TC Energy beats Q2 estimates as comparable EBITDA rises 12%

TC Energy reported Q2 comparable earnings of $984M, or $0.94 per share, beating analyst estimates on strong pipeline volumes across its North American network.

"Driven by safe and reliable operations, we delivered strong financial results in the first half of 2026 and now expect to be at the upper end of our comparable EBITDA outlook range," Chief Executive Officer François Poirier said.

Comparable EBITDA rose 12% to $2.95B from $2.63B a year earlier. Segmented earnings increased 11% to $2.17B. U.S. Natural Gas Pipelines generated $1.22B in comparable EBITDA, up from $1.09B, while Mexico Natural Gas Pipelines jumped to $409M from $319M. Power and Energy Solutions contributed $361M, compared with $301M in the prior-year period.

The company sanctioned $700M in new growth projects during the quarter, bringing the 2026 total to about $3B. Two U.S. pipeline expansions — the Central Virginia Capacity project and the Clark project — are backed by 20-year take-or-pay contracts and expected to deliver a weighted average build multiple of about 5.8 times. In Canada, the Greater Edmonton Area offering on the NGTL System was fully subscribed, reflecting demand from power generation, LNG exports and industrial development.

Net income attributable to common shares rose to $987M, or $0.95 per share, from $862M, or $0.83 per share, in the same period last year. The board declared a quarterly dividend of $0.8775 per common share, up from $0.85 a year ago, equivalent to $3.51 on an annualized basis.

Bruce Power's Unit 3 major component replacement was declared commercially operational on June 12, ahead of schedule and within budget, marking the first use of robotic tools on a CANDU reactor face. Unit 4 remains on track.

The guidance raise signals management expects demand for natural gas infrastructure to accelerate across North America, driven by LNG exports, data center-related power demand and industrial growth. Investors will watch the Q3 earnings call for updates on the remaining $1.6B of projects expected to be placed into service in the second half of 2026.

This article is for informational purposes only and does not constitute investment advice.