Enbridge Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 8 May 2026: press release. Guidance figures: 6 new, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• GAAP earnings fell on derivative swings: GAAP earnings attributable to common shareholders were $1.7 billion, or $0.77 per share, versus $2.3 billion, or $1.04 per share, a year earlier, mainly from non-cash unrealized derivative value changes. Source
• Liquids Pipelines EBITDA declined: Liquids Pipelines adjusted EBITDA fell $318 million to $2.3 billion, on higher Mainline earnings sharing, lower Line 9 tolls, lower FSP contributions and weaker U.S. dollar translation. Source
• Gas Distribution EBITDA grew on rates: Gas Distribution and Storage adjusted EBITDA rose $109 million to $1.7 billion, on Ontario rate escalators, Ontario storage revenues and higher Utah and North Carolina base rates. Source
• Mainline averaged 3.2 million barrels per day: Management said Mainline volumes averaged 3.2 million barrels per day and the system has been apportioned all year, reflecting sustained supply and demand from upstream and downstream partners. Source
• Secured backlog reached $40 billion: The secured growth backlog rose to approximately $40 billion after about $2 billion of additions this quarter; the company also cites about $50 billion of unsanctioned opportunities. Source
• Debt-to-EBITDA at 5.0x: The rolling 12-month Debt-to-EBITDA was 5.0x at quarter end, in line with the 4.5-5.0x target range. Source
• Cone wind project sanctioned: The 300 MW Cone onshore wind project in Texas was sanctioned at about US$0.7 billion, in service 2027, supporting Meta under a long-term power purchase agreement. Source
• Mainline Optimization Phase 2 open seasons: Binding open seasons on FSP (200 kbpd) and SAX (50 kbpd) were launched to add egress from the Western Canada Sedimentary Basin toward U.S. Gulf Coast delivery points. Source

“We're on track to meet our financial guidance once again this year, and maintained our dividend aristocrat status with another year of dividend increases”

Greg Ebel, President and CEO

Guidance

What changed from last quarter

• Guidance kept: 2026 adjusted EBITDA and DCF per share guidance was reaffirmed with no change to the ranges given in the prior release. Source
• New: Secured growth backlog rose to approximately $40 billion from $39 billion, after about $2 billion of projects were added in the quarter. Source
• New: Four projects were added to the secured backlog in the quarter: Cone, Tres Palacios, Vector westbound expansion and Dawn Hub storage. Source
• New: Mainline Optimization Phase 2 advanced through binding open seasons on the Flanagan South and Southern Access Extension pipelines. Source
• New: Tres Palacios expansion (25 Bcf storage, US$0.4 billion) was sanctioned in the quarter. Source
• New: Cone, a 300 MW onshore wind project in Texas supporting Meta, was sanctioned in the quarter. Source
• New: Vector Pipeline westbound expansion (400 MMcf/d, US$0.1 billion Enbridge share) was sanctioned in the quarter. Source

Results and growth drivers

• GAAP earnings fell on derivative swings: GAAP earnings attributable to common shareholders were $1.7 billion, or $0.77 per share, versus $2.3 billion, or $1.04 per share, a year earlier, mainly from non-cash unrealized derivative value changes. Source
• Adjusted EBITDA roughly flat year over year: Adjusted EBITDA was $5.8 billion, down $18 million from $5.83 billion a year earlier, mainly from absence of Fox Squirrel tax-credit equity earnings and a 2025 litigation settlement. Source
• Adjusted EPS slightly lower: Adjusted earnings were $2.1 billion, or $0.98 per share, compared with $2.2 billion, or $1.03 per share, with higher depreciation and income tax from absence of investment tax credits. Source
• DCF and operating cash flow diverged: DCF was $3.9 billion versus $3.8 billion a year earlier, while operating cash flow was $2.3 billion versus $3.1 billion. Source

Segments and regions

• Liquids Pipelines EBITDA declined: Liquids Pipelines adjusted EBITDA fell $318 million to $2.3 billion, on higher Mainline earnings sharing, lower Line 9 tolls, lower FSP contributions and weaker U.S. dollar translation. Source
• Gas Transmission EBITDA rose: Gas Transmission adjusted EBITDA rose $79 million to $1.5 billion, driven by favorable U.S. contracting and higher Aitken Creek and BC Pipeline revenues, partly offset by currency translation. Source
• Gas Distribution EBITDA grew on rates: Gas Distribution and Storage adjusted EBITDA rose $109 million to $1.7 billion, on Ontario rate escalators, Ontario storage revenues and higher Utah and North Carolina base rates. Source
• Renewable Power EBITDA declined: Renewable Power Generation adjusted EBITDA fell $39 million to $202 million, from the absence of Fox Squirrel tax-credit equity earnings, partly offset by stronger European offshore wind output. Source
• Eliminations and Other improved: Eliminations and Other adjusted EBITDA rose $151 million to $78 million, mainly on lower realized foreign exchange hedge losses. Source

