TransAlta Reports Strong Third Quarter Results and Reaffirms Guidance

CALGARY, Alberta, Nov. 03, 2026 (GLOBE NEWSWIRE) --

TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the third quarter ended September 30, 2026.

“TransAlta delivered strong third quarter results driven by high fleet availability, disciplined asset optimization, benefits of our environmental credit portfolio and contributions across our diversified fleet,” said Joel Hunter, President and Chief Executive Officer of TransAlta. "Our Alberta portfolio continued to generate realized prices well above spot prices due to our optimization and hedging programs. With our strong year to date performance, we are confident in achieving our 2026 Outlook range,” added Mr. Hunter.

“I am also very pleased with the continued execution of our strategic priorities. In October, we completed the acquisition of the Colorado gas assets, providing immediate, stable cash flow, and monetized a minority interest in our Oklahoma wind portfolio, strengthening our balance sheet and ability to pursue accretive growth opportunities. We are also advancing the Centralia conversion along with the Keephills data centre project, now known as the Boreal Technology Hub. We recently participated in a community open house with our Boreal partners and continue to progress a solution to deploy our underutilized generation to support both reliability needs and data centre load in the province. Separate to this meaningful progress, we will be temporarily mothballing our Battle River units, while also extending the mothball outage of Sundance 6. The facilities continue to hold significant value, and this action ensures we are optimizing our fleet while preserving the units for future economic benefit as data centre opportunities continue to progress,” added Mr. Hunter.

“As power demand continues to increase, I believe TransAlta is uniquely positioned to leverage its diversified fleet, development capabilities and strategic infrastructure to deliver reliable power and create sustainable long-term value for shareholders,” concluded Mr. Hunter.

Third Quarter 2026 Highlights

• Operational availability of 92.6 per cent, compared to 92.7 per cent for the same period in 2025
• Adjusted EBITDA(2) of $264 million, compared to $238 million for the same period in 2025
• Free cash flow (FCF)(2) of $93 million, or $0.29 per share, compared to $105 million, or $0.35 per share, for the same period in 2025
• Adjusted earnings before income taxes(2) of $91 million, compared to $17 million, for the same period in 2025
• Funds from operations(2) of $146 million, or $0.46 per share, compared to $156 million, or $0.53 per share, for the same period in 2025
• Net earnings attributable to common shareholders of $63 million, or $0.20 per share, compared to a net loss of $62 million, or $(0.20) per share, for the same period in 2025

Third Quarter 2026 Operational and Financial Highlights

Segmented Financial Performance

1. IFRS financial statements for the nine months ended Sept. 30, 2025 include the results attributable to Poplar Hill and Rainbow Lake facilities (collectively, the Required Divestitures), which the Company divested in accordance with a consent agreement entered into with the Commissioner of Competition for Canada. Our non-IFRS measures and operational Key Performance Indicators exclude the results of the Required Divestitures.
2. 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. Refer to the "Segmented Financial Performance and Operating Results by Geographic Location" section of this news release for further discussion of these items. Also, refer to the "Non-IFRS and Supplementary Financial Measures" section of this news release for more information regarding these non-IFRS measures and ratios, including, where applicable, reconciliations to measures calculated in accordance with IFRS.
3. Adjusted net earnings (loss) attributable to common shareholders per share, funds from operations (FFO) per share and free cash flow (FCF) per share are calculated using the weighted average number of common shares outstanding during the period. Refer to the "Non-IFRS and Supplementary Financial Measures" section of this news release for more information regarding these non-‍IFRS measures and ratios.
4. Net earnings (loss) attributable to common shareholders and Adjusted net earnings (Loss) attributable to common shareholders used in calculating net earnings (loss) per share attributable to common shareholders and adjusted net earnings (loss) attributable to common shareholders per share reflect the cumulative preferred share dividend entitlement required for the current period.
5. 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.

