TransAlta Reports First Quarter 2025 Results and Reaffirms Annual Guidance

Core Viewpoint - TransAlta Corporation reported strong operational performance in Q1 2025 despite facing challenges from softer power prices in Alberta, maintaining confidence in its 2025 outlook [2][3][21]. Financial Performance - Adjusted EBITDA for Q1 2025 was $270 million, down from $342 million in Q1 2024, a decrease of 21% [8][22]. - Free Cash Flow (FCF) was $139 million, or $0.47 per share, compared to $221 million, or $0.72 per share in the same period last year, a decrease of 37% [8][24]. - Net earnings attributable to common shareholders were $46 million, or $0.15 per share, down from $222 million, or $0.72 per share in Q1 2024, an 79% decrease [8][25]. Operational Highlights - Operational availability improved to 94.9% in Q1 2025 from 92.3% in Q1 2024 [8][22]. - Total production increased by 654 GWh, or 11%, compared to the same period in 2024 [22][30]. Strategic Initiatives - The company secured a strategic partnership with Nova Clean Energy, LLC, allowing exclusive options to purchase late-stage development projects in the western U.S. [4][6]. - TransAlta issued $450 million in medium-term notes and repaid a $400 million term loan, maintaining financial strength [4][11][12]. Shareholder Engagement - At the Annual Shareholder Meeting on April 24, 2025, all director nominees were elected, and the company received strong support for its business items [7][9]. Market Conditions - The average spot power price in Alberta for Q1 2025 was $40 per MWh, significantly lower than $99 per MWh in the same period of 2024, influenced by milder weather and increased supply [27][30]. - Hedged volumes for Q1 2025 were 2,273 GWh at an average price of $71 per MWh, compared to 1,908 GWh at an average price of $88 per MWh in 2024 [27][30]. 2025 Outlook - The company targets adjusted EBITDA between $1,150 million and $1,250 million and FCF between $450 million and $550 million for 2025 [29][32].