Talen Energy Corporation · NASDAQ:TLN
Talen Energy — Q2 2026 Earnings Presentation
22 slides from Talen Energy's earnings presentation, Aug 5, 2026
Slide 1: Q2 2026 Results
Q2 2026 Results Talen Energy Corporation | August 5, 2026
Slide 2: Disclaimer
Disclaimer The information contained herein, as well as any information that has been supplied orally in connection herewith, speaks only as of the date of this presentation. Talen Energy Corporation (“Talen,” “TEC,” the “Company,” “we,” “our,” or “us”) and our affiliates and representatives express
Slide 3: Key Highlights
Key Highlights Executing on Core Business Delivered $374mm Adjusted EBITDA and $212mm Adjusted Free Cash Flow in Q2 2026 Closed on Lawrenceburg, Waterford, and Darby asset acquisition (the “Cornerstone Acquisition”) Repurchased 550k shares for ~$200mm; $1.7B SRP remaining through December 2028 Stren
Slide 4: YTD 2026 Financial and Operational Performance
YTD 2026 Financial and Operational Performance Key Financial Metrics Key Operational Metrics $847mm $562mm 0.27 3.9% Adjusted EBITDA Adjusted Free Cash Flow OSHA TRIR3 Fleet EFOF4 ~$1.9B $9.2B ~30 TWh ~51% Liquidity1 Net Debt2 Total Generation Capacity Factor5 Note: Please refer to Reconciliation of
Slide 5: PJM Load Growth Materializing and Forecasted to Continue
PJM Load Growth Materializing and Forecasted to Continue PJM Top 10 Peak Load Days Since 2013 (GW)1 US Energy Demand Forecasted to Grow through 2030 (TWh)2 165 +20% 5,278 160 4,407 258 155 3,998 613 124 285 150 145 2020 Data Non-Data 2025 Data Non-Data 2030E Center Center Center Center 15-Jul-26 01-
Slide 6: …Leading to Increased PJM Pricing
…Leading to Increased PJM Pricing 2027 PJM Power ($/MWh) $66.73 2028 PJM Power ($/MWh) $66.39 $62.76 $61.59 $54.98 $54.86 $53.02 $53.02 $52.55 $70 $52.97 $47.84 $70 $49.04 $48.47 +26% $47.91 $47.44 +25% $48.05 $43.38 $60 $43.36 $60 +14% +15% $50 $50 +10% +13% $40 $40 Mar-26 Aug-25 Nov-25 Dec-25 Apr-
Slide 7: PPL Basis Changing Over Time
PPL Basis Changing Over Time PPL Basis PPL Zone – Peak Load (GW)2 PPL zonal price in recent years1 < $10 negative basis to 15 Average Current Net WHUB (80%) Exporter o Widening since Q4 2025 to ~$20 (70%) +3 7 8 Recent widening driven by: 5 o Transmission work to support new system Generation Lo
Slide 8: Q2 and YTD 2026 Financial Results
Q2 and YTD 2026 Financial Results Q2 2025 and 2026 Results ($mm) Key Q2 Drivers: $374 Contribution of Freedom and Guernsey assets $212 $90 Higher capacity prices Higher generation volumes at Susquehanna and ($78) fossil plants Q2 2025 Q2 2026 Q2 2025 Q2 2026 YTD 2025 and 2026 Results ($mm) Key
Slide 9: Raising 2026 Guidance
Raising 2026 Guidance Initial Guidance Revised Guidance1 Adjusted EBITDA $1,750 - $2,050 million $2,025 - $2,225 million Adjusted Free Cash Flow $980 - $1,180 million $1,200 - $1,350 million Note: Please refer to Reconciliation of Non-GAAP Financial Measures section of the Appendix for more detail o
Slide 10: Attractive Growth: Increasing 2027 and 2028 Outlooks
Attractive Growth: Increasing 2027 and 2028 Outlooks Adjusted Free Cash Flow Per Share ($/share)1 Base1 Share Buyback Impact2 Upside Opportunity Levers $48+ Upside Opportunity Levers +30%3 Potential 10%+ additional Adjusted ~$8 Free Cash Flow per Share growth per $37+ lever ~$3 Accretive M&A ~$40 ~$
Slide 11: Flywheel in Motion: Enabling Data Center PPAs
