Talen Energy (NASDAQ: TLN) shares tumbled 5.32% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results, which fell significantly short of analyst expectations. The energy company reported a surprising net loss, raising concerns among investors about its performance in the current fiscal year.

According to the earnings report, Talen Energy posted a net loss of $2.94 per share for Q1 2025, a stark contrast to the analyst consensus estimate of $0.95 earnings per share. This represents a dramatic 409.47% miss and a 160.74% decrease compared to the same period last year when the company reported earnings of $4.84 per share. Additionally, quarterly sales came in at $390 million, missing the analyst estimate of $493.64 million by 21% and marking a 23.38% decrease from the $509 million reported in the same quarter of the previous year.

Despite the disappointing quarterly results, Talen Energy affirmed and narrowed its full-year 2025 guidance, projecting adjusted EBITDA between $975 million and $1,125 million. The company also stated that its 2026 outlook remains unchanged. While this forward-looking statement may provide some reassurance to long-term investors, the significant earnings miss in the first quarter has clearly shaken market confidence in the short term, as reflected in the pre-market stock plunge.