Why are GAAP earnings so much higher than adjusted earnings in 2025?

The gap is not a sign of stronger operations. GAAP earnings of C$7.1B were lifted by roughly C$1.4B of non-cash, unrealized gains on derivatives used to manage foreign exchange, interest rate and commodity risks, among other adjusting items. Adjusted earnings of C$6.6B are the better measure of recurring performance, and they still rose 8% per share.

Is the dividend safe, and how fast is it expected to grow?

The dividend was raised 3% to C$0.97 per quarter, extending a 31-year record of annual increases. Dividend growth is tied to DCF per share, which has a 2026 guidance range of C$5.70–6.10 against an annualized dividend of C$3.88. Management expects adjusted EBITDA, EPS and DCF per share to grow about 5% annually after 2026.

What drives Enbridge's growth outlook after 2026?

Growth comes from the secured backlog of about C$39B, which includes large Liquids (Mainline Optimization), Gas Transmission (Permian and Rio Grande LNG-linked pipelines) and Renewable Power projects tied to data centers. Management also cites over 50 data center opportunities that could require up to 10 Bcf/d of new takeaway capacity, with additional sanctions expected in 2026 and beyond.

How much financial flexibility does the company have?

Debt-to-EBITDA finished 2025 at 4.8x, within the 4.5–5.0x target, and the company issued US$1.5B of senior notes in November 2025. Management estimates annual investment capacity of C$10–11B for new growth projects, which it says can fund the secured program. The main leverage risk is that large project sanctions or rising interest costs could push leverage toward the top of the range.

What are the main risks to the 2026 outlook?

The filing points to tariffs and trade policy, geopolitical events (including the situation in Venezuela, which management says has created uncertainty around Mainline Phase 2), weather sensitivity in Gas Distribution, lower spot volumes on the Flanagan South pipeline, and outcomes in pending rate cases such as Enbridge Gas Ohio's proposed US$163M revenue increase, effective in early 2027. Construction cost and in-service timing risks also apply to the projects in the backlog.

ENBRIDGE INC 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 13, 2026. Cited figures are marked; the original filing is the authoritative source.

Enbridge Inc. (TSX/NYSE: ENB) reported record full-year 2025 results in its February 13, 2026 earnings release, with GAAP earnings attributable to common shareholders of C$7.1 billion^a (C$3.23 per share), up from C$5.1 billion in 2024.

Adjusted earnings rose 9% to C$6.6 billion^b (C$3.02 per share, up 8%), adjusted EBITDA increased 7% to C$20.0 billion, and distributable cash flow (DCF) grew 4% to C$12.5 billion. Management marked the 20th consecutive year of achieving or exceeding financial guidance and raised the 2026 quarterly dividend by 3% to C$0.97 per share (C$3.88 annualized), the 31st consecutive annual increase. Note that GAAP earnings were flattered by non-cash, unrealized derivative gains, so the adjusted figures are a better gauge of underlying operating performance.

Growth momentum remained strong. Enbridge sanctioned roughly C$14 billion^c of projects in 2025, including the US$1.4 billion Mainline Optimization Phase 1 (adding 150 kbpd of Mainline capacity and 100 kbpd on the Flanagan South Pipeline, expected in service in 2027), the Cowboy Phase 1 solar and battery project for US$1.2 billion, and the US$0.4 billion Easter wind project supporting Meta. The secured growth backlog reached about C$39 billion, roughly 35% higher since the last Enbridge Day, and the company expects to place about C$8 billion into service in 2026.

Management reaffirmed 2026 adjusted EBITDA guidance of C$20.2^d–20.8 billion and DCF per share of C$5.70–6.10, along with its multi-year outlook of roughly 5% annual growth after 2026. Balance sheet metrics stayed within target. Debt-to-EBITDA ended 2025 at 4.8x, inside the 4.5–5.0x target range, and annual investment capacity for new growth projects is estimated at C$10–11 billion.

Risks to monitor include tariffs and trade policy, geopolitical developments (the filing references events in Venezuela), weather sensitivity in Gas Distribution, lower spot volumes on the Flanagan South system, and ongoing rate case outcomes such as the Enbridge Gas Ohio filing. Per-share figures were diluted by 2024 at-the-market equity issuances used to fund the U.S. Gas Utilities acquisitions.

02—Key points

Key Highlights

Record 2025 results: GAAP earnings attributable to common shareholders of C$7.1B (C$3.23/share), up from C$5.1B in 2024, boosted mainly by non-cash unrealized derivative gains.
Adjusted earnings of C$6.6B (C$3.02/share, +8%), adjusted EBITDA of C$20.0B (+7%), and DCF of C$12.5B (+4%).
Dividend increased 3% to C$0.97 per quarter (C$3.88 annualized) from March 1, 2026, the 31st consecutive annual increase.
2026 guidance reaffirmed: adjusted EBITDA of C$20.2–20.8B and DCF per share of C$5.70–6.10; roughly 5% annual growth expected post-2026.
Secured growth backlog of about C$39B, with C$14B of projects sanctioned in 2025 and about C$8B expected in service in 2026.
Debt-to-EBITDA of 4.8x at year-end, within the 4.5–5.0x target; annual growth investment capacity of C$10–11B.
Key sanctions include Mainline Optimization Phase 1 (US$1.4B, in service 2027), Cowboy Phase 1 (US$1.2B), and Easter wind (US$0.4B) supporting Meta.

03—Questions

Frequently Asked Questions

Why are GAAP earnings so much higher than adjusted earnings in 2025?
The gap is not a sign of stronger operations. GAAP earnings of C$7.1B were lifted by roughly C$1.4B of non-cash, unrealized gains on derivatives used to manage foreign exchange, interest rate and commodity risks, among other adjusting items. Adjusted earnings of C$6.6B are the better measure of recurring performance, and they still rose 8% per share.
Is the dividend safe, and how fast is it expected to grow?
The dividend was raised 3% to C$0.97 per quarter, extending a 31-year record of annual increases. Dividend growth is tied to DCF per share, which has a 2026 guidance range of C$5.70–6.10 against an annualized dividend of C$3.88. Management expects adjusted EBITDA, EPS and DCF per share to grow about 5% annually after 2026.
What drives Enbridge's growth outlook after 2026?
Growth comes from the secured backlog of about C$39B, which includes large Liquids (Mainline Optimization), Gas Transmission (Permian and Rio Grande LNG-linked pipelines) and Renewable Power projects tied to data centers. Management also cites over 50 data center opportunities that could require up to 10 Bcf/d of new takeaway capacity, with additional sanctions expected in 2026 and beyond.
How much financial flexibility does the company have?
Debt-to-EBITDA finished 2025 at 4.8x, within the 4.5–5.0x target, and the company issued US$1.5B of senior notes in November 2025. Management estimates annual investment capacity of C$10–11B for new growth projects, which it says can fund the secured program. The main leverage risk is that large project sanctions or rising interest costs could push leverage toward the top of the range.
What are the main risks to the 2026 outlook?
The filing points to tariffs and trade policy, geopolitical events (including the situation in Venezuela, which management says has created uncertainty around Mainline Phase 2), weather sensitivity in Gas Distribution, lower spot volumes on the Flanagan South pipeline, and outcomes in pending rate cases such as Enbridge Gas Ohio's proposed US$163M revenue increase, effective in early 2027. Construction cost and in-service timing risks also apply to the projects in the backlog.

04—Continue

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