TransAlta (TA) Company presentation summary

Company overview and portfolio

• Enterprise value of $8.5 billion and market capitalization of $4.2 billion as of March 2025.

• Operates 88 generating facilities across Canada, the US, and Australia, totaling ~9,000 MW.

• Approximately 50% of adjusted EBITDA is attributable to renewables, with hydro, wind, and solar as core operations.

• Portfolio includes hydro, gas, wind, solar, and battery assets, with a stable contracted base and merchant upside in Alberta.

• Heartland Generation acquisition added ~1.7 GW of assets, enhancing contracted and reliable capacity.

Financial performance and guidance

• 2024 adjusted EBITDA reached $1.25 billion, with free cash flow (FCF) of $569 million ($1.88/share).

• Returned $0.71/share (38% of FCF) to shareholders via buybacks and dividends in 2024.

• 2025 guidance: adjusted EBITDA of $1.15–$1.25 billion, FCF of $450–$550 million, and FCF/share of $1.51–$1.85.

• Dividend increased by 8%, with a payout ratio of 15% of expected 2025 FCF.

• Maintains strong balance sheet, targeting adjusted net debt/EBITDA of 3.0–4.0x.

Strategic priorities and growth initiatives

• Focus on optimizing Alberta portfolio, executing growth plan, and realizing value from legacy assets.

• Actively pursuing redevelopment of Centralia site (500–1,000 MW potential, long-term contracts, COD 2027+).

• Advancing data centre opportunities in Alberta, leveraging low-latency locations and existing infrastructure.

• Successfully integrated Heartland Generation and continues to seek strategic M&A and growth opportunities.

• Developing next-generation power solutions and leading in ESG and market policy.