TLN

Download the Complete Report Here Key Takeaways: 2Q26 reinforced IMSR’s milestone-driven commercialization roadmap; the more important development was a material improvement in the long-term economics of the business. Terrestrial Energy advanced across all three execution pillars, engineering and regulation, supply chain, and commercial development, with Texas A&M moving into site execution, NRC and DOE programs progressing, and Riot advancing toward first-site selection. At the same time, management raised estimated lifetime revenue per IMSR Plant to approximately $2.7 billion from $2.1 billion and blended gross margin to 33% from 22%, with 79% of revenue expected after construction through Core-unit and Fuel Salt supply. Commercial and regulatory execution improved visibility into IMSR’s next phase of development. Site control and development agreements moved the flagship RELLIS project into active site-level work, while NRC approval of the PIE methodology added a second reusable foundational element to the IMSR licensing basis and continued TETRA/TEFLA progress further advanced the licensing and fuel-readiness pathway. We view these developments as strengthening the quality of IMSR’s flagship project while further de-risking the path toward commercial deployment. Liquidity remains a meaningful strategic advantage as IMSR moves into a more execution-intensive phase. The company ended 2Q26 with approximately $283.4 million of cash and investments, while quarterly burn declined to $6.4 million, or approximately $2.2 million per month, from $7.9 million in 1Q26. With spending expected to increase in 2H26 as site work, testing and program activity ramp, the balance sheet and absence of financial debt provide substantial flexibility to fund near-term de-risking without creating near-term financing pressure. Texas A&M-RELLIS made the most important project-level progression during the quarter, moving from commercial project selection toward site-specific execution. Terrestrial Energy signed ground-lease and research agreements covering approximately 77 acres at RELLIS, securing site control and enabling characterization and environmental work required for a future NRC construction permit application. The company subsequently engaged Zachry Nuclear to support site characterization and data collection, adding established nuclear engineering capability to the development effort. We view this as a meaningful step beyond the original project announcement, as RELLIS is now progressing from commercial intent toward a controlled development site with work underway to support permit preparation. The next phase should be measured by progress through site characterization, environmental review and construction-permit preparation. These activities are contributing to the expected 2H26 spending ramp, but successful execution would further reduce project risk and improve readiness for licensing, financing and eventual construction. The unit-economics reset meaningfully improves the revenue and gross-profit potential embedded in each successful IMSR deployment. Following roughly 12 to 18 months of additional engineering work, management increased estimated cumulative revenue per IMSR Plant to approximately $2.7 billion from $2.1 billion, or roughly 29%, while blended gross margin rose to 33% from 22%. The revision reflects refinement of the underlying economics rather than a change in the plant design or business model. The revised model includes approximately $98 million of pre-construction revenue at a 23% margin, $477 million of construction services and component supply at 26%, $1.58 billion of Core-unit supply at 33%, and $583 million of Fuel Salt supply at 40%. Fuel strategy remains a core IMSR differentiator, combining a simpler supply-chain pathway with a meaningful recurring revenue opportunity. Management estimates approximately $583 million of Fuel Salt revenue over the life of an IMSR Plant, representing 21% of lifetime revenue at a 40% gross margin. IMSR uses standard-assay LEU enriched below 5% U-235, avoiding the HALEU supply constraints facing many advanced-reactor designs, while Westinghouse is working with Terrestrial Energy on the supply of enriched uranium tetrafluoride and TEFLA is developing the downstream process required to produce commercial IMSR Fuel Salt. Because IMSR is liquid-fueled, the production chain eliminates a separate physical fabrication step involving fuel pins, assemblies or TRISO particles, while qualification is focused on establishing the thermophysical characteristics of the liquid fuel chemistry rather than demonstrating the structural performance of physical fuel elements and cladding. While commercial Fuel Salt production and qualification still need to be completed, the combination of standard enrichment and fewer fabrication steps could reduce an important source of fuel supply complexity and support a high-margin, long-duration revenue stream. Liquid fuel qualification remains less familiar to regulators, however, and still represents an execution requirement. NRC approval of the PIE methodology adds a second reusable element to the IMSR licensing basis. The broader regulatory program is now shifting toward the technical data required for plant licensing and commercial readiness. The approval follows the earlier Principal Design Criteria report, with both analyses able to be referenced in future applications without repeating the underlying regulatory review, an important feature for standardized fleet deployment. Management expects at least two additional Topical Report submissions during the remainder of 2026, while TETRA continues to generate reactor data for a future NRC operating license application, TEFLA advances the commercial Fuel Salt production process, and expanded graphite irradiation testing at NRG Petten supports materials qualification and supplier selection. Supply chain execution is also progressing through continued procurement of fuel, components and services for TETRA and TEFLA, alongside Westinghouse engagement on enriched uranium tetrafluoride supply. We view progress across these programs as continuing to reduce the key regulatory, technical and supply chain dependencies ahead of commercial deployment. The Riot collaboration remains IMSR’s largest incremental data-center opportunity, but the next meaningful milestone is conversion of the 4GW framework into an identifiable first project. Riot and Terrestrial Energy are evaluating multiple IMSR Plants representing up to 4GW of potential nuclear capacity within the broader 7.8GW commercial pipeline, with management now focused on down-selecting an initial site. We believe the opportunity should increasingly be measured by progress toward site control, development scope, financing and offtake rather than aggregate GW, as first-site selection would begin converting a broad commercial framework into a site-specific development opportunity. Project financing should become an increasingly important measure of commercial de-risking as IMSR’s project pipeline advances, particularly given Terrestrial Energy’s capital-light role. Management does not expect first-of-a-kind projects to rely solely on conventional non-recourse project finance, with early deployments more likely to require a combination of strategic customer capital, infrastructure partners and government support. Importantly, Terrestrial Energy intends to direct corporate capital toward engineering, licensing, Core-unit manufacturing and Fuel Salt production rather than owning and funding multibillion-dollar