TransAlta Corporation delivered robust financial performance in 2025, generating adjusted EBITDA of $1,104 million and free cash flow of $514 million. The company declared an 8% dividend increase, marking the seventh consecutive year of dividend growth, demonstrating management's confidence in sustained cash generation and shareholder returns.
The utility company secured a significant multi-year data centre agreement with Canada Pension Plan Investments and Brookfield, committing to supply up to 1 gigawatt of load capacity in Alberta. This partnership reflects the growing demand for power infrastructure to support data centre operations and positions TransAlta to capitalize on anticipated energy needs in the region. In addition to the data centre agreement, TransAlta completed the acquisition of Far North Power for $95 million and signed a long-term tolling agreement to convert its Centralia Unit 2 generation facility from coal to natural gas operations.
Looking ahead to 2026, TransAlta projects adjusted EBITDA in the range of $950 million to $1,050 million and free cash flow between $350 million and $450 million. The company's strategic investments in renewable infrastructure partnerships and fuel conversion initiatives underscore its transition toward sustainable power generation while maintaining financial stability through the transition period.