TransAlta Corp

TransAlta said Monday it received an order from the U.S. Department of Energy mandating it keep Centralia Unit 2 in Washington state open for operation for an additional 90 days until December 12. The emergency order is the fourth so far that requires Washington's only coal-burning power plant to stay open for another 90 days after state law required the plant to shut down permanently in December 2025. Environmental groups have opposed the moves, as Centralia has been the state's largest source of climate-harming carbon dioxide, and the Washington attorney general's office has sued to stop previous orders mandating coal power from the site. On Friday, a federal court ruled that the Trump administration lacked the authority to force a Michigan coal plant to stay open following repeated emergency orders.

TransAlta reported second-quarter funds from operations of C$0.67 per share, beating estimates by C$0.30. Adjusted earnings per share came in at C$0.18, exceeding expectations by C$0.16. Adjusted EBITDA was C$291 million, down from C$349 million in the same period of 2025. Free cash flow totaled C$143 million, or C$0.47 per share, compared with C$177 million, or C$0.60 per share, a year earlier. Net earnings attributable to common shareholders were C$35 million, or C$0.12 per share, versus a net loss of C$112 million, or C$0.38 per share, in the prior-year quarter.

TransAlta Corporation reported second quarter 2026 adjusted EBITDA of $291 million, down from $349 million a year earlier, while reaffirming its full-year outlook. Free cash flow was $143 million, or $0.47 per share, compared to $177 million, or $0.60 per share, in the same period of 2025. The company also announced that on June 12, 2026, it received an order from the U.S. Department of Energy requiring its 700 MW Centralia Unit 2 facility to remain available for operation for an additional 90 days, until September 12, 2026. Additionally, TransAlta entered into an agreement to acquire two contracted natural gas-fired peaking facilities totaling 318 MW near Denver, Colorado, from a Blackstone subsidiary for US$1 billion, including the assumption of US$750 million in project debt, and closed a public offering of 18,230,000 common shares at $19.20 per share for gross proceeds of approximately $350 million to fund the cash portion of the purchase price.

TransAlta Corporation declared a quarterly dividend of $0.07 per common share payable on October 1, 2026, to shareholders of record on September 1, 2026. The board also declared dividends on six series of cumulative redeemable rate reset first preferred shares for the period from June 30 to September 30, 2026, with rates ranging from 4.353% to 6.894% and per-share amounts between $0.27430 and $0.43088, all payable on September 30 to holders of record on September 1. The Series B and Series D preferred shares carry a quarterly floating rate that will be reset every quarter. All dividends are in Canadian dollars.

TD Securities resumed coverage of TransAlta Corporation with a Buy rating and a C$26 price target on June 10, following the company's bought deal equity offering. The firm noted that the stock's 13% decline since TransAlta announced its acquisition of Colorado gas-fired peaking assets reflects concerns about the assets' characteristics and valuation, but believes the deal aligns with the company's Western US expansion strategy. TransAlta is acquiring two natural gas-fired peaking facilities near Denver from Blackstone for about $1 billion, with a combined capacity of 318 megawatts and fully contracted under long-term agreements. The transaction includes $750 million in project-level debt and a C$350 million bought deal share offering to raise about $250 million in equity, with the facilities expected to generate roughly $80 million in annual adjusted core profit and $33 million in free cash flow. TD Securities also expects near-term progress on the broader Alberta data center opportunity.