Talen Energy Corporation (NasdaqGS:TLN) Earnings Call Presentation

Financial Performance & Projections - Talen expects to be in the lower end of Adjusted EBITDA and Adjusted Free Cash Flow ranges for 2025[17] - Talen projects Adjusted EBITDA of $1750 million to $2050 million and Adjusted Free Cash Flow of $980 million to $1180 million for 2026, including the Freedom and Guernsey acquisitions[23, 86] - Talen anticipates Adjusted EBITDA of $1790 million to $2290 million and Adjusted Free Cash Flow of $1055 million to $1425 million for 2027[23, 89] - Talen projects Adjusted Free Cash Flow per share to grow from $9.80 in 2025E to $23.10 in 2027E and $25.80 in 2028E[19] Strategic Initiatives & Growth - Talen is acquiring ~3,000 MWs CCGTs via Freedom and Guernsey acquisitions, projected ~50% Adj FCF/share accretion[12] - Talen's AWS PPA is expected to add ~20% Adjusted Free Cash Flow per share growth beyond 2028[21] - Talen's share repurchase program has $2 billion remaining and extends through year end 2028[12] Market Dynamics - PJM installed reserve margins are steadily shrinking as power demand grows[34] - The '26/'27 BRA capacity clear at price cap of ~$270/MWd[17] - The '26/'27 BRA capacity clear at price cap of ~$329/MWd[17]