Overview

* TransAlta Q2 2025 revenue declines from last year, net loss reported

* Adjusted EBITDA rises to C$349 mln, indicating strong operational performance

* Co extends credit facilities to C$2.1 bln, divests Poplar Hill asset

Outlook

* TransAlta ( TAC ) confident in achieving 2025 outlook despite Alberta challenges

* Company advancing Alberta data centre strategy, contracts expected mid-September

* TransAlta ( TAC ) progressing Centralia conversion negotiations, aiming for agreement this year

Result Drivers

* DIVERSIFIED FLEET - Strong operational performance attributed to diversified fleet and hedging strategy in Alberta

* ENVIRONMENTAL CREDITS - Hydro and wind assets' environmental credits offset carbon compliance costs for gas fleet

* STRATEGIC ADVANCEMENTS - Progress in Alberta data centre strategy and Centralia conversion negotiations

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$433

Revenue mln

Q2 EPS -C$0.38

Q2 C$349

Adjusted mln

EBITDA

Q2 FFO C$252

mln

Q2 FFO C$0.85

Per

Share

Q2 Free C$177

Cash mln

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the independent power producers peer group is "buy"

* Wall Street's median 12-month price target for TransAlta Corp ( TAC ) is C$19.00, about 12.3% above its July 31 closing price of C$16.67

* The stock recently traded at 53 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)