TC Energy Guides $5.5–$6.0B 2025 Capex, Trades at 23.5 P/E
TC Energy guided 2025 capital expenditures at the low end of $5.5–$6.0 billion after delivering Q3 results in line with expectations. Shares trade at a 23.5 P/E with a 4.45% dividend yield versus a five-year average of 6.02%, prompting risk-managed portfolio adjustments.
1. Q3 2025 Performance and Capex Guidance
TC Energy delivered a steady Q3 2025 performance with results matching analyst expectations. Management guided full-year capital expenditures at the low end of a $5.5–$6.0 billion range, signaling prudent spending while maintaining project readiness.
2. Growth Outlook and Project Pipeline
Leadership affirmed that long-term growth remains sustainable beyond 2028 but declined to extend detailed guidance until project returns are fully assessed. The pipeline of regulated and infrastructure projects is set to drive annual spending up to roughly $7 billion by 2028–29.
3. Valuation and Dividend Profile
The shares are trading at a 23.5 price-to-earnings ratio, reflecting a market premium on reliable infrastructure earnings. The current 4.45% dividend yield sits below the five-year average of 6.02%, leading some investors to rebalance holdings to manage yield risk.
4. Investment Implications
TC Energy’s high-quality regulated assets and conservative capital discipline deliver dependable cash flow, supporting a secure dividend growing in line with inflation. While not a deep-value opportunity today, the company remains a core holding with potential for accumulation if yields rise toward the 5.5–6.0% range.