Enbridge (ENB) Q1 2025 earnings summary

Executive summary

• Record first-quarter results with GAAP earnings of $2.3 billion ($1.04 per share), up from $1.4 billion ($0.67 per share) year-over-year, and adjusted EBITDA up 18% to $5.8 billion, driven by US gas utility acquisitions, higher Mainline throughput, and favorable rate settlements.

• Distributable cash flow (DCF) increased 9% to $3.8 billion, with DCF per share up 6% to $1.73, and EPS up 12% to $1.03, reaffirming 2025 guidance and multi-year growth outlook.

• Added $3 billion of accretive, low-risk projects to the backlog year-to-date, including Mainline Capital Investment, Matterhorn, Traverse, and Birch Grove expansions.

• Business model remains low-risk and utility-like, with over 98% of EBITDA protected by regulated or take-or-pay frameworks and more than 80% inflation protected.

• Diversified asset base and disciplined growth strategy support resilience amid commodity and financial market volatility.

Financial highlights

• Q1 2025 adjusted EBITDA was $5,828 million, up from $4,954 million in Q1 2024; DCF per share increased to $1.73 from $1.63; adjusted EPS rose to $1.03 from $0.92.

• Total operating revenues increased to $18,502 million from $11,038 million year-over-year.

• Gas transmission segment up 13% year-over-year, despite asset sales; Gas Distribution and Storage EBITDA doubled to $1,600 million, benefiting from acquisitions and colder weather.

• Dividends per common share increased to $0.94 from $0.92.

• FX was a net tailwind for EBITDA and DCF, despite hedging losses.

Outlook and guidance

• 2025 financial guidance reaffirmed: adjusted EBITDA of $19.4–$20.0 billion and DCF per share of $5.50–$5.90; no material impact expected from tariffs or global trade tensions.

• Maintains 7–9% EBITDA growth and 4–6% EPS growth targets (2023–2026); expects ~5% growth through the end of the decade.

• Targeting debt-to-EBITDA ratio of 4.5x–5.0x, with improvement expected as full-year utility contributions are realized.

• Management expects sufficient liquidity to fund capital projects and operations for the next 12 months without new capital market access.

• Ongoing regulatory proceedings and rate cases in multiple jurisdictions may impact future revenue and returns.