TC Energy(US:TRP)2026-02-13 11:36Financial Performance - TC Energy reported a total debt of CAD 60,086 million for the year ended December 31, 2025, an increase from CAD 59,366 million in 2024[32]. - Adjusted comparable EBITDA for 2025 was CAD 11,517 million, compared to CAD 11,378 million in 2024, reflecting a growth of 1.2%[32]. - Comparable EBITDA from continuing operations increased to CAD 10,952 million in 2025, up from CAD 10,049 million in 2024, representing an increase of 9%[32]. - Revenues for Q4 2025 increased to $4,168 million, up 16.5% from $3,577 million in Q4 2024[47]. - Net income attributable to common shares for Q4 2025 was $980 million, a slight increase from $971 million in Q4 2024[54]. - Comparable EBITDA for the year ended December 31, 2025 was $10,952 million, compared to $11,194 million in 2024, reflecting a decrease of 2.2%[47]. - Net income from continuing operations for the year ended December 31, 2025 was $4,306 million, down from $4,984 million in 2024, a decrease of 13.6%[55]. - Net income from continuing operations for the three months ended December 31, 2025, was $1,161 million, compared to $1,280 million in 2024, reflecting a decrease of 9.3%[183]. - Net income from discontinued operations for the three months ended December 31, 2025, was $21 million, an increase of $119 million compared to a net loss of $98 million in 2024[174]. - Total revenues for the three months ended December 31, 2025, increased to CAD 4,168 million from CAD 3,577 million in the same period of 2024, representing a growth of approximately 16.5%[188]. - Net income attributable to common shares for 2025 was CAD 3,400 million, compared to CAD 4,594 million in 2024, reflecting a decrease of about 26%[198]. Capital Expenditures - The company anticipates capital expenditures to support growth projects and maintenance, with expectations for future project announcements and associated capital expenditures[27]. - Capital spending for the year ended December 31, 2025 was $6,337 million, a decrease of 19.8% from $7,904 million in 2024[49]. - Gross capital expenditures for 2025 were approximately $5.9 billion, with net capital expenditures of about $5.3 billion after adjustments for non-controlling interests[79]. - The company expects gross capital expenditures of approximately $6.0 to $6.5 billion in 2026, with net capital expenditures anticipated to be around $5.5 to $6.0 billion[80]. - Capital expenditures for the three months ended December 31, 2025, were CAD 1,346 million, down from CAD 1,640 million in the same period of 2024, indicating a reduction of approximately 18%[188]. - Capital expenditures for 2025 totaled CAD 5,270 million, up from CAD 6,181 million in 2024, indicating a reduction of approximately 14.7%[198]. Debt and Interest - The adjusted debt to adjusted comparable EBITDA ratio remained stable at 4.8 for both 2025 and 2024, indicating consistent leverage levels[32]. - Interest expense for the year ended December 31, 2025 was $3,407 million, up from $3,019 million in 2024, an increase of 12.9%[54]. - Interest expense rose to $873 million for the three months ended December 31, 2025, compared to $679 million in the same period of 2024, an increase of 28.6%[183]. - Long-term debt as of December 31, 2025, was CAD 45,247 million, a slight increase from CAD 44,976 million in 2024[187]. Strategic Initiatives - TC Energy's strategic priorities include maximizing asset value through operational excellence and safety, alongside ongoing evaluations of growth opportunities[27]. - Future energy demand levels are anticipated to drive growth, with a focus on sustainable and reliable energy solutions across North America[38]. - TC Energy emphasizes the importance of managing risks related to regulatory changes, market conditions, and operational performance to achieve its strategic goals[43]. Earnings and Income - Total segmented earnings for Q4 2025 were $2,188 million, an increase of 15.3% from $1,898 million in Q4 2024[54]. - Net cash provided by operations for Q4 2025 was $1,894 million, down from $2,084 million in Q4 2024, a decrease of 9.1%[49]. - Operating costs for 2025 were CAD 5,708 million, an increase from CAD 5,450 million in 2024, which is an increase of approximately 4.7%[198]. - Segmented earnings for 2025 were CAD 8,036 million, compared to CAD 7,964 million in 2024, reflecting an increase of approximately 0.9%[198]. Project Developments - TC Energy completed the spinoff of its Liquids Pipelines business into South Bow Corporation on October 1, 2024, which is now accounted for as a discontinued operation[34]. - The company placed approximately $8.3 billion of projects into service during 2025, including the Southeast Gateway pipeline and progress on the Bruce Power life extension program[86]. - The Ontario Pumped Storage Project, a 1,000 MW facility, is expected to power one million homes for up to 11 hours, with an investment of up to CAD 285 million announced for pre-development work[100]. - The Bruce Power life extension program requires an investment of CAD 1.5 billion from 2026 to 2031[97]. Foreign Exchange and Tax - The company reported a foreign exchange gain of CAD 157 million in 2025, compared to a loss of CAD 147 million in 2024, indicating a positive shift in foreign exchange impact[198]. - Income tax expense included in comparable earnings increased by $98 million for the three months ended December 31, 2025, primarily due to the impact of foreign exchange exposure in Mexico[152].