TransAlta reported third‑quarter 2025 revenue of C$615 million, down 3.6% from C$638 million a year earlier, and an adjusted earnings per share of CA$0.02, falling short of the CA$0.05 consensus estimate. Adjusted EBITDA declined to C$238 million from C$315 million, while free cash flow slipped to C$105 million versus C$131 million. The company posted a net loss attributable to common shareholders of $62 million, or $0.20 per share, and a net margin of –4.59%, an improvement from –6.79% in Q2 2025. These figures illustrate a modest decline in top‑line growth and profitability, largely driven by lower power sales in Alberta and the impact of suppressed spot prices.
The hydro‑generation segment remained the company’s strongest performer, with adjusted EBITDA rising 51.8% year‑over‑year, reflecting higher realized prices and strong availability. In contrast, the gas and energy‑marketing segments posted declines, as lower Alberta power prices and reduced demand for gas‑fired generation weighed on revenue and margins. The data‑center strategy, however, continued to generate positive momentum, with a new 230 MW demand‑transmission‑service contract signed with the Alberta Electric System Operator and rezoning approvals secured for the Keephills and Sundance sites.
The revenue shortfall and earnings miss are attributable to a combination of macro‑level headwinds and segment‑specific dynamics. Suppressed Alberta power prices limited the company’s ability to capture higher spot‑market rates, even as hedging strategies helped mitigate some price volatility. Operationally, TransAlta maintained high availability across its fleet, but the mix shift toward lower‑margin gas and marketing activities offset gains in hydro. Cost control measures were insufficient to offset the revenue decline, leading to the reported net loss and margin compression.
TransAlta’s data‑center strategy is a key growth lever. The company secured a 230 MW demand‑transmission‑service contract with AESO, the full allocation awarded under Phase I of the AESO Data Centre Large Load Integration Program. Parkland County’s unanimous rezoning approval for over 3,000 acres surrounding Keephills and Sundance further positions TransAlta to capture the growing data‑center market. In Washington State, the company is negotiating to convert its Centralia Unit 2 from coal to gas‑fired operations, a move that would reduce emissions and align with the region’s decarbonization trajectory.
Leadership transition was announced alongside the earnings release. President and CEO John Kousinioris confirmed his retirement effective April 30 2026 and named Executive Vice President, Finance and Chief Financial Officer Joel Hunter as his successor. Kousinioris highlighted the company’s resilience amid market challenges and expressed confidence in Hunter’s ability to continue the strategic focus on data‑center expansion and operational excellence.
Management reiterated confidence in TransAlta’s 2025 outlook, citing continued hedging effectiveness, high fleet availability, and progress on strategic initiatives. The company’s guidance remains unchanged, indicating that it expects to stay within its full‑year revenue and adjusted operating‑income targets. The focus on data‑center development and the Centralia conversion signals a long‑term shift toward higher‑margin, low‑carbon generation and diversified revenue streams, positioning TransAlta to navigate the volatile power market while pursuing growth opportunities.
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