Flywheel in Motion: Enabling Data Center PPAs Multi GW Development Pipeline Data Center Powering Solutions Advanced Development1 Early Development Priority solutions PPA Powering Illustrative Solution Timing Solution via Grid Counterparty Includes Existing baseload Hyperscaler uprates & Now - 2040+
Slide 12: Progression to Significantly Contracted Portfolio
Progression to Significantly Contracted Portfolio Gross Margin1 Mix 2 LT Contracted RMR PJM Energy PJM Capacity Full Contract Ramp3 Illustrative Portfolio Mix4 2028 Outlook (2028-2030) (2030+) 10% 15% 5% 25% 30% 30% 35% 20% 60% 5% 5% 55% 35% LT Contract: 480 MW 1,920 MW 4,000 MW ✓ Existing contract
Slide 13: Executing the Talen Flywheel Strategy
Executing the Talen Flywheel Strategy Multiple transactions delivering strong and immediate Adjusted FCF/Share accretion Reshaping fleet by adding baseload MWs that are the equivalent to two more nuclear plants Diversified portfolio across Pennsylvania, Ohio and Indiana within PJM Locked-in ~2 GW of
Slide 14: Appendix
Appendix TALENY ENERGY
Slide 15: Generation Portfolio Summary
Generation Portfolio Summary Owned Commercial Asset State Primary Fuel Type(s) Plant Type Ownership Region Capacity (MW)1 Operations Date Susquehanna2 PA Nuclear Baseload 90% 2,245 1983 – 1985 PJM-PPL/MAAC Guernsey OH Natural Gas Baseload 100% 1,771 2023 PJM-AEP/RTO Martins Creek PA Natural Gas Peak
Slide 16: Hedging Program as of 6/30/2026
Hedging Program as of 6/30/2026 Market Price Summary Balance of 20261 2027 2028 PJM West Hub ATC ($/MWh) $71.08 $66.73 $66.39 PJM West Hub ATC Spark Spreads2 ($/MWh) $50.04 $39.90 $38.33 TETCO M3 ($/MMBtu) $3.01 $3.83 $4.01 Total Fleet Hedge Position Balance of 20261 2027 2028 % Hedged of Expected G
Slide 17: Leverage and Liquidity Snapshot
Leverage and Liquidity Snapshot Capitalization Summary ($mm unless otherwise noted) July 31, 2026 Maintaining Balance Sheet Strength Unrestricted Cash $525 Completed financing transactions to: Secured Debt $2,875 Total Debt1 $9,696 Increase existing Revolving Credit Facility to $1.35B Net Debt2
Slide 18: Long-Dated Debt Maturities
Long-Dated Debt Maturities Debt Overview1 Debt Maturity Summary1 ($mm) Revolving Credit Facility (Undrawn) Principal Tranche Maturity Interest Rate ($mm) Term Loan B2 PEDFA Bonds5 RCF Dec 2029 - SOFR + 150bps Unsecured Notes 2031 TLB2 Dec 2031 837 SOFR + 175bps $1,500 $844 2032 TLB-12 Nov 2032 844 S
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures
Slide 20: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Non-GAAP Financial Measures Adjusted EBITDA and Adjusted Free Cash Flow, which we use as measures of our performance and liquidity, are not financial measures prepared under GAAP. Non-GAAP financial measures do not have definitions under GAAP and may be def
Slide 21: Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation (Unaudited)
Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation (Unaudited) The reconciliation from “Net Income (Loss)” presented on the Consolidated Statements of Operations to Adjusted EBITDA and Adjusted Free Cash Flow for: Three Months Ended June 30, Six Months Ended June 30, ($mm) 2026 2025 2026 2025
Slide 22: Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2026E Guidance
Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2026E Guidance The reconciliation from forecasted “Net Income (Loss)” to Adjusted EBITDA and Adjusted Free Cash Flow for the year ended December 31: 2026E1 (initial) 2026E (revised)2 Low High Low High ($mm) Net Income (Loss) $ 875 $ 1,125 $ 1