generating assets. We therefore view evidence of third-party capital formation around Texas A&M, Riot and other projects as an increasingly important commercial KPI, as it would validate the ability to advance deployments while preserving the company’s capital-light business model. Leadership additions are increasingly aligned with the next phase of licensing and project execution. Pamela Cowan joined as EVP of Engineering in July with more than 35 years of nuclear-sector experience, while Kathryn McCarthy joined the Board following senior nuclear-project roles at Idaho National Laboratory and Oak Ridge National Laboratory. The organizational buildout is also beginning to show in the cost base, with 2Q26 G&A expense rising approximately $0.7 million sequentially to $8.0 million, including roughly $0.5 million of higher stock-based compensation. We view the increase as primarily supporting execution capacity as RELLIS enters site work, additional NRC submissions are prepared, and TETRA/TEFLA activity advances. Financial performance remained consistent with IMSR’s pre-revenue development stage, with sequential loss improvement primarily reflecting testing timing and higher investment income rather than a change in underlying spending requirements. Net loss narrowed to $9.4 million from $10.5 million in 1Q26, while R&D declined approximately $1.1 million sequentially to $3.5 million as certain testing expenditures shifted between periods and G&A increased to $8.0 million from approximately $7.3 million. Other income improved to approximately $2.35 million, supported by $2.48 million of interest and dividend income and minimal interest expense. We continue to view GAAP earnings as a secondary KPI at this stage, with the more relevant measure being whether development spending translates into licensing, technical and commercial milestones. Liquidity remains a meaningful strategic advantage as IMSR enters a more execution-intensive phase of commercialization and project development. Terrestrial Energy ended June with approximately $283.4 million of cash and investments, compared with $289.9 million at the end of 1Q26, while quarterly cash burn declined to $6.4 million, or approximately $2.2 million per month, from $7.9 million in 1Q26. The improvement largely reflected timing and scope changes across testing activities, including the expanded graphite irradiation program, while management expects spending to increase through the second half as RELLIS site characterization, testing, DOE-backed TETRA/TEFLA programs and organizational capacity ramp. Working-capital requirements remain modest, with accounts payable and accrued expenses of approximately $4.3 million and total current liabilities of only $6.2 million at quarter end. With more than $280 million of liquidity and no financial debt, IMSR retains substantial flexibility to fund this higher level of activity without near-term financing pressure. A key monitorable is whether the 2H26 spending ramp converts into tangible regulatory, technical and project milestones that further de-risk commercialization. 2H26 should be defined by higher investment and additional de-risking across licensing, project development and the two principal supply businesses. Management continues to expect at least two additional NRC Topical Report submissions during the remainder of 2026, while work at the approximately 77-acre Texas A&M-RELLIS site should progress through characterization, environmental evaluation and preparation for a future construction permit application. TETRA and TEFLA remain central to generating licensing-quality reactor data and developing the commercial Fuel Salt production process, while additional graphite irradiation cycles support materials qualification and supplier down-selection. Commercially, the next steps include advancing Riot toward first-site selection within the previously announced up-to-4GW framework and developing the Core-unit and Fuel Salt production capabilities that underpin 79% of estimated lifetime plant revenue and the revised ~$2.7 billion per-plant economics. With spending expected to rise from the $6.4 million 2Q26 burn, we believe 2H26 execution should be judged less on near-term earnings and more on whether incremental investment converts into tangible licensing, site, fuel and manufacturing milestones that support the targeted 2034 first commercial operation. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. IMSR’s current valuation assigns a relatively modest enterprise value to the technology and development platform despite substantial liquidity and improving commercial economics. At $5.81 per share, Terrestrial Energy carries a market capitalization of roughly $616 million and adjusted enterprise value of approximately $332 million after netting $283.4 million of cash and investments at 2Q26 end, with no meaningful financial debt. Liquidity therefore represents approximately 46% of current equity value, while the remaining enterprise value reflects the company’s reactor technology and IP, two approved foundational NRC analyses, Texas A&M-RELLIS development site, DOE-supported TETRA and TEFLA programs, and commercial project pipeline. The valuation discount has widened despite continued regulatory, commercial and economic de-risking. At approximately $5.81 per share, IMSR trades well below the current Street target mean of $13.50. The shares also remain more than 40% below the $10.00 SPAC transaction price. More recently, adjusted EV has declined approximately 31% from the ~$482 million level at our May earnings update to ~$332 million currently, despite subsequent progress across Texas A&M site development, continued NRC and DOE execution, and the increase in estimated lifetime revenue per plant to ~$2.7 billion from $2.1 billion with blended gross margin rising to 33% from 22%. IMSR remains pre-revenue and meaningful licensing, engineering and project execution risks remain, but continued progress across NRC submissions, RELLIS development, Fuel Salt and Core-unit manufacturing, Riot first-site selection and project financing should incrementally reduce the probability discount applied to future deployments. Relative valuation provides additional context for the re-rating opportunity. Established Gen III operators command substantially higher EVs supported by operating assets and cash flows, while pre-revenue Gen IV developers trade primarily on regulatory progress, project visibility, fuel readiness and execution credibility. Within the advanced-reactor group, IMSR’s ~$332 million adjusted enterprise value remains toward the lower end of the peer range, despite substantial liquidity and continued progress across licensing, site development and commercial readiness. Given material differences in reactor technology, licensing maturity and business model, peer EVs are not directly comparable, but the current discount reinforces the extent to which commercialization timing and execution risk remain embedded in IMSR’s valuation. Successful delivery against upcoming regulatory, fuel, project and financing milestones provides the clearest pathway toward narrowing that gap. Read Exec Edge’s Initiation on Terrestrial Energy Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Terrestrial Energy’s Lifetime Revenue Up 29%, Advancing in Texas A&M, DOE Fuel Program – Quarterly Update Report appeared first on ExecEdge.

