Toronto, ON – November 13, 2025 – Capstone Infrastructure Corporation (TSX: CSE.PR.A) today announced its Third Quarter (Q3) results for the period ended September 30, 2025, alongside the declaration of its regular quarterly dividend for its Cumulative Five-Year Rate Reset Preferred Shares, Series A. The announcement provides crucial updates for preferred shareholders and offers a glimpse into the company's operational trajectory, indicating a positive shift in its financial performance.

The timely release of these results and the consistent dividend declaration underscore Capstone's commitment to its preferred shareholders, offering a measure of stability in the dynamic financial markets. While the company continues to navigate various economic currents, the reported financial improvements suggest a strengthening foundation, which could positively influence investor confidence in its preferred share offerings.

Detailed Financial Insights and Dividend Particulars

Capstone Infrastructure Corporation's Q3 2025 financial report highlights a notable improvement in its net income, recording a net loss of -7.00 million CAD for the quarter. This figure represents a significant enhancement compared to the previous quarter's net loss of -18.76 million CAD, signaling a positive trend in the company's financial health and operational efficiency. The detailed Management's Discussion and Analysis (MD&A) and unaudited interim consolidated financial statements, filed on SEDAR+, provide comprehensive insights into the factors contributing to this improvement.

In line with its established policy, the Board of Directors of Capstone Infrastructure Corporation declared a quarterly dividend of $0.2314 per Preferred Share for its Cumulative Five-Year Rate Reset Preferred Shares, Series A (TSX: CSE.PR.A). This dividend pertains to the period from October 31, 2025, to January 30, 2026. Shareholders of record at the close of business on January 15, 2026, will be eligible to receive this payment, which is scheduled to be distributed on or about January 30, 2026. The inferred ex-dividend date for this payment is January 13, 2026, aligning with standard market practices. It is important to note that while Capstone's common shares were delisted in April 2016 following an acquisition, its preferred shares (TSX: CSE.PR.A) have remained outstanding and continue to actively trade on the Toronto Stock Exchange, providing a unique investment avenue.

Market Implications: Winners and Losers

The consistent dividend declaration and improving financial performance primarily benefit the preferred shareholders of Capstone Infrastructure Corporation (TSX: CSE.PR.A). These investors, often seeking stable income streams, will find reassurance in the continued payout, especially given the backdrop of the company's improving net income. The preferred shares, by their nature, offer a degree of stability and predictability, making them attractive to income-focused portfolios. The positive financial trend could also bolster the market's perception of the preferred shares' underlying value, potentially enhancing their appeal.

Conversely, there aren't immediate "losers" directly stemming from this announcement. However, in a broader market context, investors solely focused on common share growth might overlook preferred shares, although this specific company's common shares are no longer publicly traded. The value of preferred shares can still be influenced by broader economic factors such as interest rate changes or significant shifts in the infrastructure sector's outlook, which could indirectly affect their market price. Nevertheless, for those holding Capstone's Series A Preferred Shares, this report signals continued stability and a reliable income stream.

Wider Significance and Industry Context

Capstone Infrastructure Corporation's Q3 results and dividend declaration resonate within the broader infrastructure sector, highlighting the resilience and essential nature of these assets. In an often-volatile market, the consistent performance and dividend payouts from infrastructure-focused entities like Capstone underscore their role as potential defensive investments. This event fits into a trend where investors increasingly value stable returns from tangible assets, particularly in sectors critical to economic function such as power generation and utilities.

The announcement may have ripple effects on how other infrastructure-focused preferred shares are perceived, potentially drawing more attention to this segment of the market. While there are no direct regulatory or policy implications from this specific financial update, the underlying operations of Capstone are subject to various energy and utility regulations. Any future shifts in these policies could indirectly impact the company's profitability and, by extension, the security of its preferred share dividends. Historically, preferred shares have often provided a buffer against market downturns, and Capstone's continued adherence to its dividend schedule, even with improving but still negative net income, reinforces this historical precedent.

What Comes Next: Navigating Future Horizons

In the short term, Capstone Infrastructure Corporation's preferred shareholders will be keenly anticipating the dividend payment on January 30, 2026. Beyond that, the market will closely monitor subsequent quarterly reports for continued financial improvement, particularly focusing on the company's progress towards sustained profitability. The trajectory of Capstone's net income will be a critical indicator of its operational efficiency and the overall health of its underlying infrastructure assets.

Looking further ahead, the long-term prospects for Capstone Infrastructure Corporation will largely depend on its strategic management of existing assets and any potential expansion or divestment activities within its power generation and utilities segments. The evolving landscape of energy policy, technological advancements in renewable energy, and the general economic environment will present both opportunities and challenges. Investors should watch for any strategic pivots or adaptations the company might undertake to capitalize on emerging market opportunities or mitigate potential risks, especially concerning interest rate fluctuations which can impact preferred share valuations.

Comprehensive Wrap-Up and Investor Outlook

Capstone Infrastructure Corporation's Q3 2025 report and dividend declaration provide key takeaways for the market: a noticeable improvement in net income, moving closer to profitability, and the steadfast commitment to its preferred shareholders through a consistent dividend payout. This reinforces the perception of Capstone's Series A Preferred Shares (TSX: CSE.PR.A) as a reliable income-generating asset within the infrastructure domain.

Moving forward, the market will undoubtedly focus on Capstone's ability to sustain and build upon its recent financial improvements. For investors, particularly those prioritizing income and stability, Capstone's preferred shares continue to present a viable option. However, it is crucial to remain vigilant regarding broader market dynamics, the interest rate environment, and any specific developments within the infrastructure sector that could influence the company's operational performance and the valuation of its preferred shares in the coming months.

This content is intended for informational purposes only and is not financial advice