TC Energy Reports Strong Fourth Quarter 2025 Results: Key Takeaways and Future Outlook

TC Energy delivered a robust performance in the fourth quarter of 2025, showcasing a 13% year-over-year growth in comparable EBITDA and a series of strategic initiatives aimed at bolstering its market position. The company's focus on safety and operational excellence has paved the way for solid financial results, while an optimistic outlook underscores its commitment to sustainable growth in the energy sector. In this article, we will delve into TC Energy's financial performance, strategic initiatives, and future outlook based on insights from the recent earnings call.

Financial Performance

During the fourth quarter of 2025, TC Energy achieved significant financial milestones:

• Comparable EBITDA reached nearly $3 billion, reflecting a 13% increase compared to the same quarter last year.
• The company's pipeline businesses set new all-time high delivery records, underlining their operational effectiveness.
• Canadian Gas EBITDA increased by $110 million, driven by higher incentive earnings and depreciation.
• In the U.S., EBITDA rose by $188 million, primarily due to a favorable Columbia Gas settlement and increased contract sales.
• Mexico’s EBITDA surged by $163 million, marking a 70% increase year-over-year, largely attributed to the completion of the Southeast Gateway project.

The company’s commitment to maintaining low-risk operations is evident in its capital allocation strategy, which resulted in placing $8.3 billion worth of projects into service, over 15% under budget. This solid execution not only enhances operational efficiency but also strengthens TC Energy's competitive position in the market.

Strategic Initiatives

TC Energy's strategic initiatives in 2025 have centered around optimizing its capital allocation and leveraging existing assets for growth:

• The company advanced $5 billion in projects at various stages, with $2 billion of assets placed into service on time and under budget.
• New project additions in the fourth quarter included $600 million for NGTL expansion facilities and a brownfield U.S. compression expansion project.
• TC Energy is actively pursuing an $8 billion pending approval portfolio, which consists of late-stage, high-conviction projects that are expected to generate substantial returns.
• The company’s focus on brownfield and corridor expansions aims to capitalize on existing infrastructure while minimizing disruption and maximizing efficiency.

Francois Poirier, President and Chief Executive Officer, highlighted the strategic importance of recent project announcements like the Teco Connector and Northwoods. These initiatives reflect TC Energy's commitment to capturing growth opportunities in high-demand markets, particularly in natural gas and power generation.

Future Outlook

Looking ahead, TC Energy remains optimistic about its growth trajectory and market positioning:

• The company expects North American natural gas demand to increase by 45 BCF per day between 2025 and 2035, equivalent to adding the entire European gas market over the next decade.
• Management has reaffirmed guidance for 2026, anticipating comparable EBITDA between $11.6 billion and $11.8 billion and projecting $12.6 billion to $13.1 billion by 2028.
• The Board of Directors declared a first quarter 2026 dividend of 87.75 cents per common share, reflecting a 3.2% year-over-year increase and marking the 26th consecutive year of dividend growth.
• TC Energy plans to sanction approximately $6 billion in net capital expenditures annually through 2030, with potential upside as market conditions evolve.

The company’s strategy of optimizing capital allocation while focusing on high-quality projects positions TC Energy favorably in a rapidly changing energy landscape. With a keen eye on emerging opportunities, particularly in the LNG and data center sectors, TC Energy is poised for sustained growth and long-term value creation.

Conclusion

In summary, TC Energy's fourth quarter 2025 results reveal a company that is not only performing well but is also strategically positioned for future growth. The significant year-over-year increases in EBITDA, coupled with a strong project pipeline and disciplined capital allocation, reflect management's commitment to operational excellence and shareholder value. As North American energy demands rise, TC Energy's focused approach on natural gas and power infrastructure will likely yield positive outcomes, ensuring it remains a strong player in the energy sector. Investors can look forward to TC Energy's continued success as it navigates the challenges and opportunities ahead while maintaining a focus on safety, reliability, and innovation.