TC Energy (TSX: TRP) posted its first quarter results for 2025, with comparable earnings from continuing operations falling to $983 million or $0.95 per share, down from $1.06 billion or $1.02 per share in Q1 2024—missing consensus estimates of $0.97.

Net income was essentially flat year-over-year at $978 million, compared to $988 million.

Comparable EBITDA ticked up just 1.5% to $2.71 billion, compared to $2.67 billion a year earlier. But this mild improvement masked underlying strain, particularly interest expense ballooning to $840 million, up 7.7% from $780 million.

On a segmented basis, US and Canadian natural gas pipelines posted modest gains, with EBITDA from the US division rising by 4.7% to $1.37 billion and Canadian gas EBITDA climbing 5.2% to $890 million. But this was overshadowed by a steep 30% plunge in the Power and Energy Solutions segment, down to $224 million from $320 million.

While TC Energy reaffirmed full-year EBITDA guidance of $10.7 to $10.9 billion, it warned that comparable EPS is expected to decline versus 2024.

The most glaring: net cash provided by operations plunged 33% to $1.36 billion from $2.04 billion in Q1 2024. Comparable funds generated from operations fell as well—down 20% to $1.95 billion from $2.44 billion.

Capital spending remained elevated at $1.81 billion, only modestly lower than the $1.90 billion spent in Q1 2024. The company also declared a quarterly dividend of $0.85 per share—down from $0.96 in Q1 2024—which equates to an annualized yield of $3.40 per share.

On operations, gas volumes continue to reach all-time highs. NGTL System deliveries hit a record 17.8 Bcf/d in February, and GTN set a new high of 3.2 Bcf/d. Mexican operations also posted a daily flow record of 4.1 Bcf/d in March.

TC Energy announced $2.4 billion in new project approvals, including the Northwoods gas project and Unit 5’s nuclear refurbishment at Bruce Power.

The much-anticipated Southeast Gateway pipeline remains delayed pending final regulatory approvals, despite being mechanically complete and 13% under budget. The company expects it to go into service by end-May.

TC Energy last traded at $69.65 on the TSX.

Information for this briefing was found via The Globe And Mail and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.