TransAlta Reports First Quarter Results and Reaffirms Annual Guidance
Press Release
May 6, 2026
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the first quarter ended March 31, 2026.
“TransAlta delivered strong operational performance across the fleet in the first quarter, proving our ability to consistently generate solid free cash flow notwithstanding softer Alberta power prices, reduced market volatility and overall lower production,” said Joel Hunter, President and Chief Executive Officer of TransAlta.
“Our hedging strategy and contracted portfolio continue to reinforce our core performance, enabling us to effectively navigate a challenging price environment. Our assets continue to perform well, and we remain confident in our 2026 Outlook,” added Mr. Hunter. “While near-term headwinds in Alberta are materializing, the Company’s long-term opportunity set is vast. I am very pleased with the continued advancement of our strategic priorities within the quarter, including data centres in Alberta, Centralia and through the integration of the acquired Far North assets,” concluded Mr. Hunter.
First Quarter 2026 Highlights
- Achieved strong operational availability of 93.8 per cent in 2026, compared to 94.9 per cent in 2025
- Adjusted EBITDA(1) of $204 million, compared to $270 million for the same period in 2025
- Free cash flow (FCF)(1) of $102 million, or $0.34 per share, compared to $139 million, or $0.47 per share, for the same period in 2025
- Adjusted earnings before income taxes(1) of $30 million, compared to $28 million, for the same period in 2025
- Cash flow from operating activities of $123 million, or $0.41 per share, compared to $7 million, or $0.02 per share, for the same period in 2025
- Net earnings attributable to common shareholders of $13 million, or $0.04 per share, compared to $46 million, or $0.15 per share, for the same period in 2025
First Quarter 2026 Operational and Financial Highlights
| $ millions, unless otherwise stated | Three Months Ended | |
| March 31, 2026 | March 31, 2025 | |
| Operational information(2) | ||
| Availability (%) | 93.8 | 94.9 |
| Production (GWh) | 5,444 | 6,832 |
| Select financial information(2) | ||
| Revenues | 565 | 758 |
| Adjusted EBITDA(1) | 204 | 270 |
| Adjusted earnings before income taxes(1) | 30 | 28 |
| Earnings before income taxes | 23 | 49 |
| Adjusted net earnings attributable to common shareholders(1) | 18 | 30 |
| Net earnings attributable to common shareholders | 13 | 46 |
| Cash flows(2) | ||
| Cash flow from operating activities | 123 | 7 |
| Funds from operations(1) | 137 | 179 |
| Free cash flow(1) | 102 | 139 |
| Per share(2) | ||
| Adjusted net earnings attributable to common shareholders per share(1)(3) | 0.06 | 0.10 |
| Net earnings per share attributable to common shareholders, basic and diluted | 0.04 | 0.15 |
| Cash flow from operating activities per share(4) | 0.41 | 0.02 |
| Funds from operations per share(1)(3) | 0.46 | 0.60 |
| Free cash flow per share(1)(3) | 0.34 | 0.47 |
| Dividends declared per common share | 0.07 | 0.07 |
| Weighted average number of common shares outstanding (in millions) | 297 | 298 |
Segmented Financial Performance
| $ millions | Three Months Ended | |
| March 31, 2026 | March 31, 2025 | |
| Hydro | 35 | 47 |
| Wind and Solar | 95 | 102 |
| Gas | 93 | 104 |
| Energy Transition | 1 | 37 |
| Energy Marketing | 17 | 21 |
| Corporate | (37) | (41) |
| Total adjusted EBITDA(1) | 204 | 270 |
| Adjusted earnings before income taxes(1) | 30 | 28 |
| Earnings before income taxes | 23 | 49 |
| Adjusted net earnings attributable to common shareholders(1) | 18 | 30 |
| Net earnings attributable to common shareholders | 13 | 46 |
1. These are non-IFRS measures and ratios, which are not defined and have no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. Refer to the “Segmented Financial Performance and Operating Results by Geographic Location” section of this news release for further discussion of these items. Also, refer to the “Non-IFRS and Supplementary Financial Measures” section of this news release for more information regarding these non-IFRS measures and ratios, including, where applicable, reconciliations to measures calculated in accordance with IFRS.
2. IFRS financial statements for the three months ended March 31, 2025 include the results attributable to Poplar Hill and Rainbow Lake facilities (collectively, the Required Divestitures), which the Company divested in accordance with a consent agreement entered into with the Commissioner of Competition for Canada. Our non-IFRS measures and operational Key Performance Indicators exclude the results of the Required Divestitures.
3. Adjusted net earnings attributable to common shareholders per share, funds from operations (FFO) per share and free cash flow (FCF) per share are calculated using the weighted average number of common shares outstanding during the period. Refer to the “Non-IFRS and Supplementary Financial Measures” section of this news release for more information regarding these non-IFRS measures and ratios.
