Power generation firm TransAlta's Q2 revenue falls

TransAlta

01/08/2025 12:16

Overview

TransAlta Q2 2025 revenue declines from last year, net loss reported

Adjusted EBITDA rises to C$349 mln, indicating strong operational performance

Co extends credit facilities to C$2.1 bln, divests Poplar Hill asset

Outlook

TransAlta confident in achieving 2025 outlook despite Alberta challenges

Company advancing Alberta data centre strategy, contracts expected mid-September

TransAlta progressing Centralia conversion negotiations, aiming for agreement this year

Result Drivers

DIVERSIFIED FLEET - Strong operational performance attributed to diversified fleet and hedging strategy in Alberta

ENVIRONMENTAL CREDITS - Hydro and wind assets' environmental credits offset carbon compliance costs for gas fleet

STRATEGIC ADVANCEMENTS - Progress in Alberta data centre strategy and Centralia conversion negotiations

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
C$433 mln
Q2 EPS
-C$0.38
Q2 Adjusted EBITDA
C$349 mln
Q2 FFO
C$252 mln
Q2 FFO Per Share
C$0.85
Q2 Free Cash Flow
C$177 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "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$19.00, about 12.3% above its July 31 closing price of C$16.67

The stock recently traded at 53 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release: ID:nGNX1GL9KL

(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.)