Talen Energy Corporation TLN used the second-quarter 2026 earnings call to emphasize cash-flow visibility, PJM economics and a front-of-the-meter data center strategy. Management raised 2026 guidance after Cornerstone closed and increased its 2028 free-cash-flow-per-share outlook. The call covered PJM regulation, the wider PPL basis discount and preserving merchant upside while expanding contracted revenue. Chief financial officer Cole Muller said 2026 adjusted EBITDA guidance increased to $2.025 billion-$2.225 billion, while adjusted free cash flow guidance rose to $1.2 billion-$1.35 billion. The ranges reflect Cornerstone, updated market conditions and the pending Keystone sale. Muller said the 2027 base-case free cash flow outlook remains $34 per share, while 2028 increased to $40. Including projected buybacks, management forecasts about $37 per share in 2027 and $48 in 2028. Second-quarter earnings of $0.16 per share missed the $3.20 consensus estimate. Revenues of $747 million also lagged the Zacks Consensus Estimate of $792.6 million. Talen Energy Corporation price-consensus-eps-surprise-chart | Talen Energy Corporation Quote Chief executive officer Mac McFarland said Talen remains committed to owning low-cost baseload generation and converting more generation into long-term contracts. He emphasized flexible structures rather than a change in strategic direction. Muller said Talen has about 4 GW of data center sites with utility load commitments and more than 2 GW of new-build capacity projects supported by interconnection queue positions. Muller said the existing nearly 2 GW AWS contract could lift long-term contracted gross margin from 10% to 35% at full build-out between 2028 and 2030. Another roughly 2 GW of comparable contracts could raise the mix to 60% beyond 2030. President Terry Nutt said the PPL discount to PJM West Hub widened from a historical level of about $9 per MWh to roughly $20, reflecting transmission outages and supply conditions. Nutt said transmission upgrades and PPL load should help compress the basis. In response to a Goldman Sachs analyst, Muller clarified that the 2027 and 2028 outlooks use current PPL marks, leaving basis normalization as upside. A BNP Paribas analyst asked about hedging. Nutt said Talen uses instruments that protect outcomes while retaining upside, and McFarland noted that 2028 hedges increased to about 30% from 25% quarter over quarter. McFarland said Talen does not view behind-the-meter arrangements as its long-term model. The company is targeting grid-connected solutions pairing existing energy with new capacity such as uprates, batteries and peakers. A Morgan Stanley analyst asked whether customer discussions are shifting toward hybrid new-build structures. Muller said Talen is seeing interest in both existing-generation contracts and hybrid solutions from hyperscalers and other customers. When a Raymond James analyst asked about timing, McFarland said there is no single gating item. He cited customer planning cycles, regulation and the narrowing window for late-2020s power projects. McFarland said the Reliability Backstop Procurement framework was largely consistent with expectations and that Talen plans to participate, without guaranteeing participation. He described the proposed $555-per-MWd limit as an average-based soft cap. On the Interim Resource Adequacy Service, McFarland argued that PJM should prioritize bringing new generation onto the system rather than relying on load curtailment. He said Talen would assess the final details before judging the framework. Nutt added that PPL does not face a resource adequacy shortfall because the zone is generation-heavy. Nutt said that positioning matters when evaluating rule changes. McFarland and Nutt centered on disciplined capital allocation, contracting more baseload generation and advancing capacity projects only when returns justify investment. They also kept share repurchases as the hurdle for other uses of capital. Muller said Talen’s near-term margin mix remains driven by PJM energy and capacity, while the longer-term strategy is designed to increase durable contracted revenue. TLN carries a Zacks Rank #3 (Hold). Its Growth Score, Momentum Score and VGM Score are all A, while its Value Score is C. Under the Zacks framework, the A grades indicate favorable growth, momentum and combined style characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Rank #3 is neutral rather than a top-tier #1 or #2 (Buy) signal, so the strong Style Scores are complementary rather than overriding. The Zacks Rank can change as earnings estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Talen Energy Corporation (TLN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -95.00%. A quarter ago, it was expected that this power generation and infrastructure company would post earnings of $5.28 per share when it actually produced earnings of $5.55, delivering a surprise of +5.11%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Talen Energy Corporation, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $747 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.75%. This compares to year-ago revenues of $630 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Talen Energy Corporation shares have lost about 9.3% since the beginning of the year versus the S&P 500's gain of 13%. While Talen Energy Corporation has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Talen Energy Corporation was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $9.84 on $1.21 billion in revenues for the coming quarter and $23.87 on $4.44 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Sempra (SRE), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This natural gas and electricity provider is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of +13.5%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. Sempra's revenues are expected to be $3.22 billion, up 7.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Talen Energy Corporation (TLN) : Free Stock Analysis Report Sempra (SRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Talen Energy Corporation? Here are five stocks we like better. Strong second-quarter performance: Talen Energy reported $374 million in adjusted EBITDA and $212 million in adjusted free cash flow, driven by newly acquired gas plants, higher PJM capacity pricing, stronger generation and the ramp-up of its AWS contract. Raised 2026 outlook: The company increased its adjusted EBITDA guidance to $2.025 billion–$2.225 billion and free cash flow guidance to $1.2 billion–$1.35 billion, while maintaining plans to return at least 70% of free cash flow through share repurchases. Growth strategy targets rising power demand: Talen added more than 2.5 gigawatts through its Waterford, Darby and Lawrenceburg acquisitions and is pursuing data-center contracts, powered-land projects and new capacity as PJM demand and power-market pricing strengthen. Microsoft Solves AI’s Biggest Bottleneck With Chevron Deal 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. For the first half of 2026, the company generated $847 million of adjusted EBITDA and $562 million of adjusted free cash flow. President Terry Nutt said Talen had more than $1.9 billion of liquidity, supported by cash from operations. