Penske Automotive Group, Inc.

Reported Q2 2026 adjusted EBITDA was $351 million, up $29 million versus Q2 2025. AFFO was $328 million, up $93 million year over year. On the year-to-date basis, adjusted EBITDA was $755 million, up $66 million, and AFFO was $482 million, up $29 million. Full-year 2026 guidance was reaffirmed at adjusted EBITDA of $1.565 billion to $1.765 billion, AFFO of $890 million to $1.01 billion, and sustaining capital of $290 million to $330 million. Management also increased its estimate of embedded annual adjusted EBITDA upside to approximately $1.25 billion, from about $1 billion previously. The Meta energy supply agreement covers 250 megawatts, is expected to commence in the second half of 2028, and runs for more than 10 years.

Avik Dey said Alberta is 'open for business' and emphasized that policy clarity and data center demand are improving the investment case across the province and beyond. He framed the Meta agreement as proof that Capital Power can convert embedded merchant capacity into long-duration contracted cash flows without new capital investment. His tone was optimistic but disciplined, repeatedly stressing commercial optimization, capital allocation discipline, and balanced returns.

Kevin MacIntosh highlighted that the company’s embedded annual adjusted EBITDA upside now totals about $1.25 billion, with roughly $400 million to $550 million from contracted upside and $375 million to $700 million from merchant upside. He attributed the increase mainly to recontracting progress, higher CONE assumptions, stronger Alberta pricing expectations, and the Meta contract’s de-risking effect. He reiterated 2026 guidance and noted Q2 adjusted EBITDA of $351 million, AFFO of $328 million, and year-to-date adjusted EBITDA of $755 million and AFFO of $482 million. He also said sustaining capital remains elevated due to a planned maintenance cycle and that the company continues to target a 2% dividend increase for 2026.

Analysts focused on PJM rule changes, Alberta data center demand, Genesee’s capacity potential, the Meta contract, and M&A/development priorities. Management said PJM’s recent RBP and connect-and-manage changes are positive for incumbent generators and that Hummel and Rolling Hills remain strong assets, with more opportunity on the bilateral side. On Alberta, management said Genesee remains a highly attractive site and that discussions with customers are ongoing, but they would not comment on specific projects. They also said the Apollo partnership is active and the deal pipeline is larger, but they remain disciplined and have not yet transacted.