Key Numbers from Q2
- Q2 2025 GAAP earnings: $2.2B ($1.00/share), up from $1.8B ($0.86/share) in 2024
- Q2 2025 Adjusted EBITDA: $4.64B, +7% year-over-year
- Distributable Cash Flow: $2.9B, flat year-over-year
- Debt-to-EBITDA: 4.7x, below midpoint of target range
- Backlog: $32B secured growth projects, with long-term opportunity set of $50B
Enbridge Inc. (TSX:ENB)(NYSE:ENB) delivered a strong second quarter for 2025, recording record adjusted EBITDA of $4.64 billion, up 7% from last year, and reaffirming its 2025 financial guidance. GAAP earnings rose to $2.2 billion, or $1.00 per share, driven by higher contributions from U.S. gas utilities, favorable rate settlements, and colder weather impacts in Ontario. Distributable cash flow held steady at $2.9 billion, as operational gains were offset by higher interest, taxes, and maintenance capital from recent acquisitions.
The quarter saw an acceleration of growth projects, with $2 billion in new developments sanctioned. These include the US$0.9 billion, 600 MW Clear Fork Solar project in Texas under a long-term power deal with Meta Platforms, a US$0.1 billion expansion of Texas Eastern’s Line 31 to meet rising industrial and power demand, and a $0.3 billion expansion of the Aitken Creek gas storage facility in B.C. The Traverse Pipeline capacity was increased from 1.75 Bcf/d to 2.5 Bcf/d in response to strong Gulf Coast demand.
Liquids pipeline volumes remained high, with the Mainline averaging 3.0 mmbpd, though Gulf Coast and Mid-Continent contributions dipped on lower volumes. Gas Transmission led growth, with adjusted EBITDA up $302 million year-over-year on stronger contracting, new project contributions, and asset acquisitions. Gas Distribution posted a $273 million EBITDA gain from acquisitions, rate increases, and weather-driven demand.
CEO Greg Ebel highlighted the company’s $32 billion secured project backlog and a $50 billion longer-term opportunity set, emphasizing Enbridge’s ability to deliver consistent returns across market cycles. With leverage at 4.7x and $9–10 billion in annual investment capacity, management expects to finish 2025 at the high end of its guidance ranges: adjusted EBITDA of $19.4–$20.0 billion and DCF per share of $5.50–$5.90.
This performance reinforces Enbridge’s appeal for dividend-focused investors seeking steady cash flows and moderate growth potential. Please provide the stock’s year-to-date performance so it can be included in the closing assessment.
Year to date, shares of Enbridge are up 7%, and it still provides investors with an excellent yield that pays 5.8%.