Overview

• U.S. power producer's Q1 adjusted EBITDA more than doubled yr/yr

• Company reports GAAP net income of $63 million

• Q1 diluted EPS missed analyst expectations

• Company reaffirmed 2026 adjusted EBITDA and free cash flow guidance

Outlook

• Talen reaffirms 2026 Adjusted EBITDA guidance of $1.75 bln to $2.05 bln, excluding Cornerstone Acquisition

• Company maintains 2026 Adjusted Free Cash Flow outlook at $980 mln to $1.18 bln, excluding Cornerstone Acquisition

• Talen expects Cornerstone Acquisition to close early in the second half of 2026, pending approvals

Result Drivers

• CAPACITY AND ENERGY REVENUE GAINS - Co said increases in capacity revenues and energy and other revenues, net of fuel and energy purchases, drove higher Q1 net income, adjusted EBITDA and adjusted free cash flow

• HIGHER INTEREST EXPENSE - Increased interest expense and other finance charges partially offset revenue gains

Company press release: ID:nGNXbMxlNx

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS	Miss	$1.33	$4.71 (7 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the independent power producers peer group is "buy"

• Wall Street's median 12-month price target for Talen Energy Corp is $457.35, about 18.9% above its May 4 closing price of $384.64

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

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