Enbridge Q3 2025 Earnings: Record Adjusted EBITDA, Dividend Backed by Stable Cash Flow Despite GAAP Miss

Enbridge’s Q3 2025 Earnings: Navigating Volatility with Diversification and Strong Cash Flow

On November 7, 2025, Enbridge Inc. (ENB) released its third-quarter earnings, offering a snapshot of the company’s financial health and strategic direction amid a complex energy landscape. The headline: Enbridge posted a GAAP earnings per share (EPS) of $0.30, missing Wall Street’s estimate of $0.39. But beneath that figure lies a story about resilience, diversification, and the balancing act every major midstream operator faces.

Key Financials: GAAP Miss, Record Adjusted EBITDA, Stable Cash Flow

Enbridge’s net income for the quarter came in at C$682 million, down from C$1.293 billion year-over-year. The decline was attributed to non-cash, unrealized changes in the value of derivatives and higher financing and depreciation costs, which followed recent acquisitions and new project investments. These factors hit the GAAP results, but they don’t fully reflect the company’s cash generation capacity.

On the non-GAAP side, adjusted earnings were C$997 million (EPS $0.46)—notably higher than the $0.39 analyst consensus, and adjusted EBITDA reached a record C$4.27 billion, up from C$4.20 billion last year. Distributable cash flow (DCF), a crucial metric for dividend investors, was C$2.57 billion, only slightly lower than C$2.60 billion in Q3 2024. Cash provided by operating activities totaled C$2.87 billion.

For the first nine months of 2025, Enbridge reported GAAP EPS of $2.34 and adjusted EPS of $2.14, both reflecting higher adjusted EBITDA but also increased interest and depreciation expenses. The company’s leverage, measured as Debt-to-EBITDA, stood at 4.8x at quarter-end—within the range considered manageable for midstream operators.

Segment Results: Gas Transmission and Utilities Offset Softness in Liquids

Enbridge’s diversified portfolio once again proved its worth. While Liquids Pipelines saw a modest decline—down to C$2.31 billion from C$2.34 billion—Gas Transmission surged to C$1.26 billion (from C$1.15 billion), and Gas Distribution & Storage climbed to C$560 million (from C$522 million). Renewable Power Generation also made gains, posting C$100 million versus C$86 million last year.

The quarter benefited from strong U.S. Gas Transmission contracting, successful rate case settlements, and new projects coming online, including the Texas Eastern Venice Extension and contributions from the Matterhorn and Delaware Basin pipelines. Liquids Pipelines, however, were held back by lower contributions from assets like Flanagan South and Spearhead, and corporate results reflected higher realized FX hedge losses.

Project Sanctions and Regulatory Wins: Building for the Future

Enbridge sanctioned approximately $3 billion in new projects, expanding its secured growth backlog to around $35 billion. The company announced several key investments: the Southern Illinois Connector (enabling 100,000 barrels per day to the U.S. Gulf Coast), expansions to the Canyon System for BP’s Tiber development, new natural gas storage programs, the AGT Enhancement for the U.S. Northeast, the Pelican CO2 Hub with Oxy, and participation in the Eiger Express Pipeline via the Matterhorn joint venture.

Regulatory developments were also favorable. In North Carolina, Enbridge Gas reached a settlement that raises its annual revenue requirement by $34 million and boosts its return on equity to 9.65%. In Utah, a similar settlement was filed, potentially increasing annual revenue by $62 million.

Financing and Dividend Commitment: Maintaining Balance Sheet Strength

To support its growth and refinancing needs, Enbridge completed a $1 billion 30-year hybrid subordinated notes offering, while its gas utility issued $800 million in medium-term notes. These moves helped refinance maturing debt and ensure capital availability for future investments. The company ended the quarter with a Debt-to-EBITDA ratio of 4.8x, balancing growth ambitions with prudent financial management.

Enbridge’s board declared a quarterly dividend, payable December 1, 2025, to shareholders of record as of November 14. Stable DCF continues to underpin the dividend, a critical point for income-focused investors.

Strategic Commentary: Resilience Amid Sector Headwinds

Management emphasized that North American energy demand remains strong, and the company’s diversified footprint allows it to weather volatility in specific segments. Year-to-date, Enbridge has added roughly $7 billion to its secured project backlog, leveraging its scale and geographic diversity.

For value investors, this quarter demonstrates why Enbridge remains a core holding in the midstream sector. Record adjusted EBITDA and stable cash flow, even as GAAP results fluctuate due to non-cash accounting effects and higher operating costs, illustrate the importance of focusing on underlying cash metrics rather than headline EPS.

Challenges: Interest Expense, Depreciation, and Market Volatility

Despite the strengths, Enbridge faces its share of challenges. Rising interest and depreciation costs, tied to recent acquisitions and project launches, are pressuring margins. Lower contributions from certain liquids assets and volatility in renewable natural gas pricing and FX hedge settlements are additional headwinds. These are typical operating variables for midstream firms but warrant attention from investors monitoring long-term earnings quality and segment performance.

Nevertheless, the reaffirmed 2025 guidance—adjusted EBITDA of C$19.4–C$20.0 billion and DCF/share of C$5.50–C$5.90—signals management’s confidence in the company’s ability to deliver durable cash flows and sustain its dividend policy.

Conclusion: Why Enbridge’s Q3 Matters for Investors

Enbridge’s third-quarter results show a company balancing growth, diversification, and financial discipline. The GAAP EPS miss grabbed headlines, but the record adjusted EBITDA and stable distributable cash flow tell a more important story: Enbridge remains well-positioned to support its dividend and fund capital programs, even as it absorbs the impact of higher costs and market volatility.

Looking ahead, the company’s secured project backlog, supportive regulatory outcomes, and disciplined approach to financing suggest that Enbridge will continue to play a central role in North American energy infrastructure. For investors seeking income and stability in the oil and gas midstream sector, Enbridge’s latest quarter reinforces its reputation as a reliable, resilient performer.

Analysis: Enbridge’s Q3 2025 results highlight the firm’s capacity to generate robust cash flow in the face of accounting volatility and sector-specific headwinds. While GAAP earnings dipped due to non-cash factors and rising costs, the record adjusted EBITDA and reaffirmed guidance confirm that Enbridge’s diversified model and disciplined financial management provide a solid foundation for dividend sustainability and future growth. For midstream investors, focusing on cash-based metrics rather than short-term EPS fluctuations remains the most prudent approach.