TransAlta Reports First Quarter Results and Reaffirms Annual Guidance

CALGARY, Alberta, May 06, 2026 (GLOBE NEWSWIRE) --

TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the first quarter ended March 31, 2026.

“TransAlta delivered strong operational performance across the fleet in the first quarter, proving our ability to consistently generate solid free cash flow notwithstanding softer Alberta power prices, reduced market volatility and overall lower production," said Joel Hunter, President and Chief Executive Officer of TransAlta.

"Our hedging strategy and contracted portfolio continue to reinforce our core performance, enabling us to effectively navigate a challenging price environment. Our assets continue to perform well, and we remain confident in our 2026 Outlook," added Mr. Hunter. "While near-term headwinds in Alberta are materializing, the Company's long-term opportunity set is vast. I am very pleased with the continued advancement of our strategic priorities within the quarter, including data centres in Alberta, Centralia and through the integration of the acquired Far North assets," concluded Mr. Hunter.

First Quarter 2026 Highlights

• Achieved strong operational availability of 93.8 per cent in 2026, compared to 94.9 per cent in 2025
• Adjusted EBITDA⁽¹⁾ of $204 million, compared to $270 million for the same period in 2025
• Free cash flow (FCF)⁽¹⁾ of $102 million, or $0.34 per share, compared to $139 million, or $0.47 per share, for the same period in 2025
• Adjusted earnings before income taxes⁽¹⁾ of $30 million, compared to $28 million, for the same period in 2025
• Cash flow from operating activities of $123 million, or $0.41 per share, compared to $7 million, or $0.02 per share, for the same period in 2025
• Net earnings attributable to common shareholders of $13 million, or $0.04 per share, compared to $46 million, or $0.15 per share, for the same period in 2025

First Quarter 2026 Operational and Financial Highlights

$ millions, unless otherwise stated	Three Months Ended
	March 31, 2026	March 31, 2025
Operational information(2)
Availability (%)	93.8	94.9
Production (GWh)	5,444	6,832
Select financial information(2)
Revenues	565	758
Adjusted EBITDA(1)	204	270
Adjusted earnings before income taxes(1)	30	28
Earnings before income taxes	23	49
Adjusted net earnings attributable to common shareholders(1)	18	30
Net earnings attributable to common shareholders	13	46
Cash flows(2)
Cash flow from operating activities	123	7
Funds from operations(1)	137	179
Free cash flow(1)	102	139
Per share(2)
Adjusted net earnings attributable to common shareholders per share(1)(3)	0.06	0.10
Net earnings per share attributable to common shareholders, basic and diluted	0.04	0.15
Cash flow from operating activities per share(4)	0.41	0.02
Funds from operations per share(1)(3)	0.46	0.60
Free cash flow per share(1)(3)	0.34	0.47
Dividends declared per common share	0.07	0.07
Weighted average number of common shares outstanding (in millions)	297	298

Segmented Financial Performance

$ millions	Three Months Ended
	March 31, 2026		March 31, 2025
Hydro	35		47
Wind and Solar	95		102
Gas	93		104
Energy Transition	1		37
Energy Marketing	17		21
Corporate	(37	)	(41	)
Total adjusted EBITDA(1)	204		270
Adjusted earnings before income taxes(1)	30		28
Earnings before income taxes	23		49
Adjusted net earnings attributable to common shareholders(1)	18		30
Net earnings attributable to common shareholders	13		46

