TransAlta posts Q2 profit, revenue rise and reaffirms 2026 guidance

TransAlta Corp. Swung back to profit in the second quarter of 2026, posting a net profit of $35 million compared with a loss a year earlier, while revenue climbed to $487 million according to reports published on July 31, 2026.

The company stated that its profit attributable to common shareholders amounted to $35 million or 12 cents per diluted share for the quarter ended June 30, 2026. This result compared with a loss of $112 million or 38 cents per diluted share for the second quarter of 2025. Revenue for the quarter totalled $487 million, up from $433 million a year earlier.

Media additions

Power production totalled 4,720 gigawatt hours for the quarter, down from 4,813 GWh a year ago. On an adjusted basis, TransAlta earned 18 cents per share in its latest quarter, unchanged from the same quarter last year.

"TransAlta delivered strong operational performance across our portfolio in the second quarter, underlining our ability to generate reliable free cash flow from our diversified fleet despite a challenging Alberta market and reduced market volatility,"

Joel Hunter, President and Chief Executive Officer, via Finanznachrichten

Joel Hunter, President and Chief Executive Officer of TransAlta, highlighted the role of Alberta-market hedging and environmental credits. According to Mr. Hunter, the Alberta portfolio's hedging strategy and active optimization continued to generate realized prices well above spot prices, while environmental credits generated by hydro and wind assets significantly offset the merchant gas fleet's carbon price compliance obligation.

Executive reshuffle and strategic moves

A leadership transition took place on April 30, 2026, when longtime chief John Kousinioris retired. Joel Hunter, formerly Executive Vice President of Finance and CFO, succeeded Mr. Kousinioris as President and Chief Executive Officer and was elected to the Board of Directors at the annual shareholder meeting on April 30, 2026.

The company subsequently filled senior vacancies. Mike Politeski was appointed Executive Vice President, Finance and CFO, effective May 1, 2026. Grant Arnold was appointed Executive Vice President, Growth and Chief Commercial Officer, effective May 6, 2026. Nancy Brennan, who previously held the position of Executive Vice President, Legal and External Affairs, was appointed Chief Legal, People and Corporate Affairs Officer, effective June 8, 2026, and Chris Fralick, who previously held the position of Executive Vice President, Generation was appointed Executive Vice President, Generation and Chief Operating Officer, effective June 8, 2026.

"This quarter, we realigned our executive team and I am confident that we have the right people and structure to execute our strategy. I am also very pleased with the continued advancement of our strategic priorities within the quarter, including the Centralia coal-to-gas conversion and our acquisition of new, high-quality, long-term contracted assets in Colorado. In Alberta, positive recent developments reinforce the momentum and collective commitment across government and industry to develop AI infrastructure and I am pleased with the continued progress on our project with CPP Investments and Brookfield,"

Joel Hunter, President and Chief Executive Officer, via Finanznachrichten

The Colorado transaction involves an agreement announced on June 3, 2026, with an indirect subsidiary of Blackstone, Inc., to acquire Mountain Peak Power and Canyon Peak Power, two fully contracted natural gas-fired peaking facilities totaling 318 MW near Denver, Colorado. The purchase price for the Acquisition is US$1 billion, including the assumption of US$750 million of project debt.

On June 9, 2026 the Company closed a public offering of 18,230,000 common shares at a price of $19.20 per share through a syndicate of underwriters, for total gross proceeds of approximately $350 million, which will be used to fund the cash portion of the purchase price for the Acquisition. The proceeds received in advance of the Acquisition were partially used to repay the drawn amounts under the syndicated credit facility.

Regulatory orders and asset management

On June 12, 2026, the Company received another order from the U.S. Department of Energy requiring that our 700 MW Centralia Unit 2 facility remain available for operation for an additional period of 90 days, until September 12, 2026. The facility had no generation during the six months ended June 30, 2026.

On April 1, 2026, the Company mothballed Sheerness Unit 1. The Company initially provided notice to the Alberta Electric System Operator 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.

Financial snapshot

• Profit attributable to common shareholders: $35 million (12 cents per diluted share)
• Revenue: $487 million (up from $433 million a year earlier)
• Adjusted earnings per share: 18 cents (unchanged year-over-year)
• Power generation: 4,720 GWh (down from 4,813 GWh a year ago)
• Centralia Unit 2: 700 MW facility ordered by the U.S. Department of Energy to remain available until September 12, 2026
• Mountain Peak Power and Canyon Peak Power acquisition: US$1 billion purchase price, including US$750 million of assumed project debt
• Public share offering: 18,230,000 common shares at $19.20 per share, raising approximately $350 million in gross proceeds

Guidance and investor resources

Despite lower power generation, management expressed continued confidence in the 2026 outlook. TransAlta is in the process of filing its unaudited interim Consolidated Financial Statements and accompanying notes, and the associated Management's Discussion & Analysis.

What to watch next

• The Acquisition is expected to close early in the fourth quarter of 2026.
• Potential return of the mothballed Sheerness Unit 1 to service if market fundamentals improve or contracting opportunities are secured.
• TransAlta will host a conference call and webcast at 9:00 a.m. MDT (11:00 a.m. EDT) today, July 31, 2026, to discuss our second quarter 2026 results.