Talen Energy Corporation(TLN) - 2025 Q3 - Quarterly Results

Financial Performance - Talen Energy reported third quarter 2025 GAAP Net Income attributable to stockholders of $207 million, an increase of $39 million compared to the same quarter in 2024[6]. - Adjusted EBITDA for the third quarter 2025 was $363 million, up $133 million from $230 million in the same quarter of 2024[8]. - Adjusted Free Cash Flow for the third quarter 2025 was $223 million, an increase of $126 million compared to $97 million in the third quarter of 2024[8]. - Net income for the nine months ended September 30, 2025, was $144 million, down from $945 million for the same period in 2024[26]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $653 million, compared to $606 million in 2024, reflecting a year-over-year increase of approximately 7.7%[33]. - The company reported net cash provided by operating activities of $424 million for the nine months ended September 30, 2025, compared to $246 million in 2024, indicating a significant increase of 72.4%[26]. - Adjusted Free Cash Flow for the nine months ended September 30, 2025, was $232 million, down from $262 million in 2024[33]. Guidance and Projections - Talen narrowed its 2025 guidance for Adjusted EBITDA to a range of $975 million to $1,000 million and reaffirmed 2026 guidance of $1,750 million to $2,050 million[9]. - The company expects 2025 Adjusted EBITDA guidance to be between $975 million and $1,000 million, with 2026 guidance ranging from $1,750 million to $2,050 million[36]. - Capital expenditures for 2025 are projected to be between $(205) million and $(195) million, while for 2026, they are expected to be between $(280) million and $(300) million[36]. Liquidity and Debt - As of October 31, 2025, Talen had total available liquidity of approximately $1.2 billion, including $485 million in unrestricted cash[15]. - Long-term debt as of September 30, 2025, was $2,969 million, slightly down from $2,987 million on December 31, 2024[24]. Acquisitions and Share Repurchase - The company raised $3.9 billion to fund the Freedom and Guernsey acquisitions, which are expected to close in the first quarter of 2026[5][12]. - Talen increased its share repurchase program from $995 million to $2 billion, with the new program set to expire on December 31, 2028[13]. Generation and Environmental Impact - Talen's total generation for the third quarter 2025 was 11.1 TWh, compared to 10.8 TWh in the same quarter of 2024[5]. - Carbon-free generation accounted for 42% of total generation in the third quarter 2025, slightly down from 43% in the same quarter of 2024[5]. - The company hedged approximately 100% of its expected generation volumes for 2025, 60% for 2026, and 25% for 2027[16]. Asset Management - Total assets as of September 30, 2025, were $6,097 million, a slight decrease from $6,106 million on December 31, 2024[24]. - Cash and cash equivalents at the end of the period were $497 million, a decrease from $1,132 million at the end of the same period in 2024[26]. - The company experienced a loss of $36 million on sales of assets for the nine months ended September 30, 2025[26].