TransAlta Reaffirms 2026 Guidance Despite Lower First Quarter Revenue
The power producer reported revenues of 565 million Canadian dollars for the first quarter, a 25% decrease from the same period in 2025.
TransAlta Corporation (TAC), a power producer, reported its financial results for the first quarter ended March 31, 2026, and reaffirmed its annual guidance. The company saw revenues fall to 565 million Canadian dollars from 758 million Canadian dollars in the prior-year period.
This 193 million Canadian dollar decline was primarily driven by a lack of production at Centralia Unit 2, lower spot and hedged power prices in the Alberta market, and higher dispatch optimization in the Gas segment. The company's operational availability for the quarter was 93.8%, compared to 94.9% in 2025. Total production for the Alberta portfolio fell 7% to 2,971 GWh.
Despite the revenue drop, the company reported a significant increase in cash flow from operating activities, which rose to 123 million Canadian dollars from 7 million Canadian dollars in the first quarter of 2025. Free cash flow for the period was 102 million Canadian dollars, or 0.34 a share, compared to 139 million Canadian dollars, or 0.47 a share, in the same period last year.
Net earnings attributable to common shareholders were 13 million Canadian dollars, or 0.04 a share, down from 46 million Canadian dollars, or 0.15 a share, in the first quarter of 2025. Adjusted EBITDA fell to 204 million Canadian dollars from 270 million Canadian dollars.
Operating costs showed mixed trajectories. Operations, maintenance, and administration expenses rose 5% to 181 million Canadian dollars, driven by higher legal costs and termination, restructuring, and facility shutdown costs. Conversely, depreciation and amortization decreased 28% to 105 million Canadian dollars, which the company attributed to the cessation of coal-fired operations at Centralia Unit 2 and changes to useful life assumptions for Sheerness facilities. Interest expense also decreased 12% to 82 million Canadian dollars following the refinancing of certain senior notes at lower rates in 2025.
To manage the risk of lower prices in 2026, the company deployed a defensive strategy to increase financial hedges for its merchant portfolio. The company also integrated the acquired Far North assets, which represented 1.8% of net earnings and 1% of total assets as of March 31, 2026.
TransAlta ended the period with 274 million Canadian dollars in cash and cash equivalents. The company continues to advance strategic priorities including data centres in Alberta and Centralia.