Talen Energy Corporation · NASDAQ:TLN
Talen Energy — Q3 2025 Earnings Presentation
20 slides from Talen Energy's earnings presentation, Nov 5, 2025
Slide 1: Q3 2025 Results
Q3 2025 Results Talen Energy Corporation | November 5, 2025
Slide 2: Disclaimers
Disclaimers 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 expres
Slide 3: Key Highlights
Key Highlights Delivered $363mm Adjusted EBITDA and $223mm Adjusted Free Cash Flow in Q3 Narrowing 2025 and affirming 2026 guidance Raised $1.2B Senior Secured Term Loan B (the “TLB”) and $2.7B Senior Unsecured Notes (the “Notes”) to finance the Freedom and Guernsey acquisitions (the “Acquisitions”)
Slide 4: Freedom and Guernsey Acquisitions Update
Freedom and Guernsey Acquisitions Update Financing Regulatory Approvals andFreedom Timing ▪ Priced $1.2B TLB at an attractive rate of SOFR + 200 basis ▪ FERC approval required to close; 180 days to Federal points. TLB will mature seven years from the date of draw act but can extend for another 180 d
Slide 5: PJM Market Fundamentals
PJM Market Fundamentals Annual Hyperscaler Capex1 PJM Demand Top Ten Summer Peaks3 $B $700 MW 167,000 $591 165,563 165,000 163,853 $434 163,000 162,401 161,770 161,166 161,000 159,700 $245 158,855 159,000 157,871 156,707 157,000 155,194 155,000 19-Jul-13 21-Jul-11 18-Jul-13 18-Jul-12 02-Aug-06 24-Ju
Slide 6: Forward Power Pricing
Forward Power Pricing As of October 30th, forward power prices for 2026 and 2027 have trended up PJM WHUB ATC ▪ PJM installed reserve margins are steadily shrinking as power demand grows, while supply stagnates $62 2026 ▪ ‘26/‘27 PJM Base Residual Capacity Auction (“BRA”) was the second auction in a
Slide 7: Year-to-Date Financial and Operational Performance
Year-to-Date Financial and Operational Performance Key Financial Metrics Key Operational Metrics $653mm $232mm 0.64 4.6% Adjusted EBITDA Adjusted Free Cash Flow OSHA TRIR2 Fleet EFOF3 ~$1.2B ~2.6x 28 TWh ~43% Liquidity1 Net Debt / Total Generation Carbon-Free Generation4 2025E Adjusted EBITDA1 Note:
Slide 8: Q3 2025 Financial Results
Q3 2025 Financial Results Adjusted EBITDA ($mm) ▪ In Q3 2025, settled PJM WHUB on- $653 $606 peak $61.89/MWh vs $50.03/MWh1 in prior period $363 $230 ▪ Load continues to trend higher, which resulted in increased generation from the fossil fleet Q3 2025 YTD 2025 Q3 2024 YTD 2024 Adjusted Free Cash Fl
Slide 9: Narrowing 2025 and Affirming 2026 Guidance
Narrowing 2025 and Affirming 2026 Guidance 2025E 2026E Adjusted EBITDA $975 – $1,000 million $1,750 - $2,050 million Adjusted Free Cash Flow $470 – $490 million $980 - $1,180 million 2025E: Adjusted EBITDA narrowed to the low end of guidance; Adjusted Free Cash Flow remains near mid-point 2026E: Inc
Slide 10: Focus on Capital Discipline and Shareholder Returns
Focus on Capital Discipline and Shareholder Returns Talen is committed to returning capital to its shareholders and supports a target of up to $500mm in annual repurchases through post-acquisition deleveraging period Aim to return to ~70% of Adjusted Free Cash Flow allocated to share repurchases the
Slide 11: Modest Leverage and Ample Liquidity
Modest Leverage and Ample Liquidity Capitalization Summary ($mm unless otherwise noted) October 31, 2025 Unrestricted Cash $485 Secured Debt $2,894 Total Debt1 $3,025 Maintaining Balance Sheet Strength Net Debt2 $2,540 ▪ Pro Forma Net Leverage expected Credit Metrics to remain <3.5x by YE 2026 2025E
Slide 12: Talen is Powering the Future
Talen is Powering Acquiring Assets Contracting Assets the Future $ High quality cash flows with disciplined capital allocation 11
Slide 13: Appendix
Appendix TALENY ENERGY
Slide 14: Pro Forma Generation Portfolio Summary
Pro Forma Generation Portfolio Summary Owned Commercial Asset State Primary Fuel Type(s) Plant Type Ownership Region Capacity (MW)1 Operations Date Talen Assets Susquehanna2 PA Nuclear Baseload 90% 2,228 1983 – 1985 PJM-PPL/MAAC Martins Creek PA Natural Gas Peaker 100% 1,710 1975 – 1977 PJM-PPL Brun
Slide 15: Hedging Program
Hedging Program Market Price Summary Balance of 2025 2026 2027 PJM West Hub ATC as of 9/30/2025 ($/MWh) $47.50 $53.49 $54.76 PJM West Hub ATC Spark Spreads1 as of 9/30/2025 ($/MWh) $26.00 $25.97 $26.46 TETCO M3 as of 9/30/2025 ($/MMBtu) $3.07 $3.93 $4.04 Total Fleet Hedge Position 2, 3 Balance of 20
Slide 16: Long-Dated Debt Maturities
Long-Dated Debt Maturities Debt Overview1 Debt Maturity Summary1 ($mm) Principal Revolving Credit Facility (Undrawn)8 Tranche Maturity Interest Rate2 ($mm) Secured Notes RCF Dec 2029 - 6.23% Term Loan B3 PEDFA Bonds4 2030 TLB3 May 2030 850 6.73% $1,200 New Unsecured 2031 TLB3 Dec 2031 844 6.73% Note
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures
Slide 18: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Non-GAAP Financial Measures Adjusted EBITDA and Adjusted Free Cash flow, which we use as measures of our performance and liquidity, are not financial measures prepared under GAAP. Non-GAAP financial measures do not have definitions under GAAP and may be def
Slide 19: Adjusted EBITDA / Free Cash Flow Reconciliation
Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation (Unaudited) The reconciliation from “Net Income (Loss)” presented on the Consolidated Statements of Operations to Adjusted EBITDA and Adjusted Free Cash Flow for: Three Months Ended September 30, Nine Months Ended September 30, ($mm) 2025 2024
Slide 20: Adjusted EBITDA Reconciliation: 2025E and 2026E Guidance
Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2025E and 2026E Guidance The reconciliation from forecasted “Net Income (Loss)” to Adjusted EBITDA and Adjusted Free Cash Flow for the years ended December 31: 2025E 2026E1 Low High Low High ($mm) Net Income (Loss) $ 205 $ 200 $ 875 $ 1,125 A