TransAlta Reports Strong Second Quarter 2025 Results, Advancement of Strategic Priorities and Reaffirms Guidance

Executive Summary

• TransAlta Corporation reported its financial results for the second quarter ended June 30, 2025, highlighting strong operational availability and adjusted EBITDA growth compared to the prior year period.
• The company reported a net loss attributable to common shareholders of $112 million ($0.38 per share), a significant decline from the net earnings of $56 million ($0.18 per share) in the same period of 2024, driven by non-cash adjustments and impairments.
• Key operational highlights include an availability rate of 91.6% and production of 4,813 GWh, while strategic updates include progress on Alberta data centre negotiations and the recontracting of Ontario wind facilities.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Adjusted EBITDA: $349 million (up from $316 million).
  • Free Cash Flow (FCF): $177 million ($0.60 per share), consistent with Q2 2024.
  • Adjusted Earnings Before Income Taxes: $122 million ($0.41 per share), up from $112 million ($0.37 per share).
  • Cash Flow from Operating Activities: $157 million ($0.53 per share), up from $108 million ($0.36 per share).
  • Net Loss Attributable to Common Shareholders: $112 million ($0.38 per share), compared to Net Earnings of $56 million ($0.18 per share) in Q2 2024.
• Operational Metrics:
  • Availability: 91.6% (up from 90.8% in Q2 2024).
  • Production: 4,813 GWh (up from 4,781 GWh in Q2 2024).
• Segment Performance (Adjusted EBITDA - Q2 2025):
  • Hydro: $126 million (up from $83 million).
  • Wind and Solar: $89 million (consistent with $88 million).
  • Gas: $128 million (down from $142 million).
  • Energy Transition: $19 million (up from $2 million).
  • Energy Marketing: $26 million (down from $39 million).
  • Corporate: $(39) million.
• Key Business Developments:
  • Credit Facility Extension: On July 16, 2025, TransAlta extended committed credit facilities totaling $2.1 billion. The syndicated facility maturity was extended to June 30, 2029, and bilateral facilities to June 30, 2027.
  • Divestiture of Poplar Hill: Signed an agreement to divest the 48 MW Poplar Hill asset to Energy Capital Partners, as required by the Competition Bureau consent agreement related to the Heartland Generation acquisition.
  • Recontracting of Ontario Wind Facilities: Successfully recontracted Melancthon 1, Melancthon 2, and Wolfe Island wind facilities through the Ontario MT2e contract, extending terms until April 2031 (Melancthon 1) and April 2034 (Melancthon 2 and Wolfe Island).
  • Normal Course Issuer Bid (NCIB): Approved to repurchase up to 14 million common shares between May 31, 2025, and May 30, 2026. During the six months ended June 30, 2025, the company repurchased 1,932,800 shares at an average price of $12.42 for a total cost of $24 million.
• Strategic Updates:
  • Progress on Alberta data centre strategy negotiations, with AESO expecting Demand Transmission Service contracts to be executed in mid-September 2025.
  • Ongoing negotiations for conversion opportunities at Centralia, targeting a definitive agreement for Centralia Unit 2 capacity later in 2025.

Notable Quotes

• “Our strong second quarter results illustrate the value of our diversified fleet and exceptional operational performance. Our Alberta portfolio's hedging strategy and active asset optimization continued to generate realized prices well above spot prices while environmental credits generated by our hydro and wind assets significantly offset our gas fleet's carbon price compliance obligation.” — John Kousinioris, President and CEO.
• “Our team remains focused on advancing our strategic priorities. We are pleased with the progress on our Alberta data centre strategy and the associated negotiations... We continue to work closely with our counterparties and are progressing towards the execution of a data centre memorandum of understanding in relation to our system capacity allocation.” — John Kousinioris, President and CEO.