Enbridge Inc. ENB reported first-quarter 2026 adjusted earnings per share (EPS) of 71 cents, which beat the Zacks Consensus Estimate of 69 cents. The bottom line slightly declined from the year-ago quarter’s 72 cents.
Total quarterly revenues of $16.3 billion increased from $12.9 billion in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $12.8 billion.
The better-than-expected quarterly results can be attributed to higher adjusted EBITDA contributions from its Gas Transmission, and Gas Distribution and Storage business segments. Lower adjusted EBITDA contributions from the Liquids Pipelines segment slightly offset the positives.
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$2.3 billion, down from C$2.62 billion in the year-earlier quarter. The decline was primarily due to lower contributions from the Mainline and Market Access System, driven by higher earnings sharing, reduced Mainline tolls, weaker FSP contributions and unfavorable foreign exchange impacts. Additionally, the absence of litigation-related equity earnings from the Gulf Coast & Other segment, which was recorded in the prior-year quarter, contributed to the decline.
Gas Transmission: Adjusted earnings in this segment totaled C$1.52 billion, up from C$1.44 billion recorded in the first quarter of 2025. The growth was mainly driven by favorable contracting across U.S. Gas Transmission assets. Further, stronger revenues at Aitken Creek and BC Pipeline due to improved seasonal spreads and higher tolls added to the gains. The positives were partially offset by unfavorable foreign exchange impacts from weaker U.S. dollar translation rates in 2026.
Gas Distribution and Storage: This unit generated a profit of C$1.71 billion, up from C$1.6 billion in the prior-year quarter. The increase was primarily driven by higher distribution margins at Enbridge Gas Ontario from rate escalators and a rise in unregulated natural gas storage revenues in Ontario due to optimization and pricing benefits. Higher base rates at Enbridge Gas Utah and Enbridge Gas North Carolina, associated with recent rate case settlements, also contributed. The earnings in this segment were partially affected by the unfavorable impacts of lower U.S. dollar translation rates.
Renewable Power Generation: The segment recorded earnings of C$202 million, down from C$241 million in the prior-year quarter. The decline can be primarily attributed to the absence of equity earnings from the sale of Fox Squirrel Solar investment tax credits recorded in 2025, partially offset by the contributions from European offshore wind facilities.
Eliminations and Other: The segment recorded adjusted EBITDA of C$78 million, higher than the negative C$73 million in the prior-year quarter.
Distributable Cash Flow (DCF)
Enbridge reported a DCF of C$3.85 billion, up from C$3.78 billion recorded a year ago.
ENB’s Balance Sheet
At the end of the fourth quarter, Enbridge reported a long-term debt of C$103 billion. It had cash and cash equivalents of C$1.64 billion, along with restricted cash of $186 million.
ENB’s Outlook
For 2026, the company reaffirmed its guidance for adjusted EBITDA (on base business) and DCF per share of $20.2-$20.8 billion and $5.70-$6.10, respectively.
The pipeline company also reaffirmed that post-2026, it expects adjusted EBITDA, EPS and DCF per share to increase 5% per year, on average.
ENB’s Zacks Rank & Key Picks
ENB currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Equinor ASA EQNR, Matador Resources MTDR and Galp Energia SGPS SA GLPEY. At present, Equinor and Matador sport a Zacks Rank #1 (Strong Buy) each, and Galp Energia carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Equinor is one of the leading integrated energy companies globally and a major supplier of natural gas in Europe. The recent conflict between the United States and Iran has resulted in a spike in gas prices and disrupted LNG supply, following damage to critical infrastructure in Qatar, tightening global LNG supply. This is expected to boost demand for Eqinor’s gas exports to Europe, positioning the company to benefit from heightened prices. The company’s expansion in the renewable energy space positions it for long-term growth as more countries transition toward cleaner energy solutions to meet their climate goals.
Matador is primarily involved in exploration and production activities, particularly in the prolific Delaware Basin of the United States. The company intends to grow its oil production by 3% in 2026. Since the company’s overall production is mainly oil-weighted, MTDR is expected to significantly benefit from the current increase in crude prices.
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. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It is engaged in refining and marketing of oil products and natural gas marketing and sales.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
