Enbridge outlines 5% growth target through 2030 as new projects drive record Q3 EBITDA

Earnings Call Insights: Enbridge Inc. (ENB:CA) Q3 2025

MANAGEMENT VIEW

* Gregory Ebel, President and CEO, congratulated key executives on upcoming transitions, noting, “Cynthia, who announced plans to retire at the end of 2026... Matthew, who will transition to President of our GTM business... Allen Capps, who has been appointed to succeed Matthew as the Head of our Corporate Strategy Group and President of our Power business.” Ebel emphasized a “strong quarter” with “record third quarter adjusted EBITDA,” driven by “incremental contributions from a full quarter of U.S. gas utilities and organic growth within our gas transmission business.” He stated that Enbridge is on track to “finish the year in the upper half of our EBITDA guidance” and “expect to land around the midpoint of our DCF per share metric.”
* Ebel highlighted $3 billion in new growth capital added to the secured capital program, the sanctioning of the Southern Illinois Connector, and advancement of mainline optimization projects, stating, “We’re still on track to sanction Mainline optimization Phase 1 this quarter and Phase 2 next year.”
* Ebel reported, “Mainline volumes had another strong quarter, delivering a record 3.1 million barrels per day on average for Q3.” He also noted positive settlements in North Carolina and Utah gas utilities, and announced a joint venture with Occidental for the Pelican CO2 hub.
* “Enbridge’s low-risk model continues to deliver superior risk-adjusted returns in all economic cycles,” Ebel said, pointing to diversified cash flows and a business model underpinned by regulated or take-or-pay frameworks.
* Patrick Murray, Executive VP & CFO, said, “Compared to the third quarter of 2024, adjusted EBITDA is up $66 million, DCF per share is relatively flat and EPS is down from $0.55 to $0.46 per share.” Murray reaffirmed 2025 guidance and stated, “We remain confident we will achieve full year EBITDA in the upper half of our guidance range of $19.4 billion to $20 billion, but don’t expect to exceed the top of the band.”

OUTLOOK

* Management reiterated confidence in hitting full year EBITDA in the upper half of the $19.4 billion to $20 billion range and DCF per share at the midpoint of the $5.50 to $5.90 guidance. Ebel stated, “Going forward, we expect to achieve 5% growth through the end of the decade, supported by our $35 billion in secured capital.” Murray added that higher interest rates and tight differentials are headwinds, but tailwinds include mainline volumes and recent acquisitions.
* The company plans to issue 2026 guidance in early December.

FINANCIAL RESULTS

* Enbridge reported record third quarter adjusted EBITDA, with the increase driven by a full quarter contribution from U.S. gas utilities and organic gas transmission growth. EPS decreased from $0.55 to $0.46 per share, attributed to seasonal factors in gas utilities and flat interest and depreciation. Mainline volumes set a record at 3.1 million barrels per day.
* Positive rate settlements in North Carolina and Utah are expected to drive future growth. The company added $3 billion in newly sanctioned capital this quarter.
* Liquids contributions from Mid-Con and U.S. Gulf Coast segments were lower due to “tighter differentials and strong PADD II refining demand.” Renewables benefited from increased wind asset contributions and the new Orange Grove facility.

Q&A

* Spiro Dounis, Citigroup: Asked about acceleration in gas distribution and storage commercial activity, especially demand from data centers and power. Michele Harradence responded that growth is widespread, with “up to 8 gigawatts between Ohio and Utah” in early-stage developments and significant projects in Ontario and North Carolina.
* Dounis, Citigroup: Inquired about Line 5 construction timeline following a favorable Army Corps decision. Colin Gruending stated, “We’d look to complete the Wisconsin reroute in 2027 and the tunnel is a few years behind that.”
* Aaron MacNeil, TD Cowen: Questioned Mainline optimization Phase 2 as an acceleration of expanded egress. Ebel and Gruending explained the expansion aligns with supply growth forecasts and customer demand, not an acceleration but part of a consistent strategy.
* Jeremy Tonet, JPMorgan: Sought clarity on 5% EBITDA growth post-2026 and Western Canada gas storage. Ebel indicated “no pullbacks in areas,” while Cynthia Hansen highlighted that 50% of new BC storage expansion was immediately contracted.
* Robert Catellier, CIBC: Asked about cost risk management in hot project areas. Ebel stressed “alliance agreements with various contractors, giving us the best rates” and focus on smaller, quick-cycle projects.
* Additional analyst questions covered storage contract durations, Ingleside asset performance, and strategic partnerships, with management emphasizing diversified growth and risk management.

SENTIMENT ANALYSIS

* Analysts’ tone was neutral to slightly positive, focusing on demand growth, project execution, and risk mitigation, but probing on cost controls and project cadence.
* Management maintained a confident and disciplined tone, especially in prepared remarks. Ebel used language such as “we remain confident,” and Murray reaffirmed guidance, while responses in Q&A included “we are very focused on that” and “I think we feel in terms of those long-term relationships.”
* Compared to the previous quarter, management’s tone remained consistent but with more explicit confidence about meeting growth targets, while analysts continued to seek details on project execution and regulatory developments.

QUARTER-OVER-QUARTER COMPARISON

* Q3 featured confirmation of record mainline volumes and additional growth capital sanctioned, compared to strong Q2 volumes and early-stage project announcements.
* Guidance language remains consistent, with reaffirmed targets and a 5% growth outlook maintained.
* Management’s confidence has increased, especially regarding diversified demand drivers and the back-end growth pipeline, while analysts’ focus shifted toward execution risks and timing of major projects.
* New executive transitions were announced in Q3, compared to Q2’s emphasis on strategic partnerships.
* Key metrics shifted from Q2’s “record second quarter EBITDA” to Q3’s “record third quarter adjusted EBITDA,” with flat DCF per share and a decrease in EPS noted in Q3.

RISKS AND CONCERNS

* Management cited higher interest rates and tight differentials as ongoing headwinds.
* Cost risk in hot markets, supply chain constraints, and timing of regulatory approvals were highlighted as challenges, with mitigation focused on alliances, prudent capital discipline, and prioritization of quick-cycle projects.
* Analysts raised concerns about contract durations, project sequencing, and exposure to regulatory changes, especially related to storage and pipeline expansions.

FINAL TAKEAWAY

Enbridge’s management underscored another quarter of record results and highlighted the effectiveness of its low-risk, diversified business model. The company reaffirmed its 2025 guidance, expects to achieve 5% growth through the decade, and continues to advance a robust pipeline of capital projects across all business segments. Management pointed to strong demand trends, positive regulatory outcomes, and disciplined capital allocation as key drivers of future performance, while remaining focused on mitigating interest rate and market-related headwinds.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/enb:ca/earnings/transcripts]

MORE ON ENBRIDGE INC.

* Enbridge Inc. (ENB:CA) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4840338-enbridge-inc-enb-ca-q3-2025-earnings-call-transcript]
* Enbridge Inc. 2025 Q3 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4840479-enbridge-inc-2025-q3-results-earnings-call-presentation]
* Enbridge: The Market Is Wrong About The Dip (Earnings Preview) [https://seekingalpha.com/article/4833107-enbridge-the-market-is-wrong-about-the-dip-earnings-preview]
* Enbridge Non-GAAP EPS of C$0.46 misses by C$0.05 [https://seekingalpha.com/news/4518447-enbridge-non-gaap-eps-of-c046-misses-by-c005]
* Enbridge Q3 2025 Earnings Preview [https://seekingalpha.com/news/4517470-enbridge-q3-2025-earnings-preview]