TransAlta Reports Fourth Quarter and Year End 2025 Results, Announces Data Centre Agreement, Declares Dividend Increase and Provides 2026 Outlook

Core Insights - TransAlta Corporation reported strong performance in 2025, achieving solid free cash flow despite challenges in Alberta power prices and lower merchant production [2][4] - The company announced an eight percent increase in its common share dividend, marking the seventh consecutive annual increase [2][10] Financial Performance - Fourth Quarter 2025 Highlights: - Adjusted EBITDA was $247 million, down from $282 million in Q4 2024 [7] - Free cash flow (FCF) reached $93 million, or $0.31 per share, compared to $46 million, or $0.15 per share in Q4 2024 [7][8] - Net loss attributable to common shareholders was $62 million, or $0.21 per share, compared to a loss of $65 million, or $0.22 per share in Q4 2024 [7][8] - Full Year 2025 Highlights: - Adjusted EBITDA totaled $1,104 million, down from $1,255 million in 2024 [7] - Free cash flow was $514 million, or $1.73 per share, compared to $575 million, or $1.90 per share in 2024 [7][8] - Net loss attributable to common shareholders was $190 million, or $0.64 per share, compared to net earnings of $177 million, or $0.59 per share in 2024 [7][8] Operational Highlights - Achieved operational availability of 90.1% in Q4 2025, up from 87.8% in Q4 2024 [7][8] - Total production for 2025 was 24,521 GWh, compared to 22,811 GWh in 2024 [8] Strategic Developments - The company secured a tolling agreement to convert Centralia Unit 2 to natural gas, extending its operational life [3][21] - TransAlta closed the acquisition of Far North Power Corporation for $95 million, enhancing its capacity in Ontario by 310 MW [14][15] - A memorandum of understanding was signed for data centre development in Alberta, establishing a framework for future growth [12] 2026 Outlook - The company expects adjusted EBITDA for 2026 to be between $950 million and $1,050 million, and free cash flow to be between $350 million and $450 million [10][25] - Anticipated improvements in Alberta power market fundamentals due to expected data centre load growth [4][25]