Talen Energy Corporation
- Open
- 297.52
- Day high
- 297.99
- Day low
- 292.26
- Prev close
- 296.11
- Volume
- 739K
- Mkt cap
- $14.2B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 8.8
- P/S
- 4.0
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$988K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
Talen Energy Corporation (TLN) is a Utilities company listed on NASDAQ. The stock is down 21% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4). Drillr has 1 published research article covering TLN.
Talen Energy Corporation (TLN) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TLN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $3.21 | $-2.00 | -162.3% | $747M | -10.3% |
| May 5, 2026 | $5.28 | $5.55 | +5.1% | $1.1B | +7.8% |
| Nov 5, 2025 | $3.18 | $2.38 | -25.2% | $770M | +3.3% |
| Aug 7, 2025 | $-1.04 | $-1.19 | -14.4% | $454M | +15.8% |
| May 8, 2025 | $1.03 | $0.82 | -20.4% | $390M | -20.7% |
| Feb 27, 2025 | $-0.13 | $1.81 | +1492.3% | $488M | -12.4% |
| Nov 14, 2024 | $0.26 | $1.64 | +531.0% | $555M | +6.3% |
| Mar 14, 2024 | $-0.19 | $0.15 | +178.9% | $459M | -23.1% |
| Nov 10, 2016 | $0.62 | $0.68 | +9.7% | $955M | — |
| Aug 4, 2016 | $-0.27 | $-0.02 | +92.6% | $1.0B | — |
| May 10, 2016 | $0.36 | $1.17 | +225.0% | $849M | — |
| Feb 25, 2016 | $0.06 | $-0.17 | -383.3% | $1.1B | — |
TLN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 15, 2026 | Nutt Terry Lofficer: President | Option | 20,780 | — |
| Jul 15, 2026 | Nutt Terry Lofficer: President | Option | 8,312 | $0.00 |
| Jul 15, 2026 | Nutt Terry Lofficer: President | Tax | 3,271 | $385.80 |
| Jun 17, 2026 | ABBAS GIZMAN Idirector | Sell | 2,600 | $380.00 |
| May 27, 2026 | Muller Coleofficer: Chief Financial Officer | Option | 5,270 | $0.00 |
| May 27, 2026 | Horton Anthony Rdirector | Option | 4,133 | $0.00 |
| May 27, 2026 | ABBAS GIZMAN Idirector | Option | 4,133 | $0.00 |
| May 27, 2026 | SCHAEFER STEPHENdirector | Option | 45,873 | — |
| May 27, 2026 | SCHAEFER STEPHENdirector | Option | 18,349 | — |
| May 27, 2026 | SCHAEFER STEPHENdirector | Option | 4,133 | $0.00 |
| May 27, 2026 | Olagues Darren Jofficer: Chief Development Officer | Option | 18,487 | — |
| May 27, 2026 | Olagues Darren Jofficer: Chief Development Officer | Tax | 2,911 | $324.21 |
| May 27, 2026 | Olagues Darren Jofficer: Chief Development Officer | Option | 7,395 | $0.00 |
| May 27, 2026 | Nutt Terry Lofficer: President | Option | 227,064 | — |
| May 27, 2026 | Nutt Terry Lofficer: President | Tax | 35,741 | $324.21 |
Source: TLN SEC Form 4 filings, latest Jul 15, 2026. For informational purposes only — not investment advice.
See the full TLN insider & 13F page →Talen Energy Corporation company profile
Overview
Talen Energy Corporation (NASDAQ:TLN) is an independent power producer and infrastructure company that went public in June 2023 following its spin-off from previous ownership structures. Based in Houston, Texas, the company operates approximately 10.7 gigawatts of power generation capacity across nuclear, natural gas, coal, and renewable energy facilities in the United States. Since its public debut, Talen has positioned itself as a key player in the rapidly evolving electricity market, particularly focusing on serving the growing power demands of data centers and artificial intelligence infrastructure.
