Enbridge Inc. reported GAAP-compliant net earnings of $1.71bn in the first quarter of 2025, marking a 59% increase compared with the same period in 2024. The company maintained its annual targets, forecasting adjusted EBITDA between $14.4bn and $14.8bn.
Growth driven by North American assets
Adjusted EBITDA for the quarter reached $4.3bn, up from $3.7bn a year earlier, supported by performance on the Mainline crude oil system and contributions from newly acquired gas assets in the United States. Adjusted earnings per share rose to $1.03, an increase of $0.11.
Distributable cash flow, a key metric for investors, stood at $2.83bn, up 9%. This growth reflects high utilisation of transport assets, tariff increases on certain systems, and favourable foreign exchange effects on US dollar-denominated operations.
Expansion of strategic project portfolio
The Canadian firm committed $2bn to reinforce the Mainline system’s reliability through 2028. Additionally, it allocated $400mn to expand its T-North pipeline in British Columbia and $100mn to the T15 project in North Carolina.
Enbridge also signed an agreement to acquire a 10% stake in the Matterhorn Express natural gas pipeline for $300mn. This 2.5 bcf/d pipeline connects the Permian Basin to Katy, Texas, and is backed by long-term contracts with investment grade-rated customers.
A model focused on predictability and financial discipline
The group raised $2.08bn in bond issuance in February to refinance debt and support capital spending. Management plans to maintain an annual investment capacity of $9bn to $10bn, fully covered by operating cash flow.
As of the end of March, the net debt-to-EBITDA ratio stood at 4.9x, with a forecasted trajectory toward the mid-point of the 4.5x to 5.0x target range. Earnings from acquisitions are expected to improve the metric over the course of the year.
Forecast maintained despite economic volatility
Enbridge reaffirmed its near-term growth forecast, with annual increases of 7–9% in adjusted EBITDA and 4–6% in adjusted earnings per share through 2026. Beyond that, the company expects stable growth of around 5% per year.
“Our assets reached record utilisation levels, demonstrating their strategic value in the safe delivery of energy,” said Greg Ebel, President and Chief Executive Officer of Enbridge, in a statement released on May 9.
