TotalEnergies (TTE) should see continued accretive volume growth to come through in 2026, with integrated power business poised to contribute to the group's free cash flow, RBC said in a Wednesday research note.

RBC said that TotalEnergies was an early mover in the integrated power business space and that the company's early legwork is set to move the business into a free cash flow generator as early as this year aided by artificial intelligence and data center demand.

A concern that investors hold on TotalEnergies is the company's rising levels of net debt, with the management responding to this by cutting buybacks in September, the firm noted. The company's commitment to maintain its current level of gearing at 14.7% further strengthens the investment case on TotalEnergies, according to RBC.

RBC maintained its outperform rating on TotalEnergies with a 70 euro price target.

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