TransAlta Reports Third Quarter 2025 Results

Rhea-AI Summary

TransAlta (NYSE: TAC) reported Q3 2025 results for the quarter ended Sept. 30, 2025, delivering solid operations despite weaker market pricing. Key metrics: Adjusted EBITDA $238M, FCF $105M ($0.35/share), cash flow from operations $251M, and net loss attributable to common shareholders $62M. Availability was 92.7% and production totaled 6,151 GWh. Corporate actions: CEO John Kousinioris will retire effective Apr. 30, 2026, with CFO Joel Hunter named successor; TransAlta completed required divestitures (Poplar Hill Aug. 1, 2025; Rainbow Lake Oct. 2, 2025); entered a 230 MW AESO Demand Transmission Service contract; extended committed credit facilities to 2029.

Positive

• Entered 230 MW AESO Demand Transmission contract
• Completed required divestitures Aug. 1 and Oct. 2, 2025
• Extended committed credit facilities totaling $2.1 billion
• Free cash flow of $105 million in Q3 2025
• Production 6,151 GWh in Q3 2025

Negative

• Adjusted EBITDA declined to $238 million from $315 million
• Adjusted earnings before tax fell to $17 million from $102 million
• Net loss attributable of $62 million in Q3 2025
• Availability decreased to 92.7% from 94.5% year‑over‑year

Insights

Strategic Finance Analyst

Results show resilient operations but weaker profitability; leadership change and data‑centre contract are material near‑term catalysts.

The company reported Adjusted EBITDA of $238 million and Free Cash Flow of $105 million for the quarter, with operational availability at 92.7%. Revenues and adjusted EBITDA declined versus the prior year while cash flow from operations rose to $251 million. The firm completed required divestitures on Aug. 1, 2025 and Oct. 2, 2025, extended committed credit facilities (syndicated maturity now June 30, 2029) and secured a 230 MW Demand Transmission Service Contract with the AESO for data centres.

Key dependencies and risks are explicit: Alberta power prices “remain suppressed,” the company cites continued reliance on hedging and asset optimization for realized prices, and the Centralia conversion and data‑centre allocations remain subject to counterpart negotiations. Management announced a CEO retirement effective April 30, 2026 with the CFO nominated to succeed; the CFO vacancy will be announced later. Monitorable near‑term items include execution of a memorandum of understanding for the AESO allocation and a definitive agreement for Centralia (both described as progressing "within the quarter"), the rescheduled Investor Day in Q1 2026, and upcoming disclosure of the Chief Financial Officer successor.

CALGARY, Alberta, Nov. 06, 2025 (GLOBE NEWSWIRE) -- TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the third quarter ended Sept. 30, 2025.

“Our business delivered solid operational performance during the third quarter, demonstrating the Company's resilience in the face of challenging market conditions. Our Alberta portfolio's hedging strategy and active asset optimization continued to generate realized prices well above spot prices, while availability remained high across the fleet. Although Alberta power prices remain suppressed, our assets continue to perform well, and we remain confident in achieving results within our 2025 Outlook range,” said John Kousinioris, President and Chief Executive Officer.

“We are pleased with the continued progress on a number of our key priorities, including our Alberta data centre strategy. We have entered into a Demand Transmission Service contract with the Alberta Electric System Operator (AESO) for 230 MW, representing the full allocation awarded to the Company through Phase I of the AESO's Data Centre Large Load Integration Program. In September, Parkland County unanimously approved the re-zoning of over 3,000 acres of TransAlta-owned land surrounding our Keephills and Sundance facilities to support data centre development. We continue to work closely with our counterparties on their data centre project and are steadily progressing towards the execution of a memorandum of understanding for the initial allocation and potential multi-stage development,” added Mr. Kousinioris.

“We also continue to progress negotiations to convert our Centralia facility in Washington State to gas-fired operations and are working towards executing a definitive agreement with our customer within the quarter for the full capacity of Centralia Unit 2.”

“While we remain confident in the progress of these key priorities, we have decided to shift the timing of our Investor Day to the first quarter of 2026, when we expect to be able to provide more detailed updates on both projects and their impacts on the Company,” said Mr. Kousinioris.

“Today, I announced my retirement from TransAlta and its Board of Directors, effective April 30, 2026. Joel Hunter, the Company’s current Executive Vice President, Finance and Chief Financial Officer will succeed me as President and Chief Executive Officer. I fully support Joel as the next President and CEO and I look forward to working with him, management and the Board to ensure a seamless transition.”

