TransAlta (NYSE:TAC) Releases Earnings Results, Beats Expectations By $0.02 EPS

TransAlta (NYSE:TAC) (TSE:TA) announced its quarterly earnings results on Friday. The utilities provider reported $0.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.02, Zacks reports. 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 Price Performance

TAC stock traded down $0.36 during midday trading on Friday, reaching $12.50. The company had a trading volume of 2,012,894 shares, compared to its average volume of 1,557,094. The company has a debt-to-equity ratio of 6.61, a current ratio of 0.76 and a quick ratio of 0.70. TransAlta has a 1 year low of $11.38 and a 1 year high of $17.88. The company has a market capitalization of $3.95 billion, a P/E ratio of -23.15 and a beta of 0.69. The firm has a 50-day moving average price of $13.62 and a 200-day moving average price of $13.18.

TransAlta Dividend Announcement

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

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating on shares of TransAlta in a report on Friday, July 17th. TD Securities reissued a “buy” rating on shares of TransAlta in a report on Thursday, May 7th. Scotiabank raised shares of TransAlta to a “strong-buy” rating in a report on Wednesday, June 10th. Zacks Research downgraded TransAlta from a “hold” rating to a “strong sell” rating in a research report on Friday, July 17th. Finally, Weiss Ratings raised TransAlta from a “sell (d)” rating to a “sell (d+)” rating in a research note on Tuesday, June 16th. 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. According to data from MarketBeat, TransAlta currently has a consensus rating of “Moderate Buy” and a consensus price target of $23.00.

Institutional Trading of TransAlta

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

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.