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

Enbridge Inc. ENB is set to report fourth-quarter 2025 results on Feb. 13, 2026, before the opening bell.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 60 cents per share, implying an improvement from the year-ago reported number. It has witnessed no estimate revisions in the past seven days. The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $11.8 billion, suggesting a 1.3% improvement from the year-ago actuals.

ENB beat the consensus estimate for earnings in three of the trailing four quarters and missed once, with the average surprise being 1.76%. This is depicted in the graph below:  

Q4 Earnings Whispers for ENB

Our proven model doesn't predict an earnings beat for ENB this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is just not the case here.

The leading midstream player has an Earnings ESP of -1.01% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ENB’s Factors to Note

Enbridge, a leading midstream energy player, is likely to have generated stable fee-based revenues in the December quarter. This is because, due to the very nature of the business model, the company is not vulnerable to the volatility in oil and natural gas prices. The midstream energy giant is also likely to have capitalized on the growing demand for cleaner energy through its Gas Transmission business unit, through which ENB generates a significant proportion of earnings after the Liquid Pipelines business segment.

ENB’s Price Performance & Valuation

ENB's stock has jumped 11.9% over the past year, underperforming the industry’s 13.8% improvement. Kinder Morgan KMI, another midstream player, has surged 15.7% over the same time frame, while Enterprise Products Partners LP EPD, in the same space, has gained 5.9%.

One-Year Price Chart

Despite the prices of Enbridge underperforming the industry and KMI, ENB appears relatively overvalued. The company's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio is 15.61, reflecting that it is trading at a premium compared with the industry average of 14.51.

Investment Thesis of ENB

Enbridge is well-positioned to generate incremental cash flows for shareholders. This fact is getting reflected in the midstream giant’s more than C$30 billion in secured capital projects. This includes projects related to liquid pipelines, gas transmissions, renewables and gas distribution & storage. Once the projects come online, ENB will generate additional cash flows to support shareholders’ dividend payments. In fact, Enbridge has been rewarding shareholders with dividend hikes for 31 consecutive years.

However, significant exposure to debt capital is a major concern. ENB’s debt-to-capitalization of 60.4% is considerably higher than the 57.7% of the composite stocks belonging to the industry. Although debt financing is common across the midstream space for growth and maintenance spending, ENB carries a comparatively higher debt burden than other players belonging to the same space.

Status of Other Midstream Players: KMI, EPD

Kinder Morgan reported fourth-quarter 2025 adjusted earnings of 39 cents per share, which beat the Zacks Consensus Estimate of 37 cents.

Enterprise Products Partners reported fourth-quarter 2025 adjusted earnings of 75 cents per unit, which beat the Zacks Consensus Estimate of 70 cents.

Last Word

Considering the backdrop, it might be wise for investors to wait for a more favorable entry point, as the company is currently overvalued. Those who own ENB stock may hold on to it to benefit from its long-term growth prospects.

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

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