TransAlta (NYSE:TAC) Posts Earnings Results, Beats Estimates By $0.02 EPS

TransAlta (NYSE:TAC) (TSE:TA) announced its earnings results on Friday. The utilities provider reported $0.13 EPS for the quarter, topping the consensus estimate of $0.11 by $0.02, Zacks reports. TransAlta had a positive return on equity of 9.52% and a negative net margin of 9.46%.

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

Shares of TAC traded down $0.36 during trading hours on Friday, hitting $12.50. 2,012,952 shares of the company were exchanged, compared to its average volume of 1,561,532. The company has a market capitalization of $3.95 billion, a PE ratio of -23.15 and a beta of 0.69. The company has a debt-to-equity ratio of 6.61, a current ratio of 0.76 and a quick ratio of 0.70. The firm has a fifty day simple moving average of $13.62 and a 200-day simple moving average of $13.18. TransAlta has a one year low of $11.38 and a one year high of $17.88.

TransAlta Dividend Announcement

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

Wall Street Analysts Forecast Growth

TAC has been the topic of several research analyst reports. BMO Capital Markets began coverage on TransAlta in a research report on Wednesday, June 10th. They set an “outperform” rating on the stock. Weiss Ratings upgraded TransAlta from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, June 16th. TD Cowen started coverage on TransAlta in a research note on Wednesday, June 10th. They set a “buy” rating for the company. Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating on shares of TransAlta in a report on Friday, July 17th. Finally, Zacks Research cut shares of TransAlta from a “hold” rating to a “strong sell” rating in a research report on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $23.00.

Institutional Investors Weigh In On TransAlta

Institutional investors and hedge funds have recently modified their holdings of the stock. Virtu Financial LLC acquired a new position in shares of TransAlta in the 4th quarter valued at $147,000. Tudor Investment Corp ET AL raised its holdings in TransAlta by 2,821.5% during the 4th quarter. Tudor Investment Corp ET AL now owns 404,429 shares of the utilities provider’s stock worth $5,112,000 after buying an additional 390,586 shares during the period. Twinbeech Capital LP acquired a new stake in TransAlta during the 4th quarter worth about $420,000. Man Group plc raised its holdings in TransAlta by 159.9% during the 4th quarter. Man Group plc now owns 2,098,053 shares of the utilities provider’s stock worth $26,520,000 after buying an additional 1,290,854 shares during the period. Finally, Investment Management Corp of Ontario purchased a new stake in TransAlta during the fourth quarter valued at about $410,000. 59.00% of the stock is owned by institutional investors and hedge funds.

About TransAlta

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.