1. These are non-IFRS measures and ratios, which are not defined and have no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. Refer to the "Segmented Financial Performance and Operating Results by Geographic Location" section of this news release for further discussion of these items. Also, refer to the "Non-IFRS and Supplementary Financial Measures" section of this news release for more information regarding these non-IFRS measures and ratios, including, where applicable, reconciliations to measures calculated in accordance with IFRS.
2. IFRS financial statements for the three months ended March 31, 2025 include the results attributable to Poplar Hill and Rainbow Lake facilities (collectively, the Required Divestitures), which the Company divested in accordance with a consent agreement entered into with the Commissioner of Competition for Canada. Our non-IFRS measures and operational Key Performance Indicators exclude the results of the Required Divestitures.
3. Adjusted net earnings attributable to common shareholders per share, funds from operations (FFO) per share and free cash flow (FCF) per share are calculated using the weighted average number of common shares outstanding during the period. Refer to the "Non-IFRS and Supplementary Financial Measures" section of this news release for more information regarding these non-‍IFRS measures and ratios.
4. Represents a supplementary financial measure and is calculated as Cash flow from operating activities for the period divided by the weighted average number of common shares outstanding during the period.

Key Business Developments

Appointment of New Chief Financial Officer (CFO) and Chief Commercial Officer

Mike Politeski was appointed Executive Vice President, Finance and CFO, effective May 1, 2026 and Grant Arnold has been appointed Executive Vice President, Growth and Chief Commercial Officer, effective May 6, 2026.

Chief Executive Officer Succession

John Kousinioris, President and Chief Executive Officer and a Director of TransAlta retired on April 30, 2026. Joel Hunter, TransAlta’s Executive Vice President, Finance and CFO, succeeded Mr. Kousinioris as President and Chief Executive Officer effective April 30, 2026. Mr. Kousinioris has agreed to serve as a strategic advisor to Mr. Hunter and the Board for a period of six months following his retirement.

Annual Shareholder Meeting

Joel Hunter was elected to the Board of Directors following the annual shareholder meeting on April 30, 2026. At the annual shareholder meeting, the Company received strong support on all items of business, including the election of the nominated directors, the reappointment of auditors, the Company's approach to executive compensation and the increase in shares available under the Company's share unit plan.

Centralia Unit 2 Mandated to Remain Available for additional 90 days

On March 16, 2026, the Company received another order from the U.S. Department of Energy (the Order) requiring that our 700 MW Centralia Unit 2 facility (Facility) remain available for operation for an additional period of 90 days, until June 14, 2026. As previously communicated, the first order from the U.S. Department of Energy dated December 16, 2025 required that our Facility remain available if called upon to operate for a period of 90 days, until March 16, 2026. The Company is currently compliant with the Order and continues to work with the state and federal governments in relation thereto.

Memorandum of Understanding for Data Centre Development at Keephills Site Signed

On February 26, 2026, the Company entered into a Memorandum of Understanding (MOU) with Canada Pension Plan Investments and Brookfield to advance a data centre development in Alberta, for which TransAlta is the exclusive site and power provider. The MOU establishes a framework for phased development at the Company's Keephills site in Parkland County, including an initial long-term power purchase agreement for approximately 230 MW and the evaluation of additional development aggregating up to 1 gigawatt of load. Development is subject to regulatory approvals and the parties reaching definitive agreements.

Declared Increase in Common Share Dividend

The Company’s Board has approved a $0.02 annualized (eight per cent) increase to the common share dividend and declared a dividend of $0.07 per common share on February 25, 2026 to be payable on July 1, 2026 to shareholders of record at the close of business on June 1, 2026. The quarterly dividend of $0.07 per common share represents an annualized dividend of $0.28 per common share.

Acquisition of Far North

On February 2, 2026, the Company closed the acquisition of Far North Power Corporation (Far North), including 310 MW of capacity from four natural gas-fired facilities, for a purchase price of $95 million from an affiliate of Hut 8 Corporation, subject to working capital and other adjustments. The net cash payment for the transaction was funded through a combination of cash on hand and borrowings under TransAlta's credit facilities.

Mothballing of Sheerness Unit 1

On April 1, 2026, the Company mothballed Sheerness Unit 1. The Company initially provided notice to the Alberta Electric System Operator (AESO) on December 18, 2025, that Sheerness Unit 1 would be mothballed on April 1, 2026, for a period of up to two years. The Company maintains the flexibility to return the mothballed unit to service when market fundamentals improve or contracting opportunities are secured.

