Investing in clean energy stocks offers exposure to one of the fastest-growing sectors of the global economy. As artificial intelligence accelerates demand for efficient and sustainable power, companies positioned in renewable energy stand to benefit immensely. One such standout on the TSX is Boralex (TSX:BLX) — a proven long-term performer that may be one of the smartest buys today.
With a market cap of $2.9 billion, Boralex has delivered over 500% in total returns (including dividends) since 2001. Yet, despite its impressive history, the stock is currently down 49% from its all-time high, giving investors an opportunity to accumulate shares at a discount.
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A diversified renewable energy leader
Boralex develops, builds, and operates renewable power generation and storage facilities across North America and Europe. By the end of 2024, it managed 103 wind farms, 13 solar sites, 15 hydroelectric plants, and two storage facilities — totaling 1,819 MW of capacity in North America and 1,343 MW in Europe.
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A strong roadmap for growth
At its 2025 Investor Day, Boralex unveiled an ambitious plan to double its installed capacity to 7 GW by 2030, primarily through organic expansion. The company currently operates 3.3 GW across Canada, France, the U.K., and the U.S., with 93% of its revenue secured under long-term contracts averaging 11 years. By 2030, management aims to extend that average to 14 years, further enhancing revenue stability.
Boralex expects operating income to grow by 8% annually through 2030 and EBITDA to surpass $1 billion, representing a 9% compound annual growth rate. Importantly, executive compensation is now directly linked to growth in adjusted funds from operations per share — aligning management with shareholders.
The company plans to deploy $6.8 billion in capital toward projects slated before 2030, funded primarily by $5 billion in project-level debt. Recent financing wins include $1 billion for Ontario battery storage projects and the Des Neiges wind portfolio in Quebec. Boralex also plans to recycle about $900 million in capital following its successful sale of a 30% stake in its French operations to Swiss partner EIP.
The project pipeline totals nearly 8 GW, with major developments underway — including 655 MW of battery storage in Ontario, the 1,200 MW Des Neiges wind project in Quebec, and 450 MW of solar capacity in New York.
Quebec remains a key growth engine, with Boralex targeting one-third of the province’s 10 GW wind market by 2035. Its strong community and First Nations partnerships provide a competitive advantage for project execution. While management acknowledged ongoing tariff uncertainties, it noted that most U.S. projects remain protected under safe-harbour tax credit provisions.
Attractive upside potential
Analysts expect Boralex’s revenue to grow from $817 million in 2024 to $1.56 billion in 2028, with adjusted earnings per share climbing from $0.62 to $1.80. Free cash flow is projected to surge from $17 million to $358 million during the same period.
With annual dividend payments of about $68 million, Boralex’s payout ratio is forecast to fall from 43% in 2025 to just 19% by 2029 — a sign of increasing financial flexibility.
If valued at 12 times forward free cash flow, the stock could rally over 60% within three years, and when dividends are included, potential total returns may approach 70%.
For investors seeking a renewable energy stock with strong fundamentals, steady growth, and compelling upside, Boralex looks well-positioned to power portfolios for years to come.
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