Talen Energy Q3 revenue meets estimates on higher power prices

Talen Energy

Tue 12:15

Overview
US power producer's Q3 revenue met analyst expectations; adjusted EPS missed consensus
Adjusted EBITDA and free cash flow rose, driven by acquired assets and higher power prices
Company announced $1.5 bln accelerated share repurchase as part of $3.0 bln buyback program

Outlook
Talen reaffirms 2026 adj EBITDA guidance at $2.05 bln-$2.2 bln
Company introduces 2027 adj EBITDA guidance of $2.5 bln-$2.85 bln
Talen expects 2027 adj free cash flow of $1.5 bln-$1.75 bln

Result Drivers
ACQUIRED ASSETS - Co said Q3 results benefited from contributions of recently acquired generation facilities
HIGHER POWER PRICES AND VOLUMES - Co attributed improved Q3 performance to higher settled power prices and increased generation volumes
CAPACITY REVENUES - Co said higher capacity revenues supported Q3 results

Company press release: ID:nGNX59G8x0

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Meet
$1.33 bln
$1.33 bln (8 Analysts)
Q3 EPS
Miss
$2.88
$9.04 (9 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the independent power producers peer group is "buy"
Wall Street's median 12-month price target for Talen Energy Corporation is $462.00, about 38.7% above its November 2 closing price of $332.99
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Nov 3 - Canada's TransAlta swings to Q3 net profit but revenue falls
Nov 3 - Canada's Fortis Q3 profit beats estimates on rate base growth; raises dividend
Nov 2 - Entergy Q3 profit beats estimates on retail sales; raises dividend

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)