Canada's TransAlta swings to Q2 profit as revenue rises

TransAlta

31/07/2026 12:10

Overview
Canada power generator's Q2 revenue rose yr/yr, while adjusted EBITDA declined
Net earnings attributable to common shareholders turned positive from a loss last year
Company acquired contracted gas assets in Colorado and made executive team changes

Outlook
TransAlta says it remains confident in its 2026 outlook
Company expects continued progress on strategic priorities, including asset acquisitions and AI infrastructure

Result Drivers
HEDGING STRATEGY - Co said its Alberta portfolio hedging and active optimization led to realized prices above spot prices despite a challenging market
ENVIRONMENTAL CREDITS - Environmental credits from hydro and wind assets offset carbon compliance costs for merchant gas fleet
OPERATIONAL AVAILABILITY - Operational availability declined to 90.2% from 91.6% a year earlier, affecting overall production

Company press release: ID:nGNXzQznV

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
C$487 mln
 
Q2 EPS
 
C$0.12
 
Q2 Net Income
 
C$35 mln
 
Q2 Adjusted EBITDA
 
C$291 mln
 
Q2 FFO
 
C$201 mln
 
Q2 FFO Per Share
 
C$0.67
 
Q2 Free Cash Flow
 
C$143 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and 1 "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 TransAlta Corp is C$25.00, about 38.6% above its July 30 closing price of C$18.04
The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 73 three months ago

Reuters Recommended Reads
July 29 - Canada's Capital Power Q2 revenue and AFFO rise, net loss narrows 
July 29 - Canadian Utilities Q2 adjusted EPS beats estimates
July 30 - Canada's AltaGas Q2 adjusted EPS beats estimates, lifts 2026 outlook

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(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.)