Talen Energy Corp (TLN) AI Stock Analysis

• Market Cap: $16.18B
• Dividend Yield: N/A
• Average Volume (3M): 856.36K
• Price to Earnings (P/E): 76.8
• Beta (1Y): 1.56
• Revenue Growth: 80.20%
• EPS Growth: -74.33%
• Country: US
• Employees: 1,894
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 4.25
• Shares Outstanding: 45,687,828
• 10 Day Avg. Volume: 717,839
• 30 Day Avg. Volume: 856,360
• PEG Ratio: 0.14
• Price to Book (P/B): 7.88
• Price to Sales (P/S): 5.27
• P/FCF Ratio: 163.14
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 9.88
• Enterprise Value/Gross Profit: 29.31
• Enterprise Value/Ebitda: 28.31
• 1Y Price Target: $448.33
• Price Target Upside: 26.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 5.35
• Revenue Forecast (FY): $2.34B

• Rating: 52 Neutral
• Price Target: $357.00 ▲(1.02% Upside)

Talen Energy Corp's overall score is driven by strong strategic initiatives and liquidity, but is weighed down by weak cash flow generation and high valuation. The technical indicators suggest bearish momentum, while recent corporate events provide a positive outlook.

Positive Factors

Regulatory Approvals

Regulatory clearance for acquisitions enhances Talen's capacity and market position, supporting long-term growth and diversification.

Strong Liquidity

Strong liquidity provides Talen with the flexibility to invest in growth opportunities and manage financial obligations effectively.

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Negative Factors

Free Cash Flow Challenges

Negative free cash flow growth indicates inefficiencies in cash generation, potentially limiting Talen's ability to fund operations and investments.

Higher Forced Outage Rates

Increased forced outages can impact operational efficiency and reliability, potentially affecting customer satisfaction and revenue stability.

Regulatory and Acquisition Delays

Delays in regulatory approvals and acquisitions can hinder strategic growth plans and create uncertainty in financial projections.

Talen Energy Corp Business Overview & Revenue Model

Company Description

Talen Energy Corporation, an independent power producer and infrastructure company, produces and sells electricity, capacity, and ancillary services into wholesale power markets in the United States. The company operates nuclear, fossil, solar, and coal power plants. It is also developing battery storage projects. The company owns and operates approximately 10.7 GW of power infrastructure. Talen Energy Corporation is headquartered in Houston, Texas.

How the Company Makes Money

Talen Energy Corp generates revenue primarily through the sale of electricity produced from its power generation facilities. The company's revenue model includes several key streams: (1) wholesale electricity sales to regional power markets, where it participates in bidding for power generation; (2) long-term power purchase agreements (PPAs) with utilities and other off-takers, providing stable cash flow; (3) ancillary services, including capacity and reserve market participation, which ensures reliability for the grid; and (4) revenues from renewable energy credits (RECs) and environmental credits, which are generated through its commitment to sustainable practices. Talen Energy may also engage in strategic partnerships and joint ventures to enhance its market reach and operational capabilities, contributing to its overall earnings.

Talen Energy Corp Financial Statement Overview

Summary

Talen Energy Corp shows strong revenue growth and operational efficiency, but faces significant challenges in generating free cash flow, which could impact future financial flexibility. The balance sheet reveals moderate profitability and a need for improved asset utilization.

Income Statement

Talen Energy Corp shows a positive revenue growth rate of 10.1% TTM, indicating a strong upward trajectory. The gross profit margin of 42.9% TTM is robust, reflecting effective cost management. However, the net profit margin of 8.1% TTM is relatively low, suggesting room for improvement in profitability. The EBIT margin of 13.7% TTM is moderate, while the EBITDA margin of 29.8% TTM is healthy, indicating good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low at 0.01 TTM, indicating low leverage and financial stability. However, the return on equity (ROE) of 12.1% TTM is moderate, suggesting average profitability relative to shareholder equity. The equity ratio of 24.1% TTM indicates a balanced capital structure, but there is room for improvement in asset utilization.

Cash Flow

The free cash flow growth rate is significantly negative at -620.3% TTM, indicating challenges in generating free cash flow. The operating cash flow to net income ratio of 0.09 TTM is low, suggesting limited cash generation from operations. Additionally, the free cash flow to net income ratio of -1.44 TTM highlights inefficiencies in converting net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.34B	2.07B	2.44B	2.41B	1.77B
Gross Profit	790.00M	664.00M	1.05B	770.00M	244.00M
EBITDA	818.00M	1.77B	977.00M	-326.00M	-301.00M
Net Income	226.00M	998.00M	613.00M	-1.29B	-977.00M
Balance Sheet
Total Assets	6.10B	6.11B	7.12B	10.72B	10.05B
Cash, Cash Equivalents and Short-Term Investments	497.00M	329.00M	400.00M	988.00M	276.00M
Total Debt	2.99B	3.00B	2.82B	4.35B	4.74B
Total Liabilities	4.63B	4.72B	4.59B	11.20B	9.32B
Stockholders Equity	1.47B	1.39B	2.46B	-573.00M	733.00M
Cash Flow
Free Cash Flow	307.00M	54.00M	516.00M	-125.00M	-518.00M
Operating Cash Flow	414.00M	243.00M	864.00M	187.00M	-294.00M
Investing Cash Flow	-210.00M	1.05B	-347.00M	-368.00M	-280.00M
Financing Cash Flow	-839.00M	-1.82B	-604.00M	426.00M	956.00M

