TC Energy Q2 Earnings Call Highlights

TC Energy expects 2026 comparable EBITDA at the upper end of its CAD 11.6 billion–CAD 11.8 billion guidance range after second-quarter EBITDA rose 12% year over year. Growth was supported by higher pipeline utilization, new projects and strong Bruce Power performance. The company placed approximately CAD 2 billion of assets in service during the first half and expects another CAD 3.5 billion by year-end, while its late-stage project pipeline grew to CAD 7 billion. Management also cited rising North American gas demand, forecasting a 40% increase by 2035, particularly from power generation and data centers. TC Energy reaffirmed its leverage target of 4.75 times or better and plans to prioritize EBITDA growth and high-return projects before Bruce Power’s refurbishment program generates an expected CAD 2 billion–CAD 3 billion of annual growth capital after 2031–2032. The company also remains on track for CAD 100 million in AI-related incremental EBITDA in 2026.

TC Energy NYSE: TRP said it expects to reach the upper end of its 2026 comparable EBITDA guidance range after reporting 12% year-over-year growth in second-quarter comparable EBITDA, supported by higher pipeline utilization, contributions from projects placed in service and strong performance at Bruce Power. The company is targeting comparable EBITDA at the upper end of its previously disclosed CAD 11.6 billion to CAD 11.8 billion range for 2026. It maintained its 2028 target of CAD 12.6 billion to CAD 13.1 billion, which it said represents approximately 6% annualized growth at the midpoint from 2025 results.

Chief Financial Officer Sean O'Donnell said daily average flows across TC Energy's three-country natural gas pipeline network rose 3% from the prior-year quarter, reflecting customer utilization and operational availability. Bruce Power achieved 99% availability during the quarter following the June return of Unit 3 from a major component replacement outage. Comparable EBITDA increased across all four of the company's operating businesses: Canada Gas: EBITDA increased CAD 38 million, or 4%, due primarily to higher flow-through depreciation on the NGTL and Canadian Mainline systems and higher incentive earnings on NGTL. U.S. Natural Gas Pipelines: EBITDA rose CAD 129 million, or 12%, on additional contract sales and higher earnings from ANR and Columbia Gas. Mexico: EBITDA increased CAD 90 million, or 28%, reflecting earnings from the May 25 in-service date of Southeast Gateway and higher earnings from Certateos. Power and Energy Solutions: EBITDA rose CAD 60 million, or 20%, driven by Bruce Power's Unit 3 return, strong availability and an annual price increase.

TC Energy placed approximately CAD 2 billion of assets in service in the first half, largely on time and on budget or better, and expects to place another approximately CAD 3.5 billion in service by year-end. The company has sanctioned CAD 3 billion of growth projects year to date, including about CAD 700 million of natural gas pipeline projects announced during the quarter. Those sanctioned projects carry a weighted average unlevered after-tax internal rate of ret...