financing costs

6 Months Ended

Jun. 30, 2026

financing costs

financing costs

9	financing costs


		Three months						Six months
Periods ended June 30 (millions)		2026			2025			2026			2025
Interest expense
From transactions that only involve the raising of finance
Long-term debt, excluding lease liabilities and other (secured)
Gross		$	327		$	306		$	655		$	590
Capitalized ¹(Notes 17, 18(a))			(3)			—			(6)			(9)
Net			324			306			649			581

Short-term borrowings and other			17			12			30			29
Long-term debt prepayment premium (Note 26(e))			51			—			51			—
			392			318			730			610
From transactions that do not only involve the raising of finance
Long-term debt – lease liabilities (Notes 19, 26(h))			41			42			84			83
Long-term debt – other (secured) (Note 26(g))			6			8			11			14
Employee defined benefit plans net interest (Note 15)			4			3			7			6
Accretion on provisions (Note 25)			5			7			13			14
			56			60			115			117
			448			378			845			727
Other
Foreign exchange			(7)			12			(44)			12
			441			390			801			739
Interest income			(21)			(17)			(46)			(22)
		$	420		$	373		$	755		$	717


Net interest cost								$	754		$	720
Interest expense on long-term debt, excluding lease liabilities and other – capitalized ¹									(6)			(9)
Employee defined benefit plans net interest									7			6
								$	755		$	717

1	Interest on long-term debt, excluding lease liabilities, at a composite rate of 5.3% (2025 – 5.3%) was capitalized to property, plant and equipment assets under construction and to intangible assets with indefinite lives during the period.