NYSE$TAC

TransAlta Corp · Q4 2025 earnings

Q4 2025 earnings ·

Briefing

TransAlta reported lower fourth quarter 2025 revenue and Adjusted EBITDA year-over-year and posted a net loss attributable to common shareholders.

TransAlta generated Q4 2025 revenues of 599000000 and Adjusted EBITDA of 247000000, down from the prior year, while free cash flow improved year-over-year. The company reported a net loss attributable to common shareholders of 62000000.

  • Revenues were 599000000 compared to 678000000 in Q4 2024.
  • Adjusted EBITDA was 247000000 versus 282000000 in the prior year period.
  • Free cash flow increased to 93000000 from 46000000 year-over-year.
  • Net loss attributable to common shareholders was 62000000, or 0.21 per share.

Headline financials

Total Revenue

$437M

No prior period
EPS (adj)

-$0.04

No prior period
Adjusted EBITDA

$247M

No prior period
Production (GWh)

6.7K

No prior period
Cash Flow from Operations

$231M

No prior period
Funds from Operations

$162M

No prior period
Availability

90.1%

No prior period
Net Income

-$45.3M

No prior period
Operating Income

-$30.7M

No prior period

Revenue & EPS history

TransAlta Corp · Revenue · Quarterly

$437M

Q4 2025

Forward guidance

For 2026, TransAlta expects Adjusted EBITDA of 950000000 to 1050000000 and free cash flow of 350000000 to 450000000.

Tailwinds

  • 2026 Adjusted EBITDA guidance of 950000000 to 1050000000.
  • 2026 Free Cash Flow guidance of 350000000 to 450000000.
  • Higher expected contributions from Hydro, Gas and Wind and Solar segments.
  • Higher contributions from the Gas segment due to the acquisition of Far North.
  • Lower net interest expense expected due to refinancing and amortization.

Headwinds

  • Lower contribution from the Energy Transition segment due to cessation of coal dispatch at Centralia.
  • Lower contribution from Alberta merchant gas portfolio due to lower hedge prices and higher fuel costs.
  • Lower contributions from Sarnia due to contract expiry and decommissioning.
  • Higher income tax expense expected in 2026.
  • Adjusted EBITDA in 2025 declined year-over-year.

Historical earnings impact

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

Avg. return before/after earnings

Based on 3 quarterly earnings reports · overlaid with Q4 2025

Historical avgQ4 2025

-2.1%

Avg return

Earnings day

+0.9%

Avg return

5 days after

-12.1%

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%+0.6%
Q3 2025-11.4%-7.9%-16.7%
Q4 2025+3.6%+9.2%-20.3%

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