A Business at a Glance
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Talen Energy Corp
TLN
$16.5B
Mkt Cap
$359.90
-5.11%
Talen Energy Corp (TLN) has a 5-year average return on invested capital (ROIC) of 5.3%. This is below average and may indicate limited pricing power.
Talen Energy Corp (TLN) has a market capitalization of $16.3B. It is classified as a large-cap stock.
Talen Energy Corp (TLN) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.73%.
Talen Energy Corp (TLN) operates in the Electric Services industry, within the Utilities sector.
Talen Energy Corp (TLN) reported annual revenue of $2.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
Talen Energy Corp (TLN) has a net profit margin of -8.5%. The company is currently unprofitable.
Talen Energy Corp (TLN) generated $606 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Talen is an independent power producer and energy infrastructure company operating approximately 13.1 GW of power generation across the United States, with a portfolio comprising 2.2 GW of nuclear power (including a 90% interest in the 2.5 GW Susquehanna facility), over 5.7 GW of low- and zero-carbon baseload generation including recently acquired Freedom and Guernsey combined-cycle natural gas facilities totaling 2.8 GW, and 4.6 GW of dispatchable intermediate and peaking natural gas and oil units. The company generates revenues primarily through energy sales, capacity sales, and ancillary services into wholesale U.S. power markets, with generation principally located in the Mid-Atlantic, Ohio, and Montana regions, and has recently entered into a long-term fixed-price power purchase agreement with Amazon Web Services for up to 1,920 MW of carbon-free nuclear power from Susquehanna through 2042 to support data center operations. Talen's business model combines highly efficient baseload generation with dispatchable assets that provide commercial and operational flexibility, allowing the company to serve both traditional wholesale markets and increasingly important long-term contracted arrangements with hyperscalers and other large load customers. The company has converted approximately 3.2 GW of legacy coal capacity to lower-carbon fuels and operates 2.0 GW of coal-fired generation under reliability maintenance agreements with fixed monthly payments through May 2029, while also holding minority interests in approximately 800 MW of coal-fired facilities. Talen's competitive positioning is strengthened by its geographic concentration in attractive PJM markets experiencing significant data center load growth, its ability to backstop long-term contractual obligations through fleet diversity, and its strategic focus on executing a "Talen flywheel" strategy that combines contracted revenues with development opportunities to capture value from the digital infrastructure revolution.
【Data center demand acceleration】 Management expects continued strong growth in data center capacity and power demand across Talen's operating regions, with PPL zone peak load forecast to increase over 70% in the next five years and AEP zone increasing over 30%, driven by hyperscaler capital expenditure projected to exceed $650 billion in 2026 and $700 billion in 2027. The company anticipates significant free cash flow per share growth through 2027 and 2028, with preliminary outlooks showing approximately $34 per share in 2027 and approximately $36 per share in 2028, representing a 15% improvement from January estimates and reflecting the accretive impact of the pending Cornerstone acquisition and improved financing costs. Talen expects to maintain net leverage below its 3.5x target by year-end 2026 upon closing the Cornerstone transaction and plans to return 70% of available free cash flow to shareholders through share repurchases once leverage targets are achieved, while continuing to execute on its development pipeline and bilateral contracting strategy to capture additional upside from tightening supply-demand fundamentals in PJM.
| Metric | Target | Period |
|---|---|---|
| Adjusted EBITDA | $1.75 billion–$2.05 billion | FY2026 |
| Free cash flow per share | approximately $34 per share | FY2027 |
| Free cash flow per share | approximately $36 per share | FY2028 |
| Incremental annual adjusted free cash flow per share impact from Cornerstone acquisition | more than $4 per share | Upon closing (expected 2026) |
Adjusted EBITDA (FY2026): “Our adjusted EBITDA range is $1.75 billion-$2.05 billion.”
