TC Energy (NYSE:TRP) Issues Earnings Results

Key Points

• TC Energy beat quarterly expectations, reporting adjusted EPS of $0.68 versus the $0.61 consensus and revenue of $2.80 billion versus $2.75 billion. Comparable EBITDA rose 12% year over year, supporting management’s expectation of reaching the upper end of its 2026 guidance.
• The company sanctioned approximately C$3 billion in growth projects in 2026, including C$700 million of additional natural-gas pipeline expansions, while its pending backlog grew to about C$7 billion. Management also sees stronger North American gas demand and potential C$6–8 billion of project sanctions in 2026.
• TC Energy declared a quarterly dividend of $0.8775 per share, equivalent to roughly $3.51 annually and a 5.2% yield. However, its payout ratio exceeds 100%, and future expansion may require additional financing or asset sales amid regulatory and leverage considerations.

TC Energy (NYSE:TRP - Get Free Report) TSE: TRP announced its quarterly earnings data on Thursday. The pipeline company reported $0.68 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.07, Zacks reports. The company had revenue of $2.80 billion during the quarter, compared to the consensus estimate of $2.75 billion. TC Energy had a net margin of 22.22% and a return on equity of 10.74%. During the same quarter last year, the firm posted $0.82 EPS.

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

• Second-quarter comparable EBITDA rose 12% year over year, with strong pipeline utilization, high asset availability and Bruce Power performance. TC Energy now expects 2026 EBITDA to reach the upper end of its CAD 11.6–11.8 billion guidance range.
• The company sanctioned approximately CAD 3 billion of growth projects year to date at an estimated 12% weighted average unlevered after-tax IRR, while its pending-approval backlog expanded to about CAD 7 billion. Management expects Crossroads to be sanctioned in the fourth quarter and sees potential for CAD 6–8 billion of sanctions in 2026.
• TC Energy raised its outlook for incremental North American natural-gas demand by 2035 to approximately 51 Bcf per day, driven primarily by power generation, LNG, data centers and industrial demand. Nearly 70% of the growth is concentrated in regions where TC Energy has incumbent infrastructure.
• Bruce Power Unit 3 returned to service more than seven months ahead of schedule and about 15% below the cost of Unit 6, contributing to 99% availability in the quarter. Management expects the broader refurbishment program to unlock CAD 2–3 billion of annual growth capital capacity beginning around 2031–2032.
• Management acknowledged that the ultimate regulatory and return framework for future NGTL investments remains under discussion, while substantial growth could require capital-market funding or asset rotation before Bruce Power’s cash-flow inflection. Executives said they expect to determine the least-cost funding approach closer to 2028.

TC Energy Stock Performance

Shares of TC Energy stock traded down $0.55 during trading on Friday, reaching $67.54. The company's stock had a trading volume of 640,438 shares, compared to its average volume of 2,517,633. The company has a quick ratio of 0.57, a current ratio of 0.65 and a debt-to-equity ratio of 1.67. The business's 50-day moving average price is $68.45 and its 200-day moving average price is $64.39. TC Energy has a 52 week low of $46.93 and a 52 week high of $71.47. The firm has a market cap of $70.37 billion, a PE ratio of 29.31 and a beta of 0.66.

TC Energy Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Tuesday, September 29th will be given a $0.8775 dividend. This represents a $3.51 dividend on an annualized basis and a dividend yield of 5.2%. The ex-dividend date of this dividend is Tuesday, September 29th. TC Energy's payout ratio is presently 107.39%.

Key Headlines Impacting TC Energy

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

• Positive Sentiment: Second-quarter adjusted earnings reached $0.68 per share, exceeding the $0.61 analyst consensus, while revenue of $2.80 billion also topped estimates of $2.75 billion. The company cited strong performance across its North American operations. Reuters article
• Positive Sentiment: Reported second-quarter profit increased to approximately $987 million from $833 million a year earlier. Management said solid execution and asset performance support the higher end of its 2026 financial outlook. TC Energy second-quarter results
• Positive Sentiment: TC Energy approved approximately C$700 million of additional natural-gas pipeline expansion projects. Including prior approvals, the company has sanctioned about C$3 billion of low-risk, accretive growth projects in 2026, potentially supporting future cash flow. Pipeline expansion projects article
• Positive Sentiment: US Capital Advisors raised multiple earnings forecasts, including 2026 EPS to $2.63 from $2.52, 2027 EPS to $2.76 from $2.62, and 2028 EPS to $2.83 from $2.65. The revisions indicate improving expectations for operating performance.
• Positive Sentiment: TC Energy declared a quarterly dividend of $0.8775 per share, equivalent to approximately $3.51 annually and a reported 5.2% yield, reinforcing the stock’s income appeal. TC Energy dividend information
• Neutral Sentiment: The company’s reported net margin was 22.22%, return on equity was 10.74%, and subsidiary TransCanada PipeLines reported 2.4-times earnings coverage on debt. These figures provide support but also highlight the importance of maintaining cash flow amid substantial leverage and expansion spending.
• Negative Sentiment: One comparison showed quarterly EPS below the prior-year level, reflecting the potential for year-over-year earnings pressure despite the estimate beat. TC Energy also faces execution, financing, and regulatory risks as it commits significant capital to new pipeline projects.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on TRP. Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of TC Energy in a research note on Tuesday, May 26th. TD Securities reissued a "hold" rating on shares of TC Energy in a research report on Thursday, July 16th. Morgan Stanley lowered TC Energy from an "overweight" rating to an "equal weight" rating in a research note on Wednesday, June 10th. Weiss Ratings downgraded TC Energy from a "buy (b+)" rating to a "buy (b)" rating in a research note on Monday, May 4th. Finally, BMO Capital Markets reiterated an "outperform" rating and set a $99.00 target price on shares of TC Energy in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $85.33.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Advyzon Investment Management LLC bought a new position in TC Energy during the 4th quarter worth $219,000. Baird Financial Group Inc. bought a new stake in shares of TC Energy during the 2nd quarter valued at $205,000. Williams Jones Wealth Management LLC. bought a new stake in shares of TC Energy during the 4th quarter valued at $203,000. Roehl & Yi Investment Advisors LLC acquired a new stake in shares of TC Energy during the 4th quarter worth $202,000. Finally, Laurel Oak Wealth Management LLC acquired a new stake in shares of TC Energy during the 4th quarter worth $201,000. 83.13% of the stock is owned by institutional investors.

TC Energy Company Profile

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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