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 5 Stocks Winning the AI Race While Everyone Watches NVIDIA Chief Executive Officer Mac McFarland said the company remains focused on its “flywheel” strategy: operating existing baseload generation assets in favorable locations, pursuing long-term power contracts, advancing powered-land opportunities and developing incremental capacity through batteries, peakers and plant uprates. In June, Talen completed the acquisition of the Waterford, Darby and Lawrenceburg plants, adding more than 2.5 gigawatts of natural gas-fired generation capacity. McFarland said the assets were added ahead of the peak summer-demand period. → 3 Drone Stocks That Should Soar After the Summer Slump Atomic Dividends: Big Tech's New Energy Bet Nutt said the company’s fleet produced about 30 terawatt-hours of electricity during the first half, with a 51% fleetwide capacity factor. That was 14 percentage points higher than the prior year, reflecting the addition of Freedom and Guernsey and increased operating time at intermediate and peaking assets. The company reported an equivalent forced outage factor of 3.9% and a recordable incident rate of 0.27, which Nutt said remained below the industry average. He also said that 70% of the 10 highest peak-load days in the modern PJM market have occurred during the past 15 months, including five in July alone. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth “Significant load growth is here and more is coming,” Nutt said, pointing to PJM demand growth forecasts of more than 17% through the end of the decade and projected U.S. power-demand growth of more than 20% over the same period. Chief Financial Officer Cole Muller said Talen raised its 2026 adjusted EBITDA guidance range to $2.025 billion to $2.225 billion and its adjusted free cash flow outlook to $1.2 billion to $1.35 billion. The updated ranges incorporate the Cornerstone acquisition, current market conditions, financing activity and an offset from the pending sale of Talen’s interest in Keystone. The company repurchased 550,000 shares during the quarter and reiterated its objective to return 70% of adjusted free cash flow to shareholders through its share repurchase program. Talen has $1.7 billion remaining under its authorized repurchase program, though Muller noted that additional board approval will be required to fully execute it. Talen maintained its 2027 adjusted free cash flow outlook of $34 per share and increased its 2028 outlook to $40 per share, based on a share count of 47.9 million shares at the end of the second quarter. Including anticipated buybacks, the company forecast approximately $37 per share in 2027 and $48 per share in 2028. Muller said Talen expects to generate about $4 billion in adjusted free cash flow from the balance of 2026 through the end of 2028. At least 70%, or $2.8 billion, is expected to be allocated to share repurchases, while the company continues to target net leverage of 3.5 times. Management highlighted stronger PJM energy and capacity market fundamentals. McFarland said West Hub spark spreads have increased nearly 50% from a year earlier, while Nutt said 2028 spark spreads in the PPL zone and AEP Dayton Hub were up 28% and 27%, respectively, compared with pricing used at the company’s 2025 investor day. Talen also discussed a widening discount between PPL-zone power prices and PJM West Hub prices. Nutt said the historical discount was roughly $9 per megawatt-hour but has expanded to about $20 per megawatt-hour in recent months, partly due to transmission work south of Talen’s generating assets. Management expects completion of transmission upgrades and further load growth within the PPL zone to help narrow the basis over time. Muller said Talen’s 2027 and 2028 projections use current PPL market pricing and do not assume a narrowing of the basis. He said each $1 per megawatt-hour improvement in zonal basis across the portfolio would equate to about $1 per share of adjusted free cash flow. The company continues to pursue long-term power purchase agreements for its existing generation and potential hybrid arrangements that pair existing energy supply with new capacity projects. Muller said Talen has about 4 gigawatts of data-center development sites with utility load commitments and more than 2 gigawatts of new-build capacity projects supported by interconnection queue positions. Management said it is targeting grid-connected, front-of-the-meter solutions rather than behind-the-meter arrangements. McFarland said the company believes hybrid structures involving existing generation, new capacity and powered land could offer customers a more reliable and lower-cost approach than behind-the-meter alternatives. During the question-and-answer session, McFarland said Talen generally supports PJM’s Reliability Backstop Procurement, or RBP, framework and intends to evaluate participation. He said the company was still reviewing the details of PJM’s filing and expects projects in its development pipeline could be viable candidates. McFarland also said Talen was awaiting further details regarding PJM’s Interim Resource Adequacy Service proposal. Management emphasized that the PPL zone is currently oversupplied with generation and said Talen’s assets are positioned in areas without a resource adequacy shortfall. “We should be trying to figure out how to solve the load by bringing new gen,” McFarland said, rather than relying on measures that curtail or limit load growth. Talen Energy Inc is an independent power producer that develops and operates a diversified portfolio of thermal and renewable generation facilities across the United States. The company supplies wholesale electricity and related services to utilities, large industrial customers, and power marketers, participating actively in regional markets such as PJM Interconnection and the Electric Reliability Council of Texas (ERCOT). Talen's asset base comprises a mix of natural gas-fired, coal-fired and nuclear generation, supplemented by battery storage and other flexible resources designed to support the evolving needs of the grid. Established in December 2015 through the combination of the competitive generation businesses previously held by two major utility groups, Talen Energy was structured as a standalone, publicly traded entity on the NASDAQ stock exchange (TLN). This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Talen Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Adjusted EBITDA (Q2 2026): $374 million. Adjusted Free Cash Flow (Q2 2026): $212 million. Adjusted EBITDA (Year-to-Date 2026): $847 million. Adjusted Free Cash Flow (Year-to-Date 2026): $562 million. Free Cash Flow Conversion Rate (Year-to-Date): Mid-60% range. 2026 Adjusted EBITDA Guidance: Raised to $2.025 billion to $2.225 billion. 2026 Adjusted Free Cash Flow Guidance: Raised to $1.2 billion to $1.35 billion. 2027 Adjusted Free Cash Flow Outlook: $34 per share (base case, flat share count). 2028 Adjusted Free Cash Flow Outlook: $40 per share (base case, flat share count). 2027 Adjusted Free Cash Flow Outlook (with buybacks): Approximately $37 per share. 