TransAlta (NYSE:TAC) Announces Quarterly Earnings Results

TransAlta (NYSE:TAC) (TSE:TA) issued its earnings results on Friday. The utilities provider reported $0.13 EPS for the quarter, beating the consensus estimate of $0.11 by $0.02, Zacks reports. The company had revenue of $342.85 million for the quarter, compared to the consensus estimate of $379.54 million. TransAlta had a negative net margin of 9.46% and a positive return on equity of 9.52%.

Here are the key takeaways from TransAlta’s conference call:

• Solid second-quarter performance: TransAlta reported adjusted EBITDA of CAD 291 million, free cash flow of CAD 143 million, and fleet availability of 90.2%, reaffirming its 2026 guidance.
• The company’s Alberta hedging and optimization strategies mitigated weak market conditions; approximately 4,500 GWh for the remainder of 2026 and 6,600 GWh for 2027 are hedged at about CAD 64/MWh, well above current forward pricing.
• TransAlta agreed to acquire two Colorado gas peaking facilities for US$1 billion, expecting approximately CAD 110 million of annual, contracted adjusted EBITDA and immediate free-cash-flow-per-share accretion after the anticipated fourth-quarter 2026 closing.
• Alberta’s new data-center regulations may enable TransAlta to use underutilized gas-fired steam capacity to support AI infrastructure, with the company targeting greater clarity from AESO and continuing to advance its 230 MW partnership with CPP Investments and Brookfield.
• Alberta spot prices averaged only CAD 29/MWh, down from CAD 40/MWh a year earlier, while hydro and energy-marketing results declined; additionally, S&P shifted TransAlta’s BB+ credit-rating outlook to negative, increasing the importance of asset sales and balance-sheet improvement.

TransAlta Stock Performance

Shares of NYSE TAC opened at $12.50 on Friday. The stock has a market capitalization of $3.95 billion, a PE ratio of -69.44 and a beta of 0.69. TransAlta has a 52 week low of $11.38 and a 52 week high of $17.88. The stock has a 50 day moving average price of $13.60 and a 200 day moving average price of $13.18. The company has a debt-to-equity ratio of 6.61, a quick ratio of 0.70 and a current ratio of 0.76.

TransAlta Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be given a dividend of $0.07 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.28 annualized dividend and a yield of 2.2%. TransAlta’s dividend payout ratio is -37.04%.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on TAC shares. BMO Capital Markets started coverage on TransAlta in a report on Wednesday, June 10th. They issued an “outperform” rating for the company. Zacks Research lowered TransAlta from a “hold” rating to a “strong sell” rating in a research note on Friday, July 17th. Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating on shares of TransAlta in a research note on Friday, July 17th. Scotiabank raised shares of TransAlta to a “strong-buy” rating in a report on Wednesday, June 10th. Finally, TD Cowen assumed coverage on TransAlta in a report on Wednesday, June 10th. They issued a “buy” rating for the company. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $23.00.

Institutional Investors Weigh In On TransAlta

Several large investors have recently made changes to their positions in TAC. Caitong International Asset Management Co. Ltd bought a new stake in TransAlta during the fourth quarter worth $37,000. Ritter Alpha LP bought a new position in shares of TransAlta in the 4th quarter valued at about $131,000. Virtu Financial LLC acquired a new position in shares of TransAlta during the 4th quarter worth about $147,000. Orion Porfolio Solutions LLC acquired a new position in shares of TransAlta during the 2nd quarter worth about $159,000. Finally, Public Sector Pension Investment Board bought a new stake in shares of TransAlta in the 4th quarter valued at about $194,000. Institutional investors and hedge funds own 59.00% of the company’s stock.

Key Headlines Impacting TransAlta

Here are the key news stories impacting TransAlta this week:

• Positive Sentiment: TransAlta delivered adjusted earnings of $0.13 per share, exceeding the $0.11 analyst consensus estimate by $0.02. Management also described operational performance as strong across its diversified power portfolio and reaffirmed its full-year guidance, supporting expectations for reliable cash flow. TransAlta Reports Strong Second Quarter Results and Reaffirms Guidance
• Positive Sentiment: The company declared a quarterly dividend of $0.07 per share, equivalent to an annualized yield of approximately 2.2%. The dividend is payable October 1 to shareholders of record September 1, providing ongoing income support for investors.
• Neutral Sentiment: The earnings release highlighted dependable free-cash-flow generation and portfolio diversification, but the supplied reports did not provide enough additional detail on revenue, cash flow, or segment performance to determine whether results materially changed the company’s valuation outlook. TransAlta Q2 Earnings Snapshot
• Negative Sentiment: The earnings beat did not translate into a favorable market reaction. TransAlta continues to report a negative net margin of 9.46%, while its high debt-to-equity ratio and current ratio below 1 indicate leverage and liquidity risks that may be limiting investor enthusiasm despite the reaffirmed outlook.

TransAlta Company Profile

TransAlta Corporation, originally founded in 1909 as Calgary Power Company Ltd., is a publicly traded energy company specializing in the development, ownership and operation of power generation and transmission assets. Headquartered in Calgary, Alberta, TransAlta has grown from its early hydroelectric roots into a diversified energy provider with a multi-fuel generating fleet.

The company’s core business activities encompass power generation, asset management and energy trading services.