TC Energy (NYSE:TRP) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• TC Energy reported Q1 EPS of $0.72, beating consensus by $0.02, but revenue missed at $2.04 billion versus $2.20 billion expected and EPS declined from $0.95 year‑over‑year.
• The company said it delivered a record quarter with comparable EBITDA of > CAD 3 billion (up 14% YoY), reaffirmed its 2026 outlook of CAD 11.6–11.8 billion and 2028 target of CAD 12.6–13.1 billion, and noted a project backlog of roughly CAD 21–23 billion while planning up to CAD 6 billion annual net capital deployment.
• Management sanctioned the CAD 1.5 billion Appalachia Supply Project (0.8 BCF/d initial, expandable to 2 BCF/d) and announced a quarterly dividend of $0.8775 (annualized $3.51), implying a 5.3% yield with a payout ratio above 100%.

TC Energy (NYSE:TRP - Get Free Report) TSE: TRP posted its earnings results on Friday. The pipeline company reported $0.72 earnings per share for the quarter, beating the consensus estimate of $0.70 by $0.02, Zacks reports. The company had revenue of $2.04 billion during the quarter, compared to analysts' expectations of $2.20 billion. TC Energy had a net margin of 23.04% and a return on equity of 10.52%. During the same period last year, the company posted $0.95 earnings per share.

Here are the key takeaways from TC Energy's conference call:

• TC Energy reported a record quarter with > CAD 3 billion of comparable EBITDA (up 14% YoY) and reaffirmed its 2026 outlook of CAD 11.6–11.8 billion and 2028 target of CAD 12.6–13.1 billion.
• The company sanctioned the CAD 1.5 billion Appalachia Supply Project on Columbia Gas (0.8 BCF/d initial capacity on a 20‑year take‑or‑pay contract), expandable to 2 BCF/d, with an attractive build multiple and long‑term growth optionality.
• Bruce Power MCR execution is improving (Q1 availability 88%; full‑year low‑90s expected), with management forecasting ~CAD 1 billion annual free cash flow by 2032 and ~CAD 2 billion by 2035 as the program completes.
• Project backlog remains deep (roughly CAD 21–23 billion reported across secured, pending and origination buckets); management plans up to CAD 6 billion annual net capital deployment but says it may flex higher later in the decade while targeting a 4.75x leverage ratio.
• Regulatory/commercial progress includes settlements on the Canadian Mainline, ANR and Great Lakes largely in line with expectations and new agreements for Coastal GasLink phase two, which management says reduces execution and commercial risk and supports EBITDA visibility.

TC Energy Trading Down 0.5%

Shares of TRP opened at $66.62 on Friday. The company has a debt-to-equity ratio of 1.66, a current ratio of 0.63 and a quick ratio of 0.56. The firm has a market capitalization of $69.40 billion, a price-to-earnings ratio of 28.91 and a beta of 0.67. The company has a 50-day moving average of $63.11 and a 200 day moving average of $57.79. TC Energy has a 1-year low of $46.29 and a 1-year high of $67.31.

TC Energy Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Tuesday, June 30th will be issued a dividend of $0.8775 per share. The ex-dividend date is Tuesday, June 30th. This represents a $3.51 dividend on an annualized basis and a yield of 5.3%. TC Energy's dividend payout ratio (DPR) is presently 109.57%.

Wall Street Analyst Weigh In

TRP has been the subject of a number of recent research reports. Morgan Stanley reissued an "overweight" rating on shares of TC Energy in a research note on Wednesday, January 28th. Wall Street Zen raised shares of TC Energy from a "sell" rating to a "hold" rating in a research note on Saturday, February 14th. Canadian Imperial Bank of Commerce raised shares of TC Energy from a "neutral" rating to a "sector outperform" rating in a research note on Thursday, April 23rd. National Bank Financial lowered shares of TC Energy from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 17th. Finally, BMO Capital Markets restated an "outperform" rating on shares of TC Energy in a report on Tuesday, February 17th. Eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, TC Energy presently has a consensus rating of "Moderate Buy" and a consensus price target of $77.00.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Arax Advisory Partners increased its position in TC Energy by 7.9% during the 4th quarter. Arax Advisory Partners now owns 3,029 shares of the pipeline company's stock valued at $167,000 after purchasing an additional 221 shares during the period. Ewing Morris & Co. Investment Partners Ltd. grew its position in TC Energy by 0.6% during the 2nd quarter. Ewing Morris & Co. Investment Partners Ltd. now owns 37,962 shares of the pipeline company's stock worth $1,873,000 after purchasing an additional 234 shares during the last quarter. Private Advisor Group LLC grew its position in TC Energy by 1.7% during the 3rd quarter. Private Advisor Group LLC now owns 14,391 shares of the pipeline company's stock worth $783,000 after purchasing an additional 235 shares during the last quarter. Cresset Asset Management LLC grew its position in TC Energy by 5.6% during the 3rd quarter. Cresset Asset Management LLC now owns 4,662 shares of the pipeline company's stock worth $256,000 after purchasing an additional 246 shares during the last quarter. Finally, Allworth Financial LP grew its position in TC Energy by 16.4% during the 3rd quarter. Allworth Financial LP now owns 2,151 shares of the pipeline company's stock worth $117,000 after purchasing an additional 303 shares during the last quarter. Hedge funds and other institutional investors own 83.13% of the company's stock.

Key TC Energy News

Here are the key news stories impacting TC Energy this week:

• Positive Sentiment: Q1 results beat estimates and operations described as strong—TC Energy reported quarterly earnings above consensus and highlighted strong U.S. and Canada operations, plus seven delivery records across North America; the company also approved a US$1.5 billion Columbia Gas expansion project that could support future volume and revenue growth. Press Release
• Positive Sentiment: Multiple outlets confirm the beat—third-party coverage (Zacks, Reuters, Globe and Mail) notes EPS topped consensus and attributes the outperformance to robust North American operations, reinforcing the credibility of the beat. Zacks: Q1 Earnings
• Neutral Sentiment: Management released supplemental materials and hosted a conference call and slide deck — useful for investors who want detail on guidance, segment performance and capital allocation. Slide Deck / Press Release
• Negative Sentiment: Analyst downgrades/estimate cuts — US Capital Advisors lowered EPS forecasts for several quarters and trimmed FY2026/FY2027 numbers, which could weigh on near-term expectations and multiple expansion. (reported April 27)
• Negative Sentiment: Unusual options activity — a spike in put buying (large increase vs typical volume) suggests some investors are hedging or expressing bearish sentiment ahead of/after the report, potentially increasing short-term downside pressure.

About TC Energy

TC Energy NYSE: TRP is a North American energy infrastructure company headquartered in Calgary, Alberta. Formerly known as TransCanada, the company rebranded as TC Energy to reflect its broad presence across Canada, the United States and Mexico. TC Energy develops, owns and operates a diversified portfolio of energy infrastructure assets that play a central role in the transportation and delivery of energy across the continent.

The company's principal businesses include long‑distance natural gas transmission, liquids (crude oil) pipelines, natural gas storage and power generation.

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