2028 Adjusted Free Cash Flow Outlook (with buybacks): $48 per share. Total Adjusted Free Cash Flow Forecast (2026-2028): Approximately $4 billion. Share Repurchase Program: 550,000 shares bought back during Q2 2026; $1.7 billion remaining under authorization. Shareholder Return Target: At least 70% of adjusted free cash flow. Liquidity: Over $1.9 billion. Fleet Capacity Factor: 51% (14 percentage points higher than prior year). Total Generation: Approximately 30 terawatt hours in Q2; grew 13% on a pro forma basis. Equivalent Forced Outage Factor: 3.9%. Recordable Incident Rate: 0.27. Warning! GuruFocus has detected 6 Warning Signs with TLN. Is TLN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Talen Energy Corp (NASDAQ:TLN) delivered strong Q2 2026 results with adjusted EBITDA of $374 million and adjusted free cash flow of $212 million, reflecting the value of recent acquisitions and higher market prices. The company raised its 2026 guidance for adjusted EBITDA to $2.025-$2.225 billion and adjusted free cash flow to $1.2-$1.35 billion, driven by the Cornerstone acquisition and improved market conditions. Talen Energy Corp (NASDAQ:TLN) increased its 2027 and 2028 free cash flow per share outlooks to $37 and $48, respectively, with a plan to return at least 70% of cash flow to shareholders through buybacks. PJM market fundamentals are strengthening, with West Hub spark spreads up nearly 50% year-over-year and capacity auctions clearing at price caps, supporting higher energy and capacity prices for Talen Energy Corp (NASDAQ:TLN)'s assets. The company is advancing a 4-gigawatt data center development pipeline and a 2+ gigawatt new capacity project pipeline, positioning it to secure long-term PPAs and reduce merchant market exposure. Talen Energy Corp (NASDAQ:TLN) faces a widening PPL zonal basis discount, which has grown to approximately $20 per megawatt hour, negatively impacting realized power prices in the near term. Regulatory uncertainty persists with PJM's RVP and IRAS proposals, which could affect capacity market outcomes and add complexity to contracting strategies. The company's 2027 and 2028 outlooks are based on current PPL marks, leaving limited upside if the zonal basis does not narrow as expected. Talen Energy Corp (NASDAQ:TLN) has not yet secured new long-term PPAs beyond the existing AWS contract, and the timing of future contracts remains uncertain due to customer decision cycles. The company's development pipeline faces execution risks, including equipment sourcing and cost pressures for new capacity projects, which could impact returns. Q: What are Talen Energy's thoughts on PJM's recent FERC filing on the Reliability Pricing Model (RBP) framework, and to what degree does the company plan to participate in the central procurement or bilateral processes?A: CEO Mark McFarland stated the filing was largely as expected and that Talen is supportive of the RVP, planning to participate with several viable project options. He highlighted the $555 cap as a "soft cap" that allows for solving more based on offers, and noted the company is still working through the 695-page document. McFarland emphasized the importance of meeting the schedule to finalize by September 29 and execute on the 30th, ahead of the December auction, and expressed hope that existing contracts would be protected. Q: Can you expand on the pricing assumptions embedded in the updated 2027 and 2028 free cash flow per share outlook, and if there is any assumption on PPL basis narrowing to bridge to the 2028 figure?A: CFO Cole Muller clarified that the outlook uses current PPL marks as-is, meaning the upside potential would come from the narrowing of the zonal basis. The company's base case holds share count flat at 47.9 million shares, with 2027 free cash flow outlook at $34 per share, increasing to $40 per share in 2028. When accounting for buybacks, the forecast rises to approximately $37 per share for 2027 and $48 per share for 2028, representing over a 14% free cash flow yield. Q: How is Talen thinking about its hedging strategy given the changing PJM curves and the potential for stepwise moves in 2028-2030, while maintaining upside potential?A: President Terry Nutt explained that Talen uses instruments that allow for fencing in outcomes while still participating in upside, with some delta positions that move with prices. CEO Mac McFarland added that while hedges increased about 5% in 2028 quarter-over-quarter to 25-30%, the company remains longer on the back end of the curve. He noted that forward prices have finally started reflecting market tightness, which also influenced their acquisition strategy, as they purposely acquired longer baseload generation energy that was underpriced. Q: With the hybrid strategy being grid-connected, when do you anticipate contracting on this, and is there a gating item such as the auction or regulatory finalization?A: CEO Mac McFarland indicated there isn't one particular gating item, noting that regulatory noise is a factor but not the biggest. He explained that hyperscalers are spending $50 billion annually and are focused on near-term needs for 2027-2028, with 2029 becoming the new focus. McFarland emphasized it's a matter of "when, not if" for contracting, as customers allocate time across various factors. He stressed that Talen's front-of-the-meter, grid-connected solutions with or without new capacity additions represent the long-term solution versus behind-the-meter alternatives. Q: Does the backstop auction cap at $555 change what you would add or bid into that auction, and does it shift towards more batteries since new build gas might not pencil at that level?A: CEO Mark McFarland explained that the $555 cap works as a floating cap based on averages, allowing some projects to clear above it. He identified uprates, batteries, and peakers as the likely winning solutions, though peakers would be higher up the stack. McFarland noted that decisions depend on whether participants amortize costs over the 15-year period or take merchant risk in year 16. He expressed hope that the RBP is headed in the right direction to solve near-term political problems, allowing focus on longer-term capacity reforms. Q: How important is Connect and Manage (IRAS) to your strategy given the new build portfolio and locational benefits of existing assets, especially in the PPL zone?A: CEO Mark McFarland stated that the hybrid strategy provides a "safe harbor" to Connect and Manage, but noted jurisdictional and discriminatory issues associated with it. President Terry Nutt added that PPL zone does not have a resource adequacy problem as it is oversupplied with generation, meaning Talen's assets are situated where there isn't an adequacy problem. McFarland emphasized the need to see the actual proposal before judging, as there were changes in the RVP filing, and noted the rule is really about curtailment during emergency situations where PJM already has authority. Q: What is the premium or spread over observable forwards that you could contract gas assets at, and has there been compression of that premium as forwards pick up?A: CEO Mark McFarland declined to provide specific pricing details but explained that Talen can blend existing energy with new capacity (peakers and batteries) over a long-term contract that creates value versus current market positions. He stated this approach lowers their cost of capital and beats any new build CCGT or behind-the-meter solution on total cost. McFarland emphasized that PPL can absorb load growth, which helps solve the basis issue, making their advantaged assets in advantaged regions a winning proposition. Q: Are you seeing a trend in data center discussions toward hybrid newbuild solutions overall versus existing generation?A: CFO Cole Muller confirmed seeing hyperscalers and others engaging on the hybrid model, with "bring your own new capacity" being of significant interest. CEO Mark McFarland added that different customers have different views on new capacity versus existing, with Neo clouds and co-locators re-entering the market. He noted some data center aspects might be acceptable to curtail under demand response products, while others want to bring capacity. Talen has developed a suite of options to participate in any future scenario, except behind-the-meter solutions. Q: How are you thinking about M&A and how would you prioritize it in terms of capital allocation currently?A: President Terry Nutt stated M&A has been