Talen Energy Corp (TLN) AI Stock Analysis

• Market Cap: $16.49B
• Dividend Yield: N/A
• Average Volume (3M): 900.49K
• Price to Earnings (P/E): 78.4
• Beta (1Y): 1.55
• 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: 957,366
• 30 Day Avg. Volume: 900,488
• 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: 1.40
• Enterprise Value/Revenue: 9.88
• Enterprise Value/Gross Profit: 29.31
• Enterprise Value/Ebitda: 28.31
• 1Y Price Target: $454.27
• Price Target Upside: 23.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 5.38
• Revenue Forecast (FY): $2.34B

• Rating: 56 Neutral
• Price Target: $405.00 ▲(9.86% Upside)

Talen Energy Corp's overall stock score is primarily influenced by its strong strategic progress and liquidity position, as highlighted in the earnings call. However, significant challenges in cash flow generation and a high P/E ratio suggest caution. Technical indicators show mixed signals, with short-term bearish momentum but longer-term bullish trends.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective strategies in capturing energy demand, which supports long-term business expansion.

Strategic Financing

Successful financing enhances liquidity and supports strategic initiatives, enabling the company to invest in growth opportunities and manage debt effectively.

Partnerships and Expansion

Partnerships for battery development and data center expansions position Talen Energy to capitalize on renewable energy trends and growing power demand, ensuring future growth.

Negative Factors

Cash Flow Challenges

Negative cash flow growth indicates inefficiencies in converting income into cash, which could limit the company's ability to fund operations and investments, impacting long-term sustainability.

Regulatory and Acquisition Delays

Regulatory delays in acquisitions can hinder strategic growth plans and create uncertainty in achieving projected financial outcomes, affecting market confidence.

Higher Forced Outage Rates

Increased forced outages can disrupt operations and reduce efficiency, potentially impacting revenue and customer satisfaction, posing a risk to operational 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 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: Neutral
• Last Price: 368.65
• 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 Neutral. The current price of 368.65 is below the 20-day moving average (MA) of 387.54, below the 50-day MA of 406.22, and above the 200-day MA of 300.47, indicating a neutral trend. The MACD of -11.22 indicates Positive momentum. The RSI at 41.16 is Neutral, neither overbought nor oversold. The STOCH value of 23.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TLN.

Talen Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRG	67 Neutral	$31.66B	24.14	64.19%	1.08%	6.40%	62.12%
PNW	67 Neutral	$10.58B	18.15	8.62%	4.03%	5.70%	-8.25%
POR	67 Neutral	$5.56B	17.93	7.99%	4.48%	7.53%	-17.59%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
PPL	63 Neutral	$27.19B	25.01	7.65%	2.92%	8.42%	32.48%
VST	63 Neutral	$59.19B	62.40	21.63%	0.47%	42.77%	-47.64%
TLN	56 Neutral	$16.49B	78.40	11.72%	―	80.20%	-74.33%

Talen Energy Corp Corporate Events

Talen Energy Corp’s Earnings Call: Strategic Gains Amid Challenges

Talen Energy Corp’s recent earnings call painted a picture of strategic progress tempered by operational challenges. The company showcased its strong strides in financing, partnerships, and maintaining liquidity, while also acknowledging setbacks in Q3 performance, increased forced outages, and regulatory hurdles.

Talen Energy’s Q3 2025 Earnings and Strategic Moves

Talen Energy Corp, a prominent independent power producer, operates approximately 10.3 gigawatts of power infrastructure across the United States, including nuclear and fossil fuel assets, and is dedicated to providing reliable and clean energy solutions to meet the growing demands of the digital infrastructure sector.

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.