Enbridge Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Insights - Enbridge Inc. (ENB) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 63 cents, exceeding the Zacks Consensus Estimate of 60 cents and improving from 53 cents in the same quarter last year [1][11] - Total quarterly revenues reached $12.32 billion, up from $11.59 billion in the prior-year quarter, also surpassing the Zacks Consensus Estimate of $11.74 billion [1][11] Financial Performance - The strong quarterly results were driven by higher Adjusted EBITDA contributions from Liquids Pipelines, Gas Transmission, and Gas Distribution and Storage segments, while lower contributions from Renewable Power Generation slightly offset these gains [2] - Enbridge reported a Distributable Cash Flow (DCF) of C$3.21 billion, an increase from C$3.07 billion recorded a year ago [8] Segment Analysis - Liquids Pipelines: Adjusted EBITDA totaled C$2.45 billion, up from C$2.39 billion in the year-ago quarter, primarily due to stronger contributions from the Mainline System and Regional Oil Sands, despite lower contributions from Gulf Coast and Mid-Continent Systems [4] - Gas Transmission: Adjusted earnings reached C$1.31 billion, an increase from C$1.27 billion in the fourth quarter of 2024, driven by stronger contributions from Canadian Gas Transmission and Other, partially offset by lower earnings from U.S. Gas Transmission [5] - Gas Distribution and Storage: This unit generated a profit of C$586 million, up from C$502 million in the prior-year quarter, mainly due to higher contributions from U.S. Gas Utilities and colder weather [6] - Renewable Power Generation: The segment recorded earnings of C$211 million, down from C$308 million in the prior-year quarter [6] - Eliminations and Other: This segment recorded earnings of C$105 million, down from C$140 million in the prior-year quarter [7] Balance Sheet - At the end of the fourth quarter, Enbridge reported long-term debt of C$98.96 billion, with cash and cash equivalents of C$1.09 billion and a current portion of long-term debt of C$1.03 billion [9] Outlook - Enbridge reaffirmed its 2026 guidance for Adjusted EBITDA in the range of C$20.2 billion to C$20.8 billion and DCF per share between C$5.70 and C$6.10 [12] - The company expects a near-term growth outlook (2023-2026) of 7-9% for Adjusted EBITDA, 4-6% for EPS, and nearly 3% for DCF per share, with an anticipated annual growth of approximately 5% beyond 2026 [12]