a core part of Talen's strategy for growing earnings and free cash flow per share. He noted that with attractive share prices and free cash flow yields, the share repurchase program serves as their hurdle, but they would pursue accretive M&A transactions that clear those returns. CEO Mark McFarland added that they've been flexible, using share issuances and debt with distinct paydown timeframes, but always measure against returning capital to shareholders depending on share price and free cash flow yield in out years. Q: Has there been any change to the 4 gigawatts of site development plans, and have PJM rule changes impacted those sites?A: CFO Cole Muller stated For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Earnings Release Highlights Second quarter GAAP Net Income (Loss) Attributable to Stockholders of $(92) million. Second quarter Adjusted EBITDA of $374 million and Adjusted Free Cash Flow of $212 million. Completed the acquisition of the Waterford Energy Center, Darby Generating Station, and the Lawrenceburg Power Plant (collectively, the “Cornerstone Acquisition”) in June 2026. Raising 2026 Adjusted EBITDA and Adjusted Free Cash Flow guidance ranges to $2,025 million - $2,225 million and $1,200 million - $1,350 million, respectively. Repurchased 550,000 shares of common stock for approximately $200 million under our Share Repurchase Program (“SRP”), with $1.7 billion of capacity remaining through December 2028. Cleared over 10 gigawatts (“GW”) in the 2028/2029 PJM Base Residual Auction at $325.00 per megawatt-day (“MWd”) for the MAAC, PPL, and RTO locational deliverability areas. Progressing pipeline of approximately 4 GW of land development and data center contracting options. HOUSTON, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Talen Energy Corporation (“Talen,” “TEC”, the “Company,” “we,” or “our”) (NASDAQ: TLN), a leading independent power producer, today reported its second quarter 2026 financial results and other highlights. “Today we are reporting Talen’s second quarter results, earning $374 million of Adjusted EBITDA and $212 million of Adjusted Free Cash Flow. With strong year-to-date results and closing of the Cornerstone Acquisition, we are raising our 2026 guidance as well as increasing the 2027 and 2028 outlooks,” said Talen Chief Executive Officer Mac McFarland. He continued, “We remain committed to our flywheel strategy, leveraging our advantaged portfolio of assets, building our development pipeline of powered land and new capacity all of which allows us to enter into long-term contracts with large loads with a variety of structures.” Operating Results (Unaudited) __________________(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 June 30, 2026, Talen reported GAAP Net Income (Loss) Attributable to Stockholders of $(92) million, Adjusted EBITDA of $374 million, and Adjusted Free Cash Flow of $212 million. Compared with the quarter ended June 30, 2025: GAAP Net Income (Loss) Attributable to Stockholders decreased by $(164) million primarily due to unrealized losses on derivative instruments and increases in interest expense which offset increases in capacity revenues and energy and other revenues, net of fuel and energy purchases. Adjusted EBITDA increased by $284 million primarily due to increases in energy and other revenues and capacity revenues, net of fuel and energy purchases. Adjusted Free Cash Flow increased by $290 million primarily due to increases in capacity revenues and energy and other revenues, net of fuel and energy purchases, and lower income tax payments, which were partially offset by higher capital expenditures and cash interest payments. See “Non-GAAP Financial Measures” for details and reconciliations of GAAP to non-GAAP financial measures. Raising 2026 Guidance __________________(a) Excludes Keystone as of July 1, 2026. Cornerstone Acquisition On June 15, 2026, the Company completed the Cornerstone Acquisition, which increases Talen’s generation by approximately 2.6 GW and provides efficient baseload and peaker generation and cash flow diversification. Share Repurchases Since the start of 2024, we have repurchased approximately 15 million shares of TEC common stock for a total of approximately $2.3 billion, with $1.7 billion remaining under our SRP through year end 2028. During the second quarter 2026, we repurchased 550,000 shares of TEC common stock for approximately $200 million. All share repurchase amounts exclude transaction costs. Financing Transactions In April 2026, Talen subsidiary, Talen Energy Supply, LLC (“TES”) issued in private placement transactions not involving a public offering: (i) $1.5 billion in aggregate principal amount of 6.125% senior unsecured notes due 2031; and (ii) $2.5 billion in aggregate principal amount of 6.375% senior unsecured notes due 2033. The net proceeds from the issuance and sale of the unsecured notes due 2031 and 2033 were used to (i) fund the Cornerstone Acquisition; and (ii) redeem in full $1.2 billion of outstanding 8.625% senior secured notes due 2030. Additionally, during the second quarter 2026, TES (i) upsized its Revolving Credit Facility (“RCF”), (including its revolving LC capacity) from $900 million to $1.35 billion; (ii) upsized its existing $1.1 billion Letter of Credit Facility (“LCF”) to $1.5 billion and extended its maturity from December 2027 to December 2029; and (iii) repriced the RCF, TLB-1, and TLB-2, and extended the TLB-1 maturity from May 2030 to November 2032. Balance Sheet and Liquidity We are focused on maintaining net leverage below our target of 3.5x net debt-to-Adjusted EBITDA. As of July 31, 2026, Talen had ample total available liquidity of approximately $1.9 billion, comprised of $525 million of unrestricted cash and $1.4 billion of available capacity under the RCF. Update on Hedging Activities As of June 30, 2026, including the impact of the Nuclear Production Tax Credit, we had hedged approximately 85% of our expected generation volumes for 2026, approximately 70% for 2027 and approximately 30% 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 Wednesday, August 5, 2026, at 4:30 p.m. ET (3:30 p.m. CT). To listen to the earnings call, please register in advance for the webcast here. For participants joining the call via phone, please register here prior to the start time to receive dial-in information. For those unable to participate in the live event, a digital replay will be archived for approximately one year and available on the Events page of Talen’s Investor Relations website linked here. About Talen Talen Energy (NASDAQ: TLN) is a leading independent power producer and energy infrastructure company dedicated to powering the future. We own and operate approximately 15.7 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 our generation fleet located 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/. Investor Relations: Sergio CastroVice President & [email protected] Media: Taryne WilliamsDirector, Corporate [email protected] Forward-Looking Statements This communication contains forward-looking statements within the meaning of the federal securities laws, which statements are subject to substantial risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this communication, or incorporated by reference into this communication, are forward-looking statements. Throughout this communication, we have attempted to identify forward-looking statements by using words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecasts," "goal," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "will," or other forms of these