Enbridge Q2 Earnings & Revenues Beat Estimates, Increase Y/Y

Enbridge Inc. ENB reported second-quarter 2025 adjusted earnings per share of 47 cents, which beat the Zacks Consensus Estimate of 41 cents. The bottom line also improved from the year-ago quarter’s level of 42 cents per share.

Total quarterly revenues of $10.8 billion increased from $8.3 billion in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $9.1 billion.

The strong quarterly results can be attributed to higher Adjusted EBITDA contributions from its Gas Transmission, and Gas Distribution and Storage business segments.

Enbridge Inc Price, Consensus and EPS Surprise

Enbridge Inc price-consensus-eps-surprise-chart | Enbridge Inc Quote

Segmental Analysis

Enbridge conducts business through five segments — Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, Renewable Power Generation, and Eliminations and Other.

Liquids Pipelines: The segment’s adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) totaled C$2.34 billion, down from C$2.46 billion in the year-earlier quarter. The decline can be primarily attributed to lower contributions from the Gulf Coast and Mid-Continent systems. A lower contribution from the Bakken System, due to lower volumes, also affected the segment.

Gas Transmission: Adjusted earnings in this segment totaled C$1.38 billion, up from C$1.08 billion recorded in the second quarter of 2024. Higher contributions from the U.S. gas transmission segment, rate case settlements and the acquisition of equity interests in the Whistler Parent JV and the Delaware Basin Residue in 2024 primarily aided the segment’s growth in the second quarter of 2025.

Gas Distribution and Storage: This unit generated a profit of C$840 million, up from C$567 million in the prior-year quarter. The rise was mainly driven by increased contributions from the U.S. Gas Utilities. Full-quarter contributions from the Enbridge Gas Utah and Enbridge Gas North Carolina acquisitions also aided the segment.

Renewable Power Generation: The segment recorded earnings of C$120 million, down from C$147 million in the prior-year quarter.

Eliminations and Other: The segment recorded a negative adjusted EBITDA of C$36 million, compared to earnings of C$83 million in the second quarter of 2024.

Distributable Cash Flow (DCF)

Enbridge reported a DCF of C$2.9 billion, up from C$2.86 billion recorded a year ago.

Balance Sheet

At the end of the second quarter, Enbridge reported long-term debt of C$97 billion. It had cash and cash equivalents of C$1.2 billion. The current portion of long-term debt was C$3.2 billion.

Outlook

For 2025, the company reaffirmed its guidance for adjusted EBITDA (on base business) and DCF per share in the range of $19.4-$20.0 billion and $5.50-$5.90, respectively.

The pipeline company also reaffirmed its near-term growth outlook (2023-2026) of 7-9% for adjusted EBITDA and 3% for DCF per share.

ENB’s Zacks Rank & Other Key Picks

Currently, ENB carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the energy sector are Antero Midstream Corporation AM, Galp Energia SGPS SA GLPEY and Vermilion Energy Inc. VET, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks Rank #1(Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield compared to its sub-industry peers makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

Vermilion Energy is an international oil and gas producer with properties in Western Canada, Australia, France and the Netherlands. The company's asset base consists of conventional oil and gas fields with low decline rates, along with assets in Deep Basin, Montney and Germany that can support long-term production growth. 

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This article originally published on Zacks Investment Research (zacks.com).

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