TRANSALTA (TAC)

• TransAlta reported Adjusted EBITDA of CAD 1.1 billion and free cash flow of CAD 514 million (or CAD 1.73 per share) for fiscal year 2025, and announced an 8% increase in its common share dividend to CAD 0.28 per share annually.
• For 2026, the company expects Adjusted EBITDA between CAD 950 million and CAD 1.1 billion and free cash flow between CAD 350 million and CAD 450 million (or CAD 1.18 to CAD 1.51 per share).
• The company entered into a Memorandum of Understanding with CPP Investments and Brookfield for a data center development at its Keephills site, with an initial 230 MW power purchase agreement and potential for up to 1 GW total demand.
• Strategic initiatives include advancing the conversion of Centralia Unit Two from coal to natural gas (targeting commercial operation by late 2028) and the recent acquisition of Far North Power for CAD 95 million, adding 310 MW of generation in Ontario.
• John Kousinioris will retire as President and CEO, with Joel Hunter (EVP Finance and CFO) appointed as his successor, effective next quarter.

TransAlta reported the following financial results for 2025 and provided its outlook for 2026 :

• The company's Board of Directors approved an 8% increase to its common share dividend to CAD 0.28 per share on an annualized basis, marking its seventh consecutive annual dividend increase.
• TransAlta entered into a Memorandum of Understanding (MOU) with CPP Investments and Brookfield to advance a data center development at its Keephills site in Alberta, including an initial long-term power purchase agreement for approximately 230 megawatts and the evaluation of additional phases aggregating up to 1 gigawatt of demand.
• The company also advanced other strategic initiatives, including a long-term tolling agreement with Puget Sound Energy for the Centralia facility conversion from coal to natural gas (target commercial operation late 2028) and the acquisition of Far North Power for CAD 95 million, adding 310 megawatts of natural gas-fired generation.
• John Kousinioris will retire as President and CEO, with Joel Hunter appointed as his successor.

• TransAlta reported full-year 2025 Adjusted EBITDA of CAD 1.1 billion and Free Cash Flow of CAD 514 million (or CAD 1.73 per share).
• For 2026, the company expects Adjusted EBITDA between CAD 950 million and CAD 1.1 billion and Free Cash Flow between CAD 350 million and CAD 450 million (or CAD 1.18 to CAD 1.51 per share).
• The board approved an 8% increase to the common share dividend, raising it to CAD 0.28 per share annually, marking the seventh consecutive annual increase.
• Key strategic developments include an MOU with CPP Investments and Brookfield for an Alberta data center project (initial 230 megawatts, up to 1 gigawatt) , the acquisition of Far North Power for CAD 95 million (adding 310 megawatts and CAD 30 million annual Adjusted EBITDA) , and the advancement of the Centralia coal-to-gas conversion project.
• The current President and CEO will be retiring, with Joel taking over the role.

• TransAlta Corporation has entered into a Memorandum of Understanding (MOU) with CPP Investments and Brookfield to advance a data centre development at its Keephills site in Alberta, where TransAlta will be the exclusive site and power provider.
• The MOU outlines a phased development framework, starting with a long-term power purchase agreement for approximately 230 MW, with potential to scale up to 1 GW of total load, subject to regulatory approvals and definitive agreements.
• The project leverages TransAlta's existing infrastructure at Keephills, including land, transmission, natural gas, water, and on-site generation, to support large-scale digital infrastructure.

• TransAlta reported a net loss attributable to common shareholders of $190 million, or $0.64 per share, for the full year 2025, a decline from net earnings in 2024. Adjusted EBITDA decreased to $1,104 million in 2025 from $1,255 million in 2024, and free cash flow was $514 million (or $1.73 per share).
• The company issued a 2026 outlook projecting adjusted EBITDA between $950 million and $1,050 million and free cash flow between $350 million and $450 million (or $1.18 to $1.51 per share).
• TransAlta announced an eight percent increase in its annual dividend, now $0.28 per share on an annualized basis, marking its seventh consecutive year of dividend growth.
• Strategic developments include the $95 million acquisition of Far North Power Corporation in February 2026, adding 310 MW of capacity. The company also signed a long-term tolling agreement for the US$600 million conversion of its 700 MW Centralia Unit 2 from coal to natural gas.
• In December 2025, TransAlta issued US$400 million senior notes at 5.9 percent to redeem existing 7.8 percent notes. Additionally, the company repurchased 1,932,800 common shares for $24 million under its Normal Course Issuer Bid in 2025.

• TransAlta Corporation (TAC) has entered into a Memorandum of Understanding (MOU) with Canada Pension Plan Investment Board (CPP Investments) and Brookfield to advance a data centre development in Alberta.
• TransAlta will be the exclusive site and power provider for this project, utilizing its Keephills site.
• The MOU outlines a framework for phased development, including an initial long-term power purchase agreement for approximately 230 MW.
• There is potential for additional development to aggregate up to 1 GW of load at the Keephills site.

• President and CEO John H. Kousinioris announced his retirement effective April 30, 2026; Joel Hunter will succeed him.
• TransAlta delivered $2.4 billion in revenues and $1.1 billion in adjusted EBITDA for 2025, with free cash flow of $514 million ($1.73 per share), slightly above guidance midpoint.
• The company increased its annual common share dividend for 2026 to $0.28 per share and returned $24 million to shareholders via share repurchases in 2025.
• TransAlta achieved its target of reducing scope 1 and 2 greenhouse gas emissions by 75% from 2015 levels, a year ahead of schedule.

• TransAlta reported Adjusted EBITDA of $247 million and Free Cash Flow (FCF) of $93 million for the fourth quarter ended December 31, 2025. For the full year 2025, Adjusted EBITDA was $1,104 million and FCF was $514 million, with FCF coming in above the midpoint of its 2025 outlook.
• The Board of Directors approved an eight percent increase to the common share dividend, now equivalent to $0.28 per share on an annualized basis, marking the seventh consecutive annual dividend increase.
• For 2026, the company expects Adjusted EBITDA to be in the range of $950 million to $1,050 million and FCF to be in the range of $350 million to $450 million, or $1.18 to $1.51 per share.
• Key strategic developments include securing a definitive tolling agreement for the Centralia Unit 2 conversion to natural gas, signing a memorandum of understanding for an Alberta data centre strategy, and the upcoming retirement of President and CEO John Kousinioris, who will be succeeded by Joel Hunter effective April 30, 2026.

• TransAlta Corporation issued US$400,000,000 aggregate principal amount of 5.875% Senior Notes due 2034 on December 22, 2025.
• These unsecured obligations bear interest at 5.875% per annum, payable semiannually, and will mature on February 1, 2034.
• The company has optional redemption rights, including redeeming up to 40% of the notes at 105.875% of principal prior to February 1, 2029, under specific Equity Offering conditions, or at a Make Whole Premium.
• From February 1, 2029, the notes are redeemable at declining percentages of principal, starting at 102.9375% in 2029 and reaching 100% in 2031 and thereafter.
• A Change of Control Triggering Event (occurrence of both a Change of Control and a related Ratings Decline) grants holders the right to require repurchase at 101% of the principal amount.

• TransAlta Corporation announced its decision to temporarily mothball Sheerness Unit 1.
• The unit will be taken offline effective April 1, 2026, for a period of up to two years.
• This decision was made as a prudent financial move to preserve the asset's long-term optionality for future economic opportunities.
• Sheerness Unit 2 will remain fully in service.