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TransAlta Lifts Dividend as 2025 Results Highlight Strategy Shift to Data Centres and Gas Conversion

Story Highlights
  • TransAlta’s 2025 results showed strong operations but lower earnings and a net loss.
  • The company raised its dividend, advanced data centre and gas conversion deals, and set a cautious 2026 outlook.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
TransAlta Lifts Dividend as 2025 Results Highlight Strategy Shift to Data Centres and Gas Conversion

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TransAlta ( (TSE:TA) ) just unveiled an announcement.

On February 27, 2026, TransAlta reported its fourth quarter and full-year 2025 results, showing strong operational availability and higher power production but lower revenues, adjusted EBITDA and free cash flow versus 2024, and a swing to a net loss attributable to common shareholders. Despite softer Alberta power prices and reduced market volatility, cash flow from operations remained solid, the board approved an 8% dividend increase to $0.28 per share annually – the seventh consecutive raise – and management highlighted key strategic moves, including a tolling agreement to convert Centralia Unit 2 to gas, a data-centre-focused memorandum of understanding with CPP Investments and Brookfield, the acquisition of Far North in Ontario, and a 2026 outlook that anticipates lower EBITDA and FCF but continued benefits from a diversified, increasingly lower-emission fleet and expected long-term demand growth from data centres.

The most recent analyst rating on (TSE:TA) stock is a Hold with a C$18.00 price target. To see the full list of analyst forecasts on TransAlta stock, see the TSE:TA Stock Forecast page.

Spark’s Take on TSE:TA Stock

According to Spark, TipRanks’ AI Analyst, TSE:TA is a Neutral.

TransAlta’s overall stock score reflects significant challenges in financial performance and valuation, with a negative P/E ratio and high leverage. Technical indicators suggest a bearish trend, adding to the cautious outlook. However, the company shows resilience in cash flow generation and has a positive outlook for 2025, as highlighted in the earnings call. Improvements in operational efficiency and debt reduction are crucial for enhancing financial stability.

To see Spark’s full report on TSE:TA stock, click here.

More about TransAlta

TransAlta Corporation is a Calgary-based power generation and energy infrastructure company listed on the TSX and NYSE. It operates a diversified fleet of generating assets, including in Alberta, Ontario and the U.S., with a business model that blends long-term contracted capacity, merchant generation and hedging strategies to manage exposure to power market volatility.

Average Trading Volume: 1,135,094

Technical Sentiment Signal: Buy

Current Market Cap: C$5.3B

See more insights into TA stock on TipRanks’ Stock Analysis page.

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