TransAlta (TAC) Raises Dividend Following Strong 2025 Free Cash Flow Performance

TransAlta Corporation (NYSE:TAC) is one of the most promising Canadian stocks according to analysts.. On February 27, TransAlta Corporation reported solid 2025 results, with free cash flow of $514 million exceeding the midpoint of its annual outlook despite softer Alberta power prices. The company’s hedging strategy and contracted portfolio successfully offset market volatility, leading the Board of Directors to approve an 8% increase to the common share dividend.

During Q4, TransAlta advanced several key growth priorities, including an MoU with Canada Pension Plan Investments and Brookfield to develop data centers at the Keephills site in Alberta. The company also closed the acquisition of Far North Power Corporation, adding 310 MW of natural gas capacity in Ontario. Furthermore, TransAlta secured a long-term tolling agreement to convert its Centralia Unit 2 facility from coal to natural gas, a move designed to extend the facility’s life while reducing emissions.

For 2026, TransAlta Corporation (NYSE:TAC) expects adjusted EBITDA between $950 and $1,050 million, supported by a diversifying fleet and expected load growth from data centers. The company also reached a sustainability milestone, achieving a 76% reduction in GHG emissions since 2015.

TransAlta Corporation (NYSE:TAC) develops, produces, and sells electric energy. It operates through Hydro, Wind & Solar, Gas, Energy Transition, and Energy Marketing segments.

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