Enbridge Q3 2025 Profit Declines Amidst Higher Interest Expense and Depreciation

Enbridge (ENB.US) reported earnings attributable to common shareholders of C$682 million, or C$0.30 per common share, for Q3 2025. This marks a significant decrease from C$1,293 million, or C$0.59 per common share, in Q3 2024. The results fell short of analyst EPS estimates of C$0.39 and were primarily impacted by higher interest expense and depreciation, along with unfavorable non-cash derivative fair value adjustments.

Key Financial Performance

Operating revenues for Q3 2025 were C$14,639 million, a slight decrease from C$14,882 million in Q3 2024. This represents a 1.63% year-over-year decline. The company's segment earnings before interest, income taxes, and depreciation and amortization (EBITDA) were C$3,823 million in Q3 2025, down from C$4,390 million in Q3 2024, reflecting a 12.91% year-over-year decrease.

Business Segment Drivers

The Liquids Pipelines segment experienced a C$42 million negative impact primarily due to lower contributions from the Flanagan South and Spearhead Pipelines of the Gulf Coast and Mid-Continent System. Conversely, the Gas Transmission segment saw a C$108 million increase, driven by recognition of increased revenue from Algonquin and Texas Eastern rate case settlements, contributions from the Texas Eastern Venice Extension project, and favorable contracting and lower operating costs on US Gas Transmission assets. Gas Distribution and Storage EBITDA improved by C$38 million, largely due to full-quarter contributions from the acquisition of Enbridge Gas North Carolina and increased revenue from capital investments at Enbridge Gas Ohio.

Recent Developments and Regulatory Actions

Enbridge's Gas Distribution and Storage segment faces ongoing rate case proceedings across its US utilities. The Ohio Commission ordered a decrease to annual revenue for Enbridge Gas Ohio, including an impairment of C$330 million related to pension and other disallowances. Meanwhile, settlement stipulations were filed for Enbridge Gas North Carolina and Enbridge Gas Utah, pending regulatory approval, which are expected to result in updated rates effective November 1, 2025, and January 1, 2026, respectively. These regulatory outcomes highlight potential impacts on future revenue and asset valuations within the Gas Distribution and Storage segment.