TC Energy Reports First‑Quarter 2026 Results: Comparable EBITDA Up 14%, Revenue Misses Estimates

TC Energy Corporation (TSX: TRP) reported its first‑quarter 2026 financial results on May 1 2026, showing a 14 % year‑over‑year increase in comparable EBITDA to $3.1 billion and a 10 % rise in segmented earnings to $2.0 billion. The company’s earnings per share were $0.86, which was above the lower consensus estimates of $0.70 and $0.65 but below the higher estimate of $0.9962, indicating a narrow miss relative to the top of the consensus range.

Revenue for the quarter was $4.12 billion, slightly below the consensus estimate of $4.13 billion, marking a miss on top‑line expectations. The revenue shortfall was driven by modest declines in the U.S. and Canadian natural‑gas pipeline segments, offset by growth in the Power and Energy Solutions segment.

Comparable EBITDA grew 14 % from $2.7 billion in Q1 2025, with the U.S. Natural Gas Pipelines segment contributing a 10 % increase and 32.6 Bcf/d of flows, the Mexico Natural Gas Pipelines segment posting an 85 % jump, the Canadian Natural Gas Pipelines segment recording a 2 % rise in net income, and Power and Energy Solutions adding 8 % to EBITDA. Segmented earnings rose 10 % from $2.0 billion in Q1 2025, reflecting the same mix of strong delivery volumes and disciplined cost management.

Management reiterated confidence in the company’s trajectory, noting that "For 2026, our comparable EBITDA outlook remains at $11.6 billion to $11.8 billion, which represents roughly a 7% actual to midpoint increase relative to an exceptional performance in 2025." The company also reaffirmed its guidance for 2026, maintaining expectations for comparable EBITDA and EPS growth, signaling continued optimism about demand and operational execution.

TC Energy announced a new $1.5 billion Appalachia Supply Project on its Columbia Gas system, a low‑risk expansion that will add capacity to serve high‑growth power and industrial markets and is expected to be in service by 2030. The project is backed by a 20‑year take‑or‑pay contract with an investment‑grade utility, providing a 7.3× build multiple. The company also declared a quarterly dividend of $0.8775 per common share for the quarter ending June 30 2026, translating to an annualized dividend of $3.51.

Investors reacted cautiously to the results, with the company’s EPS and revenue misses tempering enthusiasm for the strong EBITDA and earnings growth. Management highlighted that "We entered 2026 with strong momentum. Our best safety performance in six years drove seven delivery records across North America, while consistent execution delivered strong financial results, with comparable EBITDA up 14 per cent and segmented earnings up 10 per cent compared to first quarter 2025." The company also noted that "Customer demand continues to validate our strategy; our recent 2.5x oversubscribed open season on Crossroads reinforces the strength of our project origination backlog and provides clear visibility to long‑term, high‑quality growth."

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