"TransAlta delivered strong performance in 2025, demonstrating its ability to generate solid free cash flow notwithstanding softer Alberta power prices, subdued market volatility, and lower merchant production. Our hedging strategy and contracted portfolio supported our strong ongoing performance and helped offset a challenging price environment" said John Kousinioris, President and Chief Executive Officer of TransAlta. "I'm pleased to share that free cash flow came in above the midpoint of our 2025 Outlook."
"We are pleased to announce that our Board of Directors has approved an eight per cent increase to our common share dividend, now equivalent to $0.28 per share on an annualized basis. This represents our seventh consecutive annual dividend increase, affirming our confidence in the Company's future and commitment to returning value to shareholders," concluded Mr. Kousinioris.
"Over the past few months, we focused on executing our strategic priorities. During the fourth quarter, we secured a definitive tolling agreement to convert Centralia Unit 2 to natural-gas-fired generation under a long-term contract and today, we announced the signing of a memorandum of understanding for our Alberta data centre strategy with Canada Pension Plan Investments and Brookfield," said Joel Hunter, Executive Vice President, Finance and Chief Financial Officer. "We also recently closed the acquisition of Far North which enhances our position in Ontario," added Mr. Hunter.
"We are entering 2026 with a growing and diversified fleet that is underpinned by long-term contracts and strong hedging positions. Our guidance incorporates a balanced view of our fleet's expected generation as well as Alberta power market fundamentals, which we expect to markedly improve as expected data centre load growth comes online in the coming years. We look forward to sharing more with you on our long-term outlook and strategy at our upcoming Investor Day scheduled for March 23, 2026," concluded Mr. Hunter.
Fourth Quarter 2025 Highlights
Achieved strong operational availability of 90.1 per cent in 2025, compared to 87.8 per cent in 2024
Adjusted EBITDA(1) of $247 million, compared to $282 million for the same period in 2024
Free cash flow (FCF)(1) of $93 million, or $0.31 per share, compared to $46 million, or $0.15 per share, for the same period in 2024
Adjusted earnings before income taxes(1) of $14 million, compared to $38 million, for the same period in 2024
Cash flow from operating activities of $231 million, or $0.78 per share, compared to $215 million, or $0.72 per share, for the same period in 2024
Net loss attributable to common shareholders(1) of $62 million, or $0.21 per share, compared to $65 million, or $0.22 per share, for the same period in 2024
Full Year 2025 Highlights
Achieved strong operational availability of 92.3 per cent in 2025, compared to 91.2 per cent in 2024
Adjusted EBITDA(1) of $1,104 million, compared to $1,255 million for the same period in 2024
Free cash flow (FCF)(1) of $514 million, or $1.73 per share, compared to $575 million, or $1.90 per share, for the same period in 2024
Adjusted earnings before income taxes(1) of $181 million, compared to $396 million, for the same period in 2024
Cash flow from operating activities of $646 million, or $2.18 per share, compared to $796 million, or $2.64 per share, for the same period in 2024
Net loss attributable to common shareholders(1) of $190 million, or $0.64 per share, compared to net earnings attributable to common shareholders of $177 million, or $0.59 per share, for the same period in 2024
Announced an annual dividend increase of eight per cent, now equivalent to $0.28 per share on an annualized basis, which represents the seventh year of consecutive dividend growth
Provided 2026 Outlook including adjusted EBITDA of $950 million to $1,050 million and FCF of $350 million to $450 million, or $1.18 to $1.51 per share
Reduced scope 1 and 2 GHG emissions intensity in 2025 to 0.31 tCO2e/MWh from 2024 levels of 0.35 tCO2e/MWh
Reduced scope 1 and 2 annual GHG emissions by 30.7 million tonnes of CO2e or 76 per cent since 2015, achieving our goal of a 75 per cent reduction by 2026
2025 Total Recordable Injury Frequency of 0.12 compared to 0.56 in 2024
Fourth Quarter and Year Ended 2025 Operational and Financial Highlights
Three Months Ended
Year Ended
$ millions, unless otherwise stated
Dec. 31,2025
Dec. 31,2024
Dec. 31,2025
Dec. 31,2024
Operational information(2)
Availability (%)
90.1
87.8
92.3
91.2
Production (GWh)
6,725
6,199
24,521
22,811
Select financial information(2)
Revenues
599
678
2,405
2,845
Adjusted EBITDA(1)
247
282
1,104
1,255
Adjusted earnings before income taxes(1)
14
38
181
396
(Loss) earnings before income taxes
(42
)
(51
)
(141
)
319
Adjusted net (loss) earnings attributable to common shareholders(1)
(19
)
3
57
236
Net (loss) earnings attributable to common shareholders
(62
)
(65
)
(190
)
177
Cash flows(2)
Cash flow from operating activities
231
215
646
796
Funds from operations(1)
162
135
749
816
Free cash flow(1)
93
46
514
575
Per share(2)
Adjusted net (loss) earnings attributable to common shareholders per share(1)(3)
(0.06
)
0.01
0.19
0.78
Net (loss) earnings per share attributable to common shareholders, basic and diluted
(0.21
)
(0.22
)
(0.64
)
0.59
Cash flow from operating activities per share(4)
0.78
0.72
2.18
2.64
Funds from operations per share(1)(3)
0.55
0.45
2.52
2.70
Free cash flow per share(1)(3)
