TLDR:
- Adjusted Q2 2025 EPS rose to C$0.65, topping estimates of C$0.57
- Record Q2 EBITDA fueled by U.S. gas utility acquisitions and rate settlements
- Dividend raised for 30th consecutive year; $40–$45B in distributions projected over five years
- $1B+ in new renewable projects sanctioned, including solar ventures in Texas
- Stock closed at $46.20 on August 1, gaining 2.01% after the earnings release
Enbridge Inc. (NYSE: ENB) delivered a strong second-quarter 2025 performance on August 1, marked by a record quarterly EBITDA and a double-digit increase in earnings.
The stock closed at $46.20, up 2.01%, as investors welcomed the 12% year-over-year EPS growth and positive guidance. Adjusted earnings rose to C$1.42 billion, or C$0.65 per share, beating analysts’ consensus of C$0.57. GAAP earnings climbed to C$2.18 billion, or C$1.00 per share, from C$1.85 billion last year.
Gas Utilities Drive EBITDA Record
Enbridge’s quarterly adjusted EBITDA surged 7% year-over-year, supported by contributions from its recently acquired U.S. gas utilities and favorable rate settlements in its Gas Transmission segment. Mainline crude oil transportation volumes remained steady at 3 million barrels per day. The company reported a stable debt-to-EBITDA ratio of 4.7x, indicating healthy financial leverage.
The Gas Distribution segment was a key growth engine, with stronger rate structures and the benefits of the U.S. utility acquisitions helping to offset headwinds in other business lines.
Renewables, CapEx, and Strategic Projects
The company continues to push into renewables, with over $1 billion in newly sanctioned projects, including the Clear Fork Solar and Sequoia Solar developments in Texas. The Clear Fork Solar project is fully contracted under a long-term agreement with Meta, showcasing Enbridge’s ability to secure high-quality partners and long-term revenue streams.
Enbridge has committed to a $32 billion secured capital program, targeting a 5% growth rate through the decade. It also partnered with 38 Indigenous groups on its West Coast system, aligning strategic growth with stakeholder engagement and capital recycling.
Dividend Milestone and Shareholder Returns
Marking its 30th consecutive year of dividend growth, Enbridge reaffirmed its long-standing commitment to shareholder returns. The company expects to return between $40 billion and $45 billion to investors over the next five years, consistent with its low-risk commercial model and growing cash flows.
Risks and Regulatory Concerns
Despite strong results, some challenges persist. The Ohio rate case resulted in a regulatory setback, with an impairment tied to pension asset treatment. Management also flagged higher financing costs and taxes, although these were largely offset by the strong EBITDA. Geopolitical tensions, U.S. energy policy shifts, and lagging pipeline project development remain on the radar.
CEO Greg Ebel expressed optimism about cross-border infrastructure discussions but noted that regulatory uncertainty in Canada makes U.S. projects more attractive. While the “One Big Beautiful Bill Act” raises concerns for renewable developers, Enbridge expects no impact on its sanctioned projects.
Market Performance and Outlook
ENB shares have delivered strong returns, up 13.04% YTD and 30.78% over the past year, outpacing the S&P/TSX Composite. Over five years, total return has reached 102.85%. As Enbridge leans on its diverse asset base and low-risk model, it remains well positioned for stable earnings and long-term growth.
