend stock all in one. If 2026 guidance holds and its big projects keep advancing, this Canadian energy name could have its biggest year yet.

The post This Canadian Energy Stock Could Have its Biggest Year Yet appeared first on The Motley Fool Canada.

Should you invest $1,000 in Northland Power right now?

Before you buy stock in Northland Power, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Northland Power wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $16,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 91%* – a market-crushing outperformance compared to 87%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of June 15th, 2026

More reading

• 2 Dividend Stocks I’d Buy Today and Feel Good Holding for at Least 5 Years
• The Bank of Canada Held Rates, So Where Should Canadians Invest Now?
• What’s the Deal With Northland Power’s Dividend?
• 3 Canadian Stocks That Look Undervalued and Worth Buying Right Now
• $1 Trillion Invested? 2 Top TSX Stocks That Can Win Huge From Canada’s Energy Strategy

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.