4. Represents a supplementary financial measure and is calculated as Cash flow from operating activities for the period divided by the weighted average number of common shares outstanding during the period.
Key Business Developments
Appointment of New Chief Financial Officer (CFO) and Chief Commercial Officer
Mike Politeski was appointed Executive Vice President, Finance and CFO, effective May 1, 2026 and Grant Arnold has been appointed Executive Vice President, Growth and Chief Commercial Officer, effective May 6, 2026.
Chief Executive Officer Succession
John Kousinioris, President and Chief Executive Officer and a Director of TransAlta retired on April 30, 2026. Joel Hunter, TransAlta’s Executive Vice President, Finance and CFO, succeeded Mr. Kousinioris as President and Chief Executive Officer effective April 30, 2026. Mr. Kousinioris has agreed to serve as a strategic advisor to Mr. Hunter and the Board for a period of six months following his retirement.
Annual Shareholder Meeting
Joel Hunter was elected to the Board of Directors following the annual shareholder meeting on April 30, 2026. At the annual shareholder meeting, the Company received strong support on all items of business, including the election of the nominated directors, the reappointment of auditors, the Company’s approach to executive compensation and the increase in shares available under the Company’s share unit plan.
Centralia Unit 2 Mandated to Remain Available for additional 90 days
On March 16, 2026, the Company received another order from the U.S. Department of Energy (the Order) requiring that our 700 MW Centralia Unit 2 facility (Facility) remain available for operation for an additional period of 90 days, until June 14, 2026. As previously communicated, the first order from the U.S. Department of Energy dated December 16, 2025 required that our Facility remain available if called upon to operate for a period of 90 days, until March 16, 2026. The Company is currently compliant with the Order and continues to work with the state and federal governments in relation thereto.
Memorandum of Understanding for Data Centre Development at Keephills Site Signed
On February 26, 2026, the Company entered into a Memorandum of Understanding (MOU) with Canada Pension Plan Investments and Brookfield to advance a data centre development in Alberta, for which TransAlta is the exclusive site and power provider. The MOU establishes a framework for phased development at the Company’s Keephills site in Parkland County, including an initial long-term power purchase agreement for approximately 230 MW and the evaluation of additional development aggregating up to 1 gigawatt of load. Development is subject to regulatory approvals and the parties reaching definitive agreements.
Declared Increase in Common Share Dividend
The Company’s Board has approved a $0.02 annualized (eight per cent) increase to the common share dividend and declared a dividend of $0.07 per common share on February 25, 2026 to be payable on July 1, 2026 to shareholders of record at the close of business on June 1, 2026. The quarterly dividend of $0.07 per common share represents an annualized dividend of $0.28 per common share.
Acquisition of Far North
On February 2, 2026, the Company closed the acquisition of Far North Power Corporation (Far North), including 310 MW of capacity from four natural gas-fired facilities, for a purchase price of $95 million from an affiliate of Hut 8 Corporation, subject to working capital and other adjustments. The net cash payment for the transaction was funded through a combination of cash on hand and borrowings under TransAlta’s credit facilities.
Mothballing of Sheerness Unit 1
On April 1, 2026, the Company mothballed Sheerness Unit 1. The Company initially provided notice to the Alberta Electric System Operator (AESO) on December 18, 2025, that Sheerness Unit 1 would be mothballed on April 1, 2026, for a period of up to two years. The Company maintains the flexibility to return the mothballed unit to service when market fundamentals improve or contracting opportunities are secured.
Conference call and webcast
TransAlta will host a conference call and webcast at 9:00 a.m. MST (11:00 a.m. EST) today, May 6, 2026, to discuss our first quarter 2026 results. The call will begin with comments from Joel Hunter, President and Chief Executive Officer.
First Quarter 2026 Results Conference Call
Webcast link: https://edge.media-server.com/mmc/p/kvzu99qi
To access the conference call via telephone, please register ahead of time using the call link here: https://register-conf.media-server.com/register/BI822b565342704c408ff9a67ddcd0960c. Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone.
If you are unable to participate in the call, the replay will be accessible at https://edge.media-server.com/mmc/p/kvzu99qi. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.
TransAlta is in the process of filing its unaudited interim Consolidated Financial Statements and accompanying notes, and the associated Management’s Discussion & Analysis (MD&A). These documents will be available today on the Investors section of TransAlta’s website at www.transalta.com or through SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov.
About TransAlta Corporation:
TransAlta is one of Canada’s largest publicly traded power generators, delivering reliable electricity across Canada, the United States and Western Australia. For more than 100 years, our people have safely operated and evolved essential energy infrastructure that powers customers and communities. Our technology-diverse portfolio and disciplined execution allow us to deliver dependable power across evolving energy systems. We take a practical, responsible approach to meeting today’s energy needs while building for what comes next.
For more information about TransAlta, visit our web site at transalta.com.
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