Business
Talen Energy operates as an independent power producer in the wholesale electricity markets, primarily serving the PJM Interconnection region which covers much of the Mid-Atlantic and Midwest United States. The company's core business involves generating electricity from a diverse portfolio of power plants and selling that electricity, along with capacity and ancillary services, into competitive wholesale markets. The company's power generation portfolio consists of several key assets. The crown jewel is the Susquehanna nuclear facility, a two-unit nuclear power plant that provides approximately 2.5 gigawatts of carbon-free baseload electricity generation. Nuclear power plants like Susquehanna operate continuously, providing reliable electricity 24/7 regardless of weather conditions, making them particularly valuable for grid stability. The facility represents roughly half of Talen's total generation output. Complementing the nuclear facility, Talen operates a fleet of natural gas-fired power plants across the PJM region. These plants are more flexible than nuclear facilities, able to ramp up and down quickly to meet changing electricity demand throughout the day. The company has been converting some of its older coal plants to natural gas to improve efficiency and reduce emissions. Talen also maintains some coal-fired generation, though this represents a declining portion of the portfolio as the company transitions toward cleaner energy sources. Additionally, the company is developing battery storage projects and exploring solar generation opportunities to further diversify its energy mix. The company previously operated assets in the ERCOT (Texas) market through its ERCOT segment, but sold these assets in 2024 for $785 million as part of its strategic focus on the PJM market. Based on recent financial data, the PJM operations represent essentially 100% of current revenue generation following the ERCOT divestiture.
Revenue model
Talen Energy generates revenue through multiple streams within the wholesale electricity markets. The primary revenue source is energy sales, where the company sells the actual electricity produced by its power plants into the PJM market at prevailing market prices. These prices fluctuate based on supply and demand dynamics, with higher prices typically occurring during peak demand periods. A significant portion of revenue comes from capacity payments, which are payments received for maintaining generation capacity available to the grid even when not actively producing electricity. In PJM's capacity market, generators bid to provide capacity several years in advance. Talen cleared 6.8 gigawatts of capacity at $270 per megawatt-day in recent auctions, translating to approximately $600 million in annual capacity revenues for 2025-2026. The company also provides ancillary services such as frequency regulation and spinning reserves, which help maintain grid stability and reliability. These services command premium pricing due to their critical nature for grid operations. A transformative new revenue stream is emerging through data center power contracts. Talen has signed a major contract with Amazon Web Services (AWS) to provide 960 megawatts of dedicated power for a data center campus co-located next to the Susquehanna nuclear facility. This represents a shift toward long-term contracted revenues rather than purely market-based sales. Several factors significantly impact Talen's profitability margins. Natural gas prices directly affect operating costs for gas-fired plants and influence electricity market pricing dynamics, as gas plants often set marginal pricing. Spark spreads - the difference between electricity prices and natural gas costs - are crucial for gas plant profitability. Nuclear fuel costs are relatively stable and low per unit of energy produced, giving nuclear generation a cost advantage. Environmental regulations can increase compliance costs but may also benefit cleaner generation sources by making dirtier alternatives less competitive. The growing demand from data centers and AI infrastructure is creating sustained upward pressure on electricity demand and pricing, particularly benefiting baseload generators like Talen's nuclear facility.
