Talen Energy Corporation functions as an independent power producer and infrastructure enterprise, providing electricity, capacity, and essential ancillary services to wholesale energy ...
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Est. EPS $20.58 · Revenue $4.45B · 6 analysts
Est. EPS $10.49 · Revenue $1.50B · 1 analysts
Est. EPS $8.02 · Revenue $1.27B · 1 analysts
Est. EPS $30.53 · Revenue $5.16B · 7 analysts
EPS $-2.94 · Revenue $631.00M
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $2.6B | +26.7% | -39.8% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $-219.0M | -121.9% | -246.0% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +38.1% | +19.0% | +25.0% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +0.6% | -92.3% | -132.9% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | -8.3% | -117.3% | -342.6% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $409.0M | +657.4% | -239.3% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +15.6% | +497.9% | -331.4% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 624.1% | +188.1% | -6.6% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 1.28x | -43.8% | -37.4% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $10.9B | +78.6% | +37.1% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | -4.79 vs 5.92 | -180.9% | -2.00 vs 10.49 | -119.1% |
| Revenue Surprise | $2.6B vs $2.4B | +8.5% | $747.0M vs $1.5B | -50.4% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Jul 15, 2026 | Nutt Terry L | officer: President | Common Stock | A | 8,312 | $0.00 |
| Jul 15, 2026 | Nutt Terry L | officer: President | Common Stock | D | 3,271 | $385.80 |
| Jul 15, 2026 | Nutt Terry L | officer: President | 2023 Restricted Stock Units | D | 20,780 | — |
| Jun 15, 2026 | ABBAS GIZMAN I | director | Common Stock | D | 2,600 | $380.00 |
| Jun 8, 2026 | McFarland Mark Allen | director, officer: Chief Executive Officer | Common Stock | A | 260,335 | — |
Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Talen Energy First Quarter Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to Sergio Castro, Vice President and Treasurer. Please go ahead. Sergio Castro: Thank you, Kathy, and welcome to Talen Energy's First Quarter 2026 Conference Call. Speaking today are Chief Executive Officer, Mac McFarland; President, Terry Nutt; and Chief Financial Officer, Cole Muller. They are joined by other Talen senior executives to address questions during the second part of today's call as necessary. We issued our earnings release this afternoon, along with the presentation, all of which can be found in the Investor Relations section of Talen's website, talenenergy.com. Today, we are making some forward-looking statements based on current expectations and assumptions. Actual results could differ due to risk factors and other considerations described in our financial disclosures and other SEC filings. Today's discussion also includes references to certain non-GAAP financial measures. We have provided information reconciling our non-GAAP measures to the most directly comparable GAAP measures in our earnings release and the appendix of our presentation. With that, I will now turn the call over to Mac. Mark McFarland: Great. Thank you, Sergio, and good afternoon, everyone. We appreciate your interest in Talen, and we look forward to the discussion during our Q&A. But I'll start with our first quarter results. In the first quarter, we delivered strong operational and financial results, including strong plant performance during the winter cold events, and we are off to a good start to the outage season. In fact, we are in start-up at Susquehanna slightly exceeding our planned outage duration. Terry and Cole will discuss all of this in more detail later. Also in the first quarter, we signed a Cornerstone transaction, advancing our Talen Flywheel Strategy and adding meaningful free cash flow per share growth through acquisitions. Today, we are reaffirming our 2026 guidance and providing a preliminary view of our '27 and '28 outlooks. Our 2026 guidance does not include the Cornerstone assets. However, we expect to close as soon as this summer, and we will update 2026 guidance once we close. We recently closed on the financing for the Cornerstone acquisition, which positions us to close as quickly as possible once we receive all regulatory approvals. Cole will explain why we acted now in more detail. But in short, the carry cost of funding now should be more than offset by closing as soon as possible. We have also reduced market volatility risk and replaced some higher cost debt. Our preliminary '27 and '28 outlooks do include the Cornerstone assets as well as other updates, including higher current forward mark-to-market values from 3/31 of this year, improved financing costs and several other changes. …
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Mark Allen McFarland | CEO & Director | USD 4,233,661 | Male | 1969 | Active |
Cole Muller | Chief Financial Officer | USD 2,910,249 | Male | 1981 | Active |
Terry L. Nutt | President | USD 1,649,251 | Male | 1978 | Active |
Brad Berryman | Chief Operating Officer | USD 1,361,607 | Male | 1970 | Active |
Andrew Wright | Chief Administrative Officer | USD 1,337,201 | Male | 1967 | Active |
Daniel Kelly | General Counsel & Corporate Secretary | USD 1,303,565 | Male | — | Active |
John C. Wander | Senior Advisor | USD 1,303,565 | Male | 1969 | Active |
Anthony Plagens | Senior Vice President & Chief Accounting Officer | — | Male | — | Active |
Christopher Morice | Chief Commercial Officer | — | Male | 1980 | Active |
Dale E. Lebsack | Chief Asset Development Officer | — | Male | 1976 | Active |
Taryne Williams | Director of Corporate Communications | — | Female | — | Active |
Talen Energy raises 2026 guidance and its 2028 cash-flow outlook while advancing grid-connected data centers and preserving merchant upside in PJM.
Talen Energy Corporation is rated Buy with a $575/share 2028 price target, driven by strong capacity auction results and robust FCF projections. TLN benefits from multi-year visibility into rising contracted revenues, with capacity prices at PJM's cap and 20% further upside expected in 2H-2026. Transmission upgrades and in-zone demand growth could narrow the $20/MW-hr PPL basis, potentially boosting FCF yield to 17% or higher by 2028.
Talen Energy NASDAQ: TLN reported second-quarter adjusted EBITDA of $374 million and adjusted free cash flow of $212 million, citing contributions from recently acquired natural gas plants, higher PJM capacity pricing, increased generation volumes and the ramp of its AWS contract.
Talen Energy Corporation (TLN) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $3.2 per share. This compares to a loss of $1.19 per share a year ago.
Talen Energy Corporation (TLN) Q2 2026 Earnings Call Transcript
