Talen Energy Corporation · NASDAQ:TLN
Talen Energy — Q4 2025 Earnings Presentation
22 slides from Talen Energy's earnings presentation, Feb 26, 2026
Slide 1: Q4 2025 Results
Q4 2025 Results Talen Energy Corporation | February 26, 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 Delivered FY $1,035mm Adjusted EBITDA and $524mm Adjusted Free Cash Flow Closed Freedom and Guernsey acquisitions Acquiring Lawrenceburg, Waterford and Darby assets (the “Cornerstone Acquisition”), and anticipate closing this summer Continuing to develop the Talen Flywheel pipeline Fl
Slide 4: A Look Back at Maximizing Value in 2025
A Look Back at Maximizing Value in 2025 Acquiring and Contracting Exercising Balance Sheet Discipline Assets Raised $1.2B Senior Secured Term Loan B and $2.7B Expanded Amazon PPA to 1.9 GW, Senior Unsecured Notes to finance the Freedom and totaling ~$18B in revenues under Guernsey acquisitions 1
Slide 5: Portfolio Expansion
Portfolio Expansion Key Highlights Expanding Talen’s footprint in Pennsylvania, Ohio and Indiana Freedom Waterford PA Diversifies Talen’s generation portfolio by IN both capacity and cash flow contribution OH with the addition of ~4.8 GW of baseload CCGTs Lawrenceburg Guernsey Darby >80%1 base
Slide 6: Data Center Growth Across Talen's Expanded Footprint
Data Center Growth Across Talen’s Expanded Footprint Hyperscaler Capex Forecast1 AEP and PPL Summer Peak Load Forecast3 $B AEP 40,000 Summer Peak Load (MW) PPL 30,000 $716 $745 20,000 $658 $418 10,000 $239 $147 0 2023 2024 2025E 2026E 2027E 2028E 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 203
Slide 7: PJM Market Fundamentals
PJM Market Fundamentals Capacity Auction Results by Planning Year (RTO) PJM WHUB ATC Power Prices ($/MWh) $60 +12% +10% $/MW-day 1 1 +5% $329 $333 TBD TBD $55 $ 270 $50 $45 2026 2027 2028 7/31/2025 12/31/2025 $ 34 $ 29 PJM WHUB ATC Spark Spreads ($/MWh)2 $32 +19% +18% '23/'24 '24/'25 '25/'26 '26/'27
Slide 8: Commercial Strategy in Action
Commercial Strategy in Action PJM WHUB ATC Spark Spreads ($/MWh)1 $40 2026 $38 2027 2028 Total Fleet % $36 Q4 2025 Power Hedged2 2026 2027 $34 9/30/2025 ~60% ~25% $32 $30 $28 12/31/2025 ~90% ~40% $26 $24 28-Aug-25 23-Oct-25 4-Dec-25 14-Aug-25 6-Nov-25 9-Oct-25 18-Dec-25 29-Jan-26 12-Feb-26 11-Sep-25
Slide 9: 2025 Financial and Operational Performance
2025 Financial and Operational Performance Key Financial Metrics Key Operational Metrics $1,035mm $524mm 0.55 4.7% Adjusted EBITDA Adjusted Free Cash Flow OSHA TRIR3 Fleet EFOF4 ~$2.1B N/M ~40 TWh ~42% Liquidity1 Net Debt / Total Generation Carbon-Free Generation5 2025 Adjusted EBITDA2 Note: Please
Slide 10: 2025 Financial Results
2025 Financial Results Adjusted EBITDA ($mm) $1,035 FY2025 year-over-year results are substantially higher, driven by: $770 Higher capacity prices, RMR revenues and $382 AWS PPA ramp $164 Higher energy pricing, net of hedges Q4 2025 Q4 2024 FY 2025 FY 2024 Closing Freedom and Guernsey Adjusted
Slide 11: Reaffirming 2026 Guidance
Reaffirming 2026 Guidance 2026E1 Adjusted EBITDA $1,750 - $2,050 million Adjusted Free Cash Flow $980 - $1,180 million Note: Please refer to Reconciliation of Non-GAAP Financial Measures section of the Appendix for more detail on Adjusted EBITDA and Adjusted Free Cash Flow. 10 1. Excludes impact of
Slide 12: Continued Projected Free Cash Flow / Share Growth
Continued Projected Adjusted Free Cash Flow / Share Growth Adjusted Free Cash Flow per Share1 Adj FCF/Share Accretion from Cornerstone Acquisition1 >15% Adj FCF / Share Accretion1, 2 FCF/share Adj FCF/Share2 Potential Upside to 2028 Growth vs ‘28 $31.10+ $31.40+ $2B Share Repurchases3 ~10% $4.00+ $4
Slide 13: Modest Leverage and Substantial Liquidity
Modest Leverage and Substantial Liquidity Capitalization Summary ($mm unless otherwise noted) February 20, 2026 Unrestricted Cash $1,166 Maintaining Balance Sheet Strength Secured Debt $4,090 Total Debt1 $6,911 Ability to achieve <3.5x net leverage target by YE 2026 inclusive of the Net Debt2 $5,7
Slide 14: Talen is Powering the Future
Talen is Powering the Future High quality cash flows with disciplined capital allocation 13
Slide 15: Appendix
Appendix TALENY ENERGY
Slide 16: Pro Forma Generation Portfolio Summary
Pro Forma Generation Portfolio Summary Owned Commercial Asset State Primary Fuel Type(s) Plant Type Ownership Region Capacity (MW)1 Operations Date Talen Assets Susquehanna2 PA Nuclear Baseload 90% 2,245 1983 – 1985 PJM-PPL/MAAC Guernsey OH Natural Gas Baseload 100% 1,771 2023 PJM-AEP/RTO Martins Cr
Slide 17: Hedging Program
Hedging Program Market Price Summary 2026 2027 PJM West Hub ATC as of 12/31/2025 ($/MWh) $55.60 $59.29 PJM West Hub ATC Spark Spreads1 as of 12/31/2025 ($/MWh) $29.76 $31.00 TETCO M3 as of 12/31/2025 ($/MMBtu) $3.69 $4.04 Total Fleet Hedge Position 2, 3 2026 2027 % Hedged of Expected Generation as o
Slide 18: Long-Dated Debt Maturities
Long-Dated Debt Maturities Debt Overview1 Debt Maturity Summary1 ($mm) Principal Revolving Credit Facility (Undrawn) Tranche Maturity Interest Rate2 ($mm) Secured Notes RCF Dec 2029 - 5.65% Term Loan B3 PEDFA Bonds4 2030 TLB3 May 2030 848 6.15% $1,200 Unsecured Notes 2031 TLB3 Dec 2031 842 6.15% 203
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures
Slide 20: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Non-GAAP Financial Measures Adjusted EBITDA and Adjusted Free Cash flow, which we use as measures of our performance and liquidity, are not financial measures prepared under GAAP. Non-GAAP financial measures do not have definitions under GAAP and may be def
Slide 21: Adjusted EBITDA / Flow Reconciliation
Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation (Unaudited) The reconciliation from “Net Income (Loss)” presented on the Consolidated Statements of Operations to Adjusted EBITDA and Adjusted Free Cash Flow for: Three Months Ended December 31, Year Ended December 31, ($mm) 2025 2024 2025 202
Slide 22: Adjusted EBITDA / 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 years ended December 31: 2026E1 Low High ($mm) Net Income (Loss) $ 875 $ 1,125 Adjustments Interest expense and other