TC Energy Corporation Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Oil, Gas and Consumable Fuels | Market Cap: ₹70.5K Cr
- Natural gas demand is growing strongly, particularly in the U.S. - 2026 comparable EBITDA outlook is reaffirmed at $11.6 billion to $11.8 billion, representing ~7% growth to midpoint versus 2025 and 8% versus 2024.
From TC Energy Corporation's Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹67.63
Market Cap
₹70.5K Cr
P/E Ratio
28.4
Revenue Rank
Margin Rank
How does TC Energy Corporation rank in Oil, Gas and Consumable Fuels?
Compare TC Energy Corporation against every Oil, Gas and Consumable Fuels company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 3- →Natural gas demand is growing strongly, particularly in the U.S. Midwest and Columbia Gas systems, with expected incremental demand of about 4 Bcf/day through 2035 and 5+ Bcf/day growth across the Midwest corridor over the next decade (Pages 2, 6).
- →Columbus, Ohio and Crossroads open seasons were heavily oversubscribed (3x and 2.5x respectively), indicating robust demand and growth opportunities (Pages 2, 15).
- →The company targets a 6% annualized EBITDA growth rate through 2028, supported by sanctioned projects moving toward in-service (Page 3).
- →Investment backlog totals approximately $23 billion secured, plus $6 billion pending approval, and $15 billion in origination, demonstrating a multi-year growth runway (Pages 10, 12).
- →Growth drivers include expansion of storage capacity, increasing power demand from data centers, electrification, and strong regulatory/commercial tailwinds in the U.S. (Pages 2, 6, 12).
- →Bruce Power MCR program will generate significant free cash flow post-2030, supporting further portfolio growth.
📈 Profitability & Margins
Rank 3- →2026 comparable EBITDA outlook is reaffirmed at $11.6 billion to $11.8 billion, representing ~7% growth to midpoint versus 2025 and 8% versus 2024.
- →Target comparable EBITDA for 2028 is $12.6 billion to $13.1 billion, implying a 6% annualized growth rate over 3 years, driven by sanctioned projects advancing toward in-service.
- →Growth led by Mexico and U.S. natural gas businesses, with over $8 billion of new assets placed in service in 2025.
- →Strong execution momentum expected to continue, with projects on schedule and on or under budget in 2026.
- →Long-term EBITDA growth supported by a deep, diverse, and low-risk project backlog, including significant U.S. pipeline expansions and Bruce Power's continued cash flow growth post-2030.
- →Bruce Power's MCR program will start generating meaningful free cash flow by 2030 ($1B by 2032, $2B by 2035), adding optionality for growth.
- →Ongoing revenue enhancements and cost/capital optimization programs may provide incremental upside beyond core growth.
🏗️ Capital Expenditure Plans
Yes- →The company is optimizing and bringing forward capital to support up to $6 billion of annual net capital deployment over the next couple of years, with potential to exceed this later in the decade. (Page 4)
- →A $15 billion backlog of projects in origination competing for capital through 2028 and beyond, mostly targeting in-service dates between 2028 and 2031. (Pages 4, 7, 10, 13)
- →Recent sanctioned projects include the Appalachia supply project (~$2.2 billion), with opportunities to expand capacity up to 2 Bcf with minor facility modifications. (Pages 4, 5, 6, 13)
- →Open seasons launched on NGTL indicating increased demand and discussion of a new investment framework for post-2029 growth beyond the existing settlement. (Pages 5, 12, 13)
- →The US Midwest corridor is a key growth area driven by power demand, supported by multiple pipeline assets and storage access. (Pages 6, 13)
- →Capital allocation decisions prioritize project execution excellence, balanced leverage (target 4.75x), and competitive returns (5-7x build multiple, ~12% IRR). (Pages 4, 7, 13)
💰 Fundraising & Capital Structure
No information- →No explicit mention of new fundraising through debt or equity in the provided transcript.
- →Capital allocation is focused on maintaining balance sheet strength and a 4.75x leverage target.
- →The company aims to continue executing projects within disciplined capital allocation guardrails.
- →Post-2030, with Bruce Power’s cash flow profile improving, there is greater optionality to increase capital spending, subject to maintaining financial strength.
- →Francois Poirier indicates opportunities to grow net capital spend beyond $6 billion annually, balanced against project execution and leverage.
- →Sean O’Donnell mentions the planning window starting to include Bruce, facilitating future capital allocation flexibility.
- →Overall, capital plans prioritize disciplined execution and maintaining financial strength rather than signaling new debt or equity issuance.
📋 Order Book & Pipeline
Yes- →TC Energy's project backlog comprises:
- → - $23 billion secured projects
- → - $6 billion in pending approval projects (late-stage, high bar for inclusion)
- → - $15 billion+ in origination projects (early stages, competitive bidding underway)
- →Recent open seasons in the U.S. (Crossroads, Columbia Gas) were highly oversubscribed, signaling strong demand but these are mostly in the $15 billion origination bucket, not yet pending.
- →The $6 billion pending approval bucket is fairly diversified across assets.
- →Canadian NGTL expansions are mostly not included in the $15 billion backlog due to early-stage discussions and new investment framework development.
- →Project sanctioning targets 2026, with capital largely spent in the construction year close to in-service dates (~2029-2031).
- →Continuous replenishment expected for the $15 billion origination backlog, reflecting strong multi-year growth visibility.
Key Metrics
Revenue
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Capex
Fundraise
Order Book
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Frequently Asked Questions
What were TC Energy Corporation Q2 FY26 results?
- Natural gas demand is growing strongly, particularly in the U.S. - 2026 comparable EBITDA outlook is reaffirmed at $11.6 billion to $11.8 billion, representing ~7% growth to midpoint versus 2025 and 8% versus 2024.
What is TC Energy Corporation share price analysis?
TC Energy Corporation currently shows a below-average growth signal. The stock trades at a P/E of 28.4 with a market cap of $70,455. Investors should review the full earnings analysis for detailed insights.
Is TC Energy Corporation planning capital expenditure?
- The company is optimizing and bringing forward capital to support up to $6 billion of annual net capital deployment over the next couple of years, with potential to exceed this later in the decade.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.