Talen Energy Corporation · NASDAQ:TLN
Talen Energy — Q1 2026 Earnings Presentation
25 slides from Talen Energy's earnings presentation, May 5, 2026
Slide 1: Q1 2026 Results
Q1 2026 Results Talen Energy Corporation | May 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 Delivered $473mm Adjusted EBITDA and $350mm Adjusted Free Cash Flow in Q1 2026 Fleet performed well; increased demand drove increased runtimes Announced acquisition of Cornerstone assets1 and secured attractive financing Progressing several land development and contracting growth opti
Slide 4: Q1 2026 Financial and Operational Performance
Q1 2026 Financial and Operational Performance Key Financial Metrics Key Operational Metrics $473mm $350mm 0.37 4.2% Adjusted EBITDA Adjusted Free Cash Flow OSHA TRIR3 Fleet EFOF4 ~$1.9B ~3.1x ~16 TWh ~55% Liquidity1 Net Debt / Total Generation Capacity Factor5 2026E Adjusted EBITDA2 Note: Please ref
Slide 5: PJM Market Fundamentals
PJM Market Fundamentals Q1 PJM Load Growth1 (GWh) PJM WHUB ATC Spark Spreads ($/MWh)3 225,000 +3% $40 +37% Realized Total Energy $35 +24% +25% 215,000 $30 (GWh) 205,000 $25 $20 195,000 4 Balance of 2026 2027 2028 Q1 2025 Q1 2026 Investor Update (7/31/2025) 3/31/2026 Talen PJM Generation (TWh) PPL Zo
Slide 6: PJM Summer Outlook
PJM Summer Outlook PJM WHUB ATC Summer Spark Spreads ($/MWh)1 $50 Fundamentally tight market $45 conditions continue to drive sparks higher $40 Market prices suggest that $35 demand driven scarcity events will continue to push sparks higher $30 over time 28-Aug-25 23-Oct-25 4-Dec-25 14-Aug-25 6-
Slide 7: Cornerstone Transaction Remains on Track
Cornerstone Transaction Remains on Track Regulatory Approvals and Timing Anticipate approval by summer Federal Energy 203 application submitted on January Waterford Regulatory 30th Commission (“FERC”) IN PA OH 30 day waiting period expired in March Lawrenceburg Hart-Scott- Rodino (“HSR”) Darby
Slide 8: Flywheel in Motion: Enabling Existing Gen and 'Hybrid' PPAs
Flywheel in Motion: Enabling Existing Gen and ‘Hybrid’ PPAs Site Development: Enabling Existing Gen PPA Supporting Load Growth Beyond 2030 Paths to new generation, with continued commitment to share Several 1+ GW opportunities for long-term PPAs buybacks as primary use of capital o Long-term data
Slide 9: Q1 2026 Financial Results
Q1 2026 Financial Results Adjusted EBITDA ($mm) $473 Q1 2026 results are substantially higher, driven by: $200 Higher capacity prices, RMR revenues, Q1 2025 Q1 2026 higher sparks and AWS ramp Adjusted Free Cash Flow ($mm) $350 Contribution from Freedom and Guernsey assets $87 Q1 2025 Q1 2026 Not
Slide 10: Reaffirming 2026 Guidance
Reaffirming 2026 Guidance 2026E1 Adjusted EBITDA $1,750 - $2,050 million Adjusted Free Cash Flow $980 - $1,180 million Guidance to be revised upon Cornerstone closing Note: Please refer to Reconciliation of Non-GAAP Financial Measures section of the Appendix for more detail on Adjusted EBITDA and Ad
Slide 11: Leverage and Liquidity Snapshot
Leverage and Liquidity Snapshot Capitalization Summary ($mm unless otherwise noted) March 31, 2026 Unrestricted Cash $1,025 Maintaining Balance Sheet Strength Secured Debt $4,082 Total Debt1 $6,903 Talen is committed to net leverage target of <3.5x Net Debt2 $5,878 Moody’s upgraded outlook to st
Slide 12: Optimizing Balance Sheet Post Financing
