Talen Energy Corporation · NASDAQ:TLN
Talen Energy — Q2 2025 Earnings Presentation
22 slides from Talen Energy's earnings presentation, Aug 7, 2025
Slide 1: Q2 2025 Results
Q2 2025 Results Talen Energy Corporation | August 7, 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 $90mm Adjusted EBITDA and $(78)mm Adjusted Free Cash Flow in Q2 Acquiring Freedom and Guernsey plants, expected to be accretive to FCF/share by >40% in 2026 and >50% in 2027-2029 Expanded Amazon PPA to 1.9 GW, totaling ~$18bn in revenues under 17-yr contract1 Strong 2026/202
Slide 4: Accretive Acquisition of Freedom and Guernsey
Accretive Acquisition of Freedom and Guernsey Key Highlights Freedom 1 Scaled portfolio of CCGTs: fundamentally advantaged 2,881 MW portfolio in core markets across PJM 2 Well positioned plants: presence in key markets where reliability from baseload generation is well supported and capable of expan
Slide 5: Powering Data Centers
Powering Data Centers Key Highlights 1 Unlocks premium value on 2nd Unit by expanding PPA to 1,920 MW at full contract quantity through 2042 (with extension options) for carbon-free energy and capacity 2 De-risks PPA delivery – does not require FERC approval, establishes grid connection, eliminates
Slide 6: PJM Demand is Strong and Still Growing
PJM Demand is Strong and Still Growing PJM CDDs1 and Average Electricity Demand ▪ Q2 2025 average electricity demand 90 200 87.8 87.8 was flat compared to Q2 2024 Average RT GWh Load2 88 Average of CDD 150 86 84 100 82 ▪ Load remained strong quarter- 50 80 over-quarter despite lower average 78 tempe
Slide 7: Solid Year-to-Date Financial and Operational Performance
Solid Year-to-Date Financial and Operational Performance Key Financial Metrics Key Operational Metrics $290mm $9mm 0.55 1.8% Adjusted EBITDA Adjusted Free Cash Flow OSHA TRIR3 Fleet EFOF4 ~$0.9B ~2.7x 17 TWh ~44% Liquidity1 Net Debt / Total Generation Carbon-Free Generation5 2025E Adjusted EBITDA2 N
Slide 8: Q2 2025 Financial Results
Q2 2025 Financial Results $mm ▪ Higher prices in Q2 2025; settled Adjusted EBITDA PJM WHUB on-peak $52.71/MWh vs $376 $37.67/MWh1 Adjusted Free Cash Flow $290 ▪ Q2 2025 cash flows impacted by $165 extended Susquehanna outage, semi-annual debt service $90 payments, and cash taxes $87 $9 ($29) ▪ RMR r
Slide 9: Reaffirming 2025 Guidance
Reaffirming 2025 Guidance 2025E Adjusted EBITDA $975 – $1,125 million Adjusted Free Cash Flow $450 – $540 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. 8
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 $500mm of annual repurchases through post-acquisition deleveraging period Aim to return to ~70% of Adjusted Free Cash Flow allocated to share repurchases thereafte
Slide 11: Modest Leverage and Ample Liquidity
Modest Leverage and Ample Liquidity Capitalization Summary ($mm unless otherwise noted) August 4, 2025 Unrestricted Cash $161 Secured Debt $2,899 Maintaining Balance Sheet Strength Total Debt1 $3,030 ▪ Robust projected pro forma cash 2 Net Debt $2,869 flows drive rapid deleveraging Credit Metrics ▪
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: Powering the Future: Upcoming Events
Powering the Future: Upcoming Events Investor Update (Virtual): September 9th Upcoming Investor Events: Agenda includes: ▪ Seaport Virtual Conference: August 20th ▪ 2026 guidance ▪ 2027 - 2028 outlook ▪ Barclays CEO Energy and Power Conference: ▪ Long-term growth drivers September 3rd in New York ▪
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 Susquehanna Nuclear Facility Susquehanna2 PA Nuclear Baseload 90% 2,228 1983 – 1985 PJM-PPL/MAAC PJM Gas Assets Brunner Island3, 4 PA Coal / Natural Gas Intermedi
Slide 16: Hedging Program
Hedging Program Market Price Summary Balance of 20251 2026 2027 PJM West Hub ATC as of 6/30/2025 ($/MWh) $49.52 $54.55 $52.94 PJM West Hub ATC Spark Spreads2 as of 6/30/2025 ($/MWh) $28.86 $26.07 $25.96 TETCO M3 as of 6/30/2025 ($/MMBtu) $2.95 $4.07 $3.85 Total Fleet Hedge Position Balance of 20251
Slide 17: Talen is Included in Multiple Major Indices
Talen is Included in Multiple Major Indices Talen has been added to multiple major stock indices and is eligible for more, which could drive substantial institutional / passive fund demand: INCLUSION SEPTEMBER 2024 NOVEMBER 20241 JUNE 2025 POTENTIAL ADDITIONS2 DATE INDEX S&P TMI MSCI US IMI Utilitie
Slide 18: Long-Dated Debt Maturities
Long-Dated Debt Maturities Debt Overview1 Debt Maturity Summary1 ($mm) Revolving Credit Facility (Undrawn) Principal Tranche Maturity Interest Rate2 Secured Notes ($mm) Term Loan B3 RCF Dec 2029 - 6.31% PEDFA Bonds4 $1,200 2030 TLB3 May 2030 853 6.81% 2031 TLB3 Dec 2031 846 6.81% Secured Notes June
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures
Slide 20: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Non-GAAP Financial Measures Adjusted EBITDA and Adjusted Free Cash flow, which we use as measures of our performance and liquidity, are not financial measures prepared under GAAP. Non-GAAP financial measures do not have definitions under GAAP and may be def
Slide 21: Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation
Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation (Unaudited) The reconciliation from “Net Income (Loss)” presented on the Consolidated Statements of Operations to Adjusted EBITDA and Adjusted Free Cash Flow for: Three Months Ended June 30, Six Months Ended June 30, ($mm) 2025 2024 2025 2024
Slide 22: Adjusted EBITDA / Free Cash Flow Reconciliation: 2025E Guidance
Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2025E Guidance The reconciliation from forecasted “Net Income (Loss)” to Adjusted EBITDA and Adjusted Free Cash Flow for the year ended December 31: ($mm) 2025E Low High Net Income (Loss) $ 205 $ 325 Adjustments Interest expense and other fin