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Talen Energy Corp

For the period ended Sep 30, 2026. Filed Nov 3, 2026.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2026 · Filed Nov 3, 2026

TLN$363.13+7.2%Stored close · as of Nov 9, 2026

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Contents

18. Segments

  1. Segments

Talen’s operating segments are based on the market areas in which our generation facilities operate and reflect the manner in which our Chief Executive Officer, who is the chief operating decision maker (the “CODM”), reviews results. Adjusted EBITDA is the key profit metric used by the CODM to review segment performance and allocate resources as it provides a clearer view of segment profitability by focusing on operational performance. Total assets or other asset metrics are not considered a key metric or reviewed by the chief operating decision maker.

“PJM” represents electricity generation, marketing activities, and commodity risk and fuel management within the PJM market and is comprised of Susquehanna and Talen’s natural gas and coal generation facilities in PJM.

“Other” represents anoperating segment that includes the operating and marketing activities of Talen Montana’s proportionate share of Colstrip in the WECC market and other non-material operating and development activities.

“Corporate and Eliminations” represents a non-reportable segment that includes: (i) general and administrative expenses incurred by our corporate function; (ii) interest expense and other corporate activities not allocated to our operating segments; and (iii) intercompany eliminations. This grouping is presented to reconcile the reportable segments to our consolidated results.

PJMOtherCorporate and EliminationsTotal
Operating revenues$1,319$27$(19)$1,327
Operation, maintenance and development expenses (a)1607
Interest expense and other finance charges——148148
Other segment items (b)475
Adjusted EBITDA684
Capital expenditures761472225
Operating revenues$755$75$(18)$812
Operation, maintenance and development expenses (a)1247
Interest expense and other finance charges——6767
Other segment items (b)266
Adjusted EBITDA365
Capital expenditures613165
Operating revenues$3,169$68$(34)$3,203
Operation, maintenance and development expenses (a)52022
Interest expense and other finance charges——481481
Other segment items (b)1,108
Adjusted EBITDA1,541
Capital expenditures1952734472
Operating revenues$1,760$116$(44)$1,832
Operation, maintenance and development expenses (a)44227
Interest expense and other finance charges——203203
Other segment items (b)629
Adjusted EBITDA689
Capital expenditures15682166

(a)This significant segment expense category aligns with the segment-level information that is regularly reviewed by the CODM.

(b)Other segment items are primarily comprised of fuel and energy purchases.

Reconciliation of Segment Adjusted EBITDA to Income (Loss) Before Income Taxes:

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
PJM Segment Adjusted EBITDA$684$365$1,541$689
Reconciling Items:
Interest expense and other finance charges$(148)$(67)$(481)$(203)
Depreciation, amortization and accretion (a)(122)(61)(273)(198)
Nuclear fuel amortization (a)(27)(27)(73)(71)
Unrealized gain (loss) on commodity derivative contracts(190)36(555)(54)
Nuclear decommissioning trust funds gain (loss), net1881130149
Stock-based and other long-term incentive compensation expense(54)(18)(127)(49)
Gain (loss) on asset sales, net (Note 17)66256936
Non-cash impairments and other charges(1)(1)(2)(11)
Acquisition and divestiture activities (b)(2)(8)(39)(12)
Operational and other restructuring activities(4)(3)(11)(6)
"Other" operating segment6162124
Corporate and Eliminations(21)(18)(46)(60)
Other items(10)(16)(7)(20)
Income (Loss) Before Income Taxes$195$304$147$214

(a)Includes the periodic amortization of fair value adjustments associated with acquired fuel supply contract liabilities and intangible assets.

(b)Includes the non-recurring: (i) advisory fees associated with completed acquisitions and divestitures; (ii) remaining settlements on contracts of divested assets; and (iii) non-recurring finance fees charged to the Consolidated Statement of Operations associated with acquisition financing fee arrangements.

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