TC Energy Q4 Earnings & Revenues Surpass Estimates, Dividend Raised

TC Energy Corporation TRP reported fourth-quarter 2025 adjusted earnings of 70 cents per share, which beat the Zacks Consensus Estimate of 65 cents. This performance was driven by robust results from the company’s Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines and Mexico Natural Gas Pipelines segments. However, the bottom line decreased from 75 cents reported in the year-ago period. This underperformance was due to weak year-over-year results in the Power and Energy Solutions segment.

This North American energy infrastructure provider's quarterly revenues of $3 billion beat the Zacks Consensus Estimate by $55 million. However, the figure decreased 16.9% year over year.

TC Energy Corporation Price, Consensus and EPS Surprise

TC Energy Corporation price-consensus-eps-surprise-chart | TC Energy Corporation Quote

TC Energy’s comparable EBITDA increased to C$3 billion from C$2.6 billion in the prior year.

TRP’s board of directors declared a 3.2% quarterly dividend hike to 87.75 Canadian cents per common share for the quarter ending March 31, 2026, translating to an annualized dividend rate of C$3.51.

TRP’s Segmental Information

Canadian Natural Gas Pipelines reported a comparable EBITDA of C$961 million, up 12.9% from the year-ago quarter’s level. The company reported that Canadian Natural Gas Pipelines deliveries averaged 27.2 billion cubic feet per day (Bcf/d), marking a 5% increase from the year-ago quarter’s level and achieving a new all-time delivery record of 33.2 Bcf on Jan. 22, 2026.  The company posted that Canadian Mainline Western receipts averaged 4.8 Bcf/d, reflecting a 3% rise from the fourth quarter of 2024.

U.S. Natural Gas Pipelines reported a comparable EBITDA of C$1,388 million, indicating a 15.7% increase from the prior-year quarter’s actual. U.S. Natural Gas Pipelines recorded daily average flows of 29.6 Bcf/d, marking a 9.5% increase from the fourth quarter of 2024. The segment also reached a new all-time delivery record of 39.9 Bcf on Jan. 29, 2026. Deliveries to LNG facilities averaged 3.9 Bcf/d, up 21% from the prior-year quarter, and set a fresh daily high of nearly 4.4 Bcf on Dec. 4, 2025. In addition, Columbia Gulf, GTN and Gillis Access each achieved all-time delivery records in December 2025.

Mexico Natural Gas Pipelines reported a comparable EBITDA of C$397 million, up 69.7% from the year-ago quarter’s reported figure of C$234 million. The company reported that Mexico Natural Gas Pipelines flows in the fourth quarter averaged 2.7 Bcf/d, which was comparable to the fourth quarter of 2024 and accounted for approximately 20% of total Mexico gas demand during that period. Additionally, deliveries to power generation facilities averaged 1.2 Bcf/d in the fourth quarter of 2025, marking an 11% increase compared with the fourth quarter of 2024.

Power and Energy Solutions registered a comparable EBITDA of C$217 million, down 36.4% from the year-ago quarter’s level of C$341 million. The company reported that Bruce Power achieved 85.7% availability in the fourth quarter of 2025, impacted by an extended planned outage on Unit 2. Additionally, the cogeneration power plant fleet achieved 89.5% availability in the fourth quarter of 2025.

TRP’s Expenditure and Balance Sheet

As of Dec. 31, 2025, TC Energy’s capital investments amounted to C$5.3 billion.

TRP had cash and cash equivalents worth C$168 million and long-term debt of C$45.2 billion, with a debt-to-capitalization of 60% as of the same date. 

TRP’s 2026 Guidance

This Zacks Rank #3 (Hold) company expects its strong operational and financial momentum to continue into 2026. The company anticipates its full-year 2026 comparable EBITDA to be between C$11.6 billion and C$11.8 billion, with comparable earnings per share also projected to be higher than 2025 levels.

TRP’s management expects to place approximately C$4 billion of projects into service during the year, which will contribute to this growth. The company also anticipates net capital expenditures (capex) for 2026 to be in the range of C$5.5 billion to C$6 billion.

Looking at its operations, Bruce Power segment is expected to achieve availability in the low 90% range for the year, with Unit 3 returning to service as planned.

Looking further ahead, TRP anticipates fully allocating its C$6 billion annual net capital expenditure target through 2030. Furthermore, given the strength of the project pipeline, the company anticipates it has the visibility to potentially surpass this level of investment in the latter part of the decade. All new projects are expected to achieve build multiples within the targeted 5-7 times range.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed TRP’s fourth-quarter results in detail, let us take a look at three other key reports in other space.

Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products, posted fourth-quarter 2025 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.22. The bottom line improved from the year-ago quarter’s level of 64 cents. The better-than-expected quarterly results can be mainly attributed to a surge in refining margins, higher ethanol production volumes and lower total cost of sales.

Valero Energy had cash and cash equivalents of $4.7 billion at the end of the fourth quarter. As of Dec. 31, 2025, it had a total debt of $8.3 billion and finance-lease obligations of $2.4 billion.

Baker Hughes Company BKR, a Houston, TX-based oil and gas equipment and services provider, posted fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents. The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.

Baker Hughes Company’s net capital expenditure in the fourth quarter was $321 million. As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.

Halliburton Company HAL, another Houston, TX-based oil and gas equipment and services provider, posted fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.

Halliburton reported fourth-quarter capital expenditure of $337 million, well below our projection of $390.4 million. As of Dec. 31, 2025, the company had approximately $2.2 billion in cash and cash equivalents, and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5.

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This article originally published on Zacks Investment Research (zacks.com).

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