Significant and Subsequent Events - Third Quarter 2026

Mothballing of Battle River Units 4 and 5 and Extension of the Mothballing of Sundance 6
On Nov. 2, 2026, the Company provided notice to the Alberta Electric System Operator (AESO) that Battle River Units 4 and 5 will be mothballed effective March 1, 2027, for a period of time up to Jan. 1, 2029 and extended the mothballing of Sundance 6 for a period of time up to April 1, 2029. The Company maintains the flexibility to return the mothballed units to service when market fundamentals improve or contracting opportunities are secured. Battle River Units 4 and 5 will remain available and fully operational through to March 1, 2027.

Sale of minority interest in Oklahoma wind portfolio
On Oct. 22, 2026, the Company completed the sale of a 49 per cent minority ownership interest in its 500 MW Oklahoma wind portfolio to Ares Infrastructure funds for cash proceeds of US$305 million, before customary closing adjustments. The portfolio comprises the 100 MW White Rock West, 200 MW White Rock East and 200 MW Horizon Hill wind facilities. The Company will continue to provide operational oversight under a long-term asset management agreement.

Acquisition of Mountain Peak Power and Canyon Peak Power and associated public offering of common shares
On Oct. 22, 2026, the Company closed the acquisition of Mountain Peak Power and Canyon Peak Power, two fully contracted natural gas-fired peaking facilities totaling 318 MW near Denver, Colorado from an indirect subsidiary of Blackstone, Inc. (the Acquisition). The purchase price for the Acquisition was US$1 billion, including the assumption of US$750 million of project debt.

On June 9, 2026, the Company closed a public offering of 18,230,000 common shares at a price of $19.20 per share through a syndicate of underwriters, for total gross proceeds of approximately $350 million, which was used to fund the cash portion of the purchase price for the Acquisition. The proceeds received in advance of the Acquisition were partially used to repay the drawn amounts under the syndicated credit facility.

Centralia Unit 2 Mandated to Remain Available for additional 90 days
On Sept. 14, 2026, the Company received another order from the U.S. Department of Energy (the Order) requiring that our 700 MW Centralia Unit 2 facility (Facility) remain available for operation for an additional period of 90 days, until Dec. 12, 2026. As previously communicated, the Company has been subject to the Order from the U.S. Department of Energy since Dec. 16, 2025. The Company continues to comply with the Order and continues to work with the federal and state governments in relation thereto. The Facility had no generation during the nine months ended Sept. 30, 2026.

Declaration of Common Share Dividend
On Oct. 27, 2026, TransAlta's Board of Directors approved a quarterly dividend payment of $0.07 per common share payable on Jan. 1, 2027.

Conference call and webcast
TransAlta will host a conference call and webcast at 9:00 a.m. Alberta Time (10:00 a.m. EST) today, November 3, 2026, to discuss our third quarter 2026 results. The call will begin with comments from Joel Hunter, President and Chief Executive Officer and Mike Politeski, Executive Vice President, Finance & Chief Financial Officer, followed by a question and answer period.

Third Quarter 2026 Results Conference Call

Webcast link: https://edge.media-server.com/mmc/p/zj3d6q2q/

To access the conference call via telephone, please register ahead of time using the call link here: https://register-conf.media-server.com/register/BI172ec525df5e4f8ebadda859e7f69864. 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/zj3d6q2q/. 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, and 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 is one of Canada’s largest publicly traded power generators, delivering reliable electricity across Canada, the United States and Western Australia. For more than 100 years, our people have safely operated and evolved essential energy infrastructure that powers customers and communities. Our technology-diverse portfolio and disciplined execution allow us to deliver dependable power across evolving energy systems. We take a practical, responsible approach to meeting today’s energy needs while building for what comes next.

For more information about TransAlta, visit our website 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 timing of the closing of our 2026 Outlook and advancement of the Centralia conversion and the Boreal Technology Hub.

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 2025 Annual Report, including the section titled "Governance and Risk Management" in our MD&A for the year ended December 31, 2025, 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 before income taxes; Adjusted net earnings attributable to common shareholders (including per share); Funds from operations (FFO) (including per share) and 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 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.

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