Free cash flow per share (FY2027): “In our base case, we hold share count flat, projecting free cash flow at approximately $34 per share in 2027”
Free cash flow per share (FY2028): “and approximately $36 per share in 2028”
Incremental annual adjusted free cash flow per share impact from Cornerstone acquisition (Upon closing (expected 2026)): “We anticipate the Cornerstone acquisition to create more than $4 in incremental annual impact on adjusted free cash flow per share upon closing.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2022 | FY2015 | FY2014 |
|---|---|---|---|---|---|---|
| Revenue | 3.3B | 2.6B | 2.1B | 3.1B | 4.5B | 4.6B |
| Net Income | -21M | -219M | 998M | -1.3B | -341M | 410M |
| EPS | $-0.45 | $-4.79 | $17.67 | - | $-3.10 | $4.91 |
| Free Cash Flow | 924M | 606M | 171M | -45M | 317M | 46M |
| ROIC | -0.6% | -3.6% | 20.7% | - | -0.5% | 4.6% |
| Gross Margin | - | - | - | - | 76.5% | 78.0% |
| Debt/Equity | 7.79 | 7.65 | 2.17 | -0.00 | 1.12 | 0.73 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 226M | -90M | 226M | 241M | -39M | 397M |
| Operating Margin | 6.8% | -3.5% | 10.7% | 7.8% | -0.9% | 8.7% |
| ROE | -2.0% | -17.7% | 51.9% | 267.4% | -8.3% | 9.4% |
| Shares Outstanding | 45M | 46M | 56M | - | 110M | 84M |
| Metric | |||||||
|---|---|---|---|---|---|---|---|
| Income Statement | |||||||
| Revenue | 4.5B | 4.6B | 4.5B | 3.1B | 2.1B | 2.6B | 3.3B |
| Gross Margin | 78.6% | 78.0% | 76.5% | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 3.2B | 3.2B | 3.4B | 106M | 163M | 624M | 614M |
| EBIT | -293M | 397M | -39M | 241M | 226M | -90M | 226M |
| Op. Margin | -6.5% | 8.7% | -0.9% | 7.8% | 10.7% | -3.5% | 6.8% |
| Net Income | -230M | 410M | -341M | -1.3B | 998M | -219M | -21M |
| Net Margin | -5.1% | 9.0% | -7.6% | -41.7% | 47.2% | -8.5% | -0.6% |
| Non-Recurring | 65M | 315M | 465M | 488M | 910M | 11M | 11M |
| Returns on Capital | |||||||
| ROIC | N/A | 4.6% | -0.5% | N/A | 20.7% | -3.6% | -0.6% |
| ROE | N/A | 9.4% | -8.3% | 267.4% | 51.9% | -17.7% | -2.0% |
| ROA | N/A | 7.6% | -2.9% | N/A | 15.1% | -2.6% | -0.2% |
| Cash Flow | |||||||
| Op. Cash Flow | 410M | 462M | 768M | 187M | 256M | 704M | 1.0B |
| Free Cash Flow | -173M | 46M | 317M | -45M | 171M | 606M | 924M |
| Owner Earnings | 111M | 165M | 394M | -333M | -75M | -101M | 233M |
| CapEx | 583M | 416M | 451M | 232M | 85M | 98M | 122M |
| Maint. CapEx | 299M | 297M | 356M | 520M | 298M | 279M | 297M |
| Growth CapEx | 284M | 119M | 95M | 0 | 0 | 0 | 0 |
| D&A | 299M | 297M | 356M | 520M | 298M | 279M | 297M |
| CapEx/OCF | N/A | N/A | N/A | N/A | 33.2% | 13.9% | 11.7% |
| Capital Allocation | |||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 2.0B | 103M | 120M |
| Buyback Yield | 0.0% | N/A | N/A | 0.0% | 17.3% | 0.6% | 0.7% |
| Stock-Based Comp | N/A | N/A | 18M | 0 | 33M | 526M | 516M |
| Debt Repayment | 747M | 309M | 335M | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||
| Net Debt | -595M | 2.5B | 4.4B | -988M | 2.1B | 6.9B | 6.6B |
| Cash & Equiv. | 239M | 352M | 141M | 988M | 328M | 689M | 1.8B |
| Long-Term Debt | 0 | 1.7B | 3.8B | 0 | 3.0B | 6.8B | 6.8B |
| Debt/Equity | N/A | 0.73 | 1.12 | 0.00 | 2.17 | 7.65 | 7.79 |
| Interest Coverage | -1.8 | 3.2 | -0.2 | 0.7 | 0.9 | -0.3 | 0.7 |
| Equity | N/A | 3.9B | 4.3B | -482M | 1.4B | 1.1B | 1.1B |
| Total Assets | N/A | 10.8B | 12.8B | N/A | 6.1B | 10.9B | 11.0B |
| Total Liabilities | N/A | 6.9B | 8.5B | N/A | 4.7B | 9.8B | 9.9B |
| Intangibles | N/A | 257M | 310M | N/A | N/A | N/A | N/A |
| Retained Earnings | N/A | 0 | -373M | N/A | -326M | -612M | -638M |
| Working Capital | N/A | -189M | 674M | N/A | 585M | 299M | 299M |
