Talen Energy (NASDAQ: TLN) reported second-quarter adjusted EBITDA of $374 million and adjusted free cash flow of $212 million on August 9, 2023. The company attributed strong performance to contributions from new natural gas plants, increased PJM capacity pricing, and rising generation volumes. In the first half of 2026, Talen generated $847 million in adjusted EBITDA and $562 million in adjusted free cash flow.
In June, Talen acquired three natural gas plants, adding over 2.5 gigawatts of capacity ahead of peak summer demand. The company’s fleet produced approximately 30 terawatt-hours of electricity in the first half, achieving a 51% fleetwide capacity factor, which is a 14 percentage point increase year-over-year. Talen also raised its 2026 adjusted EBITDA guidance to between $2.025 billion and $2.225 billion and projected adjusted free cash flow of $1.2 billion to $1.35 billion.
Management reported strong demand growth, with projections indicating over 17% growth in PJM demand through 2030. Talen plans to return 70% of its adjusted free cash flow to shareholders via share repurchases, having repurchased 550,000 shares in the second quarter. The company holds $1.7 billion in its authorized repurchase program and anticipates generating about $4 billion in adjusted free cash flow from 2026 through 2028.
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