TC Energy (TRP) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 operational and financial results, with approximately 1% growth in comparable EBITDA and segmented earnings year-over-year, despite planned outages and the spinoff of the Liquids Pipelines business.

• Southeast Gateway pipeline completed 13% under budget, ready for service pending CNE approval, and fully contracted to support Mexico's power sector growth.

• Northwoods project (US$0.9 billion/CAD 900 million) sanctioned to expand ANR system and serve U.S. Midwest data center and power generation demand, backed by a 20-year contract.

• Bruce Power Unit 5 Major Component Replacement ($1.1 billion) sanctioned, extending asset life by 35+ years, with Project 2030 aiming to nearly double equity income by 2035.

• 97% of comparable EBITDA is underpinned by rate-regulation or long-term take-or-pay contracts, supporting a low-risk business model.

Financial highlights

• Q1 2025 comparable EBITDA from continuing operations was $2.7 billion, up 1% year-over-year; comparable earnings were $1.0 billion ($0.95 per share), down from $1.1 billion ($1.02 per share) in Q1 2024.

• Net income attributable to common shares was $1.0 billion ($0.94 per share), nearly flat year-over-year.

• Revenues from continuing operations increased to $3.62 billion from $3.51 billion year-over-year.

• Declared a quarterly dividend of $0.85 per share, annualized at $3.40.

• Canadian Natural Gas Pipelines delivered 27.6 Bcf/d (up 8% YoY); U.S. pipelines set record flows at 31.0 Bcf/d (up 5% YoY); Mexico pipelines averaged 3.1 Bcf/d (up 6% YoY).

Outlook and guidance

• 2025 comparable EBITDA guidance reaffirmed at $10.7–$10.9 billion, with incremental growth to $11.7–$11.9 billion by 2027.

• Gross capital expenditures for 2025 projected at $6.1–$6.6 billion; net capital expenditures at $5.5–$6.0 billion.

• Approximately $8.5 billion of projects expected to be placed into service in 2025, tracking under budget.

• Dividend growth target of 3–5% supported by organic EBITDA growth and project execution.

• Comparable EPS for 2025 expected to be lower than 2024.