Competitive moat
Talen Energy possesses several competitive advantages, though the strength of these moats varies across different aspects of the business. The company's most significant moat stems from its nuclear generation asset. The Susquehanna facility represents a substantial competitive advantage due to the extremely high barriers to entry for new nuclear construction in the United States. No new nuclear plants have been completed in decades due to regulatory complexity, enormous capital requirements, and lengthy development timelines. This scarcity value is becoming increasingly valuable as demand for carbon-free baseload power grows. The company's strategic positioning in PJM provides another layer of competitive protection. PJM is a tightening market with limited new generation under development, creating favorable supply-demand dynamics. Talen's existing interconnection rights and established market presence would be difficult and time-consuming for new entrants to replicate. Data center co-location opportunities represent an emerging moat, as Talen's existing nuclear facility provides an ideal foundation for serving data centers' need for reliable, carbon-free power. The company's early-mover advantage with AWS and the physical proximity of generation to load create logistical and economic benefits that competitors would struggle to match. However, Talen faces meaningful competitive threats. Renewable energy with storage is becoming increasingly cost-competitive and could potentially displace some thermal generation over time. Demand response and energy efficiency technologies could reduce overall electricity demand growth. Regulatory changes in electricity markets could alter the competitive landscape, particularly around capacity market structures that provide significant revenue to existing generators. The company's moat strength is moderate to strong in the near to medium term, particularly for its nuclear assets, but faces long-term technological and regulatory uncertainties that could erode some competitive advantages over time.
Risks & safety
Talen Energy presents a moderate margin of safety profile with both strengths and concerns across different financial metrics. **Overall Assessment:** The company maintains adequate liquidity and manageable debt levels, though recent operating performance has been mixed with some volatility in cash generation. **Solvency and Cash Position:** - Cash and short-term investments: $295 million as of Q1 2025 - Total liquidity: Over $1.2 billion including credit facilities - Current ratio: 1.62x indicating adequate short-term liquidity - Net leverage ratio: 3.3x, within management's target of below 3.5x - Free cash flow: $55 million in Q1 2025, though volatile across quarters **Debt and Capital Structure:** - Debt-to-equity ratio: 0.014 (very low debt relative to equity) - Total liabilities: $4.7 billion against $5.9 billion in total assets - Interest coverage appears adequate based on EBITDA levels **Valuation Considerations:** - Trading at 7.8x price-to-book ratio, suggesting premium valuation - EV/EBITDA multiple of -54x in Q1 2025 due to negative EBITDA, though this appears to be a temporary operational issue - Historical EV/EBITDA has ranged from 2.8x to 23x, indicating significant valuation volatility **Other Factors:** - Strong contracted revenue base through capacity markets provides some earnings stability - AWS contract provides additional revenue visibility - Recent share repurchase program demonstrates management confidence and returns capital to shareholders
Recent development
Over the past two years, Talen Energy has undergone significant strategic transformation focused on positioning the company for the growing data center and AI power demand. The most significant development was the AWS data center contract, announced in 2024, which involves co-locating a 960-megawatt data center campus next to the Susquehanna nuclear facility. This groundbreaking deal represents a new business model for the power industry, providing dedicated, carbon-free power directly to a major technology company. The company executed a major portfolio optimization strategy by selling its ERCOT (Texas) fleet for $785 million in 2024, allowing management to focus resources and attention on the more attractive PJM market. This divestiture also provided substantial cash proceeds that supported the company's aggressive share repurchase program. Capital allocation has been a key strategic focus, with Talen implementing a $1 billion share repurchase program and targeting the return of 70% of adjusted free cash flow to shareholders. The company repurchased approximately 22% of outstanding shares in 2024, demonstrating management's commitment to returning capital while the stock trades at what they perceive to be attractive valuations. Operationally, Talen has been optimizing its generation fleet through coal-to-gas conversions at multiple facilities and implementing a $50 million annual cost savings program. The company has also been exploring Reliability Must Run (RMR) agreements for its Brandon Shores and Wagner plants, which would provide contracted revenue streams for facilities that might otherwise face retirement. The company has been actively exploring multiple power delivery solutions for data centers beyond the AWS deal, including behind-the-meter co-location, front-of-the-meter contracts, and hybrid arrangements. This flexibility in commercial structures positions Talen to capture additional opportunities in the rapidly growing data center power market. Recent quarters have seen enhanced focus on nuclear operations, with extended maintenance outages at Susquehanna aimed at recovering additional megawatts of capacity beyond the original 27 MW improvement plan. These investments in nuclear asset optimization reflect the premium value of carbon-free baseload generation in current market conditions.
TLN company profile · for informational purposes only — not investment advice.
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