“Our secured capital backlog is $40 billion, and we are actively advancing approximately $50 billion of unsanctioned opportunities”

Greg Ebel, President and CEO

Products and customers

• Mainline averaged 3.2 million barrels per day: Management said Mainline volumes averaged 3.2 million barrels per day and the system has been apportioned all year, reflecting sustained supply and demand from upstream and downstream partners. Source
• Customer interest in egress expansions: Vector completed a non-binding open season in April for 300-500 MMcf/d of additional capacity, with customer interest exceeding offered capacity. Source
• Spearhead contracts extended: Most Spearhead Pipeline contracts were extended into the 2030s in a separate open season. Source

Demand and the order book

• Secured backlog reached $40 billion: The secured growth backlog rose to approximately $40 billion after about $2 billion of additions this quarter; the company also cites about $50 billion of unsanctioned opportunities. Source
• Power demand supports new projects: Management said the Meta partnership now exceeds 1 GW of combined power generation and it sees further opportunities to deepen the relationship. Source

“The past several months have presented some of the most volatile and complex conditions the global energy sector has faced in decades.”

Greg Ebel, President and CEO

Costs, margins and pricing

• Lower US dollar translation rate: U.S. dollar earnings were translated at C$1.37 per US$ in the quarter, compared with C$1.44 a year earlier, lowering Canadian dollar EBITDA. Source
• Weather added to Ontario earnings: Weather was about $20 million above the normal forecast for Enbridge Gas Ontario, net of sharing, versus about $11 million a year earlier. Source

Capital, cash and returns to shareholders

• Debt-to-EBITDA at 5.0x: The rolling 12-month Debt-to-EBITDA was 5.0x at quarter end, in line with the 4.5-5.0x target range. Source
• Two bond issues in the quarter: In February, C$2 billion of medium-term notes were issued, and in March US$2 billion, with proceeds used to repay debt, fund capital expenditure and for general corporate purposes. Source
• Dividend raised in prior quarter kept: The company declared a common dividend of $0.97 per share payable June 1, 2026, and noted Series G, I and 4 preference dividends reset lower on March 1. Source

Strategy and investment

• Cone wind project sanctioned: The 300 MW Cone onshore wind project in Texas was sanctioned at about US$0.7 billion, in service 2027, supporting Meta under a long-term power purchase agreement. Source
• Tres Palacios storage expansion sanctioned: A 25 Bcf expansion at Tres Palacios costing US$0.4 billion was sanctioned, with new capacity entering service ratably from 2028 to 2030. Source
• Vector westbound expansion sanctioned: A 400 MMcf/d westbound expansion of Vector Pipeline was sanctioned, underpinned by 20-year firm contracts with investment grade utilities for all incremental capacity, with service in late 2028. Source
• Dawn Hub storage expansion announced: An 8 Bcf unregulated storage expansion at the Dawn Hub in Ontario was announced, expected in service in 2029. Source
• Mainline Optimization Phase 2 open seasons: Binding open seasons on FSP (200 kbpd) and SAX (50 kbpd) were launched to add egress from the Western Canada Sedimentary Basin toward U.S. Gulf Coast delivery points. Source
• Woodfibre LNG milestone and T-South approval: Federal approval was received for the C$4 billion T-South Sunrise Expansion, and the liquefaction module was delivered to the Woodfibre LNG site. Source

People and leadership

• No leadership change reported: The documents report no change in executive leadership this quarter; the CEO commentary is given by Greg Ebel, President and CEO. Source

Regulatory and policy matters

• Permits amended and rate cases progressing: In April the company amended presidential permits for several pipelines; a new Ohio rate case is in progress, and new rates took effect in Utah and North Carolina. Source

Coming up, as management said on 8 May 2026

• East Tennessee settlement filing: A settlement agreement on the East Tennessee Natural Gas rate case is expected to be filed with FERC in the second quarter of 2026. Source
• Cone in-service: Cone is expected to enter service in 2027. Source
• Vector expansion in-service: The Vector westbound expansion is expected to enter service in late 2028. Source
• Tres Palacios capacity in-service: New Tres Palacios capacity is expected to enter service ratably from 2028 to 2030. Source
• Dawn Hub expansion in-service: The Dawn Hub storage expansion is expected to enter service in 2029. Source

Risks management discussed

• External: Management cited commodity price fluctuations, shifting geopolitical dynamics and supply disruptions as factors affecting the energy sector. Source
• Financial: Non-cash unrealized derivative value changes drove the drop in GAAP earnings, and U.S. dollar earnings translated at a lower exchange rate reduced EBITDA. Source
• Operational: Management noted that the Mainline system has been apportioned all year, which limits volumes that can be shipped beyond allocated amounts. Source

Earlier plans management reported on

• On track: Management said it is on track to meet its financial guidance once again this year. Source
• Met: Management said the company maintained its dividend aristocrat status with another year of dividend increases. Source
• Not stated: The company said it expects to finance the secured growth program through its $10 to $11 billion of annual growth capital investment capacity. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.