10-QPeriod: Q1 FY2026

ENBRIDGE INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 8, 2026For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) reported its financial results for the three months ended March 31, 2026. The company experienced a decrease in earnings attributable to common shareholders, largely influenced by a significant non-cash, net unrealized derivative fair value loss of $743 million. This volatility stems from its comprehensive economic hedging program, which is intended to mitigate risks related to foreign exchange, interest rates, and commodity prices over the long term. Despite the reported decrease in net income, Enbridge's operational segments showed mixed performance. Liquids Pipelines saw a decrease in EBITDA primarily due to earnings sharing, lower tolls, and the absence of prior year equity earnings from a litigation settlement. Conversely, Gas Transmission and Gas Distribution and Storage segments demonstrated growth, driven by favorable contracting, higher distribution margins, and recent rate case approvals. The Renewable Power Generation segment experienced a decline due to the absence of solar investment tax credits, though European offshore wind performance was strong. Financially, Enbridge maintained robust liquidity with $12.7 billion in available credit facilities and unrestricted cash, supported by recent long-term debt issuances totaling $2.0 billion and US$2.0 billion. The company remains compliant with all debt covenants, underscoring its continued financial strength.

Key Highlights

  • 1Enbridge reported a decrease in earnings attributable to common shareholders to $1,671 million ($0.77 per share) from $2,261 million ($1.04 per share) in the prior year period, primarily due to a $743 million non-cash, net unrealized derivative fair value loss.
  • 2EBITDA across reportable segments was $5,020 million for the three months ended March 31, 2026, down from $5,929 million in the prior year period.
  • 3The Liquids Pipelines segment saw a decrease in EBITDA, impacted by higher earnings sharing and lower tolls.
  • 4The Gas Transmission and Gas Distribution and Storage segments reported increased EBITDA due to favorable contracting and higher distribution margins, respectively.
  • 5The Renewable Power Generation segment's EBITDA declined, partly due to the absence of solar investment tax credits.
  • 6Enbridge maintained strong liquidity, with $12.7 billion in available credit facilities and unrestricted cash as of March 31, 2026.
  • 7The company completed significant long-term debt issuances totaling $2.0 billion and US$2.0 billion during the quarter, enhancing its financial flexibility.

Frequently Asked Questions

The primary driver for the decrease in earnings attributable to common shareholders was a significant non-cash, net unrealized derivative fair value loss of $743 million for the three months ended March 31, 2026. This volatility arises from Enbridge's hedging program designed to manage foreign exchange, interest rate, and commodity price risks.

Performance varied across segments. Liquids Pipelines experienced a decrease in EBITDA due to higher earnings sharing and lower tolls. Gas Transmission and Gas Distribution and Storage showed growth, benefiting from favorable contracting and improved margins, respectively. Renewable Power Generation saw a decline, mainly due to the absence of solar investment tax credits.

Enbridge maintained a strong liquidity position, with $12.7 billion in available credit facilities and unrestricted cash as of March 31, 2026. This was supported by recent long-term debt issuances totaling $2.0 billion and US$2.0 billion during the quarter.

Enbridge is involved in several legal proceedings, most notably concerning the Line 5 pipeline, including disputes with the Bad River Band and legal challenges in Michigan. While these are ongoing, management believes the resolution of these matters will not have a material adverse impact on the company's financial position or results of operations. The US Supreme Court has issued a ruling on the Michigan Attorney General lawsuit, and the Line 5 easement dispute with the Bad River Band is currently under appeal with a decision from the Seventh Circuit expected in 2026.