Talen Energy Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 353.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLN, the sentiment is Negative. The current price of 353.38 is below the 20-day moving average (MA) of 372.79, below the 50-day MA of 395.95, and above the 200-day MA of 310.04, indicating a neutral trend. The MACD of -8.28 indicates Positive momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 20.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TLN.

Talen Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POR	70 Outperform	$5.46B	17.62	7.99%	4.25%	7.53%	-17.59%
NRG	69 Neutral	$31.45B	23.98	64.19%	1.07%	6.40%	62.12%
PPL	66 Neutral	$25.05B	23.04	7.65%	3.17%	8.42%	32.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
PNW	65 Neutral	$10.55B	18.11	8.62%	4.12%	5.70%	-8.25%
VST	63 Neutral	$56.64B	59.72	21.63%	0.54%	42.77%	-47.64%
TLN	52 Neutral	$16.18B	76.76	11.72%	―	80.20%	-74.33%

Talen Energy Corp Corporate Events

Talen Energy Completes Major Power Station Acquisitions

On November 25, 2025, Talen Energy announced the completion of its acquisitions of the Freedom Generating Station in Pennsylvania and the Guernsey Power Station in Ohio, adding nearly 2.9 gigawatts of natural gas-fired capacity to its portfolio. These acquisitions, funded through various financing transactions, are expected to enhance Talen’s ability to provide reliable energy to large commercial clients and data centers, while maintaining financial discipline. The integration of these assets is anticipated to be seamless, with continued efficient operations under Talen’s management.

Talen Energy Completes $2.69 Billion Senior Notes Offering

On October 27, 2025, Talen Energy Supply, LLC, a subsidiary of Talen Energy Corporation, completed its offerings of $2.69 billion in senior notes, with the proceeds intended to fund the acquisitions of the Freedom Energy Center and the Guernsey Power Station. These acquisitions are part of Talen’s strategy to expand its natural gas-fired power generation capacity, with potential implications for its market positioning and operational scale.

Talen Energy Prices $2.69 Billion in Senior Notes

On October 10, 2025, Talen Energy Corporation announced that its subsidiary, Talen Energy Supply, LLC, has priced $2.69 billion in senior notes due in 2034 and 2036 in private offerings. The proceeds from these offerings, along with a new $1.2 billion credit facility, will fund the acquisition of two natural gas-fired power plants in Pennsylvania and Ohio. If these acquisitions are not completed by the specified dates, Talen Energy will be required to redeem the notes.

Talen Energy Corp Announces Senior Notes Offering

On October 9, 2025, Talen Energy Corporation announced that its subsidiary, Talen Energy Supply, LLC, is proposing to offer senior notes due in 2034 and 2036 in a private offering. The proceeds, along with a new $1.2 billion term loan, will fund acquisitions of two natural gas-fired power plants in Pennsylvania and Ohio. Additionally, the company has withdrawn and plans to refile its Hart-Scott-Rodino antitrust application to provide more information to the DOJ, with the acquisitions expected to close in the first quarter of 2026, pending regulatory approvals.

Talen Energy Launches $1.2 Billion Term Loan B

On July 17, 2025, Talen Energy Corporation, through its subsidiary Talen Generation, LLC, entered into agreements to acquire two natural gas-fired power plants, the Freedom Energy Center in Pennsylvania and the Guernsey Power Station in Ohio, for a total of $3.79 billion. To support these acquisitions, Talen Energy announced on October 6, 2025, the launch of a $1.2 billion Term Loan B facility and the upsizing of its revolving credit and letter of credit facilities by $200 million each. These financial moves are aimed at enhancing Talen Energy’s operational capacity and market positioning in the energy sector.

Talen Energy Expands Share Repurchase Program by $1.005B

On September 8, 2025, Talen Energy’s board approved an increase in its share repurchase program by $1.005 billion, extending the expiration date to December 31, 2028. This decision raises the total authorization to $2 billion, contingent upon the completion of the Freedom and Guernsey acquisitions expected by the end of 2025. Talen plans to fund the repurchases with cash on hand and operational cash flow, with the flexibility to adjust the program based on market conditions and other factors.