TransAlta Returns to Profit in Q3 2026, Pivots Alberta Assets Toward Data Center Growth
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Key Takeaways
- TransAlta posted Q3 2026 net earnings of $63 million, a recovery from a $62 million loss in the prior year period.
- Adjusted EBITDA rose to $264 million, driven by high fleet availability and effective price hedging in the Alberta market.
- The company is mothballing Battle River and Sundance 6 units to optimize the fleet for future data center opportunities.
- The Keephills data center project was officially rebranded as the Boreal Technology Hub.
- TransAlta completed the acquisition of Colorado gas assets and a partial sale of Oklahoma wind assets in October 2026.
TransAlta (NYSE: TAC) Corporation (TSX: TA; NYSE: TAC) announced its financial results for the quarter ending September 30, 2026, highlighting a swing to net earnings of $63 million, or $0.20 per share. This compares favorably to the $62 million net loss, or $0.20 per share, recorded during the same three-month period in 2025. The company maintained high operational uptime at 92.6%, nearly matching the 92.7% achieved in the prior year.
Adjusted EBITDA for the quarter reached $264 million, up from $238 million year-over-year. Management attributed the stronger margins to disciplined asset optimization and a robust environmental credit portfolio. Despite a 14.5% drop in total generation to 5,260 GWh and a decline in revenue to $536 million from $615 million, the company's hedging strategy allowed it to secure power prices in Alberta that significantly outperformed market spot rates.
Strategic shifts in the Alberta portfolio include the temporary mothballing of units at Battle River and an extension of the outage at Sundance 6. CEO Joel Hunter noted that these measures are designed to maintain the long-term economic viability of the assets as the company explores opportunities in the data center market. Relatedly, the Keephills data center initiative has been renamed the Boreal Technology Hub, focusing on utilizing existing generation to support provincial grid reliability and high-density computing loads.
Expansion and liquidity efforts in October included the purchase of gas-fired assets in Colorado and the sale of a minority stake in an Oklahoma wind portfolio. These moves are intended to provide immediate cash flow while improving the balance sheet. In terms of segment performance, the Gas division led with $139 million in adjusted EBITDA, followed by Hydro at $76 million and Wind and Solar at $52 million.
