Why did GAAP earnings fall so sharply if adjusted earnings were nearly flat?

The GAAP decline of about C$0.6 billion was primarily caused by non-cash, unrealized changes in the fair value of derivatives used to hedge foreign exchange, interest rate, and commodity risks (roughly C$772 million in unrealized losses in Q1 2026). These are excluded from adjusted EBITDA and adjusted earnings, which is why those measures were much more stable.

Is Enbridge on track to meet its 2026 guidance?

Yes, according to management. Enbridge reaffirmed 2026 adjusted EBITDA guidance of C$20.2–20.8 billion and DCF per share of C$5.70–6.10. The CEO stated the company is 'on track to meet our financial guidance once again this year,' though the Q1 results alone do not confirm full-year achievement.

What drove the weaker Liquids Pipelines results?

Liquids Pipelines adjusted EBITDA declined C$318 million, mainly due to higher earnings sharing on the Mainline, lower Mainline tolls on Line 9 deliveries, lower FSP contributions, the absence of a 2025 litigation settlement gain, and a weaker average U.S. dollar exchange rate (C$1.37/US$ versus C$1.44/US$).

How will the growth projects be financed and how much leverage headroom is there?

Management said financing for the secured growth program is expected to come from its anticipated C$10–11 billion of annual growth capital investment capacity. Debt-to-EBITDA was 5.0x at quarter-end, at the upper end of its 4.5–5.0x target, which leaves limited leverage headroom, so funding will rely on the cash flow and capital allocation framework described by management.

Does the dividend remain secure?

The board declared a quarterly common dividend of C$0.97 per share, payable June 1, 2026, to shareholders of record May 15, 2026. Enbridge described this as another year of dividend increases and reaffirmed its dividend aristocrat status. Investors should note that DCF per share guidance of C$5.70–6.10 provides coverage for the dividend, and the company's dividend payout target is tied to DCF.

ENBRIDGE INC 8-K: Earnings & Results

01—Abstract

Summary

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

Enbridge Inc. (ENB) reported first quarter 2026 results on May 8, 2026, showing a mixed picture: GAAP earnings attributable to common shareholders fell to C$1.7 billion^a (C$0.77 per share) from C$2.3 billion (C$1.04) a year earlier, driven primarily by non-cash, unrealized derivative fair-value losses.

Management's preferred non-GAAP measures were relatively stable, with adjusted EBITDA of C$5.8 billion^b (flat versus C$5.83 billion in Q1 2025), adjusted earnings of C$2.1 billion (C$0.98 per share versus C$1.03), and distributable cash flow (DCF) rising to C$3.9 billion from C$3.8 billion. Operating cash flow declined to C$2.3 billion from C$3.1 billion. The company reaffirmed its 2026 guidance of adjusted EBITDA of C$20.2–20.8 billion and DCF per share of C$5.70–6.10, along with a post-2026 growth target of roughly 5% compound annual growth.

Growth execution was the main positive: Enbridge sanctioned several projects, including the US$0.7 billion^c Cone wind project supporting Meta, the US$0.4 billion Tres Palacios storage expansion, and a US$0.1 billion Vector Pipeline expansion, and reported a secured growth backlog of approximately C$40 billion. Leverage was 5.0x Debt-to-EBITDA, at the top of its 4.5–5.0x target range, and the company raised roughly C$2 billion and US$2 billion of medium-term notes during the quarter.

Investors should weigh the reaffirmed guidance and growth pipeline against the lower Liquids Pipelines contribution (adjusted EBITDA down C$318 million^d, partly from higher Mainline earnings sharing and lower FSP contributions) and the absence of one-time items from 2025. The quarterly dividend of C$0.97 per common share, payable June 1, 2026, was declared, and the company describes itself as a dividend aristocrat with another year of increases.

02—Key points

Key Highlights

GAAP earnings attributable to common shareholders were C$1.67 billion (C$0.77/share), down from C$2.26 billion (C$1.04/share), mainly due to non-cash unrealized derivative losses of about C$772 million.
Adjusted EBITDA was C$5.81 billion, essentially flat year over year (C$5.83 billion), while adjusted EPS was C$0.98 versus C$1.03.
DCF rose to C$3.85 billion from C$3.78 billion, but operating cash flow fell to C$2.34 billion from C$3.05 billion.
2026 guidance was reaffirmed: adjusted EBITDA of C$20.2–20.8 billion and DCF per share of C$5.70–6.10, with ~5% post-2026 growth target.
Secured growth backlog reached ~C$40 billion after adding ~C$2 billion this quarter, including Cone (US$0.7B), Tres Palacios (US$0.4B), Vector westbound (US$0.1B), and Dawn Hub storage.
Debt-to-EBITDA was 5.0x at quarter-end, at the top of the 4.5–5.0x target range, with ~C$2B and US$2B of medium-term notes issued in Feb and March 2026.
Liquids Pipelines adjusted EBITDA fell C$318 million to C$2.30 billion, while Gas Distribution and Storage (+C$109 million) and Gas Transmission (+C$79 million) grew.

03—Questions

Frequently Asked Questions

Why did GAAP earnings fall so sharply if adjusted earnings were nearly flat?
The GAAP decline of about C$0.6 billion was primarily caused by non-cash, unrealized changes in the fair value of derivatives used to hedge foreign exchange, interest rate, and commodity risks (roughly C$772 million in unrealized losses in Q1 2026). These are excluded from adjusted EBITDA and adjusted earnings, which is why those measures were much more stable.
Is Enbridge on track to meet its 2026 guidance?
Yes, according to management. Enbridge reaffirmed 2026 adjusted EBITDA guidance of C$20.2–20.8 billion and DCF per share of C$5.70–6.10. The CEO stated the company is 'on track to meet our financial guidance once again this year,' though the Q1 results alone do not confirm full-year achievement.
What drove the weaker Liquids Pipelines results?
Liquids Pipelines adjusted EBITDA declined C$318 million, mainly due to higher earnings sharing on the Mainline, lower Mainline tolls on Line 9 deliveries, lower FSP contributions, the absence of a 2025 litigation settlement gain, and a weaker average U.S. dollar exchange rate (C$1.37/US$ versus C$1.44/US$).
How will the growth projects be financed and how much leverage headroom is there?
Management said financing for the secured growth program is expected to come from its anticipated C$10–11 billion of annual growth capital investment capacity. Debt-to-EBITDA was 5.0x at quarter-end, at the upper end of its 4.5–5.0x target, which leaves limited leverage headroom, so funding will rely on the cash flow and capital allocation framework described by management.
Does the dividend remain secure?
The board declared a quarterly common dividend of C$0.97 per share, payable June 1, 2026, to shareholders of record May 15, 2026. Enbridge described this as another year of dividend increases and reaffirmed its dividend aristocrat status. Investors should note that DCF per share guidance of C$5.70–6.10 provides coverage for the dividend, and the company's dividend payout target is tied to DCF.

04—Continue

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