Optimizing Balance Sheet Post Financing Recent Financing Details ($mm) 3/31/2026 Adjustments 4/30/2026 2030 TLB 846 846 Raised $4 billion unsecured notes in 4(a)(2) private placement 2031 TLB 839 839 at attractive interest rates 2032 TLB 1,197 1,197 2030 Secured Notes 1,200 (1,200) - o $1.5 billio
Slide 13: Attractive Growth: Preliminary Outlook for 2027 and 2028
Attractive Growth: Preliminary Outlook for 2027 and 2028 Adjusted Free Cash Flow Per Share ($/share) Base1 2027 and 2028 impacts1 include: Share Buyback Impact2 Growth CAGR5: >20% Base and >30% w/ SRP ✓ Cornerstone Acquisition Upside Opportunity Levers 41+ Spark spread expansion ✓ since Investor Day
Slide 14: Significantly Contracted Portfolio
Significantly Contracted Portfolio Gross Margin1 at Full Contract Ramp2 Growing Infrastructure-like Cash Flows LT Contracted RMR Merchant - Capacity Merchant Energy 1.9 GW PPA ensures stability to Talen’s gross margin through long-term contract with AA rated counterparty 30% ✓ 35% 30% 35% of gross m
Slide 15: 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 16: Appendix
Appendix TALENY ENERGY
Slide 17: 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 18: Hedging Program as of 3/31/2026
Hedging Program as of 3/31/2026 Market Price Summary Balance of 20261 2027 2028 PJM West Hub ATC ($/MWh) $57.85 $62.76 $61.59 PJM West Hub ATC Spark Spreads2 ($/MWh) $37.92 $32.67 $32.23 TETCO M3 ($/MMBtu) $2.85 $4.30 $4.19 Total Fleet Hedge Position4, 5 Balance of 20261 2027 2028 % Hedged of Expect
Slide 19: Commodities Pricing - Power
Commodities Pricing - Power PJM WHUB ATC Spark Spreads1 PPL Zone ATC Spark Spreads2 $70 WHUB Spark 5/4/2026 $50 PPL Spark 5/4/2026 WHUB Spark 3/31/2026 PPL Spark 3/31/2026 $60 $40 $50 $30 $40 $/MWh $/MWh $30 $20 $20 $10 $10 $0 $0 Jun-26 Jun-27 Jun-28 Jun-29 Dec-26 Dec-27 Dec-28 Dec-29 Mar-30 Sep-30
Slide 20: PJM PPL Zone ATC Basis ($/MWh)
1. -$10 -$12 -$14 -$16 -$2 -$4 -$6 -$8 $0 31-Jan-24 29-Feb-24 PPL Zone Basis 31-Mar-24 30-Apr-24 31-May-24 30-Jun-24 31-Jul-24 31-Aug-24 30-Sep-24 31-Oct-24 30-Nov-24 31-Dec-24 2027 31-Jan-25 28-Feb-25 31-Mar-25 2028 30-Apr-25 31-May-25 PJM PPL Zone ATC Basis ($/MWh)1 30-Jun-25 31-Jul-25 31-Aug-25 B
Slide 21: Long-Dated Debt Maturities
Long-Dated Debt Maturities Debt Overview1 Debt Maturity Summary1 ($mm) Revolving Credit Facility (Undrawn) Principal Tranche Maturity Interest Rate2 ($mm) Term Loan B3 PEDFA Bonds5 RCF Dec 2029 - SOFR + 200bps Unsecured Notes 2030 TLB3 May 2030 846 SOFR + 250bps $1,500 New Unsecured Notes4 2031 TLB3
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures
Slide 23: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Non-GAAP Financial Measures Adjusted EBITDA and Adjusted Free Cash flow, which we use as measures of our performance and liquidity, are not financial measures prepared under GAAP. Non-GAAP financial measures do not have definitions under GAAP and may be def
Slide 24: Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation (Unaudited)
Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation (Unaudited) The reconciliation from “Net Income (Loss)” presented on the Consolidated Statements of Operations to Adjusted EBITDA and Adjusted Free Cash Flow for: Three Months Ended March 31, ($mm) 2025 2026 Net Income (Loss) $ (135) $ 63 Adju
Slide 25: Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 26E 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 Low High ($mm) Net Income (Loss) $ 875 $ 1,125 Adjustments Interest expense and other