Enbridge Posts Strong Q1 Results, Reaffirms 2025 Outlook Amid Strategic Expansion

Enbridge Inc. (TSX: ENB)(NYSE:ENB) delivered a strong start to 2025, reporting record first-quarter financial results driven by robust throughput across its pipeline network and continued momentum from recent acquisitions.

GAAP earnings surged to $2.3 billion or $1.04 per share, up from $1.4 billion or $0.67 in Q1 2024. Adjusted EBITDA grew 18% to $5.8 billion, while distributable cash flow rose 9% to $3.8 billion.

The company attributed much of the earnings growth to higher volumes on its Mainline system, which hit a record 3.2 million barrels per day, and improved rate structures across both its liquids and gas transmission businesses. Enbridge also benefited from cold winter conditions in Ontario and increased earnings contributions from its U.S. gas utilities, acquired in 2024. Adjusted earnings rose to $2.2 billion or $1.03 per share.

Despite a modest decline in operating cash flow to $3.1 billion, Enbridge remains well-positioned financially, ending the quarter with a debt-to-EBITDA ratio of 4.9x and raising $2.8 billion in debt capital to fund new growth.

The company reaffirmed its 2025 financial guidance, targeting adjusted EBITDA between $19.4 and $20.0 billion and DCF per share between $5.50 and $5.90. That’s well above the $3.77 per share that the company pays in dividends over the course of the full year. Enbridge also reiterated its longer-term growth targets of 5% annual growth post-2026.

Strategic project developments include up to $2 billion of Mainline capital investment through 2028 and joint ventures in U.S. gas infrastructure, including a 10% stake in the Matterhorn Express Pipeline and a lead role in the 1.8 bcf/d Traverse Pipeline. In gas distribution, Enbridge doubled the capacity of its T15 project in North Carolina and sanctioned a $0.4 billion expansion of its BC Pipeline.

With strong operational performance, growing secured backlog, and a disciplined capital strategy, Enbridge continues to appeal to dividend-focused and income-oriented investors seeking stable returns amid a growing North American energy market.

The company believes it’s on track to hit its guidance for a 20^th consecutive year in 2025.

Year to date, the stock is up around 3% and its 5-year returns total 37%. This is all before factoring in its high-yielding dividend, which currently pays investors 5.9%. The stock is currently trading just a few dollars away from its 52-week high of $65.62.

Summary of key earnings numbers

• $2.3 billion in earnings for Q1, which rose 59% year over year.
• 3.2 million barrels per day on its Mainline system (a record for Q1).
• $19.4 billion to $20 billion expected in Adjusted EBITDA for 2025.
• $3 billion in new projects added during the quarter.
• $5.50 – $5.90 DCF per share of expected this year.
• 5% growth still projected post-2026.
• 4.9x debt-to-EBITDA ratio.