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• Adjusted EBITDA (2024): $1.25 billion.

• Free Cash Flow (2024): $569 million or $1.88 per share.

• Average Fleet Availability (2024): 91.2%.

• Dividends and Share Repurchases (2024): $214 million or $0.71 per share.

• Available Liquidity: Over $1.6 billion, including approximately $334 million in cash.

• Heartland Acquisition: Revised purchase price of approximately $542 million.

• Hydro Segment Adjusted EBITDA (2024): $316 million.

• Wind and Solar Segment Adjusted EBITDA (2024): $316 million, a 23% increase from 2023.

• Gas Segment Adjusted EBITDA (2024): $535 million.

• Energy Transition Segment Adjusted EBITDA (2024): $91 million.

• Energy Marketing Segment Adjusted EBITDA (2024): $131 million, a 20% increase from 2023.

• Fourth Quarter Adjusted EBITDA (2024): $285 million.

• Fourth Quarter Free Cash Flow: $48 million.

• Alberta Spot Price (2024): $63 per megawatt hour.

• 2025 Adjusted EBITDA Guidance: $1.15 billion to $1.25 billion.

• 2025 Free Cash Flow Guidance: $450 million to $550 million or $1.51 to $1.85 per share.

• 2025 Hedged Production: 7,700 gigawatt hours at an average price of $70 per megawatt hour.

• Warning! GuruFocus has detected 3 Warning Sign with TAC.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• TransAlta Corp (NYSE:TAC) delivered strong financial and operational performance in 2024, achieving adjusted EBITDA of $1.25 billion and free cash flow of $569 million, both at the upper range of guidance.

• The company successfully integrated the Heartland acquisition, adding 1.75 gigawatts of complementary assets to its Alberta portfolio, enhancing its competitive position.

• TransAlta Corp (NYSE:TAC) completed several growth projects, including the Horizon Hill and White Rock wind facilities, contributing over $175 million in adjusted EBITDA annually.

• The company returned $214 million to shareholders through dividends and share repurchases, and announced an 8% increase in its common share dividend.

• TransAlta Corp (NYSE:TAC) continues to reduce CO2 emissions, achieving a 70% reduction in Scope 1 and 2 greenhouse gas emissions since 2015, with plans to cease coal-fired generation by the end of 2025.

Negative Points

• The Alberta spot power prices declined significantly in 2024, impacting revenue from the hydro and gas segments.

• Corporate costs increased year over year due to higher spending on strategic and growth initiatives.

• The regulatory review process for the Heartland acquisition was lengthy, resulting in the divestment of certain facilities and a purchase price reduction.

• Free cash flow in the fourth quarter was lower due to higher sustaining capital expenditures and increased spending on growth opportunities.

• The company anticipates higher OM&A expenses in 2025 due to the full-year impact of the Heartland acquisition and ongoing growth initiatives.