Transcanada Stock Earnings Reports

TC Energy reported strong Q3 2025 operational and financial performance driven by safety, project execution and rising demand for natural gas and power. Key highlights: safety incident rates at 5-year lows; comparable EBITDA up ~8% year-to-date and $2.7 billion in the quarter (10% YoY); $8 billion of assets placed into service on schedule and ~15% under budget for 2025 in‑service projects. Management sanctioned an additional $700 million of growth projects (bringing the last 12‑month total to $5.1 billion) with a weighted average build multiple of 5.9x and an implied portfolio IRR of ~12.5%. They now expect 2025 net capex at the low end of the $5.5–$6.0 billion range. Projecting continued mid-single-digit EBITDA growth (7–9% from 2024–25 reaffirmed; 6–8% for 2026; 5–7% CAGR to 2028), management expects 2028 comparable EBITDA of $12.6–$13.1 billion. Capital plan through 2030 targets ~$6 billion net annual investment (build multiples of 5–7x) funded primarily (~80%) by operating cash flow, with no equity issuance required to execute the plan and a sustained leverage target of 4.75x Debt/EBITDA to preserve financial flexibility. Business drivers include accelerated gas-for-power demand (data centers, coal-to-gas conversions, LNG exports), regulatory tailwinds in Canada and the U.S., and a large $17 billion development pipeline with ~$6 billion in advanced opportunities. Power business momentum centers on Bruce Power (MCR program extending life to 2064; equity income and FCF expected to meaningfully increase by 2035) and optionality like the proposed 1,000 MW Ontario pumped storage and early work on Bruce C. Management emphasized technological and commercial innovation (AI, robotics, emissions-reduction programs) and continued focus on low-risk, brownfield in-corridor expansions supported by long-term contracts and strong customer relationships. Mexico remains strategically important (Southeast Gateway contribution; potential monetization discussions in 2026). Dividend growth will remain conservative (previous 3–5% range) as capital is prioritized to high-return growth projects.