All financial figures are in Canadian dollars, unless noted otherwise.
Calgary, Alberta–(Newsfile Corp. – November 27, 2025) – Trans Mountain Corporation (“TMC” or “the Company”) today announced its financial and operating results for the third quarter of 2025.
“Strong operating and safety performance and improving capital returns to Canada highlight our third-quarter results,” said Mark Maki, Trans Mountain Chief Executive Officer. “We increased throughput and improved asset utilization to 87%. Year-to-date, we have delivered $1.04 billion in capital returns to Canada through interest payments, dividends and fees. Full year outlook for total capital returns has improved to $1.7 billion. As a result, we are delivering meaningful cash returns to the country, in addition to the broader benefits of the expanded pipeline system, from increased commodity pricing and market access for our customers.”
Third quarter results reflect the continued strong operating performance of TMC following the commencement of commercial operations on the expanded system as of May 1, 2024. Adjusted EBITDA, revenues and operating costs have all increased due to higher transportation volumes.
“As demand for Canadian heavy oil grows across Asia, notably in petrochemicals, Trans Mountain is uniquely and strategically positioned to expand exports, enhance trade diversification and advance Canada’s goal of doubling non-US exports,” Maki added. “Canada’s abundant oil reserves, supported by infrastructure that connects this resource to global markets, represent a strategic advantage that will continue to benefit Canadians for years to come. Looking ahead, our system optimization projects will boost throughput capacity by up to 360,000 barrels per day, enabling Trans Mountain to move more energy to the world and deliver greater returns to Canada.”
Financial Highlights:
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Adjusted EBITDA: Third quarter Adjusted EBITDA increased to $591 million, compared to $512 million in the same period of the prior year due to increased throughput and higher tolls. In the third quarter, transportation revenues increased by 15% while cash operating costs increased by 13%. Year-to-date Adjusted EBITDA increased to $1,717 million compared to $831 million for the same period of the prior year.
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Net Income: Third quarter net income was $127 million compared to a net loss of $68 million in the same period of the prior year as a result of higher transportation volumes resulting in increased Adjusted EBITDA and lower interest expense from a strengthened balance sheet. Year-to-date net income increased by $383 million to $425 million versus $42 million in the same period of the prior year.
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Capital Return: During the third quarter an aggregate of $314 million was paid to Canada TMP Finance Ltd., (“TMP Finance”), the entity which holds the Government of Canada’s investment in TMC, consisting of $151 million in interest payments and $163 million in cash dividends. Year-to-date, $1,043 million has been paid in the form of dividends, interest payments and guarantee fees. These distributions are expected to grow in 2026 and beyond.
Operational Highlights:
- Throughput: During the third quarter, the expanded system had a record average daily throughput of 777,000 barrels per day (bpd), including 444,000 bpd delivered to Westridge Marine Terminal, 101,000 bpd to BC delivery points and 232,000 bpd delivered to Washington State on the Puget Sound Pipeline. The average daily throughput for the prior year quarter was 692,000 bpd. Year-to-date throughput was 746,000 bpd compared to 499,000 bpd in the same period of the prior year. Utilization for the quarter was 87% bringing year-to-date utilization to 84%.
- Vessel Traffic: For the third quarter, 74 vessels were loaded at Westridge Marine Terminal and the same number of vessels were loaded in the prior quarter of this year. Since the commercial commencement of the expanded system on May 1, 2024, TMC has loaded 380 vessels at the Westridge Marine Terminal with 57% of vessels destined for Asia.
Since the commercial commencement of the expanded system, all deliveries have been subject to the expanded system tariff and tolls. Contractually committed revenues associated with the 15- and 20-year transportation service contracts covering approximately 80% of the expanded system’s capacity have resulted in a significant increase to transportation volumes, revenues and Adjusted EBITDA.
Financial and Operating Highlights:
| Three months ended September 30 |
Nine months ended September 30 |
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| (millions of Canadian dollars, except throughput amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Revenues | 765 | 666 | 2,213 | 1,187 | ||||||||
| Adjusted EBITDA | 591 | 512 | 1,717 | 831 | ||||||||
| Net income (loss) | 127 | (68 | ) | 425 | 42 | |||||||
| Adjusted funds from operations | 421 | 94 | 1,220 | (91 | ) | |||||||
| Dividends declared | 163 | – | 519 | – | ||||||||
| Mainline deliveries (bpd) | 777,000 | 692,000 | 746,000 | 499,000 | ||||||||
| Utilization | 87% | 78% | 84% | 79% | ||||||||
Looking Forward
Toll Hearing: TMC continues to operate under an interim toll structure currently before the Canada Energy Regulator (CER). On November 30, 2023, the CER approved preliminary interim tolls for the expanded system, which remain in effect today. Subsequent to the quarter, Trans Mountain advised the CER that it was in discussions with its firm shippers to resolve concerns raised by the shippers regarding these interim tolls. In order to allow additional time to continue the commercial discussions, Trans Mountain requested that the CER pause the current regulatory process. The CER has approved this request.
Optimization Opportunities: Trans Mountain is exploring both short and long-term optimization projects aimed at increasing pipeline capacity by up to 360,000 bpd. Potential solutions may include the use of drag-reducing agents to increase flow efficiency, as well as other operational enhancements to improve system capabilities.