words or similar words or expressions or the negative thereof, although not all forward-looking statements contain these terms. Forward-looking statements address future events and conditions concerning, among other things, the integration of and anticipated benefits from the recent Cornerstone acquisition and the Freedom and Guernsey acquisitions, capital expenditures, earnings, litigation, regulatory matters, hedging, liquidity and capital resources, accounting matters, expectations, beliefs, plans, objectives, goals, strategies, future events or performance, shareholder returns and underlying assumptions. Forward-looking statements are subject to substantial risks and uncertainties that could cause our future business, financial condition, results of operations or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this communication. All of our forward-looking statements include assumptions underlying or relating to such statements that may cause actual results to differ materially from expectations and are subject to numerous factors that present considerable risks and uncertainties. __________________(a) 47,900,355 and 45,687,828 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively. Non-GAAP Financial Measures Adjusted EBITDA and Adjusted Free Cash Flow, which we use as measures of our performance and liquidity, are not financial measures prepared under GAAP. Non-GAAP financial measures do not have definitions under GAAP and may be defined and calculated differently by, and not be comparable to, similarly titled measures used by other companies. Non-GAAP measures are not intended to replace the most comparable GAAP measures as indicators of performance. Generally, a non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Management cautions readers not to place undue reliance on the following non-GAAP financial measures, but to also consider them along with their most directly comparable GAAP financial measures. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analyzing our results as reported under GAAP. Adjusted EBITDA We use Adjusted EBITDA to: (i) assist in comparing operating performance and readily view operating trends on a consistent basis from period to period without certain items that may distort financial results; (ii) plan and forecast overall expectations and evaluate actual results against such expectations; (iii) communicate with our Board of Directors, shareholders, creditors, analysts, and the broader financial community concerning our financial performance; (iv) set performance metrics for our annual short-term incentive compensation; and (v) assess compliance with our indebtedness. Adjusted EBITDA is computed as net income (loss) adjusted, among other things, for certain: (i) nonrecurring charges; (ii) non-recurring gains; (iii) non-cash and other items; (iv) unusual market events; (v) any depreciation, amortization, or accretion; (vi) mark-to-market gains or losses; (vii) gains and losses on the nuclear facility decommissioning trust (“NDT”); (viii) gains and losses on asset sales, dispositions, and asset retirement; (ix) impairments, obsolescence, and net realizable value charges; (x) interest expense; (xi) income taxes; (xii) legal settlements, liquidated damages, and contractual terminations; (xiii) development expenses; (xiv) noncontrolling interests, except where otherwise noted; and (xv) other adjustments. Such adjustments are computed consistently with the provisions of our indebtedness to the extent that they can be derived from the financial records of the business. Additionally, we believe investors commonly adjust net income (loss) information to eliminate the effect of nonrecurring restructuring expenses and other non-cash charges, which can vary widely from company to company and from period to period and impair comparability. We believe Adjusted EBITDA is useful to investors and other users of our financial statements to evaluate our operating performance because it provides an additional tool to compare business performance across companies and between periods. Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to such items described above. These adjustments can vary substantially from company to company and period to period depending upon accounting policies, book value of assets, capital structure, and the method by which assets were acquired. Adjusted Free Cash Flow Adjusted Free Cash Flow is utilized by our chief operating decision makers to evaluate cash flow activities. Adjusted Free Cash Flow is computed as Adjusted EBITDA reduced by capital expenditures (including nuclear fuel but excluding development, growth, and (or) conversion capital expenditures), cash payments for interest and finance charges, cash payments for income taxes (excluding income taxes paid from the NDT, taxes paid or deductions taken as a result of strategic asset sales, and benefits of the Nuclear PTC utilized to reduce income taxes paid), and pension contributions. We believe Adjusted Free Cash Flow is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to determine a company’s ability to meet future obligations and to compare business performance across companies and across periods. Adjusted Free Cash Flow is widely used by investors to measure a company’s levered cash flow without regard to items such as ARO settlements; nonrecurring development, growth and conversion expenditures; and cash proceeds or payments for the sale or purchase of assets, which can vary substantially from company to company and from period to period depending upon accounting methods, book value of assets, capital structure, and the method by which assets were acquired. Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation The following table presents a reconciliation of the GAAP financial measure of “Net Income (Loss)” presented on the Consolidated Statements of Operations to the non-GAAP financial measures of Adjusted EBITDA and Adjusted Free Cash Flow: _______________(a) Includes the periodic amortization of fair value adjustments associated with acquired fuel supply contract liabilities and intangible assets.(b) Includes the non-recurring: (i) advisory fees associated with completed acquisitions and divestitures; (ii) remaining settlements on contracts of divested assets and (iii) non-recurring finance fees charged to the Consolidated Statement of Operations associated with acquisition financing fee arrangements. Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2026 Guidance _______________Note: Figures are rounded to the nearest $5 million.(a) Excludes Keystone as of July 1, 2026.

