TransAlta Corp

TA

Equity

ISIN null / Valor 25176

Toronto Stock Exchange (2026-06-04)

CAD 18.00-10.4%

TransAlta Corp
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About company

TransAlta Corporation is a Calgary-based, publicly traded power generation and wholesale energy company that owns, operates and develops a diversified portfolio of electricity assets across Canada, the United States and Australia. Its generation mix includes natural gas, hydroelectric, wind and solar facilities (and historically coal-fired units), which it monetizes through a combination of long-term power purchase agreements, merchant sales into wholesale markets and capacity/ancillary services. Beyond owning generation, TransAlta provides operations and maintenance, project development and energy trading/optimization to manage commodity exposure and match supply with contracted obligations. The company’s business model centers on operating and optimizing generation assets to produce predictable cash flow streams for investors, while selectively developing or acquiring new projects and managing an active contracting program.

Summarized from source with an LLMView SourceSector: Energy

Key Q4 and FY financials

Q4 2025 adjusted EBITDA $247M (vs. $282M in Q4 2024); Q4 net loss to common shareholders $62M (‑$0.21/share). Full‑year 2025 adjusted EBITDA $1,104M (vs. $1,255M in 2024); full‑year net loss $190M (‑$0.64/share).

Cash flow and dividends

Q4 operating cash flow $231M ($0.78/share) and free cash flow $93M ($0.31/share). FY 2025 operating cash flow $646M and FCF $514M ($1.73/share). Board approved an 8% dividend increase to $0.28 annualized (quarterly $0.07).

2026 outlook

Guidance for 2026: adjusted EBITDA $950M–$1,050M and FCF $350M–$450M ($1.18–$1.51/share). Outlook factors include lower Energy Transition contributions (Centralia change), lower Alberta merchant gas contribution, offset by higher wind/solar production and the Far North acquisition.

Operational and sustainability performance

Operational availability rose to 90.1% in Q4 and 92.3% for 2025. Scope 1 & 2 emissions intensity fell to 0.31 tCO2e/MWh (from 0.35), and TransAlta reports a 76% reduction in annual scope 1 & 2 emissions since 2015, exceeding its 2026 target. Safety TRIF improved to 0.12 (2025) from 0.56 (2024).

Strategic deals and M&A

Signed a long‑term tolling agreement to convert Centralia Unit 2 to gas with fixed capacity payments through 2044 (conversion capex ~US$600M; expected converted operations in late 2028). Closed acquisition of Far North (Feb 2, 2026) for $95M, adding 310 MW in Ontario. Entered an MOU with CPP Investments and Brookfield for data‑centre development at Keephills (initial ~230 MW PPA; up to 1 GW possible).

Capital markets and financing

Issued US$400M senior notes (5.9% coupon, maturing Feb 1, 2034) on Dec 22, 2025, and used proceeds to redeem outstanding 7.8% US$400M notes early. Net proceeds reported at $541M (US$393M).

Corporate actions and operational changes

Announced CEO succession: John Kousinioris to retire Apr 30, 2026; Joel Hunter named successor. Sheerness Unit 1 to be mothballed effective Apr 1, 2026 (up to two years). Centralia Unit 2 was ordered by the U.S. DOE to remain available through Mar 16, 2026 while conversion permitting proceeds.

Hedges, assumptions and sensitivities

2026 hedging shows ~65 $/MWh hedge price across quarters (2027 hedge price assumed ~$71/MWh). Alberta spot assumption $40–$60/MWh; sensitivity noted: ±$1/MWh change in spot price ≈ ±$2M impact on 2026 adjusted EBITDA.

Summarized from source with an LLMView Source

Key figures

29.9%1Y

35.8%3Y

56.9%5Y

Performance

40.0%1Y

36.6%3Y

32.1%5Y

Volatility