Why did GAAP earnings fall so sharply if operating EBITDA grew?

The decline was primarily due to non-cash, unrealized losses on derivatives used to manage foreign exchange, interest rate and commodity price risks, which added roughly C$390M of unrealized losses to EBITDA in Q3 2025 versus a gain a year earlier. These mark-to-market effects reverse over time and do not reflect the underlying cash generation of the business.

Is Enbridge still on track to meet its 2025 guidance?

Yes. Management reaffirmed 2025 adjusted EBITDA guidance of C$19.4-20.0 billion and DCF per share of C$5.50-5.90. Year-to-date adjusted EBITDA was C$14.7 billion, up from C$13.5 billion, and the company said it is well set up to achieve guidance for the 20th consecutive year.

What new projects did Enbridge sanction this quarter and how big are they?

About C$3 billion (roughly US$2 billion) of projects were sanctioned, including the Southern Illinois Connector (US$0.5B, 100 kbpd, in service 2028), Canyon System expansion for bp's Tiber (US$0.3B incremental, 2029), USGC storage expansions at Egan and Moss Bluff (US$0.5B, 2028-2033), AGT Enhancement (US$0.3B, 2029), Pelican CO2 Hub with Oxy (US$0.3B, 2029) and the Eiger Express Pipeline via Matterhorn (in service 2028).

Is the higher leverage a concern for investors?

Debt-to-EBITDA was 4.8x at quarter end, and interest expense rose meaningfully year over year. Management says growth will be financed within its C$9-10 billion annual growth capital capacity and has emphasized protecting the balance sheet. Investors should monitor whether leverage trends down as new projects enter service and EBITDA grows.

Are the U.S. utility acquisitions and data center opportunities contributing?

Yes. Gas Distribution and Storage adjusted EBITDA rose to C$3.0 billion year to date from C$1.85 billion, largely from the first full year of the three U.S. gas utilities acquired in 2024, and new rate settlements were reached in North Carolina and Utah. Management also cited more than C$4 billion of data center and power generation opportunities across 60 projects through the end of the decade.

ENBRIDGE INC 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 7, 2025. Cited figures are marked; the original filing is the authoritative source.

Enbridge Inc. (NYSE/TSX: ENB) reported third quarter 2025 results on November 7, 2025, with GAAP earnings attributable to common shareholders of C$682 million^a ($0.30 per share), down from C$1.29 billion ($0.59 per share) a year earlier.

The decline was driven mainly by non-cash, unrealized derivative losses tied to foreign exchange, interest rate and commodity hedges. Operating metrics were stronger: adjusted EBITDA rose to C$4.27 billion^b (from C$4.20 billion), a record Q3 per management, while adjusted earnings fell to C$997 million ($0.46 per share) from C$1.19 billion ($0.55), reflecting higher depreciation, interest and non-controlling interest costs. Distributable cash flow was roughly flat at C$2.57 billion.

Management reaffirmed 2025 guidance of C$19.4^c-20.0 billion adjusted EBITDA and C$5.50-5.90 DCF per share, and reaffirmed the post-2026 outlook of about 5% annual growth. The quarter's main story is project sanctioning. Enbridge added roughly $3 billion to its secured growth backlog, which now totals about $35 billion, including the Southern Illinois Connector, Canyon System expansion for bp's Tiber development, USGC gas storage expansions, AGT Enhancement, the Eiger Express Pipeline (via Matterhorn) and the Pelican CO2 Hub with Oxy.

Gas Distribution was a notable positive, with adjusted EBITDA up sharply year to date on the U.S. utility acquisitions, and management cited more than $4 billion^d of data center and power opportunities. Leverage ended the quarter at 4.8x Debt-to-EBITDA, and the quarterly common dividend was declared at C$0.9425, payable December 1, 2025.

Investors should weigh the reaffirmed guidance and growing backlog against the elevated leverage and the GAAP earnings volatility from hedge marks, which can swing reported results without changing underlying cash generation. The filing itself is a Form 8-K furnishing the earnings press release as Exhibit 99.1; the results are unaudited and presented in Canadian dollars, with non-GAAP measures reconciled in the appendices.

02—Key points

Key Highlights

GAAP earnings attributable to common shareholders fell to C$682M ($0.30/share) from C$1.29B ($0.59/share), mainly due to non-cash unrealized derivative losses.
Adjusted EBITDA rose 1.6% to C$4.27B, with Q3 described as a record, driven by U.S. Gas Transmission contracting, rate settlements, and the Gas North Carolina acquisition.
Adjusted earnings declined to C$997M ($0.46/share) from C$1.19B ($0.55/share) due to higher D&A, interest expense, and non-controlling interests.
Secured growth backlog reached about C$35B after roughly C$3B of new sanctions in the quarter, including Southern Illinois Connector, Eiger Express, USGC storage, Canyon System, AGT Enhancement and Pelican CO2 Hub.
2025 guidance reaffirmed: adjusted EBITDA of C$19.4-20.0B and DCF per share of C$5.50-5.90; post-2026 outlook of about 5% annual growth reiterated.
Debt-to-EBITDA at 4.8x at quarter end; a C$1.0B hybrid notes offering and C$800M Enbridge Gas medium-term notes were issued in September 2025.
Quarterly common dividend declared at C$0.9425 per share, payable December 1, 2025 to holders of record on November 14, 2025.

03—Questions

Frequently Asked Questions

Why did GAAP earnings fall so sharply if operating EBITDA grew?
The decline was primarily due to non-cash, unrealized losses on derivatives used to manage foreign exchange, interest rate and commodity price risks, which added roughly C$390M of unrealized losses to EBITDA in Q3 2025 versus a gain a year earlier. These mark-to-market effects reverse over time and do not reflect the underlying cash generation of the business.
Is Enbridge still on track to meet its 2025 guidance?
Yes. Management reaffirmed 2025 adjusted EBITDA guidance of C$19.4-20.0 billion and DCF per share of C$5.50-5.90. Year-to-date adjusted EBITDA was C$14.7 billion, up from C$13.5 billion, and the company said it is well set up to achieve guidance for the 20th consecutive year.
What new projects did Enbridge sanction this quarter and how big are they?
About C$3 billion (roughly US$2 billion) of projects were sanctioned, including the Southern Illinois Connector (US$0.5B, 100 kbpd, in service 2028), Canyon System expansion for bp's Tiber (US$0.3B incremental, 2029), USGC storage expansions at Egan and Moss Bluff (US$0.5B, 2028-2033), AGT Enhancement (US$0.3B, 2029), Pelican CO2 Hub with Oxy (US$0.3B, 2029) and the Eiger Express Pipeline via Matterhorn (in service 2028).
Is the higher leverage a concern for investors?
Debt-to-EBITDA was 4.8x at quarter end, and interest expense rose meaningfully year over year. Management says growth will be financed within its C$9-10 billion annual growth capital capacity and has emphasized protecting the balance sheet. Investors should monitor whether leverage trends down as new projects enter service and EBITDA grows.
Are the U.S. utility acquisitions and data center opportunities contributing?
Yes. Gas Distribution and Storage adjusted EBITDA rose to C$3.0 billion year to date from C$1.85 billion, largely from the first full year of the three U.S. gas utilities acquired in 2024, and new rate settlements were reached in North Carolina and Utah. Management also cited more than C$4 billion of data center and power generation opportunities across 60 projects through the end of the decade.

04—Continue

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