This article first appeared on GuruFocus .
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Polaris Renewable Energy Inc ( RAMPF ) signed a contract for the ASAP battery project in Puerto Rico on June 12, 2026, targeting a mid-2027 COD date, marking a key growth initiative.
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The company was selected for a 250 MW DC solar plus 30% battery storage project in Mexico, with a signed JV agreement on July 3, 2026, featuring 25-year US dollar contracts with CPI inflators.
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Strong balance sheet with nearly $100 million in cash provides ample flexibility for growth investments and maintaining a disciplined capital allocation strategy.
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Improved pricing in Peru and Panama partially offset lower production, with Peru benefiting from annual CPI adjustments and favorable market conditions.
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Diversified portfolio across technologies and geographies helped mitigate production declines, with solar production in Panama performing strongly.
Negative Points
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Consolidated generation was 7.7% lower in Q2 2026 compared to the exceptional Q2 2025, driven by curtailment in the Dominican Republic, lower geothermal production in Nicaragua, and normalizing hydrology in Peru and Ecuador.
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Curtailment in the Dominican Republic remained high at 29% for the border and 35% average, though improved from 42% in Q1 2026, with a full solution expected in 1-2 years.
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Geothermal production in Nicaragua faced challenges from higher-than-anticipated sediment levels in reinjection wells after major maintenance, reducing binary unit output by about 0.75 MW.
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Adjusted EBITDA declined 11% both quarter-over-quarter and year-over-year due to lower production and higher costs from integrating the Punta Lima wind farm and expanding the development pipeline.
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Execution risk exists from simultaneously developing multiple large projects, requiring new hires and a new office in Mexico City, though staging of projects provides some buffer.
Q & A Highlights
Here are the key highlights from the Polaris Renewable Energy Inc ( RAMPF ) Q2 2026 earnings call.
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Q: Can you provide more detail on the quality and expected returns of the new 250 MW solar project in Mexico, including the power price and how it compares to other markets? A: **CEO Marc Murnaghan** indicated that the combined revenue from energy and tolling for the project is estimated in the $25 to $30 per MWh range. He noted that while the final CapEx and EBITDA numbers will likely be higher once grid upgrade costs are finalized, this will also increase the revenue and the percentage of revenue from tolling, which is a positive. The contracts are in USD with full US CPI inflators and a 25-year term, making the revenue profile very high quality. Compared to Puerto Rico, Mexico is expected to be significantly cheaper, especially on the contracting and balance-of-plant side, though the starting energy price will be lower.
Q: Regarding the ASAP battery project in Puerto Rico, what is the current status and timeline? A: **CEO Marc Murnaghan** confirmed the contract with PREPA was signed on June 12th. The company is now finalizing the equipment procurement process, which they hope to complete within the next 30 days. The target commercial operation date (COD) is mid-2027. He emphasized the project is moving from the approval phase into execution and construction.
Q: With the new projects in Mexico and Puerto Rico, do you have any concerns about the company's bandwidth and resources being stretched too thin to develop all these projects simultaneously? A: **CEO Marc Murnaghan** acknowledged this is a key focus. He stated that the team could handle two distinct projects (like ASAP and one solar project in Mexico) without new hires. However, to manage the larger pipeline, the company will be hiring 4-5 people immediately and establishing a small office in Mexico City by the end of the quarter. He noted that the staging of the projectswith the first Mexican project ready to build in November and the larger ones in 2026provides time to fill roles and mitigate execution risk.
Q: Can you provide an update on the curtailment situation in the Dominican Republic and your expectations going forward? A: **CEO Marc Murnaghan** reported that curtailment improved in Q2 2026 to an average of 29-35%, down from 42% in Q1 2026. The company is still targeting 40,000 to 42,000 MWh of curtailment for the full year. He sees initiatives from the government to address the issue, including contracting large-scale grid storage and transmission assets. He expects a partial improvement next year from demand growth, but a more fulsome solution is likely 1.5 to 2 years away.
Q: What is the status of the San Jacinto geothermal binary unit, and when do you expect to recover the lost capacity? A: **CEO Marc Murnaghan** explained that the binary unit is currently running about 0.75 MW lower than its potential due to sediment in injection wells after Q1 maintenance. The company plans to run it at current levels for the rest of 2026. They expect to recover the lost capacity early next year through an acidification program, which has been successful in the past. The main challenge is securing specialized equipment, which is why the work is scheduled for Q1 2027.
Q: How is the hydroelectric portfolio performing, especially given the comparison to last year's record levels and concerns about El Nino? A: **CEO Marc Murnaghan** stated that while production is below the exceptional levels of Q2 2025, the portfolio is performing in line with long-term averages from 2022, 2023, and 2024. He noted that pricing in Peru was a positive, with an average 8% increase across the three plants due to annual CPI adjustments. He reiterated the full-year production guidance of approximately 760 GWh is still achievable.
Q: What is the timeline for clarity on the other RFP processes and growth opportunities you are pursuing in markets like the Dominican Republic and Puerto Rico? A: **CEO Marc Murnaghan** stated that the company expects clarity on whether they have been selected for these processes within the next three months (by Q4 2026). He also mentioned that the company is frequently approached by local developers who lack the capital to build projects, providing additional optionality for growth beyond their own pipeline.
Q: Can you provide more detail on the financial impact of the lower production in Q2 2026? A: **CFO Alba Cedos** reported that consolidated generation was 7.7% lower than Q2 2025, leading to an 8% decrease in revenue and an 11% decrease in adjusted EBITDA quarter-over-quarter. The financial impact was partially offset by stronger pricing in Peru and improved pricing in Panama. The year-to-date adjusted EBITDA was also impacted by higher costs related to the integration of the Punta Lima wind farm and expansion of the development pipeline in Mexico and Puerto Rico.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
