TransAlta Posts C$0.18 per Share in Adjusted Third-Quarter Earnings
Key Facts
TransAlta said on Nov. 3 that adjusted earnings attributable to common shareholders were C$0.18 per share for the quarter ended Sept. 30, 2026, after an adjusted loss of C$0.02 per share in the same period of 2025. Net income attributable to common shareholders was C$63 million, or C$0.20 per share, compared with a net loss of C$62 million, or C$0.20 per share, a year earlier. The improvement in profitability coincided with an increase in adjusted EBITDA to C$264 million from C$238 million. In contrast, quarterly revenue fell to C$536 million from C$615 million. Free cash flow also declined to C$93 million, or C$0.29 per share, from C$105 million, or C$0.35 per share, in the third quarter of 2025.
The company said results benefited from higher generation fleet availability, asset optimization, its environmental credits portfolio and contributions from its diversified fleet. Chief Executive Officer Joel Hunter added that the Alberta portfolio continued to achieve realized prices above spot prices thanks to asset optimization and hedging programs. Operating availability was 92.6% in the quarter, close to 92.7% a year earlier. But generation fell to 5,260 gigawatt-hours from 6,151 gigawatt-hours. Hunter said, "The Alberta portfolio continued to achieve realized prices well above spot prices thanks to our asset optimization and hedging programs."
Growth in the gas segment was the largest earnings contributor, according to the segment results published by the company; its adjusted EBITDA rose to C$139 million from C$110 million in the third quarter of 2025. The wind and solar segment's contribution also increased to C$52 million from C$45 million. Management said the results reflected contributions from the various segments alongside asset optimization and environmental credits. While total revenue declined, the company's figures show a divergence between growth in adjusted earnings and declines in free cash flow and generation. TransAlta had reported adjusted earnings of C$0.18 per share in the second quarter of 2026, when revenue was C$487 million.
The results follow moves in the company's portfolio completed on Oct. 22. TransAlta acquired two contracted gas-fired power facilities in Colorado with combined capacity of 318 megawatts for US$1 billion; the deal included the assumption of US$750 million in project debt. On the same day, it sold a 49% minority interest in a 500-megawatt wind portfolio in Oklahoma for US$305 million before customary closing adjustments. The two transactions combine the addition of contracted gas assets with the monetization of part of the company's wind investment. The company had reaffirmed its confidence in achieving its 2026 guidance range, which includes adjusted EBITDA of C$950 million to C$1.05 billion and free cash flow of C$350 million to C$450 million.
In Alberta, TransAlta notified the province's electricity system operator on Nov. 2 that Battle River units 4 and 5 would enter a temporary layup period starting on March 1, 2027, and lasting until Jan. 1, 2029. It also extended the layup period for Sundance unit 6 until April 1, 2029. The company said the units could return to service if market fundamentals improve or contracts are secured that enable them to operate. The company is scheduled to hold a call to discuss third-quarter results on Nov. 3 at 9:00 a.m. Alberta time, or 10:00 a.m. Eastern time. The shares of "TAK" closed at 12.77 on Nov. 2, according to EL7 data.