10-K · February 26, 2026
Talen presents a strategy centered on scaling dispatchable low‑carbon baseload generation, capturing long‑term contracted cash flows (notably the AWS PPA) and stabilizing earnings via hedging and RMR arrangements while…
Earnings analysis · 10-Q
TLN earnings analysis
Filed May 5, 2026 · Our reading of the company's report
The latest report
Talen Energy reported a significant revenue increase in Q1 2026, achieving $1.13 billion, up from $390 million in Q1 2025, largely driven by improved electricity generation margins and capacity revenues. Despite a…
Read full summary
Talen Energy reported a significant revenue increase in Q1 2026, achieving $1.13 billion, up from $390 million in Q1 2025, largely driven by improved electricity generation margins and capacity revenues. Despite a substantial dip in EPS to $1.33, a notable recovery from previous quarters is evident.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.33
What stood out
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Revenue Surge
Total revenue reached $1.13 billion, a substantial increase of $739 million year-over-year from $390 million in Q1 2025.
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EPS Recovery
EPS improved to $1.33 from a loss of $2.94 in Q1 2025, reflecting a recovery in operational performance.
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Operating Income Profits
Operating income rose to $210 million compared to a loss of $106 million in Q1 2025, marking a favorable change of $316 million.
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Adjusted EBITDA Growth
Adjusted EBITDA increased to $473 million, up from $200 million in Q1 2025.
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Cash Flow Improvement
Operating cash flow saw an increase of $342 million to $461 million versus $119 million in Q1 2025.
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Increased Capacity Revenues
Capacity revenues climbed to $207 million in Q1 2026 from $49 million in the same quarter of the previous year.
What to watch
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Rising Interest Expenses
Interest expense increased by $45 million to $119 million, reflecting higher borrowing costs from new debt issues.
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Commodity Price Volatility
The company remains exposed to fluctuations in natural gas prices, with TETCO M-3 prices at $9.61/MMBtu compared to $6.42/MMBtu in Q1 2025.
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Regulatory Approval Delays
The Cornerstone Acquisition is subject to regulatory approvals, which could delay anticipated benefits from the deal.
Management's outlook
Outlook deferred to earnings press release / call.
Earlier filings 4
10-Q · November 5, 2025
Talen delivered a strong Q3: revenue of $812.0M and diluted EPS of $4.25, both ahead of consensus, driven by higher capacity and energy revenues. Gross margin was 68.1% and operating margin expanded to 36.5%, while…
10-K · February 28, 2025
Talen positions itself as a 10.7 GW independent power producer with a 2.2 GW nuclear footprint and a diversified dispatchable fleet, pursuing contracted revenue growth via an 18-year AWS PPA and RMR arrangements for…
10-Q · November 10, 2016
Talen reported Q3 revenue of $1,238.0M, down $82.0M (6.2%) year-over-year, but recorded operating income of $193M and diluted EPS of $0.68 versus a loss of $(3.12) in Q3 2015. Results and cash were materially influenced…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.