Strategic Alternatives

With a 75-year track record under its belt, TC Energy is poised to enter a new phase of growth, thanks to a presence across North America and the growing demand for energy at home and abroad. In conversation at RBC’s Global Energy, Power and Infrastructure Conference, President and CEO François Poirier outlines the company’s current tailwinds, and why he sees particular LNG growth opportunities for Canada.

Key Points
• Canada has new opportunities to meet growing global demand for LNG.
• TC Energy is lifting self-imposed capital allocation limits as it seeks to grow its assets across North America.
• Safety, profitability and asset reliability are closely entwined in the success of the business.

RBC's Canadian Industrials Conference in Toronto wrapped with more reasons for optimism than many expected. In this conference takeaway, Walter Spracklin, Director of Canadian Research and Co-Head of Global Industrials Research, debriefs with analysts Sabahat Khan, James McGarragle, and Matthew McKellar on the key themes that emerged. Steel producers are finding ways to mitigate U.S. tariffs, the freight recession is easing, and the most significant buzz centred on the government's nation-building infrastructure and defence plans.

Key Points
• Canada’s nation-building plans are boosting industrial confidence, while its defense strategy creates a tailwind for the country’s aerospace sector.
• Tighter supply has helped to ease the long-running freight recession.
• Steel suppliers are diversifying from U.S. exposure to mitigate trade tariffs.
• Tariffs have also hit lumber hard, with supply tightening in response.
• AI deployment is positioning the transport sector for operational efficiencies.

Introductions [00:06]

Host Walter Spracklin refers to RBC’s recent Canadian industrials conference in Toronto, which heard from 38 participating companies. He introduces three colleagues – Sabahat Khan, James McGarragle, and Matthew McKellar – to discuss the key themes that emerged.
Freight recession eases [00:47]

The freight recession dominated last year’s conference, but tighter supply driven by regulatory changes has lifted pricing, with positive impacts on rail too.
Tariff impacts on industrials [02:05]

Section 232 tariffs are creating direct impacts across steel-exposed industrials, while broader tariff uncertainty is delaying some large capital project decisions.
Government plans inject confidence [04:30]

The Canadian government’s new strategies on nation-building infrastructure are lifting confidence in the market. Its plans to increase defense spending and prioritize Canadian producers are seen as a potentially lasting tailwind for aerospace companies.
Paper and forest production [9:36]

Demand is poor and the lumber sector has been hit hard by tariffs. However, tighter supply has set up the industry for better conditions at lower levels of demand in future.
AI and capital allocation [13:01]

Other common themes at the conference were the deployment of AI to achieve efficiencies, especially in transport; and the disciplined allocation of capital, balancing organic growth with strategic M&A.

The expansion of power and infrastructure to support the energy transition is unfolding against a complex backdrop. Policy uncertainty, geopolitical tension, and shifting market forces are colliding with record investment and a rapidly evolving mix of technologies. Ralph Ibendahl, Global Head of Energy Transition and Co-head of Power Utilities for Europe, assesses the challenges and opportunities with expert colleagues from the U.S., Canada, and Australia.

Key Points
• Increasing global power demand is leading to growth across all power types and grids.
• Policymakers need to balance affordability concerns with growth opportunities.
• Recent deals include financing for a major nuclear project in Canada, and build-out of Germany’s grid.
• Companies are drawing on a full mix of funding types, including infrastructure equity, private credit, and structured capital.
• Many companies are turning to the public markets, where valuations are stronger.
• RBC Capital Markets is guiding clients through this volatile market.

Life sciences is a hub of dealmaking activity. Over the past year, more than 30 transactions valued at $1 billion or more have crossed the finish line. But the picture in other segments of healthcare is more mixed. At RBC Capital Markets’ Global Healthcare Conference in New York, Darren Campili, Global Head of Healthcare Investment Banking, hosts colleagues David Levin, Ahmed Attia and Jason Levitz to explore what's driving deals and where the opportunities are heading.
Key Points
Healthcare M&A is strong, with a surge of high-value deals in life sciences.
Equity performance is challenging, but investors in life sciences and biotech have seen good outcomes.
IPO activity has rebounded; again, life sciences and biotech are most successful.
Dealmaking has been largely unaffected by regulatory uncertainty, though challenges remain on reimbursement and MFN pricing.
Larger companies believe they have the edge in using AI for profitability and competitiveness.

Introductions [00:25]

Host Darren Campili, Global Head of Healthcare Investment Banking, introduces the podcast and guests: David Levin, Co-Head of U.S. M&A; Ahmed Attia, Managing Director, Healthcare M&A; and Jason Levitz, Head of Healthcare Equity Capital Markets.
M&A strength in healthcare [01:11]

The M&A market in life sciences is extremely strong. The number of $1 billion-plus deals has tripled in the past year. There has been significant activity among mid-caps as well as large-cap companies, and a diversity of premiums.
Healthcare in the equity markets [13:24]

In the broader context of the U.S. equity markets, healthcare is performing poorly, particularly among large-cap medtech and services companies. At the same time, life sciences and biotechs are outperforming, leading to diverse outcomes for investors.
IPO activity [15:20]

IPO volumes have rebounded after some disappointing years. Deal flow has centered on oncology, I&I, and CNS.
Political impact [24:15]

Dealmaking has continued despite uncertainty over the FDA. Tariff policy has been a net positive for U.S. inflows as pharma businesses seek U.S. capabilities. Managing reimbursement and Most Favored Nation pricing remains challenging for some.

The markets’ wild ride continues, with valuations defying high volatility. How long can the ‘up crash’ last, and what factors might bring about a correction? At RBC’s Global Energy, Power and Infrastructure Conference, Callie Simpkins, Managing Director, Cross-Asset Hedge Fund Sales, discusses the potential scenarios with Lori Calvasina, Head of U.S. Equity Strategy, and Amy Wu Silverman, Managing Director and Head of Derivatives Strategy.