Maxim Power Corp. Announces 2025 Fourth Quarter Financial and Operating Results

CALGARY, Alberta, March 19, 2026 (GLOBE NEWSWIRE) -- Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX: MXG) announced today the release of financial and operating results for the fourth quarter ended December 31, 2025. The audited consolidated financial statements, accompanying notes and Management’s Discussion and Analysis (“MD&A”) will be available on SEDAR+ and on MAXIM's website on March 19, 2026. All figures reported herein are Canadian dollars unless otherwise stated.

FINANCIAL HIGHLIGHTS

	Three Months Ended December 31,				Twelve Months Ended December 31,
($ in thousands except per share amounts)	2025		2024		2025		2024
Revenue	17,966		24,048		86,873		101,482
Net income (loss)	2,422		(341	)	16,694		21,946
Earnings (loss) per share – basic	0.04		(0.01	)	0.26		0.42
Earnings (loss) per share – diluted	0.04		(0.01	)	0.26		0.38
Adjusted EBITDA(1)	6,007		5,647		28,813		38,531
Total generation – (MWh)	312,769		425,486		1,596,541		1,733,267
Total fuel consumption – (GJ)	2,731,215		3,514,660		13,262,203		14,221,985
Average Alberta market power price ($ per MWh)	43.27		51.52		43.74		62.78
Average realized power price ($ per MWh)	57.44		56.52		54.41		58.55
Loans and borrowings	-		-		-		-
Total net debt (net cash)(1)	(56,917	)	(30,068	)	(56,917	)	(30,068	)
Total assets	383,424		359,098		383,424		359,908
Free cash flow(1)	2,454		(1,016	)	17,521		28,763
(1) Select financial information was derived from the consolidated financial statements and is prepared in accordance with GAAP, except certain non-GAAP measures including: free cash flow (“FCF”), adjusted Earnings before Interest, Income Taxes, Depreciation and Amortization (“Adjusted EBITDA”) and total net debt, (see Non-GAAP Financial Measures below). Total net debt is included in the notes to the annual consolidated financial statements. Net debt is calculated to include: loans and borrowings less unrestricted cash.

OPERATING RESULTS

During 2025, MAXIM recorded net income and adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”⁽¹⁾) of $16.7 million and $28.8 million, respectively, as compared to net income and Adjusted EBITDA⁽¹⁾ of $21.9 million and $38.5 million, respectively, in the same period of 2024. Net income and Adjusted EBITDA⁽¹⁾ decreased in 2025 primarily due to lower generation volumes, as a result of a planned maintenance outage in the fourth quarter of 2025, and a lower realized average power price. Net income further decreased due to unrealized losses on commodity swaps, partially offset by other income and lower financing expenses.

PRAIRIE LIGHTS POWER PROJECT

On February 9, 2026, MAXIM entered into a gas turbine and generator reservation agreement (the “Reservation Agreement”) with GE Vernova. The Reservation Agreement allows MAXIM to hold a manufacturing slot for a 7HA.02 gas turbine and generator package (the “Gas Turbine”) with a target delivery by 2030. To hold this manufacturing slot, MAXIM is required to provide a non-refundable deposit which is payable in 2026. Under the Reservation Agreement, the parties agree to negotiate in good faith to reach a definitive sales agreement for the purchase of the Gas Turbine. The purchase price for the Gas Turbine will be agreed to in the definitive agreement, and the deposit will be credited towards the final purchase price.

MAXIM is securing this unit manufacturing slot for its permitted 400 MW Prairie Lights Power project (“Prairie Lights”) located near Grande Prairie, Alberta. An amendment to the Prairie Lights regulatory permits will be required based on the Gas Turbine selected and its corresponding delivery schedule. The 7HA.02 gas turbine is an updated model of the currently approved gas turbine within the Prairie Lights regulatory permits and as such the amendment is anticipated to be routine in nature. The Corporation continues to advance all aspects of project development for Prairie Lights and anticipates total project spending during 2026 of up to $60 million.

CLAIMS AND INSURANCE MATTERS

On November 24, 2025, MAXIM successfully settled a portion of its claim for compensation against third-parties in relation to the non-injury fire at M2 on September 30, 2022, which caused damage to M2’s air inlet filter house (the “Claim”). The Claim was filed in 2024 against multiple third parties and this settlement is with one of those parties. MAXIM’s portion of the settlement, net of fees, is $6.5 million. The amount represents the maximum net amount available from the insurance policy of the third party who has agreed to settle.

In addition, MAXIM continues to pursue its Claim against the remaining third parties. The Corporation understands that the collective amount of the insurance policies, for the remaining third parties involved in the Claim, is equivalent to the amount paid out as part of the settlement announced on November 24, 2025. As of the date hereof, the precise amount and timing of any further compensation related to the Claim, if any, cannot be determined.

As previously reported, MAXIM submitted an additional insurance claim for a delay in start up related to the non-injury fire under its course of construction insurance policy, which includes a provision for delay in start up coverage relating to the combined cycle gas turbine expansion of M2. The insurer denied coverage under this policy, which the Corporation is disputing by way of arbitration. The amount of the dispute was previously $25.0 million and has increased to $32.0 million. The outcome of any arbitration, including the timing thereof and any reward therefrom is uncertain and has not been recognized by the Corporation in the financial statements.

