Enbridge Inc
ENB · NYSE
Next quarter
Reports Nov 6, 2026.
Consensus is $0.38 EPS for Sep 2026 across 5 estimates, ranging $0.34 to $0.43.
ENB Jun 2026
- 6.98%
- -0.66%
- $0.43
- $0.46
- —
- $6.59B
Reported results
- $6.59B
- $2.91B
- 44.14%
- $1.50B
- $0.64
Highlights
- Earnings beat: The supplied consensus comparison shows EPS of $0.46 versus $0.43 expected, a 6.98% surprise; the release and 10-Q report GAAP EPS of $0.64 and adjusted EPS of $0.63.
- Underlying stability: Adjusted EBITDA increased 2.8% year over year to $4.8 billion, while adjusted earnings declined 2.5% to $1.4 billion, or $0.63 per share, as higher depreciation and interest costs offset operating gains.
- Cash generation: Operating cash flow rose to $4.1 billion from $3.2 billion, and distributable cash flow increased to $2.9 billion from $2.9 billion, helped by lower maintenance capital spending.
- Guidance maintained: Enbridge reaffirmed 2026 adjusted EBITDA guidance of $20.2-$20.8 billion and DCF per share guidance of $5.70-$6.10, alongside its approximately 5% post-2026 growth outlook.
- Backlog expanded: The secured growth backlog grew by more than $1 billion to approximately $41 billion after sanctioning the US$1.0 billion Line 5 Relocation project.
- Gas transmission momentum: Segment adjusted EBITDA rose 2.7% to $1.42 billion, supported by the East Tennessee rate-case settlement and a previously approved Texas Eastern rate increase.
- Utility contribution: Gas Distribution and Storage adjusted EBITDA increased 4.5% to $878 million, primarily on higher Enbridge Gas Utah and North Carolina base rates; the year-ago period also included a $330 million asset impairment.
- Leverage and dividend: Debt-to-EBITDA was 5.1x at quarter-end, while Enbridge declared a common dividend of $0.9700 per share payable September 1, 2026.
Analysis
Enbridge’s second quarter was an operatingly solid but accounting-noisy print. Against the supplied consensus, reported EPS was $0.46 versus $0.43 expected, a 6.98% beat; the company’s release and 10-Q separately show GAAP EPS of $0.64 and adjusted EPS of $0.63. On the reported-quarter series, revenue was $6.59 billion versus $6.51 billion a year earlier but down from $8.97 billion in Q1, while operating income rose to $2.91 billion from $2.29 billion year over year and declined from $3.23 billion sequentially. Net income of $1.50 billion fell from $2.28 billion a year ago and $1.78 billion in Q1.
The central takeaway is that underlying cash earnings held up despite higher financing and depreciation costs. Adjusted EBITDA rose to $4.8 billion from $4.6 billion, adjusted earnings slipped to $1.4 billion from $1.4 billion, and DCF edged up to $2.9 billion. GAAP comparability was distorted by derivative marks, a pre-issuance hedge loss and inventory adjustments. Strategically, Enbridge added more than $1 billion to its secured backlog, reaching approximately $41 billion, with new Line 5, Gulf Coast gas and Permian infrastructure projects. Management reaffirmed both 2026 guidance and its approximately 5% medium-term growth outlook, although leverage remained elevated at 5.1x.
Quarterly earnings quality
The quarter’s headline GAAP decline was driven mainly by non-cash market-value movements rather than a broad deterioration in the operating portfolio. GAAP earnings attributable to common shareholders fell to $1.396 billion from $2.177 billion, or to $0.64 per share from $1.00. The release attributes the decline primarily to unrealized derivative changes, a non-cash pre-issuance hedge loss and a crude oil inventory adjustment.
- Adjusted results: Adjusted EBITDA increased $132 million year over year to $4.776 billion, but adjusted earnings fell $36 million to $1.382 billion, or $0.63 per share versus $0.65.
- Cost drag: Higher depreciation from recently placed-in-service assets and higher interest expense on incremental debt offset the operating improvement.
