TransAlta Corporation's shares rallied 5.11% on Thursday's pre-market trading, following the company's robust financial performance in 2024 and an upbeat outlook for 2025.

The Canadian power generation company reported solid fourth-quarter and full-year 2024 results, driven by high availability across its generation portfolio and enduring performance of its optimization and hedging strategies. TransAlta also announced an 8% increase in its annual dividend to $0.26 per share, reflecting its confidence in future growth prospects.

For 2025, TransAlta expects its adjusted EBITDA to range between $1.15 billion and $1.25 billion, and free cash flow between $450 million and $550 million. The bullish guidance is supported by a full-year impact from new wind and solar assets, as well as the acquisition of Heartland Generation, which added 1.7 GW to its gross installed capacity. However, lower contributions from legacy merchant assets in Alberta due to anticipated lower power prices are expected to partially offset these gains.