TC Energy Corporation reported third‑quarter 2025 earnings that surpassed Wall Street expectations, with an adjusted earnings per share of $0.77 versus the consensus estimate of $0.56—a $0.21 or 37% beat. Revenue reached $2.69 billion, topping the $2.64 billion forecast and marking a 1.5% increase from the prior quarter and a 10% rise from the same period a year earlier. The lift in earnings and revenue was driven largely by robust performance in the company’s Canadian and U.S. natural‑gas pipeline segments, which benefited from higher gas volumes and favorable pricing, while the power and energy‑solutions business delivered steady growth in its renewable‑energy and LNG‑export support services.
The Canadian natural‑gas pipeline segment generated $1.12 billion in revenue, up 4% from the prior quarter, reflecting continued demand for gas transport to the U.S. market. The U.S. pipeline segment added $0.95 billion, a 3% QoQ increase, supported by higher throughput volumes and a mix of long‑term contracts that insulated the company from short‑term price volatility. The power and energy‑solutions segment posted $0.62 billion, a 2% rise, driven by increased activity in LNG export support and renewable‑energy projects, offsetting a modest decline in legacy power generation revenue.
Operating income rose to $1.45 billion, up 8% from the prior quarter, as the company maintained disciplined cost control while expanding its asset base. Adjusted operating margin expanded to 10.1% from 9.8% YoY, reflecting the company’s ability to capture higher margins on its high‑quality pipeline assets and the favorable mix of long‑term contracts. The company’s comparable EBITDA grew to $2.70 billion, a 12% increase from the prior year, underscoring operational efficiency and scale.
Management extended its full‑year 2025 outlook through 2028, maintaining a 5‑7% annual comparable EBITDA growth target and reaffirming a 2025 revenue guidance of $4.40 billion, up from the previous $4.14 billion range. The company also highlighted that it has sanctioned more than $5 billion in new growth projects over the past 12 months and plans to place $8.2 billion of assets into service by year‑end, reinforcing its focus on low‑risk, in‑corridor projects backed by long‑term contracts.
CEO François Poirier said, “Driven by robust North American energy fundamentals, strong asset performance and exceptional project execution, we are extending our five‑to‑seven percent annual comparable EBITDA growth outlook through 2028.” He added that the company’s strategy is working, noting that it has moved approximately 30% of all feed gas bound for LNG export and that it continues to deliver consistent value without taking on additional risk. Market participants responded with a muted reaction, reflecting a cautious stance toward the slight revenue miss despite the EPS beat, but the company’s strong guidance and continued investment in growth projects signal confidence in its long‑term trajectory.
The earnings beat and revenue performance reinforce TC Energy’s position as a leading North American natural‑gas pipeline operator, while the extended outlook and new project pipeline suggest continued growth momentum. The company’s disciplined cost management, coupled with a favorable mix of long‑term contracts, positions it well to navigate short‑term market volatility and capitalize on rising demand for natural gas in power generation, LNG exports, and data‑center infrastructure.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.