Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of CAD 238 million, a decrease of CAD 77 million compared to the third quarter of 2024, primarily due to lower Alberta and Mid-C power prices and subdued market volatility [17][18] - Free cash flow for the quarter was CAD 105 million, down CAD 26 million year-over-year [20] - Average fleet availability was reported at 92.7% [6] Business Line Data and Key Metrics Changes - Hydro segment adjusted EBITDA decreased to CAD 73 million from CAD 89 million due to lower spot power prices and reduced ancillary services revenue [18] - The gas segment's adjusted EBITDA fell to CAD 110 million from CAD 141 million, impacted by lower realized power prices and higher carbon pricing, partially offset by the addition of Heartland assets [19] - The energy transition segment delivered adjusted EBITDA of CAD 28 million, a decrease of CAD 6 million year-over-year [19] Market Data and Key Metrics Changes - The average spot price in Alberta for the third quarter was CAD 51 per megawatt hour, down from CAD 55 per megawatt hour in 2024 [20] - The company realized benefits from hedging strategies, with approximately 2,500 gigawatt hours hedged at an average price of CAD 66 per megawatt hour, representing a 29% premium to the average spot price [21] Company Strategy and Development Direction - The company is focused on progressing its legacy thermal opportunities, including data center projects in Alberta and the Centralia project in Washington [6][7] - The Alberta restructured energy market (REM) is expected to enhance system reliability and provide better price signals for generators, with an anticipated increase in the provincial price cap [12][13] - The company aims to maximize the value of its legacy thermal energy campuses and pursue strategic M&A opportunities [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 guidance despite tracking towards the lower end of the adjusted EBITDA range [6][25] - The company is optimistic about the data center opportunity in Alberta and its potential for economic growth [11][12] - Management highlighted the importance of regulatory clarity regarding the Clean Electricity Regulations and the Alberta government's commitment to developing a data center industry [60] Other Important Information - The company completed the sale of a 100% interest in the Poplar Hill facility and a 50% interest in the Rainbow Lake facility as part of the Heartland Generation acquisition [9] - The company announced the retirement of its CEO, effective April 30, 2026, with the current CFO expected to succeed him [15][16] Q&A Session Summary Question: What is driving the slower discussions regarding customers for the data centers in Alberta? - Management remains confident in progressing the data center opportunity, noting that it is a significant initiative requiring time to finalize details with multiple parties involved [33][34] Question: What is the timeline for moving from MOU to a binding agreement for the data center project? - Management aims to move quickly once the MOU is in place, with expectations for a faster timeline than the MOU process [38][39] Question: How is the company addressing the underutilized coal-to-gas conversion units in relation to phase two? - Management believes that underutilized generation can serve as incremental supply for data centers, emphasizing the importance of speed in meeting future energy needs [41][42] Question: What clarity is needed regarding phase two for finalizing agreements? - Management seeks clarity on the bringing-incremental-power concept and the role of legacy facilities in the context of phase two [72][73] Question: What are the expectations regarding federal policy changes and their impact? - Management is actively engaging with the federal government on the Clean Electricity Regulations and is modeling various scenarios for carbon pricing [64][65]

NOVEMBER 6, 2025 Third Quarter Results Sarnia, Ontario Forward-looking Statements and Non-IFRS Measures These assumptions are based on information currently available to TransAlta, including information obtained from third-party sources. Actual results may differ materially from those predicted. Factors that may adversely impact what is expressed or implied by forward-looking statements contained in this presentation include, but are not limited to: fluctuations in power prices; changes in supply and demand ...

