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]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of CAD 349 million, an increase of CAD 33 million compared to 2024, driven by favorable ancillary service pricing and asset optimization [12][14] - Free cash flow for the quarter was CAD 177 million, consistent with the same period last year, translating to CAD 0.60 per share [8][14] - Average fleet availability was reported at 91.6% [8] Business Line Data and Key Metrics Changes - Hydro segment adjusted EBITDA increased to CAD 126 million from CAD 83 million in the previous year, attributed to higher intercompany sales and emissions credits [12] - Wind and solar segment adjusted EBITDA remained stable at CAD 89 million, with higher environmental revenue offset by lower pricing from Oklahoma assets [12] - Gas segment adjusted EBITDA decreased to CAD 128 million from CAD 142 million, primarily due to lower realized power prices and higher carbon costs [12] - Energy Transition segment adjusted EBITDA rose to CAD 19 million, a CAD 17 million increase year-over-year [12] - Energy Marketing adjusted EBITDA decreased by CAD 13 million to CAD 26 million due to subdued market volatility [12] Market Data and Key Metrics Changes - The average spot price in Alberta for the second quarter was CAD 40 per megawatt hour, down from CAD 45 per megawatt hour in 2024 [14] - The company realized an average price of CAD 111 per megawatt hour produced, benefiting from hedging strategies [16] Company Strategy and Development Direction - The company is focused on delivering adjusted EBITDA and free cash flow within 2025 guidance ranges, improving safety performance, and maximizing the value of legacy thermal energy campuses [17][19] - There is a strong emphasis on pursuing strategic M&A opportunities and maintaining financial strength through credit facility extensions [18][19] - The company aims to repurpose legacy thermal sites to meet the growing demand for reliable generation [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2025 guidance and highlighted the positive impact of Alberta's data center strategy on future investments [10][19] - The company remains committed to achieving its 2026 CO2 emissions reduction target and sees significant value in its legacy thermal sites [19] Other Important Information - The company successfully recontracted its wind facilities in Ontario, extending contract dates to 2031 and 2034 [9] - The Alberta government is supportive of developing a data center industry while ensuring an affordable and reliable electricity system [10] Q&A Session Summary Question: Data center discussions and MOU execution - Management indicated that there are no significant impediments to finalizing the MOU, but it requires time to finalize terms and work with customers [23][25] Question: Midlife natural gas M&A focus - Management confirmed that there is an increasing focus on natural gas opportunities, particularly in core markets like the Pacific Northwest and Desert Southwest [26][27] Question: Phase one timeline and Alberta's capacity for data centers - Management noted that while the timeline for MOU has evolved, they remain confident in Alberta's ability to support gigawatt-scale data centers [34][36] Question: Carbon credit sales and their relevance - Management emphasized the value of their environmental attribute portfolio and its importance in maintaining competitiveness and supporting data center discussions [58][59]

