Item - 2026.TTC14.6

The TTC Board:

1. Approved the 2025 Capital Budget in-year budget adjustments to offset projects that have had accelerated spending by $61.9 million with projects that have experienced delays and lower spending by $61.9 million, with no debt impact, as outlined in Appendix 4 of this report.

2. Approved expenditure and funding adjustments to the TTC’s 2025 Capital Budget for the Equipment program (CTT012) by increasing the 2025 Budget by $0.3 million to reflect the incremental third-party funding received from PowerON, with no debt impact, as outlined in Appendix 4 of this report.

3. Approve expenditure and funding adjustments to the TTC’s 2025 Capital Budget for the Bridges and Tunnels program (CTT020) by increasing the 2025 Budget by $0.6 million to reflect the incremental third-party funding received from Crosslinx, with no debt impact, as outlined in Appendix 4 of this report.

4. Authorized the recommended budget adjustments noted in Recommendations 1, 2 and 3 above, and in the TTC’s 2025-2034 Capital Budget and Plan, be included in the TTC’s Capital Variance Report submission for the 12 months ended December 31, 2025, for City Council consideration and approval.

5. Adopted the action taken in-camera and authorized that the information contained in Confidential Attachment 1 remain confidential as it contains information about a trade secret or scientific, technical, commercial, financial or labour relations information, supplied in confidence to the City or local board, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.

This report sets out the operating and capital financial results for TTC Conventional and Wheel-Trans services and provides a status update of the TTC’s major capital projects for the year ended December 31, 2025.

Preliminary year-end results indicate a net favourable operating variance of $0.1 million, with a $120.6 million (8.2%) revenue shortfall, fully offset by $120.7 million (4.2%) in under-expenditures. The unfavourable revenue variance was driven by lower Provincial Funding due to the deferred opening of Lines 5 and 6, lower-than-anticipated ridership driving reduced passenger revenue, and reduced draws from the TTC Stabilization Reserve, partially offset by higher ancillary revenues from third-party recoveries. The favourable expenditure variance was primarily due to the delayed opening of Line 5 and Line 6, lower than anticipated service costs resulted from project delays, diesel savings, labour and benefits savings associated with workforce vacancies, and lower PRESTO fees consistent with reduced passenger revenue.

Based on year-end results, the capital expenditures incurred for the TTC’s base capital program totalled $1.640 billion, representing a year-end spending rate of 92.0% of the 2025 Approved Capital Budget. In addition, the TTC also incurred $20.7 million or 96.9% of the 2025 Approved Capital Budget to continue the capital work program for transit-expansion related initiatives. Combined, the TTC’s preliminary year-end spending reached $1.661 billion, representing a 92.1% spending rate overall as noted in Table 3.

The preliminary financial results are subject to the year-end audit process, and the audited financial statements will be presented to the Audit and Risk Management Committee on May 26, 2026, and the TTC Board on June 3, 2026.