Enbridge Q2 Earnings Beat Estimates on Pipeline & Utility Strength
Enbridge Inc. ENB reported second-quarter 2026 adjusted earnings of 46 cents per share, down 3.1% from 47 cents a year ago. The bottom line surpassed the Zacks Consensus Estimate of 43 cents by 6.98%.
Revenues increased 97.1% to $21.2 billion from $10.8 billion in the prior-year quarter. The top line surpassed the consensus estimate of $10.8 billion by 96.3%.
The better-than-expected results were driven by high utilization across Enbridge’s four businesses.
Mainline throughput averaged roughly 3.1 million barrels per day (MMBbl/d), up from 3 MMBbl/d a year earlier.
Enbridge Inc Price, Consensus and EPS Surprise
Enbridge Inc price-consensus-eps-surprise-chart | Enbridge Inc Quote
ENB’s Liquids Business Benefits From Mainline Volumes
Liquids Pipelines generated adjusted earnings before interest, income taxes and depreciation, and amortization (EBITDA) of C$2.34 billion, largely consistent with C$2.34 billion in the prior-year quarter. Higher Mainline, Line 9 and Seaway volumes, along with optimization initiatives, supported the business. Lower Line 9 tolls partly offset these gains.
Adjusted EBITDA from the Mainline and Market Access Systems rose 5.1% to C$1.6 billion. Average ex-Gretna Mainline throughput increased 3.6% to 3.07 MMBbl/d. However, the Regional Oil Sands and Express-Platte Systems contribution declined to C$351 million from C$376 million.
Enbridge placed the Houston Oil Terminal into service during the quarter. It sanctioned the C$1 billion Wisconsin Line 5 Relocation project, which is under construction and expected to enter service in early 2027.
Enbridge’s Gas Transmission Earnings Advance
Gas Transmission adjusted EBITDA increased 2.7% to C$1.4 billion. U.S. Gas Transmission contributed C$1.2 billion, up 7% from the year-ago quarter, reflecting favorable rate outcomes at East Tennessee and a phased increase from the Texas Eastern rate settlement.
Canadian Gas Transmission adjusted EBITDA declined to C$143 million from C$150 million. Contributions from other gas assets fell to C$103 million from C$136 million.
During the quarter, ENB began commissioning the Blackcomb natural gas pipeline and remained on track to begin full service by year-end. The company sanctioned the Bay Runner Twin project to serve additional liquefaction capacity at Rio Grande LNG.
ENB’s Utility & Power Operations Improve
Gas Distribution and Storage adjusted EBITDA rose 4.5% to C$878 million. The U.S. gas utilities generated C$380 million, up 13.4%, primarily due to higher base rates following recent proceedings for Enbridge Gas Utah and Enbridge Gas North Carolina.
Enbridge Gas Ontario’s adjusted EBITDA declined 3.6% to C$481 million. Its adjusted earnings increased to C$166 million from C$153 million due to lower depreciation, interest and income tax expenses.
Renewable Power Generation adjusted EBITDA advanced 9.2% to C$131 million. Enbridge is constructing more than 2 gigawatts of generation capacity across North America and Europe. The Sequoia Solar project remains scheduled to enter full service by the end of 2026.
Enbridge Posts Higher EBITDA & Cash Flow
Adjusted EBITDA increased 2.8% year over year to C$4.8 billion. Adjusted earnings declined 2.5% to C$1.4 billion as higher depreciation from newly commissioned assets and increased interest expense offset operating growth.
Distributable cash flow ("DCF") increased 1.6% to C$2.95 billion. DCF per share rose to C$1.35 from C$1.33, aided by the increase in operating performance and lower maintenance capital expenditures.
Maintenance capital expenditure declined to C$227 million from C$316 million. This benefit was partly offset by a rise in interest expense, net of capitalized interest, to C$1.3 billion from C$1.2 billion.
ENB Maintains Its Balance Sheet
Enbridge ended June 2026 with cash and cash equivalents of $2 billion. Long-term debt was $103.9 billion, while short-term debt totaled $10.1 billion.
The company continues to fund the equity portion of its growth program internally. Enbridge returned C$4.2 billion through common-share dividends during the first six months of 2026, up from C$4.1 billion in the prior-year period.
Enbridge Reaffirms Its 2026 Guidance
Management reaffirmed the 2026 financial guidance issued in December. Favorable contracting across Gas Transmission and strong Seaway performance provide support, while lower market-access contributions and higher U.S. interest rates remain headwinds.
Enbridge has a C$41 billion secured capital backlog and sanctioned approximately C$9 billion of projects during 2026. The company remains on track to secure as much as C$20 billion of new projects during 2026 and 2027, supported by opportunities across liquids pipelines, natural gas infrastructure, utilities and renewable power.
ENB’s Zacks Rank & Key Picks
Enbridge currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the energy sector are PBF Energy Inc. PBF, HF Sinclair Corporation DINO and Cactus, Inc. WHD. PBF sports a Zacks Rank #1 (Strong Buy), while DINO and WHD carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, surpassing the Zacks Consensus Estimate of $4.05.
As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million.
HF Sinclair reported second-quarter 2026 adjusted earnings of $5.31 per share, topping the Zacks Consensus Estimate of $4.39.
As of June 30, 2026, DINO had total debt of $2.77 billion, and cash and cash equivalents of $2.26 billion.
Cactus reported second-quarter 2026 adjusted earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 71 cents.
As of June 30, 2026, WHD had cash and cash equivalents of $365 million.
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This article originally published on Zacks Investment Research (zacks.com).