Financial Data and Key Metrics Changes - TransAlta reported adjusted EBITDA of CAD 349 million for Q2 2025, an increase of CAD 33 million compared to the same period in 2024, driven by favorable ancillary service pricing and asset optimization [11][12] - Free cash flow for the quarter was CAD 177 million, consistent with the same period last year [13] - Average fleet availability was 91.6% [6] Business Line Data and Key Metrics Changes - Hydro segment adjusted EBITDA increased to CAD 126 million from CAD 83 million year-over-year, attributed to higher intercompany sales and emissions credits [11] - Wind and solar segment adjusted EBITDA remained stable at CAD 89 million, impacted by lower tax attributes revenue from Oklahoma assets [12] - Gas segment adjusted EBITDA decreased to CAD 128 million from CAD 142 million, primarily due to lower realized power prices and higher carbon and natural gas pricing [12] - Energy Transition segment adjusted EBITDA rose to CAD 19 million, a CAD 17 million increase year-over-year [12] - Energy Marketing adjusted EBITDA decreased by CAD 13 million to CAD 26 million due to subdued market volatility [12] Market Data and Key Metrics Changes - Alberta's spot price averaged CAD 40 per megawatt hour in Q2 2025, down from CAD 45 per megawatt hour in 2024 [13] - The hydro fleet achieved an average realized merchant price of CAD 82 per megawatt hour, a 105% premium to the average spot price [14] - The gas fleet realized a 55% premium to the average spot price [14] - Ancillary service pricing settled at CAD 42 per megawatt hour, a 5% premium to the average spot price [15] Company Strategy and Development Direction - The company aims to maximize the value of its legacy thermal energy campuses and capture opportunities in securing data center customers [17] - TransAlta is focused on maintaining financial strength and flexibility while pursuing strategic M&A opportunities [18] - The company is committed to achieving its 2026 CO2 emissions reduction target and enhancing its diversified portfolio [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2025 guidance ranges and highlighted the positive momentum in securing data center opportunities in Alberta [11][17] - The company is optimistic about the development of a data center industry in Alberta, which is expected to rebalance the current oversupply of generation [10][36] - Management acknowledged the importance of clarity from the ISO regarding future phases of data center development [52] Other Important Information - TransAlta successfully recontracted its Melancon and Wolf Island wind facilities, extending contract dates to 2031 and 2034 respectively [6][7] - The company is actively engaged in commercial negotiations for its Centralia site and expects to share detailed development plans soon [10] Q&A Session Summary Question: What are the gating factors to successfully execute an MOU for data centers? - Management indicated that there are no significant impediments, but finalizing terms takes time [22][24] Question: How is the organization viewing midlife natural gas M&A opportunities? - Management confirmed that it is an increasing focus, with several opportunities being explored in core markets [26][27] Question: Has the timeline for securing an MOU changed since the Q1 call? - Management acknowledged that while there has been progress, the timeline has evolved due to clarity from the ISO [32][34] Question: Can Alberta deliver power to gigawatt scale data centers? - Management expressed confidence in Alberta's ability to support a vibrant data center industry, which would benefit their diverse fleet [36] Question: How is the carbon credit portfolio being managed? - Management emphasized the value of their environmental attributes and their role in ensuring competitiveness and meeting customer needs [56]

Second Quarter Results Kananaskis, Alberta AUGUST 1, 2025 The forward-looking statements contained in this presentation are based on many assumptions including, but not limited to, the following: no significant changes to applicable laws and regulations; no unexpected delays in obtaining required regulatory approvals; no material adverse impacts to investment and credit markets; no significant changes to power price and hedging assumptions; no significant changes to gas commodity price assumptions and trans ...

Core Insights - TransAlta Corporation reported strong operational performance in Q2 2025, highlighting the effectiveness of its diversified fleet and hedging strategies, which resulted in realized prices above spot prices [2][4] - The company is optimistic about achieving its 2025 outlook despite challenges in the Alberta price environment [2] Financial Performance - Q2 2025 operational availability was 91.6%, up from 90.8% in Q2 2024 [5][6] - Production increased to 4,813 GWh in Q2 2025 from 4,781 GWh in Q2 2024 [5] - Revenues for Q2 2025 were $433 million, down from $582 million in Q2 2024 [5] - Adjusted EBITDA rose to $349 million in Q2 2025 from $316 million in Q2 2024 [5][6] - Adjusted earnings before income taxes increased to $122 million in Q2 2025 from $112 million in Q2 2024 [5] - Net loss attributable to common shareholders was $112 million in Q2 2025, compared to net earnings of $56 million in Q2 2024 [6] Segment Performance - Hydro segment revenues increased to $126 million in Q2 2025 from $83 million in Q2 2024 [8] - Wind and Solar segment revenues were stable at $89 million in Q2 2025 compared to $88 million in Q2 2024 [8] - Gas segment revenues decreased to $128 million in Q2 2025 from $142 million in Q2 2024 [8] - Energy Transition segment revenues significantly increased to $19 million in Q2 2025 from $2 million in Q2 2024 [8] - Energy Marketing segment revenues decreased to $26 million in Q2 2025 from $39 million in Q2 2024 [8] Key Business Developments - The company extended its committed credit facilities totaling $2.1 billion, with maturity dates extended to June 30, 2029, for the syndicated credit facility [9] - TransAlta signed an agreement for the divestiture of the 48 MW Poplar Hill asset as part of a consent agreement with the federal Competition Bureau [10] - The company successfully recontracted its Ontario wind facilities, extending contract dates until 2031 and 2034 [11] Shareholder Returns - TransAlta announced a Normal Course Issuer Bid (NCIB) to repurchase up to 14 million common shares [13] - During the first half of 2025, the company purchased and canceled 1,932,800 common shares at an average price of $12.42 per share [14]