Operational Capacity and Strategy - TransAlta Corporation operates a diverse fleet with a total installed capacity of 9,014 MW as of September 30, 2025, including hydro, wind, solar, gas, and energy transition assets[42]. - Approximately 51% of the total installed capacity is contracted with creditworthy counterparties, providing stable long-term earnings and cash flow[45]. - The company has a significant merchant exposure in Alberta, where 58% of its capacity is located, with 77% of that capacity available to participate in the merchant market[40]. - The weighted average contract life for contracted capacity across all segments is 9 years, with the longest being 14 years for hydro assets[45]. - TransAlta's strategic priorities include optimizing its Alberta portfolio and executing its growth plan while maintaining financial strength and capital discipline[38]. - The company aims to deliver sustainable long-term shareholder value in an evolving energy landscape, focusing on core markets in Canada, the U.S., and Western Australia[37]. - The company is focused on opportunities within its core markets and aims to realize the value of its legacy generating facilities[38]. - The company completed the acquisition of Heartland Generation on December 4, 2024, adding 1,747 MW to gross installed capacity[46]. - The acquisition of Heartland added 507 MW of contracted cogeneration capacity and 950 MW of merchant natural gas-fired thermal generation capacity[181]. Financial Performance - Revenues for the three months ended September 30, 2025, were CAD 615 million, a decrease of 3.6% compared to CAD 638 million in the same period of 2024[46]. - Adjusted EBITDA for the three months ended September 30, 2025, was CAD 238 million, down 24.5% from CAD 315 million in the same period of 2024[46]. - Net loss attributable to common shareholders for the three months ended September 30, 2025, was CAD 62 million, compared to a loss of CAD 36 million in the same period of 2024[46]. - Cash flow from operating activities for the three months ended September 30, 2025, was CAD 251 million, an increase of 9.6% from CAD 229 million in the same period of 2024[46]. - Total consolidated net debt as of September 30, 2025, was CAD 3,785 million, slightly down from CAD 3,798 million as of December 31, 2024[47]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $857 million, a decrease of $116 million or 12% from $973 million in the same period of 2024[101]. - Free Cash Flow (FCF) for the nine months ended September 30, 2025, was $421 million, down from $529 million in the same period in 2024, a decrease of 20%[108]. - The company is tracking towards the low-end of its Adjusted EBITDA guidance for 2025, with a target of $1,150 to $1,250 million[110]. - FCF guidance for 2025 is set between $450 to $550 million, compared to $569 million in 2024[110]. - The company expects FCF per share for 2025 to be between $1.51 to $1.85, down from $1.88 in 2024[110]. Production and Market Dynamics - Total production for the three months ended Sept. 30, 2025, increased by 439 GWh, or 8%, compared to the same period in 2024, primarily due to production from the Heartland gas facilities acquired in December 2024 and higher production from Alberta water reserves in the Hydro segment[72]. - Total production for the nine months ended Sept. 30, 2025, increased by 1,184 GWh, or 7%, compared to the same period in 2024, primarily due to higher production in the Hydro segment[73]. - Total production for the Wind and Solar segment for the three months ended Sept. 30, 2025, was 1,028 GWh, down 8% from 1,121 GWh in the same period in 2024[138]. - Total production for the Alberta portfolio for the three months ended Sept. 30, 2025, was 3,206 GWh, an increase of 438 GWh, or 16% compared to 2,768 GWh in the same period of 2024[189]. - Total production for the nine months ended Sept. 30, 2025, was 8,868 GWh, an increase of 209 GWh, or 2% compared to 8,659 GWh in the same period of 2024[199]. Costs and Expenses - Revenues for the three months ended Sept. 30, 2025, decreased by $23 million, or 4%, compared to the same period in 2024, primarily due to increased fuel and purchased power costs[84]. - OM&A expenses for the three months ended Sept. 30, 2025, increased by $36 million, or 25%, compared to the same period in 2024[85]. - Asset impairment charges for the three months ended Sept. 30, 2025, increased by $7 million, or 35%, compared to the same period in 2024[85]. - Interest expense for the nine months ended Sept. 30, 2025, increased by $34 million, or 15%, compared to the same period in 2024[94]. - The carbon price increased from $80 to $95 per tonne, impacting gross margin from Canadian gas facilities[154]. - Carbon compliance costs for the nine months ended Sept. 30, 2025, decreased by $63 million, or 86%, compared to the same period in 2024, primarily due to the utilization of emission credits[89]. - The company reported a favorable impact on carbon compliance costs due to increased production from lower carbon-emitting cogeneration facilities[154]. Shareholder Returns and Capital Management - The company declared a quarterly dividend of CAD 0.065 per common share, representing an annualized increase of 8%[61]. - The company repurchased and cancelled 1,932,800 common shares at an average price of CAD 12.42 per share during the nine months ended September 30, 2025[63]. - Liquidity as of September 30, 2025, stood at $1.6 billion, including $211 million in cash, sufficient to cover committed growth and sustaining capital projects[118]. Market Conditions and Pricing - Alberta spot power prices for the three months ended Sept. 30, 2025, were $51/MWh, down 7% from $55/MWh in 2024[75]. - AECO natural gas prices for the three months ended Sept. 30, 2025, were $0.63 per GJ, down 6% from $0.67 per GJ in 2024[78]. - The 2025 power price assumptions for Alberta spot range from $40 to $60 per MWh, while AECO gas prices are expected to be between $1.60 and $2.10 per GJ[114]. - The average spot power price per MWh for the three months ended Sept. 30, 2025, decreased to $51 from $55 in 2024, and for the nine months ended Sept. 30, 2025, decreased to $44 from $67 in 2024[205]. - The realized merchant power price per MWh for the three months ended Sept. 30, 2025, increased by $13 to $103 compared to $90 in the same period of 2024[206]. Debt and Equity Position - Total current assets decreased by $315 million to $1,458 million as of September 30, 2025, from $1,773 million as of December 31, 2024[219]. - Total liabilities decreased by $376 million to $7,280 million as of September 30, 2025, from $7,656 million as of December 31, 2024[217]. - Total equity decreased by $231 million to $1,612 million as of September 30, 2025, compared to $1,843 million as of December 31, 2024[220]. - As of September 30, 2025, total consolidated net debt stands at $3,785 million, representing 66% of total capital, compared to $3,798 million or 62% as of December 31, 2024[224]. - The company has $3,169 million in common shares, accounting for 55% of total capital, up from $3,179 million or 53% in the previous period[224]. - Recourse debt from U.S. senior notes is $965 million, which is 17% of total capital, slightly down from $995 million or 16% previously[224].