Conference call and webcast

TransAlta will host a conference call and webcast at 9:00 a.m. MST (11:00 a.m. EST) today, May 6, 2026, to discuss our first quarter 2026 results. The call will begin with comments from Joel Hunter, President and Chief Executive Officer.

First Quarter 2026 Results Conference Call

Webcast link: https://edge.media-server.com/mmc/p/kvzu99qi

To access the conference call via telephone, please register ahead of time using the call link here: https://register-conf.media-server.com/register/BI822b565342704c408ff9a67ddcd0960c. Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone.

If you are unable to participate in the call, the replay will be accessible at https://edge.media-server.com/mmc/p/kvzu99qi. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

TransAlta is in the process of filing its unaudited interim Consolidated Financial Statements and accompanying notes, and the associated Management’s Discussion & Analysis (MD&A). These documents will be available today on the Investors section of TransAlta’s website at www.transalta.com or through SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov.

About TransAlta Corporation:

TransAlta is one of Canada’s largest publicly traded power generators, delivering reliable electricity across Canada, the United States and Western Australia. For more than 100 years, our people have safely operated and evolved essential energy infrastructure that powers customers and communities. Our technology-diverse portfolio and disciplined execution allow us to deliver dependable power across evolving energy systems. We take a practical, responsible approach to meeting today’s energy needs while building for what comes next.

For more information about TransAlta, visit our web site at transalta.com.

Cautionary Statement Regarding Forward-Looking Information

This news release includes "forward-looking information," within the meaning of applicable Canadian securities laws, and "forward-looking statements," within the meaning of applicable United States securities laws, including the Private Securities Litigation Reform Act of 1995 (collectively referred to herein as "forward-looking statements"). Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as "may", "will", "believe", "expect", "estimate", "anticipate", "intend", "plan", "forecast", "continue" or other similar words. In particular, this news release contains forward-looking statements about the following, among other things, our continued confidence in our 2026 Outlook.

Forward-looking statements and future-oriented financial information in this news release are intended to provide the reader information about management's current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements are subject to important risks and uncertainties and are based on certain key assumptions. All forward-looking statements reflect TransAlta's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking statements, you should not put undue reliance on forward-looking statements and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking statements due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to our most recent MD&A, which forms part of this news release, and the 2025 Annual Report, including the section titled "Governance and Risk Management" in our MD&A for the year ended December 31, 2025, filed under TransAlta's profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov.

Non-IFRS and Supplementary Financial Measures

This news release contains references to the following Non-IFRS measures: Adjusted EBITDA; Free Cash Flow (FCF) (including per share); Adjusted earnings before income taxes; Adjusted net earnings attributable to common shareholders (including per share); Funds from operations (FFO) (including per share); Non-IFRS measures do not have standardized meanings under IFRS and are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, as an alternative to, or more meaningful than, our IFRS results. We use these measures to evaluate our performance and the performance of our business segments and believe that these measures, read together with our IFRS measures, provide readers with a better understanding of how management assesses results. Presenting these measures from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison to prior periods' results. These measures are calculated by adjusting certain IFRS measures for certain items we believe are not reflective of our ongoing operations in a period and are calculated on a consistent basis from period to period and are adjusted for specific items in each period, unless stated otherwise. Refer to the Non-IFRS and Supplementary Measures section of our most recent MD&A, which forms part of this news release, for more information about these measures including, where applicable, reconciliations to measures calculated in accordance with IFRS.

Note: All financial figures are in Canadian dollars unless otherwise indicated.

For more information:

Investor Inquiries:	Media Inquiries:
Phone: 1-800-387-3598 in Canada and U.S.	Phone: 1-855-255-9184
Email: investor_relations@transalta.com	Email: ta_media_relations@transalta.com

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