| Current Assets | N/A | 2.7B | 2.8B | N/A | 1.0B | 1.3B | 1.5B |
| Current Liabilities | N/A | 2.9B | 2.1B | N/A | 455M | 1.1B | 1.2B |
| Per Share Data | |||||||
| EPS | -2.75 | 4.91 | -3.10 | N/A | 17.67 | -4.79 | -0.45 |
| Owner EPS | 1.33 | 1.98 | 3.58 | N/A | -1.33 | -2.21 | 5.13 |
| Book Value | N/A | 46.79 | 39.12 | N/A | 24.56 | 23.91 | 23.64 |
| Cash Flow/Share | 4.90 | 5.53 | 6.98 | N/A | 4.53 | 15.40 | 6.08 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 83.6M | 83.5M | 110.0M | N/A | 56.5M | 45.7M | 45.4M |
| Valuation | |||||||
| P/E Ratio | N/A | N/A | N/A | N/A | 11.3 | N/A | -800.2 |
| P/FCF | N/A | N/A | N/A | N/A | 66.1 | 29.0 | 17.7 |
| EV/EBIT | N/A | N/A | N/A | N/A | 60.5 | N/A | 101.3 |
| Price/Book | N/A | N/A | N/A | N/A | 8.1 | 16.1 | 15.2 |
| Price/Sales | N/A | N/A | N/A | N/A | 3.4 | 5.3 | 4.9 |
| FCF Yield | N/A | N/A | N/A | N/A | 1.5% | 3.4% | 5.7% |
| Market Cap | 0 | N/A | N/A | 0 | 11.3B | 17.6B | 16.3B |
| Avg. Price | 0.00 | N/A | N/A | 0.00 | 128.07 | 301.17 | 359.90 |
| Year-End Price | 0.00 | N/A | N/A | 0.00 | 200.12 | 384.52 | 359.90 |
Talen Energy Corp passes 4 of 9 quality checks, suggesting mixed fundamentals.
On a free-cash-flow basis, the stock trades at 27.1x vs a median of 47.6x. The company's 5-year average ROIC is 5.3% with a gross margin of 77.3%. Total shareholder yield (buybacks) is 0.7%. At current prices, the estimated annualized return to fair value is +0.3%.
Talen Energy Corp (TLN) has a debt-to-equity ratio of 7.65. This indicates higher leverage, which may increase financial risk.
Talen Energy Corp (TLN) reported earnings per share (EPS) of $-4.79 in its most recent fiscal year.
Talen Energy Corp (TLN) has a return on equity (ROE) of -17.7%. A negative ROE may indicate losses or negative equity.
Talen Energy Corp (TLN) has a 5-year average gross margin of 77.3%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 6 years of financial data for Talen Energy Corp (TLN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Talen Energy Corp (TLN) has a book value per share of $23.91, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong growth in data center capacity and power demand across Talen's operating regions, with PPL zone peak load forecast to increase over 70% in the next five years and AEP zone increasing over 30%, driven by hyperscaler capital expenditure projected to exceed $650 billion in 2026 and $700 billion in 2027. The company anticipates significant free cash flow per share growth through 2027 and 2028, with preliminary outlooks showing approximately $34 per share in 2027 and approximately $36 per share in 2028, representing a 15% improvement from January estimates and reflecting the accretive impact of the pending Cornerstone acquisition and improved financing costs. Talen expects to maintain net leverage below its 3.5x target by year-end 2026 upon closing the Cornerstone transaction and plans to return 70% of available free cash flow to shareholders through share repurchases once leverage targets are achieved, while continuing to execute on its development pipeline and bilateral contracting strategy to capture additional upside from tightening supply-demand fundamentals in PJM.
Based on recent SEC filings and earnings calls, Talen Energy Corp (TLN) has provided the following forward guidance: Adjusted EBITDA: $1.75 billion–$2.05 billion (FY2026); Free cash flow per share: approximately $34 per share (FY2027); Free cash flow per share: approximately $36 per share (FY2028); Incremental annual adjusted free cash flow per share impact from Cornerstone acquisition: more than $4 per share (Upon closing (expected 2026)).