Core Insights - TransAlta Corporation reported solid operational performance in Q3 2025 despite challenging market conditions, with a focus on its Alberta portfolio's hedging strategy and asset optimization [2][3] - The company is progressing on key priorities, including a data centre strategy and negotiations to convert its Centralia facility to gas-fired operations [4][12] - CEO John Kousinioris announced his retirement effective April 30, 2026, with Joel Hunter set to succeed him [5][12] Financial Performance - Q3 2025 operational availability was 92.7%, down from 94.5% in Q3 2024 [6][7] - Production increased to 6,151 GWh in Q3 2025 from 5,712 GWh in Q3 2024 [6] - Revenues for Q3 2025 were $615 million, a decrease from $638 million in Q3 2024 [6] - Adjusted EBITDA for Q3 2025 was $238 million, down from $315 million in Q3 2024 [7][9] - Free Cash Flow (FCF) was $105 million, or $0.35 per share, compared to $131 million, or $0.44 per share in Q3 2024 [7][9] - Net loss attributable to common shareholders was $62 million, or $0.20 per share, compared to a loss of $36 million, or $0.12 per share in Q3 2024 [7][9] Segment Performance - Hydro segment revenues were $73 million in Q3 2025, down from $89 million in Q3 2024 [9] - Wind and Solar segment revenues increased slightly to $45 million from $44 million [9] - Gas segment revenues decreased to $110 million from $141 million [9] - Energy Transition segment revenues were $28 million, down from $34 million [9] - Energy Marketing segment revenues dropped to $17 million from $42 million [9] Key Business Developments - The company entered into a 230 MW Demand Transmission Service contract with the Alberta Electric System Operator [3][13] - TransAlta completed the sale of its 100% interest in the 48 MW Poplar Hill facility and its 50% interest in the 97 MW Rainbow Lake facility as part of regulatory requirements [14] - The company extended its committed credit facilities totaling $2.1 billion, with maturity extended to June 30, 2029 [15]

Core Points - TransAlta Corporation announced the retirement of John Kousinioris as President and CEO effective April 30, 2026, with Joel Hunter appointed as his successor [1][3] - Kousinioris has been with TransAlta since 2012, holding various senior roles, and will serve as a strategic advisor for six months post-retirement [2][4] - The Board expressed appreciation for Kousinioris's leadership during significant industry transitions and his role in defining strategic priorities for growth [3][4] Company Overview - TransAlta operates a diverse fleet of electrical power generation assets across Canada, the US, and Australia, focusing on long-term shareholder value [5] - The company is a major producer of wind power and thermal power in Canada, and the largest hydro-electric power producer in Alberta [5] - TransAlta has achieved a 70% reduction in GHG emissions, equating to 22.7 million tonnes CO2e since 2015, and has received an upgraded MSCI ESG rating of AA [5]

