Talen Energy Corporation

talenenergy.com

What Do They Do?

Generates and sells electricity, capacity and ancillary services into wholesale U.S. power markets, and supplies carbon-free power to data center operators.

How Do They Make Money?

Talen sells electricity and ancillary services into wholesale markets and directly to bilateral buyers; payment tracks volumes delivered or services performed at market or agreed prices. Capacity buyers pay through the capacity year for generation kept available.

revenue

Segment	Share	How money arrives
Energy and other revenues Usage-based	83% FY2022: 66%	Usage-based
Capacity revenues Recurring	19% FY2022: 12%	Recurring
Unrealized gain (loss) on derivative instruments (Note 2)	−1.7% FY2022: 22%

Who Are Their Customers?

Talen sells electricity and ancillary services into wholesale markets; it also contracts directly with bilateral buyers, including AWS, which buys power for its data center campus.

Do Revenues Turn Into Profits?

Not on paper. It lost $219M in FY2025, but brought in more cash than it spent: $606M of free cash flow.

Operating income, FY2025

−3% of revenue

▼ Now a loss vs FY2024 ($226M, 11%)

Net income, FY2025

−8% of revenue

▼ Now a loss vs FY2024 ($998M, 47%)

Free cash flow, FY2025

23% of revenue

▲ +254% vs FY2024 ($171M, 8%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +19%; vs $630M in Q2 FY2025
Net income: ▼ Now a loss; vs $72M in Q2 FY2025

Energy and other revenues share of revenue vs 58.1% in Q2 FY2025

Aug 5, 2026 Raised its 2026 earnings and cash-flow outlook Raised its 2026 ranges for earnings and free cash flow.
Jul 14, 2026 PJM auction set capacity revenue for 2028/2029 Cleared 10,180 megawatts at $325 per megawatt-day, equating to approximately $1,208 million in capacity revenues for the planning year.
Jun 15, 2026 Completed acquisition of three power plants Completed the purchase of the Lawrenceburg Power Plant, Waterford Energy Center and Darby Generating Station.

Revenue over time

Energy and other revenues Capacity revenues Unrealized gain (loss) on derivative instruments (Note 2)

$5B$2.5B$0

FY2022 FY2024 FY2025

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