$TAC

TRANSALTA CORP

CIK:0001144800|SEC Filings

Consolidated Statements of (Loss) Earnings - CAD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Profit or loss [abstract]
Revenues (Note 5)	$ 2,405	$ 2,845
Fuel and purchased power (Note 6)	935	939
Carbon compliance costs (Note 16)	50	112
Gross margin	1,420	1,794
Operations, maintenance and administration (Note 6)	711	655
Depreciation and amortization (Note 19, 20, 21 and 27)	579	531
Asset impairment (reversals) charges (Note 7)	(13)	46
Taxes, other than income taxes	50	36
Net other operating income (Note 8)	(47)	(59)
Operating income	140	585
Equity income (Note 9)	6	5
Fair value change in contingent consideration payable (Note 7)	37	0
Finance lease income (Note 17)	23	14
Interest income	28	30
Interest expense (Note 10)	(347)	(324)
Foreign exchange (loss) gain	(21)	5
(Loss) gain on sale of assets and other	(7)	4
(Loss) earnings before income taxes	(141)	319
Income tax expense (Note 11)	17	80
Net (loss) earnings	(158)	239
Net (loss) earnings attributable to:
Common shareholders	(138)	229
Non-controlling interests (Note 12)	(20)	10
Net (loss) earnings	(158)	239
Preferred share dividends (Note 29)	52	52
Net (loss) earnings attributable to common shareholders	$ (190)	$ 177
Weighted average number of common shares outstanding in the year (in shares)	297	302
Net earnings (loss) per share attributable to common shareholders, basic (in CAD per share)	$ (0.64)	$ 0.59
Net earnings (loss) per share attributable to common shareholders, diluted (in CAD per share)	$ (0.64)	$ 0.59

Consolidated Statement of Cash Flows - CAD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Operating activities
Net (loss) earnings	$ (158)	$ 239
Depreciation and amortization	579	531
Gain on sale of assets and other	(1)	(1)
Accretion of provisions	57	50
Decommissioning and restoration costs settled	(39)	(41)
Deferred income tax (recovery) expense	(32)	(63)
Unrealized loss from risk management activities	289	2
Unrealized foreign exchange loss (gain)	6	(29)
Provisions and contract liabilities	(32)	23
Asset impairment charges	(13)	46
Equity (loss) income, net of distributions from investments	(1)	0
Other non-cash items	(12)	1
Cash flow from operations before changes in working capital	643	758
Change in non-cash operating working capital	3	38
Cash flow from operating activities	646	796
Investing activities
Additions to property, plant and equipment (Note 19 and 37)	(249)	(311)
Additions to intangible assets (Note 21 and 37)	(11)	(10)
Restricted cash (Note 25)	(7)	(1)
Loan advances (Note 23)	(6)	(1)
Increase in long-term financial assets (Note 14)	0	(217)
Increase in long-term financial assets (Note 14)	(145)	0
Investments (Note 9)	(7)	(5)
Proceeds on sale of property, plant and equipment	8	4
Realized (loss) gain on financial instruments	(2)	1
Decrease in finance lease receivable (Note 17)	30	21
Development expenditures	(2)	(6)
Other	(4)	25
Change in non-cash investing working capital balances	(23)	(20)
Cash flow used in investing activities	(418)	(520)
Financing activities
Net (decrease) increase in borrowings under credit facilities (Note 25 and 33)	(448)	143
Repayment of long-term debt (Note 25 and 33)	(736)	(131)
Issuance of long-term debt (Note 25 and 33)	991	0
Repurchase of common shares under NCIB (Note 28)	(24)	(143)
Proceeds on issuance of common shares	3	12
Realized gain on financial instruments	2	4
Distributions paid to subsidiaries' non-controlling interests (Note 12)	(11)	(40)
Decrease in lease liabilities (Note 25 and 33)	(4)	(6)
Financing fees and other	(8)	(1)
Change in non-cash financing working capital balances	(1)	(6)
Cash flow used in financing activities	(362)	(291)
Cash flow used in operating, investing and financing activities	(134)	(15)
Effect of translation on foreign currency cash	2	4
Decrease in cash and cash equivalents	(132)	(11)
Cash and cash equivalents, beginning of year	337	348
Cash and cash equivalents, end of year	205	337
Supplemental cash flow information
Cash taxes paid	85	104
Cash interest paid	282	269
Cash interest received	28	30
Common shares
Financing activities
Dividends paid on common shares/preferred shares	(74)	(71)
Preferred shares
Financing activities
Dividends paid on common shares/preferred shares	$ (52)	$ (52)

Consolidated Statements of Financial Position - CAD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Current assets
Cash and cash equivalents	$ 205	$ 337
Restricted cash (Note 25)	78	69
Trade and other receivables	699	767
Prepaid expenses and other	51	68
Risk management assets (Note 14 and 15)	162	318
Inventory (Note 16)	111	134
Assets held for sale (Note 4 and 18)	30	80
Current assets	1,336	1,773
Non-current assets
Investments (Note 9)	144	159
Long-term portion of finance lease receivables	277	305
Risk management assets non-current	32	93
Property, plant and equipment (Note 19)	5,665	6,020
Right-of-use assets	111	120
Intangible assets	243	281
Total goodwill	516	517
Deferred income tax assets (Note 11)	41	52
Long-term financial assets (Note 14)	140	0
Other assets (Note 23)	156	179
Total assets	8,661	9,499
Current liabilities
Bank overdraft	0	1
Accounts payable, accrued liabilities and other current liabilities (Note 13)	613	756
Current portion of decommissioning and other provisions (Note 24)	84	83
Risk management liabilities (Note 14 and 15)	156	277
Dividends payable (Note 28 and 29)	52	49
Exchangeable securities (Note 26)	750	750
Contingent consideration payable (Note 4 and 7)	0	81
Current portion of long-term debt and lease liabilities (Note 25)	175	572
Current liabilities	1,830	2,569
Non-current liabilities
Credit facilities, long-term debt and lease liabilities (Note 25)	3,418	3,236
Decommissioning and other provisions (Note 24)	807	850
Deferred income tax liabilities (Note 11)	423	470
Risk management liabilities (Note 14 and 15)	519	305
Contract liabilities (Note 5)	26	24
Defined benefit obligation and other long-term liabilities (Note 27)	173	202
Total liabilities	7,196	7,656
Equity
Common shares (Note 28)	3,169	3,179
Preferred shares (Note 29)	942	942
Contributed surplus	42	42
Deficit	(2,730)	(2,458)
Accumulated other comprehensive (loss) income (Note 30)	(24)	41
Equity attributable to shareholders	1,399	1,746
Non-controlling interests (Note 12)	66	97
Total equity	1,465	1,843
Total liabilities and equity	$ 8,661	$ 9,499