November 07, 2025 [Reuters]- Canada’s TC Energy missed estimates for third-quarter profit on Thursday, but extended its current earnings growth outlook through 2028 based on what it says is increased demand from AI data centers and the LNG industry.

Robust North American energy fundamentals mean the Calgary-based company now expects earnings growth of 5% to 7% annually for the next three years, CEO François Poirier said on a conference call.

“Across North America, the policy environment is becoming increasingly supportive, enabling more timely and cost-effective delivery of our projects,” Poirier said.

Poirier added he is encouraged by the Canadian government’s recent move to designate a potential second phase of Shell’s project as being in the national interest, as well as U.S. permitting reforms that are helping to drive demand for new natural gas projects.

TC Energy operates a 58,100 mile-long network of pipelines, supplying more than 30% of the clean-burning natural gas consumed daily across North America.

The company is forecasting North American natural gas demand to increase by 45 Bcf/d by 2035, primarily driven by a tripling of LNG exports and unprecedented power demand from data centers and coal-to-gas conversions.

The company, which has placed approximately C$8 billion of projects into service so far this year, said on Thursday a steady cadence of new project announcements will continue into 2026.

The average size of new projects could grow from the current C$500 million to about C$1 billion next year, Poirier said. TC Energy may look to increase capital spending next year beyond its current C$6 billion range, Poirier added.

U.S. natural gas futures fell more than 4% sequentially in the third quarter, weighing on TC Energy’s transport volumes.

Net income from the company’s U.S. natural gas pipelines, its largest segment, fell to C$801 million ($571.16 million) in the third quarter, from C$1.3 billion a year ago.

The company expects adjusted core profit for 2026 to be in the range of $11.6 billion to $11.8 billion, nearly 6% to 8% growth year-over-year.

It also anticipates 2028 core profit to be in the range of $12.6 billion to $13.1 billion, representing an annual growth rate of 5% to 7% between 2025 and 2028.

On an adjusted basis, the company earned 77 Canadian cents per share for the three months, compared with analysts’ average expectation of 80 Canadian cents, according to data compiled by LSEG.