Third Quarter 2025 Highlights

• Achieved strong operational availability of 92.7 per cent in 2025, compared to 94.5 per cent in 2024
• Adjusted EBITDA⁽¹⁾ of $238 million, compared to $315 million for the same period in 2024
• Free Cash Flow (FCF)⁽¹⁾ of $105 million, or $0.35 per share, compared to $131 million, or $0.44 per share, for the same period in 2024
• Adjusted earnings before income taxes⁽¹⁾ of $17 million, compared to $102 million, for the same period in 2024
• Cash flow from operating activities of $251 million, or $0.85 per share, compared to $229 million, or $0.77 per share, for the same period in 2024
• Net loss attributable to common shareholders⁽¹⁾ of $62 million, or $0.20 per share, compared to net loss attributable to common shareholders of $36 million, or $0.12 per share, for the same period in 2024

Third Quarter 2025 Operational and Financial Highlights

$ millions, unless otherwise stated	Three Months Ended				Nine Months Ended
	Sept. 30, 2025		Sept. 30, 2024		Sept. 30, 2025		Sept. 30, 2024
Operational information
Availability (%)	92.7		94.5		93.1		92.5
Production (GWh)	6,151		5,712		17,796		16,612
Select financial information
Revenues	615		638		1,806		2,167
Adjusted EBITDA(1)(2)	238		315		857		973
Adjusted earnings before income taxes(1)	17		102		167		358
(Loss) earnings before income taxes	(53	)	9		(99	)	370
Adjusted net (loss) earnings attributable to common shareholders(1)	(8	)	35		76		233
Net (loss) earnings attributable to common shareholders	(62	)	(36	)	(128	)	242
Cash flows
Cash flow from operating activities	251		229		415		581
Funds from operations(1)	156		191		587		681
Free cash flow(1)	105		131		421		529
Per share
Adjusted net (loss) earnings attributable to common shareholders per share(1)	(0.02	)	0.12		0.26		0.77
Net (loss) earnings per share attributable to common shareholders, basic and diluted	(0.20	)	(0.12	)	(0.43	)	0.80
Cash flow from operating activities per share(3)	0.85		0.77		1.40		1.92
Funds from operations per share(1)	0.53		0.65		1.98		2.25
FCF per share(1)	0.35		0.44		1.42		1.75
Dividends declared per common share	0.065		0.060		0.130		0.120
Weighted average number of common shares outstanding	297		296		297		303

 
Segmented Financial Performance

$ millions	Three Months Ended				Nine Months Ended
	Sept. 30, 2025		Sept. 30, 2024		Sept. 30, 2025		Sept. 30, 2024
Hydro	73		89		246		259
Wind and Solar	45		44		236		221
Gas	110		141		342		408
Energy Transition	28		34		84		63
Energy Marketing	17		42		64		120
Corporate	(35	)	(35	)	(115	)	(98	)
Total adjusted EBITDA(1)(2)	238		315		857		973
Adjusted earnings before income taxes(1)	17		102		167		358
(Loss) earnings before income taxes	(53	)	9		(99	)	370
Adjusted net (loss) earnings attributable to common shareholders(1)	(8	)	35		76		233
Net (loss) earnings attributable to common shareholders	(62	)	(36	)	(128	)	242

1. These are non-IFRS measures and ratios, which are not defined and have no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. We believe that presenting these items from period to period provides management and investors with the ability to evaluate (loss) earnings and cash flow trends more readily in comparison with prior periods’ results. Please refer to the Non-IFRS and supplementary financial measures section of this news release for further discussion of these items.
2. During the first quarter of 2025, our Adjusted EBITDA composition was amended to exclude the impact of realized gain (loss) on closed exchange positions and Australian interest income. Therefore, the Company has applied this composition to all previously reported periods.
3. Represents a supplementary financial measure and is calculated as Cash flow from operating activities for the period divided by the weighted average number of common shares outstanding during the period.

Key Business Developments

Chief Executive Officer Succession

On Nov. 6, 2025, the Company announced that John Kousinioris, President and Chief Executive Officer and a Director of TransAlta, plans to retire effective April 30, 2026. Concurrent with this announcement, the Board of Directors (Board) has appointed Joel Hunter, TransAlta’s Executive Vice President, Finance and Chief Financial Officer, to succeed Mr. Kousinioris as President and Chief Executive Officer and be nominated to join the Board effective April 30, 2026. Mr. Kousinioris has agreed to serve as a strategic advisor to Mr. Hunter and the Board for a period of six months following his retirement. The Company’s Chief Financial Officer successor will be announced in the coming months.

Demand Transmission Service Contract

Subsequent to the quarter, the Company entered into a 230 MW Demand Transmission Service Contract with the AESO, representing the full allocation awarded to the Company through Phase I of the AESO's Data Centre Large Load Integration Program.

Completion of Required Divestitures

On Aug. 1, 2025, the Company completed the sale of its 100 per cent interest in the 48 MW Poplar Hill facility, followed by the completion of the sale of its 50 per cent interest in the 97 MW Rainbow Lake facility on Oct. 2, 2025. Both divestitures were required by the consent agreement entered into with the federal Competition Bureau as part of its regulatory approval for the Company's acquisition of Heartland Generation. Energy Capital Partners is entitled to receive the proceeds from the sale of both facilities, net of certain adjustments, following completion of the divestitures.

Credit Facility Extension

On July 16, 2025, the Company executed agreements to extend its committed credit facilities totalling $2.1 billion with a syndicate of lenders. The revised agreements reduced the Syndicated facility size from $1.95 to $1.90 billion, and extended its maturity from June 30, 2028 to June 30, 2029. The bilateral credit facilities of $240 million were extended by one year to June 30, 2027.

