Talen raises 2026 Adjusted EBITDA guidance to $2,025 mln-$2,225 mln
Company lifts 2026 Adjusted Free Cash Flow outlook to $1,200 mln-$1,350 mln
Talen says 85% of 2026 generation volumes hedged, 70% for 2027, 30% for 2028
Overview
US power producer reported Q2 net loss, missing analyst EPS expectations
Q2 adjusted EBITDA rose sharply yr/yr, driven by higher energy and capacity revenues
Company completed Cornerstone Acquisition, adding 2.6 GW generation capacity and raised 2026 guidance
Result drivers
Higher energy and capacity revenues - Co said Q2 adjusted EBITDA rose due to increases in energy and capacity revenues, net of fuel and energy purchases
Lower income tax payments - Co said improved free cash flow was partly due to lower income tax payments, offset by higher capital expenditures and cash interest payments
Cornerstone Acquisition - Co said completion of Cornerstone Acquisition added 2.6 GW generation capacity and diversified cash flow
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the independent power producers peer group is "buy"
Wall Street's median 12-month price target for Talen Energy Corp is $466.50, about 37.2% above its August 4 closing price of $340.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago
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