- Sequential comparison: On the supplied reported-quarter series, Q2 revenue of $6.59 billion, operating income of $2.91 billion, net income of $1.50 billion and diluted EPS of $0.64 were below Q1 levels of $8.97 billion, $3.23 billion, $1.78 billion and $0.76, respectively.
Cash flow and balance sheet
Cash performance was stronger than the GAAP earnings comparison. Operating cash flow benefited from the timing of working capital and maintenance spending, while the company continued to fund a large expansion program with debt and internally generated cash.
- Cash generation: Operating cash flow increased to $4.111 billion from $3.238 billion, while DCF rose $45 million to $2.948 billion.
- Maintenance capital: Maintenance capital was $227 million, down from $316 million a year earlier, supporting the year-over-year DCF increase.
- Funding profile: Six-month capital expenditures were $5.523 billion versus $3.694 billion in 2025, and long-term debt stood at $103.9 billion at June 30, up from $99.0 billion at year-end.
- Liquidity: Net available liquidity was $10.9 billion, comprising $8.9 billion of available credit facilities and $2.0 billion of unrestricted cash; the company reported 5.1x debt-to-EBITDA and compliance with its debt covenants.
Secured backlog expansion
Enbridge used the quarter to emphasize the visibility of its infrastructure growth pipeline. More than $1 billion of projects were added to the secured backlog, which now totals approximately $41 billion and is expected to be financed through $10-$11 billion of annual growth capital capacity.
- Line 5 Relocation: Enbridge sanctioned and began construction on a 41-mile Wisconsin reroute costing approximately US$1.0 billion, with all key state and federal permits secured and service targeted for early 2027.
- Bay Runner Twin: The company sanctioned a 2.6 Bcf/d Permian-to-Rio Grande LNG expansion under long-term take-or-pay agreements, with service expected by 2030.
- TTC Connector: Enbridge obtained an exclusive option to acquire a 25-mile, 300 MMcf/d pipeline connecting Tres Palacios storage with Freeport LNG; the project is expected to enter service by year-end and has capacity contracted to bp.
- Project execution: Construction began on the $4 billion Sunrise Expansion of the B.C. Pipeline system, while more than 1.5 GW of renewable opportunities remain safe-harboured.
Segment operating trends
Gas-related businesses supplied the clearest year-over-year operating improvement, while Liquids Pipelines was broadly flat on an adjusted basis and Renewable Power remained comparatively small.
- Liquids Pipelines: Adjusted EBITDA increased only $5 million to $2.341 billion. Higher Mainline and Line 9 volumes and system optimization were largely offset by lower Line 9 tolls and the expiry of Southern Lights cost-of-service agreements.
- Gas Transmission: Adjusted EBITDA rose $37 million to $1.421 billion, driven by the East Tennessee rate-case settlement and Texas Eastern’s approved rate increase, partly offset by lower DCP Midstream equity earnings.
- Gas Distribution and Storage: Adjusted EBITDA increased $38 million to $878 million, with higher Utah and North Carolina base rates. The comparison also benefited from the absence of the $330 million Enbridge Gas Ohio impairment recorded in 2025.
- Renewables: Adjusted EBITDA rose $11 million to $131 million as assets placed into service since mid-2025 contributed to results.
Outlook and shareholder returns
Management left its financial framework unchanged and continued to position the portfolio as a regulated and contracted infrastructure platform capable of compounding cash flow as new projects enter service.
- Guidance: 2026 adjusted EBITDA guidance remains $20.2-$20.8 billion and DCF per share guidance remains $5.70-$6.10.
- Growth framework: Enbridge continues to target approximately 5% average annual growth in adjusted EBITDA, DCF per share and EPS after 2026.
- Dividend: The board declared a quarterly common dividend of $0.9700 per share, payable September 1, 2026, compared with $0.94 per share in the year-ago quarter.
- Line 5 litigation: The Seventh Circuit’s July 30 decision dismissed the public nuisance claim, affirmed trespass and remanded remedies to the district court; the relocation project is intended to reinforce long-term service to the Great Lakes region.