Talen Energy Corporation TLN is scheduled to release second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for earnings is currently pegged at $3.59 per share on revenues of $819.53 million.The bottom-line projection indicates a 401.68% increase from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 30.13%. Image Source: Zacks Investment Research Talen Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with the average surprise being 52.15%. Image Source: Zacks Investment Research Our proven model does not predict an earnings beat for Talen Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.TLN’s Earnings ESP: Talen Energy has an Earnings ESP of -1.53%.Zacks Rank of TLN: The company currently carries a Zacks Rank #2.Some companies in the same sector which have the right combination of the two factors for an earnings beat this season are Calumet, Inc. CLMT, Western Midstream Partners WES and National Energy Services Reunited Corp. NESR. CLMT, WES and NESR have an Earnings ESP of +169.57%, +0.33% and +7.80%, respectively. CLMT, WES and NESR currently carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here. Talen Energy has 1.9 gigawatts (GWs) of PPA with an AA-rated counterparty, which ensures stable performance throughout the year.Talen Energy’s second-quarter earnings are likely to have benefited from ongoing execution of its Flywheel strategy. This move allows the company to lock in fresh demand from customers and add baseload generation assets in its existing fleets to meet the rising demand.On June 15, 2026, Talen Energy announced that it had completed the acquisition of the Lawrenceburg Power Plant in Indiana and the Waterford Energy Center and Darby Generating Station in Ohio from Energy Capital Partners. These natural gas-fired power plants add approximately 2.6 GW of efficient baseload generation capacity to Talen Energy's portfolio, significantly expanding its footprint in the western PJM market — the largest wholesale electricity market in the United States.Talen Energy’s second-quarter earnings are likely to have benefited from the repurchase of outstanding shares. The company does not have any near-term debt maturity, which will allow it to focus on using the cash flow for expanding operations and benefit from the same. TLN’s shares have gained 6.1% in the past six months compared with the Zacks Alternate Energy - Other industry’s rise of 1.5%. Image Source: Zacks Investment Research The company is currently valued at a discount compared with its industry on an Enterprise Value/ EBITDA TTM. Talen Energy is trading at 19.85X compared with its industry’s 21.21X. Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Talen Energy Corporation (TLN) : Free Stock Analysis Report Western Midstream Partners, LP (WES) : Free Stock Analysis Report Calumet, Inc. (CLMT) : Free Stock Analysis Report National Energy Services Reunited (NESR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Talen Energy Corporation (TLN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This power generation and infrastructure company is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of +325.2%. Revenues are expected to be $799.58 million, up 26.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.36% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Talen Energy Corporation, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +83.38%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Talen Energy Corporation will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Talen Energy Corporation would post earnings of $5.28 per share when it actually produced earnings of $5.55, delivering a surprise of +5.11%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Talen Energy Corporation appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Talen Energy Corporation (TLN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Talen Energy Corporation (TLN). This company, which is in the Zacks Alternative Energy - Other industry, shows potential for another earnings beat. When looking at the last two reports, this power generation and infrastructure company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.06%, on average, in the last two quarters. For the last reported quarter, Talen Energy Corporation came out with earnings of $5.55 per share versus the Zacks Consensus Estimate of $5.28 per share, representing a surprise of 5.11%. For the previous quarter, the company was expected to post earnings of $2.8 per share and it actually produced earnings of $2.94 per share, delivering a surprise of 5.00%. With this earnings history in mind, recent estimates have been moving higher for Talen Energy Corporation. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Talen Energy Corporation has an Earnings ESP of +83.38% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 5, 2026. When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Talen Energy Corporation (TLN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Fresh analyst commentary on Talen Energy (TLN), along with its latest quarterly report showing higher revenue and net profit than a year earlier, has put the stock back on the radar for many investors. See our latest analysis for Talen Energy. The recent analyst attention and earnings update come after a period of mixed momentum for Talen Energy, with the share price down 11.33% over the past 30 days and 9.28% year to date. However, the company has delivered a very large 3 year total shareholder return, indicating that longer term investors have seen a very strong payoff, despite only a 3.83% total shareholder return over the past year. If you are looking beyond Talen Energy for ideas in the wider power and infrastructure theme, it could be worth scanning for opportunities across 35 power grid technology and infrastructure stocks Talen Energy’s share price has stepped back even as revenue and net profit trends improve and analysts publish higher targets, so does that balance of setback and progress still leave the risk reward tilted toward buyers at today’s valuation? The most widely followed narrative sees Talen Energy trading below its modeled fair value of $469.57 compared with the last close at $359.90. That gap is described as being anchored on long term contract visibility and power market trends rather than short term share price moves. Read the complete narrative. Read the complete narrative. Want to see what is sitting underneath that fair value gap? The narrative focuses heavily on revenue growth, margin expansion, and a richer earnings profile. The key question is how those pieces fit together over time. Result: Fair Value of $469.57 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Talen Energy’s heavy dependence on fossil fuel generation and its use of debt funded acquisitions could pressure margins and flexibility if policy or power markets become less favorable. Find out about the key risks to this Talen Energy narrative. The narrative and analyst targets suggest Talen Energy is trading well below modeled fair value, yet the P/S ratio paints a different picture. At about 5.3x sales versus a peer average of 2.1x and a fair ratio of 3.3x, the stock screens as expensive, so how comfortable are you paying that premium? For a closer look at what those sales multiples imply for risk and potential reward, and how they compare with other utilities and power producers, it helps to drill into a full valuation breakdown rather than relying only on headline ratios. That can make it easier to test whether the premium feels justified or stretched in your own framework. See what the numbers say about this price — find out in our valuation breakdown. With Talen Energy generating strong opinions in both directions, it makes sense to move quickly, review the full data, and weigh the trade-off between the 3 key rewards and 2 important warning signs. If Talen Energy has you thinking more broadly about opportunities, do not stop here. Widen your search and give yourself more options before making your next move. Spot potential bargains early by scanning companies that currently look mispriced on quality and value characteristics through the 49 high quality undervalued stocks. Strengthen your downside protection by filtering for companies with healthier finances using the solid balance sheet and fundamentals stocks screener (49 results). Hunt for off-the-radar opportunities that still show solid fundamentals with the screener containing 20 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TLN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]