Core Insights - Cyberscope has been appointed as one of the exclusive smart contract audit partners for Binance's BNB Chain [1] Company Summary - The partnership with Binance's BNB Chain positions Cyberscope as a key player in the smart contract auditing space [1]

Market Performance - The market price of TransAlta (NYSE: TAC) has increased significantly, rising from $13.54 to $24.37, representing an 80% upside [1] Analyst Background - The analyst has over twenty years of experience in sell-side equity research, corporate and project finance, M&A, and valuations, with a focus on Canadian electric utilities and infrastructure sectors [1] - The analyst has worked for ten years as an equity research analyst at global banks, including UniCredit Securities and HSBC Global Markets, and has been recognized as a top-rated analyst [1] Investment Philosophy - The analyst emphasizes the importance of actionable ideas and the power of compelling narratives in investment decisions [1] - The analyst aims to share insights and contribute to a more informed investment community through platforms like Seeking Alpha and Substack [1]

Core Points - TransAlta Corporation will release its third quarter 2025 results on November 6, 2025, before market opening [1] - A conference call and webcast will be held on the same day at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) to discuss the results [1] - Related materials will be available on TransAlta's Investor Centre section of its website [4] Company Overview - TransAlta owns, operates, and develops a diverse fleet of electrical power generation assets in Canada, the United States, and Australia, focusing on long-term shareholder value [5] - The company is one of Canada's largest producers of wind power and Alberta's largest producer of thermal generation and hydro-electric power [5] - TransAlta has achieved a 70% reduction in GHG emissions, equating to 22.7 million tonnes CO2e since 2015, and has received an upgraded MSCI ESG rating of AA [5]

Core Insights - EagleNXT has received an order for 12 eBee TAC™ tactical mapping drones from Tough Stump Technologies, enhancing its presence in defense and public safety markets [1][4] - The eBee TAC drones are designed for rapid aerial reconnaissance and intelligence gathering, with capabilities such as 90 minutes of flight time and a range of 34 miles (54 km) [2] - The partnership with Tough Stump Technologies is long-standing, with eBee systems being utilized in ARTEMIS deployments since 2018, indicating a strong collaborative relationship [4] Company Overview - EagleNXT is a leading provider of advanced drone and aerial imaging solutions, with over one million flights conducted globally across various sectors including defense, public safety, and agriculture [6] - The company has achieved multiple industry firsts, including FAA approvals for Operations Over People (OOP) and Beyond Visual Line of Sight (BVLOS), as well as EASA C2 certification in Europe [6] - EagleNXT's drone systems are included on the U.S. Department of Defense's Blue UAS Cleared List, positioning the company as a trusted provider of secure UAS solutions [4][6] Product Features - The eBee TAC drone offers absolute accuracy down to 0.6 inches (1.5 cm) using RTK/PPK technology, making it suitable for generating high-resolution 2D maps and 3D models [2] - The integration of eBee TAC drones into Tough Stump's ARTEMIS™ kits enhances operational precision and agility for defense and public safety teams [3][4] - The ARTEMIS system combines EagleNXT's eBee platforms with Hexagon US Federal's geospatial technologies for improved visualization and integration with tools like ATAK [3]

Core Points - TransAlta Corporation will hold an Investor Day on November 18, 2025, in Toronto, starting at 9:00 a.m. ET [1][4] - The event will feature presentations from key executives, including the President and CEO, and the Executive Vice President and CFO, focusing on the company's strategic priorities and financial outlook [2] - The Investor Day will be conducted in a hybrid format, allowing both in-person and live webcast attendance, with registration closing for in-person attendance on November 10, 2025 [3] Company Overview - TransAlta operates a diverse fleet of electrical power generation assets across Canada, the United States, and Australia, emphasizing long-term shareholder value [5] - The company is a major producer of wind power in Canada and the largest producer of thermal generation and hydro-electric power in Alberta [5] - TransAlta has achieved a 70% reduction in GHG emissions, equating to 22.7 million tonnes CO2e since 2015, and has received an upgraded MSCI ESG rating of AA [5]