TransAlta swung to a profit in the second quarter thanks to environmental credits and a hedging strategy in one of its portfolios.
The Canadian power producer on Friday posted a net income attributable to shareholders of 35 million Canadian dollars ($25 million), or C$0.12 a share, compared with a loss of C$112 million, or C$0.38 a share, in the comparable quarter a year earlier.
Adjusted earnings were C$0.18 a share. According to FactSet, analysts were expecting C$0.16 a share.
Revenue rose to C$487 million from C$433 million.
Chief Executive Joel Hunter said the company's Alberta portfolio hedging strategy and active optimization continued to generate realized prices above spot prices, while environmental credits generated by its hydro and wind assets significantly offset merchant gas fleet's carbon price compliance obligation.
"Our assets have performed well in the first half of the year, and we remain confident in our 2026 outlook," said Hunter.