NON-GAAP FINANCIAL MEASURES

Management evaluates MAXIM’s performance using a variety of measures. Adjusted EBITDA and FCF, as discussed below are non-GAAP measures and should not be considered as an alternative to or to be more meaningful than net income of the Corporation, as determined in accordance with GAAP, when assessing MAXIM’s financial performance or liquidity. These measures do not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other companies.

Adjusted EBITDA

Adjusted EBITDA is provided to assist management and investors in determining the Corporation’s approximate operating cash flows attributable to shareholders before finance expense, income taxes, depreciation and amortization, and certain other non-recurring or non-cash income and expenses. Financing expense, income taxes, depreciation and amortization are excluded from the Adjusted EBITDA calculation, as they do not represent cash expenditures that are directly affected by operations. Management believes that presentation of this non-GAAP measure provides useful information to investors and shareholders as it assists in the evaluation of performance trends. Management uses Adjusted EBITDA to compare financial results among reporting periods and to evaluate MAXIM’s operating performance and ability to generate funds from operating activities.

		Three months ended				Twelve months ended
		December 31				December 31
($000's)		2025		2024		2025		2024
GAAP Measures from Consolidated Statement of Operations
Net income (loss)		2,422		(341	)	16,694		21,946
Income tax expense		609		205		1,548		6,175
Finance expense (income), net		(790	)	737		(1,446	)	3,892
Depreciation and amortization		3,916		3,660		15,605		14,563
		6,157		4,261		32,401		46,576
Adjustments:
Other expense (income)		(7,176	)	76		(11,641	)	(2,961	)
Settlement proceeds		6,454		-		6,454		-
Unrealized loss (gain) on commodity swaps		262		309		462		(6,887	)
Share-based compensation		310		1,001		1,137		1,803
Adjusted EBITDA		6,007		5,647		28,813		38,531

Adjusted EBITDA is calculated as described above from its most directly comparable GAAP measure, net income, and adjusts for specific items that are not reflective of the Corporation’s underlying operations and excludes other non-cash items.

In calculating Adjusted EBITDA for the three and twelve months ended December 31, 2025 and December 31, 2024 management excluded certain non-cash and non-recurring transactions. In both 2025 and 2024, Adjusted EBITDA excluded unrealized gains or losses on commodity swaps, share-based compensation and all items of other income except for settlement proceeds as it reflects a portion of earnings that would have been earned if M2 was operational.

Free Cash Flow

		Three months ended				Twelve months ended
		December 31				December 31
($000's)		2025		2024		2025		2024
Funds generated from operating activities before change in non-cash working capital		6,480		4,265		30,096		41,791
Property, plant and equipment additions		(4,376	)	(3,726	)	(13,799	)	(7,192	)
Repayment of loans and borrowings		-		(1,500	)	-		(3,638	)
Interest expense and bank charges		(41	)	(746	)	(227	)	(6,634	)
Interest income		391		691		1,451		4,436
Free cash flow		2,454		(1,016	)	17,521		28,763

FCF is calculated as described above from its most directly comparable GAAP measure from the Statement of Cash Flows, the funds generated from operating activities before change in non-cash working capital, and adjusts for specific items that are reflective of the Corporation’s underlying FCF. FCF is an important metric as it represents the amount of cash that is available to potentially invest in growth initiatives, pay dividends and repurchase shares. In calculating FCF for the three and twelve months ended December 31, 2025 and December 31, 2024, management uses the funds generated from operating activities before change in non-cash working capital for the period and deducts property, plant and equipment additions, repayment of loans and borrowings, interest expense and bank charges and adds interest income.

About MAXIM

Based in Calgary, Alberta, MAXIM is one of Canada’s largest truly independent power producers. MAXIM is now focused entirely on power projects in Alberta. Its core asset – the 300 MW H.R. Milner Plant, M2, in Grande Cache, AB – is a state-of-the-art combined cycle gas-fired power plant that commissioned in Q4, 2023. MAXIM continues to explore additional development options in Alberta including its currently permitted gas-fired generation project and the permitting of its wind power generation project. MAXIM trades on the TSX under the symbol “MXG”. For more information about MAXIM, visit our website at www.maximpowercorp.com. For further information please contact:

Bob Emmott, President and CEO, (403) 263-3021

Kyle Mitton, CFO and Vice President, Corporate Development, (403) 263-3021

Forward-looking statements

This press release contains forward-looking statements and forward-looking information (collectively "forward looking information") within the meaning of applicable securities laws relating to MAXIM's plans and other aspects of MAXIM's anticipated future operations, management focus, objectives, strategies, financial, operating and production results. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend", "may", "would", "could" or "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement. Specifically, this press release contains forward-looking statements concerning, among other things, statements relating to the timing of delivery of the gas turbine package, location of installation, amendments to permits, intent to execute a gas turbine and generator sales agreement, capital spending on the Prairie Lights project and the precise amount and timing of any further compensation related to the Claim.

MAXIM's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that MAXIM will derive there from. Risk factors include that MAXIM will retain sufficient liquidity to maintain operations and continue to invest in its development portfolio, including the Prairie Lights project and that it will be able to successfully fund or finance the reservation agreement deposit and capital spending for the Prairie Lights project, or the final purchase price for the turbine. Additional information on these and other factors that could affect MAXIM’s business, operations or financial results are included in the reports on file with applicable securities regulatory authorities, including but not limited to MAXIM’s Annual Information Form for the year ended December 31, 2025, which may be accessed on MAXIM’s SEDAR+ profile at www.sedarplus.ca. These forward-looking statements are made as of the date of this press release and MAXIM disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

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