Talen Energy Corp (TLN) AI Stock Analysis

• Market Cap: $18.63B
• Dividend Yield: N/A
• Average Volume (3M): 818.36K
• Price to Earnings (P/E): 116.2
• Beta (1Y): 1.39
• Revenue Growth: 125.17%
• EPS Growth: -74.67%
• Country: US
• Employees: 1,894
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 1.50
• Shares Outstanding: 45,685,314
• 10 Day Avg. Volume: 1,004,283
• 30 Day Avg. Volume: 818,358
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 7.33
• Enterprise Value/Gross Profit: 17.09
• Enterprise Value/Ebitda: 24.64
• 1Y Price Target: $451.09
• Price Target Upside: 14.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 58 Neutral
• Price Target: $424.00 ▲(7.61% Upside)

Talen Energy's overall score is primarily impacted by its strong financial performance in terms of revenue growth and strategic expansions highlighted in the earnings call. However, significant challenges in profitability, cash flow, and valuation concerns due to a high P/E ratio weigh down the score. Technical indicators also suggest a bearish trend, contributing to a moderate overall score.

Positive Factors

Strategic Expansion

The expanded contract with Amazon signifies a strong strategic partnership, enhancing Talen's market position and future cash flow potential.

Energy Storage Collaboration

The collaboration with Eos Energy to develop energy storage enhances Talen's capability to meet growing energy demands, supporting long-term growth and sustainability.

Improved Leverage

The significant reduction in leverage enhances financial stability, providing Talen with greater flexibility to invest in growth opportunities.

Negative Factors

Cash Flow Challenges

Severe cash flow challenges limit Talen's ability to fund operations and growth initiatives, posing a risk to long-term financial health.

Operational Inefficiencies

Declining net profit margins indicate operational inefficiencies, which could hinder profitability and competitiveness over time.

Susquehanna Outage Impact

The extended outage at Susquehanna highlights operational vulnerabilities, impacting financial results and potentially affecting future reliability.

Talen Energy Corp Business Overview & Revenue Model

Company Description

Talen Energy Corp (TLN) is a leading energy generation and marketing company based in the United States, primarily focused on providing reliable and sustainable electricity through its diverse portfolio of power generation assets. The company operates in multiple sectors, including conventional energy generation, renewable energy, and energy marketing services. Talen Energy is known for its commitment to operational excellence and environmental stewardship, with a mix of natural gas, coal, and renewable energy resources to meet the growing energy demands of its customers.

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 improved gross profit margins, indicating positive sales momentum and cost management. However, declining net profit margins and operational inefficiencies pose profitability challenges. The balance sheet shows improved leverage, enhancing financial stability, but cash flow difficulties remain a significant concern.

Income Statement

Talen Energy Corp shows a strong revenue growth rate of 24.54% in the TTM, indicating a positive trajectory in sales. The gross profit margin improved to 42.89%, reflecting efficient cost management. However, the net profit margin decreased significantly from 48.14% in 2024 to 8.13% in the TTM, suggesting challenges in maintaining profitability. The EBIT and EBITDA margins also declined, indicating potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio improved dramatically to 0.01 in the TTM, showcasing a significant reduction in leverage, which enhances financial stability. The return on equity is at 12.06%, indicating decent profitability relative to shareholder equity. However, the equity ratio is not calculated due to missing data, which limits a comprehensive assessment of asset financing.

Cash Flow

The cash flow statement reveals a concerning free cash flow growth rate of -493.33% in the TTM, indicating cash flow challenges. The operating cash flow to net income ratio is low at 0.09, suggesting limited cash generation from operations relative to net income. The negative free cash flow to net income ratio further highlights cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.30B	2.07B	1.44B	3.02B	1.77B
Gross Profit	986.00M	664.00M	453.00M	1.34B	244.00M
EBITDA	684.00M	1.77B	1.71B	1.39B	-301.00M
Net Income	187.00M	998.00M	613.00M	-1.29B	-977.00M
Balance Sheet
Total Assets	5.83B	6.11B	7.12B	10.72B	10.05B
Cash, Cash Equivalents and Short-Term Investments	135.00M	329.00M	401.00M	988.00M	276.00M
Total Debt	17.00M	3.00B	2.83B	4.35B	4.81B
Total Liabilities	4.58B	4.72B	4.59B	11.20B	9.32B
Stockholders Equity	1.25B	1.39B	2.46B	-573.00M	733.00M
Cash Flow
Free Cash Flow	-59.00M	67.00M	516.00M	-125.00M	-518.00M
Operating Cash Flow	41.00M	256.00M	864.00M	187.00M	-294.00M
Investing Cash Flow	78.00M	1.17B	-347.00M	-368.00M	-280.00M
Financing Cash Flow	-1.10B	-1.96B	-604.00M	426.00M	956.00M

Talen Energy Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 394.00
• 50DMA: Negative
• 100DMA: Positive
• 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 394 is below the 20-day moving average (MA) of 416.02, below the 50-day MA of 402.94, and above the 200-day MA of 289.36, indicating a neutral trend. The MACD of -3.82 indicates Positive momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 66.11 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	―	$5.03B	16.83	8.02%	4.48%	9.78%	-6.19%
PNW	―	$10.83B	18.68	8.90%	3.87%	7.47%	-8.53%
VST	―	$64.58B	30.24	45.85%	0.47%	46.90%	388.66%
PPL	―	$27.30B	27.75	6.96%	2.91%	6.62%	17.35%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NRG	―	$33.42B	73.11	17.66%	1.03%	2.09%	-74.13%
TLN	―	$18.63B	116.24	9.95%	―	125.17%	-74.67%

Talen Energy Corp Corporate Events

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.

The most recent analyst rating on (TLN) stock is a Hold with a $424.00 price target. To see the full list of analyst forecasts on Talen Energy Corp stock, see the TLN Stock Forecast page.

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.

The most recent analyst rating on (TLN) stock is a Buy with a $496.00 price target. To see the full list of analyst forecasts on Talen Energy Corp stock, see the TLN Stock Forecast page.

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.

The most recent analyst rating on (TLN) stock is a Buy with a $496.00 price target. To see the full list of analyst forecasts on Talen Energy Corp stock, see the TLN Stock Forecast page.

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.

The most recent analyst rating on (TLN) stock is a Buy with a $430.00 price target. To see the full list of analyst forecasts on Talen Energy Corp stock, see the TLN Stock Forecast page.

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.

The most recent analyst rating on (TLN) stock is a Buy with a $410.00 price target. To see the full list of analyst forecasts on Talen Energy Corp stock, see the TLN Stock Forecast page.

Talen Energy Reports Q2 2025 Earnings and Strategic Moves

Talen Energy Corp, headquartered in Houston, Texas, is a leading independent power producer and energy infrastructure company in the United States, operating approximately 10.5 gigawatts of power infrastructure, including nuclear and fossil fuel generation, primarily in the Mid-Atlantic and Montana regions.

Talen Energy’s Earnings Call Highlights Strategic Growth

Talen Energy Corp’s recent earnings call exuded a positive sentiment, highlighting the company’s robust performance and strategic expansions. The call underscored significant operational improvements and shareholder-friendly actions, such as substantial share repurchases. Despite facing financial pressures from extended maintenance outages and interest impacts, the overall sentiment was optimistic, driven by notable achievements and strategic positioning for future growth.