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 after taxes 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.