Summary of Quarterly Results:
| (millions of Canadian dollars, except throughput amounts) | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | ||||||||||||||
| Revenues | 765 | 719 | 729 | 695 | 666 | 396 | 125 | ||||||||||||||
| Adjusted EBITDA | 591 | 558 | 568 | 515 | 512 | 283 | 36 | ||||||||||||||
| Net income (loss) | 127 | 150 | 148 | (37 | ) | (68 | ) | (48 | ) | 158 | |||||||||||
| Adjusted funds from operations | 421 | 397 | 402 | 137 | 93 | (59 | ) | (126 | ) | ||||||||||||
| Total payments to TMP Finance(1) | 314 | 313 | 416 | – | – | – | – | ||||||||||||||
| Mainline deliveries (bpd) | 777,000 | 703,000 | 757,000 | 721,000 | 692,000 | 471,000 | 332,000 | ||||||||||||||
| Utilization | 87% | 79% | 85% | 81% | 78% | 68%(2) | 111% |
(1) Includes dividends, interest payments and guarantee fees paid.
(2) Final line fill on the expanded line was completed in early May 2024, which impacted system utilization in the period.
Total payments to TMP Finance include contractual commitments for interest as well as discretionary payments. During the third quarter, Trans Mountain generated $421 million of adjusted funds from operations, incurred $110 million of costs on the Trans Mountain Expansion Project, and declared $163 million in dividends.
See the full financial statements and management report documents for further information. The Company’s financial results are also included in Canada Development Investment Corporation’s (“CDEV”) consolidated quarterly financial statements. See Canada Development Investment Corporation’s Quarterly Report.
Forward-looking information
This news release contains certain statements that constitute forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking information”). Forward-looking information is not historical fact, but instead represents the current expectations of TMC regarding future operating results and other future events relating to TMC, many of which, by their nature, are inherently uncertain and outside of the control of TMC. Forward-looking information can be identified by words or phrases such as “will”, “may”, “expect”, “anticipate”, “believe”, “intend”, “plan”, “seek”, “aim”, “potential”, “should”, “would” and similar words or expressions. Forward-looking information in this news release includes, but is not limited to: expectations regarding future distributions; process for discussions with shippers regarding interim tolls; potential optimization projects and the expected increase in pipeline capacity resulting from such projects; potential solutions to increase flow efficiency and operational enhancements; the opening of global markets for Canadian energy; TMC’s strategic advantages and advancement of Canada’s goals and long-term economic benefits resulting from TMC’s infrastructure. Actual results could differ materially from those anticipated in the forward-looking information. The forward-looking information in this news release is based on certain assumptions that TMC has made regarding, among other things: market conditions; economic conditions; prevailing governmental policies; regulatory, tax, and environmental laws and regulations; inflation rates and commodity prices; future demand for space on TMC’s pipeline system; regulatory processes; commercial negotiations; interest, tax and foreign exchange rates; and expected cash flows and availability of funds. Although TMC believes the assumptions and other factors reflected in the forward-looking information are reasonable as of the date hereof, there can be no assurance that these assumptions and factors will prove to be correct and, as such, forward-looking information is not a guarantee of future performance. Forward-looking information is subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: the regulatory environment and decisions, including the outcome of regulatory hearings; the available supply and price of energy commodities; TMC’s ability to successfully implement its strategic priorities; the operating performance of TMC’s pipelines and related assets; whether discussions with shippers will result in a negotiated settlement; performance and credit risk of TMC’s counterparties; the geopolitical environment; actions taken by governmental or regulatory authorities; changes in laws; the occurrence of unexpected events such as fires and severe weather conditions; cyber-attacks and other accidents or similar events and adverse general economic and market conditions or other risk factors, many of which are beyond the control of TMC. The foregoing list of assumptions and risk factors should not be construed as exhaustive. The forward-looking information contained in this news release speaks only as of the date hereof. TMC does not undertake any obligation to publicly update or revise any forward-looking information contained herein, except as required by applicable laws. All forward-looking information contained in this news release is expressly qualified by this cautionary statement.
GAAP and Non-GAAP measures
We make use of certain financial measures that do not have a standardized meaning under U.S. GAAP because we believe they improve management’s ability to evaluate our operating performance and compare results between periods. These are known as non-GAAP measures and may not be similar to measures provided by other entities. The non-GAAP measures discussed above should not be considered as an alternative to or more meaningful than revenues, net income, operating income or other U.S. GAAP measures. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and equity AFUDC) is a non-GAAP measure we use to evaluate our operating performance and is calculated from its most directly comparable U.S. GAAP measure, operating income but excludes the impact of financing decisions, non-cash depreciation and amortization, and non-cash equity AFUDC.
AFUDC (Allowance for Funds Used During Construction) is an amount recognized under U.S. GAAP by rate-regulated entities to reflect a return on the equity and debt components of capital invested in construction work in progress.
About Trans Mountain
Trans Mountain Corporation (together with its wholly-owned subsidiaries, “Trans Mountain”) operates Canada’s only pipeline system transporting oil products to the West Coast of Canada. Trans Mountain is a wholly owned entity of Canada TMP Finance Ltd., a subsidiary of Canada Development Investment Corporation (CDEV), the entity which holds the Government of Canada’s investment in TMC. Trans Mountain has nominal capacity to deliver 890,000 barrels of petroleum products each day through a pipeline system of more than 1,180 kilometres of pipeline in Alberta, British Columbia and 111 kilometres of pipeline in Washington State. Trans Mountain also operates a state-of-the-art loading facility, Westridge Marine Terminal, with three berths providing tidewater access to global markets. As a Federal Crown Corporation, Trans Mountain continues to build on more than 70 years of experience delivering operational and safety excellence through its pipeline system.
Contact information:
Media Relations
Toll-free 1 855 908 9734
media@transmountain.com
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