Enbridge Inc. reported strong third-quarter results for 2025, with adjusted EBITDA reaching CAD4.3bn compared to CAD4.2bn in the previous year. The Canadian energy transportation and distribution company also approved $3bn in new projects, bringing its secured capital backlog to CAD35bn ($26bn). Despite a drop in net income to CAD682mn ($495mn) from CAD1.3bn ($943mn) in 2024, Enbridge reaffirmed its annual financial guidance.
Targeted investments in pipelines and gas storage
Among the sanctioned projects is the Southern Illinois Connector, a 100,000-barrel-per-day pipeline connecting Wood River to Patoka, at a cost of $0.5bn. Enbridge also launched an expansion of its Canyon System to serve bp’s Tiber offshore development, valued at $0.3bn. Two natural gas storage expansions on the U.S. Gulf Coast will add 23 billion cubic feet (Bcf) of capacity at a total cost of $0.5bn, in response to rising LNG and power demand.
Strengthened outlook on North American gas markets
The Eiger Express Pipeline, developed through the Matterhorn joint venture, will transport up to 2.5 Bcf/day from the Permian Basin to the Katy, Texas area. The Algonquin Gas Transmission (AGT) Enhancement project will deliver 75 million cubic feet per day (Mmcf/d) to the U.S. Northeast, at a cost of $0.3bn. These projects are aligned with the growing demand for natural gas and LNG infrastructure.
Mixed performance across business segments
The gas transmission segment saw a CAD108mn increase in adjusted EBITDA, supported by new contracts and contributions from recently commissioned assets, including the Venice Extension project. Gas distribution also posted a CAD38mn rise. However, the liquids pipeline segment reported a CAD36mn decline, due to lower performance from assets on the Gulf Coast and Midcontinent.
Financial stability and leverage management
Enbridge closed the quarter with a Debt-to-EBITDA ratio of 4.8x. In September, the company raised CAD1bn via 30-year hybrid subordinated notes, while its gas subsidiary issued CAD800mn in medium-term notes to refinance maturing debt and fund capital expenditures.
The quarterly dividend remains at CAD0.9425 per common share, aligned with the group’s strategy of steady dividend growth. Distributable cash flow (DCF) was CAD2.6bn, flat compared to 2024, as higher financing and maintenance costs offset gains in operational cash flow.
Strategic deployment across multiple energy verticals
Enbridge confirmed its entry into carbon capture infrastructure through the Pelican CO2 Hub project in Louisiana, in partnership with Occidental Petroleum, at a cost of $0.3bn. In renewable power, the company expects 1.4 GW of solar projects to come online by 2027, serving clients including Meta and Amazon.
The firm maintains a long-term growth outlook of 5% annually for EBITDA, earnings per share (EPS), and DCF per share beyond 2026. It plans to mobilise CAD9-10bn annually in organic growth capital while preserving financial discipline.
