Enbridge's Q4 Earnings on Deck: Should You Stay Invested or Exit?

Core Insights - Enbridge Inc. (ENB) is scheduled to report its fourth-quarter 2025 results on February 13, 2026, with earnings estimated at 60 cents per share and revenues at $11.8 billion, indicating a 1.3% year-over-year improvement [1][8] Financial Performance - ENB has beaten consensus earnings estimates in three of the last four quarters, with an average surprise of 1.76% [2] - The company has an Earnings ESP of -1.01% and a Zacks Rank of 3 (Hold), suggesting a lower likelihood of an earnings beat this quarter [4] Revenue Generation - ENB is expected to have stable fee-based revenues due to its midstream business model, which is less affected by oil and natural gas price volatility [6] - The Gas Transmission business unit is anticipated to contribute significantly to earnings, alongside the Liquid Pipelines segment [6] Market Performance - ENB's stock has increased by 11.9% over the past year, underperforming the industry average of 13.8% and Kinder Morgan's 15.7% increase [9] - The company's current EV/EBITDA ratio stands at 15.61, which is above the industry average of 14.51, indicating a premium valuation [12] Investment Outlook - Enbridge is positioned to generate additional cash flows from over C$30 billion in secured capital projects, which include liquid pipelines, gas transmissions, and renewables [14] - The company has a strong history of rewarding shareholders with dividend increases for 31 consecutive years [15] - However, ENB's debt-to-capitalization ratio of 60.4% is higher than the industry average of 57.7%, raising concerns about its debt burden [16] Competitor Analysis - Kinder Morgan reported fourth-quarter 2025 adjusted earnings of 39 cents per share, exceeding the consensus estimate of 37 cents [17] - Enterprise Products Partners reported adjusted earnings of 75 cents per unit, beating the consensus estimate of 70 cents [17]