Results
Talen Energy Reports Third Quarter 2026 Results, Reaffirms 2026 Guidance, and Introduces 2027 Guidance
Third quarter GAAP Net Income (Loss) Attributable to Stockholders of $138 million.
Third quarter Adjusted EBITDA of $669 million and Adjusted Free Cash Flow of $433 million.
Announced $1.5 billion accelerated share repurchase program (“ASR”) expected to be complete by the end of the first quarter 2027.
Upsized share repurchase program (“SRP”) to $3.0 billion through December 31, 2028 (including the ASR).
Reaffirming 2026 Adjusted EBITDA and Adjusted Free Cash Flow guidance ranges to $2,050 million - $2,200 million and $1,225 million - $1,325 million, respectively.
8Introducing 2027 Adjusted EBITDA and Adjusted Free Cash Flow guidance ranges of $2,500 million - $2,850 million and $1,500 million - $1,750 million, representing approximately 26% and 27% growth at the midpoints compared with 2026 guidance.
HOUSTON, November 3, 2026 – Talen Energy Corporation (“Talen,” “TEC,” the “Compan y,” “we,” or “our”) ( NASDAQ: TLN ), a leading independent power producer, today reported its third quarter 2026 financial results and other highlights.
“Talen delivered $669 million of Adjusted EBITDA and $433 million of Adjusted Free Cash Flow in the third quarter.
1With nine months behind us, we are reaffirming the midpoint and are narrowing the range of our 2026 guidance.
4We are also introducing our 2027 guidance that reflects strong PJM fundamentals and a full year of contributions from our recently acquired assets,” said Talen Chief Executive Officer Mac McFarland.
Talen President Terry Nutt added, “Share repurchases remain the benchmark against which we evaluate capital allocation.
3This quarter, we increased our share repurchase program to $3.0 billion, including a $1.5 billion accelerated share repurchase program.
We have now repurchased more than one third of the shares outstanding at emergence.” He continued, “Growing demand across PJM strengthens the outlook for our fleet and supports our focus on increasing Adjusted Free Cash Flow per share over the coming years.”
(a) Total generation is net of station use consumption, where applicable.
Volumes associated with acquired and sold generation facilities are presented for the periods in which Talen owned the facilities.
For the quarter ended September 30, 2026, Talen reported GAAP Net Income (Loss) Attributable to Stockholders of $138 million, Adjusted EBITDA of $669 million, and Adjusted Free Cash Flow of $433 million.
Compared with the quarter ended September 30, 2025:
7GAAP Net Income (Loss) Attributable to Stockholders decreased by $(69) million primarily due to higher net income associated with the contribution of acquired generation facilities, higher settled power prices and generation volumes (net of realized hedges), and higher capacity revenues.
Such amounts were outweighed by unrealized mark-to-market losses on commodity derivative contracts and an increase in interest expense associated with acquisition financings.
5Adjusted EBITDA increased by $306 million primarily due to the contribution of acquired generation facilities, higher settled power prices and generation volumes (net of realized hedges), and higher capacity revenues.
6Adjusted Free Cash Flow increased by $210 million primarily due to the contribution of acquired generation facilities, higher settled power prices and generation volumes (net of realized hedges), and higher capacity revenues, which were partially offset by higher cash interest payments associated with acquisition financings.
See “Non-GAAP Financial Measures” for details and reconciliations of GAAP to non-GAAP financial measures.
Reaffirming 2026 Guidance and Introducing 2027 Guidance
(Millions of Dollars)2026E2027E
Adjusted EBITDA$2,050 - $2,200$2,500 - $2,850
Adjusted Free Cash Flow$1,225 - $1,325$1,500 - $1,750
Upsize of SRP and ASR
In September 2026, the Board of Directors approved the upsizing of the Company’s existing SRP from $1.5 billion to an aggregate remaining capacity of $3.0 billion.
Additionally, the Company entered into an ASR program, authorized under the SRP, to repurchase an aggregate of $1.5 billion of TEC common stock.
On October 1, 2026, the Company received and retired approximately 3.8 million shares of TEC common stock repurchased under the ASR program, which is equivalent to 80% of the aggregate $1.5 billion value of the ASR program.
The final settlement is expected to be completed no later than the first quarter of 2027.
The repurchases were funded by net proceeds of $1.3 billion from the capacity monetization and cash on hand.
During the third quarter 2026, we repurchased 600,000 shares of TEC common stock for approximately $204 million, separate from the ASR program.
Upon completion of the ASR program at current prices, we will have repurchased approximately 19.5 million shares of TEC common stock for a total of approximately $4.0 billion since the start of 2024, with $1.5 billion remaining under our SRP through year end 2028.
All share repurchase amounts exclude transaction costs.
PJM Capacity Monetization
2On October 1, 2026, Talen closed on a capacity monetization agreement to sell rights to approximately $1.5 billion in future PJM capacity cash flows for the 2027/2028 and 2028/2029 PJM capacity years and used the net proceeds of $1.3 billion to fund the ASR.
Balance Sheet and Liquidity
We are focused on maintaining our net leverage target of 3.5x net debt-to-Adjusted EBITDA.
As of October 30, 2026, Talen had total available liquidity of approximately $1.6 billion, comprised of $220 million of unrestricted cash and $1.4 billion of available capacity under the Revolving Credit Facility.
Update on Hedging Activities
As of September 30, 2026, including the impact of the Nuclear Production Tax Credit, we had hedged approximately 80% of our expected generation volumes for October - December 2026, approximately 70% for 2027 and approximately 35% for 2028.
Talen’s hedging program is a key component of our comprehensive risk policy and supports the objective of increasing cash flow stability while maintaining upside optionality.
Earnings Call
Talen will hold an earnings call on Tuesday, November 3, 2026, at 8 a.m. ET (7 a.m. CT).
A digital replay will be archived for approximately one year and available on the Events page of Talen’s Investor Relations website linked here .
Talen Energy ( NASDAQ: TLN ) is a leading independent power producer and energy infrastructure company dedicated to powering the future.
We own and operate approximately 15.5 GW of power infrastructure in the United States, including 2.2 GW of nuclear power and a significant dispatchable fossil fleet.
We produce and sell electricity, capacity, and ancillary services into wholesale U.S. power markets, with generation in the Mid-Atlantic, Ohio, Indiana, and Montana.
Our team is committed to generating power safely and reliably and delivering the most value per megawatt produced.
Talen is also powering the digital infrastructure revolution.
We are well-positioned to serve this growing industry, as artificial intelligence data centers increasingly demand more reliable power.
Talen is headquartered in Houston, Texas.
For more information, visit https://www.talenenergy.com/ .
Senior Vice President, Investor Relations
TALEN ENERGY CORPORATION AND SUBSIDIARIES
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