Conference call and webcast

TransAlta will host a conference call and webcast at 9:00 a.m. MST (11:00 a.m. EST) today, Nov. 6, 2025, to discuss our third quarter 2025 results. The call will begin with comments from John Kousinioris, President and Chief Executive Officer, and Joel Hunter, EVP Finance and Chief Financial Officer, followed by a question-and-answer period.

Third Quarter 2025 Conference Call

Webcast link: https://edge.media-server.com/mmc/p/icv44oxf

To access the conference call via telephone, please register ahead of time using the call link here: https://register-conf.media-server.com/register/BI4080fa963ddc4e2cbda6151735c3a810. Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone.

If you are unable to participate in the call, the replay will be accessible at https://edge.media-server.com/mmc/p/icv44oxf. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

TransAlta is in the process of filing its unaudited interim Consolidated Financial Statements and accompanying notes, as well as the associated Management’s Discussion & Analysis (MD&A). These documents will be available today on the Investors section of TransAlta’s website at www.transalta.com or through SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov.

About TransAlta Corporation:

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of thermal generation and hydro-electric power. For over 114 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 70 per cent reduction in GHG emissions or 22.7 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.

For more information about TransAlta, visit our web site at transalta.com.

Cautionary Statement Regarding Forward-Looking Information

This news release includes "forward-looking information," within the meaning of applicable Canadian securities laws, and "forward-looking statements," within the meaning of applicable United States securities laws, including the Private Securities Litigation Reform Act of 1995 (collectively referred to herein as "forward-looking statements"). Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as "may", "will", "believe", "expect", "estimate", "anticipate", "intend", "plan", "forecast", "continue" or other similar words. In particular, this news release contains forward-looking statements about the following, among other things: our 2025 Outlook; the status of data centre projects, including the anticipated execution of a data centre memorandum of understanding; the status of negotiations on conversion opportunities at Centralia; the anticipated execution of a definitive agreement with our customer for the full capacity of Centralia Unit 2, including the timing thereof; and the timing of our Investor Day.

Forward-looking statements and future-oriented financial information in this news release are intended to provide the reader information about management's current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements are subject to important risks and uncertainties and are based on certain key assumptions. All forward-looking statements reflect TransAlta's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking statements, you should not put undue reliance on forward-looking statements and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking statements due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to our most recent MD&A, which forms part of this news release, and the 2024 Integrated Report, including the section titled "Governance and Risk Management" in our MD&A for the year ended December 31, 2024, filed under TransAlta's profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov.

Non-IFRS and Supplementary Financial Measures

This news release contains references to the following Non-IFRS measures: Adjusted EBITDA; Free Cash Flow (FCF) (including per share); Adjusted earnings (loss) before income taxes; Adjusted net earnings (loss) attributable to common shareholders (including per share) and Funds from operations (FFO) (including per share). Non-IFRS measures do not have standardized meanings under IFRS and are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, as an alternative to, or more meaningful than, our IFRS results. We use these measures to evaluate our performance and the performance of our business segments and believe that these measures, read together with our IFRS measures, provide readers with a better understanding of how management assesses results. Presenting these measures from period to period provides management and investors with the ability to evaluate earnings (loss) trends more readily in comparison to prior periods' results. These measures are calculated by adjusting certain IFRS measures for certain items we believe are not reflective of our ongoing operations in a period and are calculated on a consistent basis from period to period and are adjusted for specific items in each period, unless stated otherwise. Refer to the Non-IFRS and Supplementary Measures section of our most recent MD&A, which forms part of this news release, for more information about these measures including, where applicable, reconciliations to measures calculated in accordance with IFRS.

Note: All financial figures are in Canadian dollars unless otherwise indicated.

For more information:

Investor Inquiries:	Media Inquiries:
Phone: 1-800-387-3598 in Canada and U.S.	Phone: 1-855-255-9184
Email: investor_relations@transalta.com	Email: ta_media_relations@transalta.com

FAQ

What were TransAlta (TAC) Q3 2025 adjusted EBITDA and free cash flow?

Adjusted EBITDA was $238 million and free cash flow was $105 million for Q3 2025.

When will TransAlta's CEO John Kousinioris retire and who succeeds him at TAC?

John Kousinioris will retire effective April 30, 2026 and CFO Joel Hunter is named successor as President and CEO.

What is the size and purpose of TransAlta's AESO contract announced after Q3 2025?

TransAlta entered a 230 MW Demand Transmission Service contract with the AESO for data centre integration (Phase I allocation).

Which divestitures did TransAlta complete that were required by the Competition Bureau?

TransAlta completed sale of Poplar Hill (48 MW) on Aug. 1, 2025 and sale of its 50% interest in Rainbow Lake (97 MW) on Oct. 2, 2025.

How did TransAlta's production and availability perform in Q3 2025?

Production was 6,151 GWh and fleet availability was 92.7% for Q3 2025.

Did TransAlta change its credit facilities in 2025 and what are the terms?

Yes; TransAlta extended committed credit facilities totaling $2.1 billion, with the syndicated facility maturity extended to June 30, 2029.