Slide 1: Fourth Quarter and Year End 2025 Results
Fourth Quarter and Year End 2025 Results Keephills, Alberta FEBRUARY 27, 2026
Slide 2: Forward-looking Statements and Non-IFRS Measures
Forward-looking Statements and Non-IFRS Measures This presentation includes "forward-looking information," within the meaning of applicable Canadian securities laws, and "forward-looking statements," within the meaning of applicable United States securities laws, including the Private Securities Lit
Slide 3: John Kousinioris, President and Chief Executive Officer
John Kousinioris President and Chief Executive Officer 3
Slide 4: 2025 Key Achievements
2025 Key Achievements Results and Business Highlights Strategic Priorities Financial Position Adjusted EBITDA1 of $1.1 billion Record safety results with a total recordable Tolling agreement signed for Centralia injury frequency rate of 0.12 redevelopment in Washington state FCF1 of $514 million or
Slide 5: Joel Hunter, Chief Financial Officer
Replace with JH image when available; Anna has booked headshots Joel Hunter Executive Vice President, Finance and Chief Financial Officer and Incoming President and Chief Executive Officer 5
Slide 6: Data Centre Memorandum of Understanding
Data Centre Memorandum of Understanding Location Keephills Counterparties CPP Investments & Brookfield Phase I 230 MW Fuel Grid+ Phase II Up to 1 GW1 Phase I COD 2027+ Available transmission interconnection Existing gas lines to Keephills Existing water rights and available Longstanding community re
Slide 7: Centralia Coal-To-Gas Conversion
Centralia Coal-To-Gas Conversion Location Centralia Customer Puget Sound Energy Capacity ~700 MW Fuel Natural Gas Term 16 years Capital ~US$600 million COD H2 2028 Build Multiple1 ~5.5 times Unique power solution to support critical reliability in the region Permits submitted, preliminary engineerin
Slide 8: Far North Acquisition
Far North Acquisition Purchase price of $95 million well below cost of new build Closed February 2, 2026 Kapuskasing Iroquois Falls 40 MW 120 MW Gas-Fired Gas-Fired Simple Cycle Combined Cycle ~55% Capacity ~78% Capacity Contracted Contracted TransAlta’s Energy Marketing and Trading team to deliver
Slide 9: TransAlta Segmented Results
TransAlta Segmented Results Higher contracted volumes partially offset Year and Three Months Ended December 31, 2025 ($millions) lower merchant pricing 2025 2024 Adjusted EBITDA1 Q4 2025 Q4 2024 285 316 Hydro 39 57 338 316 Wind and Solar 102 95 Strong average availability of 92.3% 438 524 Gas 96 116
Slide 10: Alberta Merchant Electricity Portfolio
Alberta Merchant Electricity Portfolio Fourth Quarter 2025 Prices 80 $73 51% Gas merch an t p remiu m to sp ot p rice 1 Strategic production of dispatchable Price ($/MWh) 60 23% Hy d ro merch an t p remiu m generation to sp ot p rice 1 40 $43 Hed ged p ower p rice p remiu m 20 70% to sp ot p rice Hy
Slide 11: Alberta Hedging Position
Alberta Hedging Position Hedge prices are 80 9,000 above spot 8,000 60 7,000 6,000 Price ($/MWh) Volume (GWh) 5,000 40 4,000 3,000 20 2,000 Substantially hedged 1,000 for 2026 0 0 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Full Year 2026 Full Year 2027 1 Volume Forward price Average hedged power price Q1 2026
Slide 12: 2026 Outlook
2026 Outlook ($ millions) Range Contracted fleet and Adjusted EBITDA1 950 to 1,050 strong hedge position provide stable cash FCF1 350 to 450 flows FCF ($/share) 1 1.18 to 1.51 Energy Marketing Adjusted Revenues1 110 to 130 Sustaining Capital2 140 to 160 Market Range $1 per MWh change in Alberta spot
Slide 13: Investor Day
Investor Day Toronto, Ontario In-person and Virtual March 23, 2026 13
Slide 14: 2026 Priorities
2026 Priorities Executing strategic Financial and Operational initiatives Adjusted EBITDA1 of $950 - $1,050 million Improve leading and lagging safety performance FCF1 of $350 - $450 million Optimize the Alberta merchant fleet Continued strong Dividend of $0.28 per share Fleet availability of 92.7%
Slide 15: Our Value Proposition
Safe and reliable operator Our Value Diversified portfolio Proposition High potential legacy energy campuses Positioned for growth Financial strength and flexibility Centralia, Washington 15 15
Slide 16: Questions and Answers
Questions and Answers Visit us at: www.transalta.com investor_relations@transalta.com 16