NYSE$TAC

TransAlta Corp · Q1 2026 earnings

Q1 2026 earnings · · Before market open

Briefing

TransAlta Q1 2026: CAD $565M revenue, adjusted EBITDA CAD $204M; earnings pressured by lower hydro

TransAlta reported first-quarter 2026 results for the three months ended March 31, 2026. Revenues were CAD $565 million, down 25% from CAD $758 million a year earlier, reflecting lower production, environmental attribute sales, and merchant pricing. Adjusted EBITDA fell to CAD $204 million from CAD $270 million, while net earnings attributable to common shareholders were CAD $13 million ($0.04 per share) versus CAD $46 million ($0.15 per share) in Q1 2025. Free cash flow was CAD $102 million ($0.34 per share) and funds from operations were CAD $137 million. Availability was 93.8% on production of 5,444 GWh. Management reaffirmed 2026 guidance for adjusted EBITDA of CAD $950 million to CAD $1.05 billion and free cash flow of CAD $350 million to CAD $450 million, and noted an agreement to acquire 390 MW of gas-fired capacity from a Hut 8 affiliate for CAD $95 million.

  • Revenues of CAD $565 million fell 25% year over year on lower hydro and merchant outcomes.
  • Adjusted EBITDA was CAD $204 million; net earnings were CAD $13 million ($0.04/share).
  • Free cash flow of CAD $102 million remained solid despite lower EBITDA.
  • Fleet availability was 93.8% with production of 5,444 GWh.
  • 2026 adjusted EBITDA guidance of CAD $950M–$1.05B and FCF guidance of CAD $350M–$450M reaffirmed.

Headline financials

Total Revenue

C$565M

No prior period
EPS (adj)

C$0.06

No prior period
Availability

93.8%

No prior period
Adjusted EBITDA

C$204M

No prior period
Production (GWh)

5.4K

No prior period
Free Cash Flow

C$102M

No prior period
Net Income

C$13M

No prior period
Operating Income

C$23M

No prior period

Revenue & EPS history

TransAlta Corp · Revenue · Quarterly

C$565M

Q1 2026

Forward guidance

Reaffirmed fiscal 2026 adjusted EBITDA of CAD $950 million to CAD $1.05 billion and free cash flow of CAD $350 million to CAD $450 million.

Tailwinds

  • Free cash flow remained strong at CAD $102 million despite weaker earnings.
  • Gas-fired acquisition adds 390 MW of capacity at an attractive price.

Headwinds

  • Lower hydro revenues and environmental attribute sales drove the EBITDA decline.
  • Net earnings fell 72% year over year to CAD $13 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 2 quarterly earnings reports · overlaid with Q1 2026

Historical avgQ1 2026

-2.1%

Avg return

Earnings day

+0.9%

Avg return

5 days after

-18.5%

Avg return

30 days after

67%

2 / 3 earnings

Positive

+3.6%

Q4 2025

Best reaction

-11.4%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.5%+1.4%
Q3 2025-11.4%-7.9%-16.7%
Q4 2025+3.6%+9.2%-20.3%

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