$ENB earnings report

Enbridge reported second-quarter GAAP earnings attributable to common shareholders of 1,396 million Canadian dollars, down from 2,177 million Canadian dollars in 2025, while GAAP earnings per common share fell to $0.64 per common share from $1.00 per common share. The Company attributed the decline primarily to non-cash unrealized derivative valuation changes, a non-cash pre-issuance hedge loss on an exchange of medium-term notes, and a non-cash crude oil inventory adjustment in Liquids Pipelines. The absence of an impairment of rate-regulated assets in Enbridge Gas Ohio and operating performance items partly offset these effects.

Underlying operating measures improved. Adjusted EBITDA increased by $132 million to 4,776 million Canadian dollars, driven primarily by increased revenues from the East Tennessee, Texas Eastern and Enbridge Gas Utah rate cases. Cash provided by operating activities was 4,111 million Canadian dollars versus 3,238 million Canadian dollars in 2025, and distributable cash flow increased $45 million to 2,948 million Canadian dollars. Adjusted earnings nonetheless decreased by $36 million to 1,382 million Canadian dollars, with higher depreciation from placed-in-service assets and higher interest expense on incremental debt balances outweighing operating gains at the adjusted earnings level.

Capital deployment remained central to the update. Enbridge added over $1 billion to its secured growth backlog through the Line 5 Relocation sanction, lifting the backlog to approximately $41 billion. The Company also began construction of the $4 billion Sunrise Expansion, reported that the Enbridge Houston Oil Terminal entered service, and identified an anticipated $10 to $11 billion of annual growth capital investment capacity to finance its secured growth program. Its rolling 12-month Debt-to-EBITDA metric was 5.1x at quarter-end, elevated in part by the difference between debt and EBITDA foreign-exchange translation rates.

The Company reaffirmed full-year 2026 adjusted EBITDA guidance of between $20.2 billion and $20.8 billion and DCF per share guidance of between $5.70 and $6.10. It also reaffirmed approximately 5% post-2026 near-term average compound annual growth for adjusted EBITDA, DCF per share and EPS. Operationally, management highlighted demand for Gas Transmission opportunities, including Project Beacon interest exceeding initial expectations, the TTC Connector option, Blackcomb Pipeline commissioning, and the Bay Runner Twin sanction. Near-term execution attention is on these projects, Line 5's expected early-2027 entry into service, and additional Renewable Power safe harboured project sanctions during the remainder of the year.