TransAlta Corporation reported its first quarter 2025 financial results, with Adjusted EBITDA reaching $270 million, a 21% decrease from Q1 2024. Free Cash Flow (FCF) for the quarter was $139 million, down 37% from the same period last year, primarily impacted by softer power prices in Alberta.
Despite the financial declines, the company reaffirmed its 2025 annual outlook, maintaining confidence in its ability to meet previously stated guidance ranges. Net earnings attributable to common shareholders decreased by 79% compared to Q1 2024, while total production increased by 11% and availability improved by 2.6 percentage points to 94.9%.
A significant strategic development in Q1 2025 was a strategic investment in Nova Clean Energy, LLC, a renewable energy project developer. This investment includes a US$75 million term loan and a US$100 million revolving facility, with US$74 million drawn at closing, and provides TransAlta with the exclusive right to purchase Nova's late-stage development projects in the western U.S.
Financially, TransAlta strengthened its balance sheet by issuing $450 million of senior notes on March 24, 2025, with a fixed annual coupon of 5.625% and a maturity date of March 24, 2032. The proceeds from this offering were used to repay a $400 million variable rate term loan facility on March 25, 2025, ahead of its September 7, 2025, maturity.
The company also confirmed the mothballing of Sundance Unit 6 on April 1, 2025, as previously communicated, and provided an update on its Normal Course Issuer Bid (NCIB) and Automatic Share Purchase Plan (ASPP). As of May 6, 2025, TransAlta had purchased and cancelled 1,932,800 common shares for $24 million at an average price of $12.42 per share.
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