Q2 FY2026
Filed Jul 30, 2026Pembina Pipeline Reports Results for the Second Quarter of 2026
Second-quarter adjusted EBITDA increased $51 million or five percent, earnings increased $95 million or 23 percent, and adjusted cash flow from operating activities increased $80 million. Growth in Facilities and Marketing & New Ventures more than offset a decline in Pipelines adjusted EBITDA, while Pembina reiterated its 2026 adjusted EBITDA guidance range and said it is trending to the midpoint.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $2,152 million | – | $360 million |
| Net revenuenon-GAAP | $1,322 million | – | $138 million |
| Operating expensesGAAP | $235 million | – | – |
| Gross profitGAAP | $933 million | – | $153 million |
| EarningsGAAP | $512 million | – | $95 million or 23 percent |
| Earnings per common share – basicGAAP | $0.83 | – | $0.18 |
| Earnings per common share – dilutedGAAP | $0.82 | – | $0.17 |
| Adjusted EBITDAnon-GAAP | $1,064 million | – | $51 million or five percent |
| Adjusted EBITDA per common share – basicnon-GAAP | $1.83 | – | – |
| Adjusted earningsnon-GAAP | $415 million | – | $38 million |
| Adjusted earnings per common share – basicnon-GAAP | $0.66 | – | $0.08 |
| Cash flow from operating activitiesGAAP | $897 million | – | $107 million |
| Cash flow from operating activities per common share – basicGAAP | $1.54 | – | $0.18 |
| Adjusted cash flow from operating activitiesnon-GAAP | $778 million | – | $80 million |
| Adjusted cash flow from operating activities per common share – basicnon-GAAP | $1.34 | – | $0.14 |
| Capital expendituresother | $218 million | – | $21 million |
| Six-month revenueGAAP | $4,258 million | – | $184 million |
| Six-month net revenuenon-GAAP | $2,613 million | – | $86 million |
| Six-month gross profitGAAP | $1,862 million | – | $154 million |
| Six-month adjusted EBITDAnon-GAAP | $2,195 million | – | $15 million |
| Six-month earningsGAAP | $1,010 million | – | $91 million |
| Six-month adjusted earningsnon-GAAP | $912 million | – | $14 million |
| Six-month cash flow from operating activitiesGAAP | $1,232 million | – | $(398) million |
| Six-month adjusted cash flow from operating activitiesnon-GAAP | $1,568 million | – | $93 million |
| Six-month capital expendituresother | $405 million | – | $34 million |
| Pipelines adjusted EBITDAnon-GAAP | $626 million | – | $(20) million or three percent |
| Facilities adjusted EBITDAnon-GAAP | $386 million | – | $55 million or 17 percent |
| Marketing & New Ventures adjusted EBITDAnon-GAAP | $111 million | – | $37 million or 50 percent |
| Corporate adjusted EBITDAnon-GAAP | $(59) million | – | $(21) million or 55 percent decrease |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PipelinesAdjusted EBITDA decreased due to lower net revenue on Alliance Pipeline under the Alliance New Toll Structure, partly offset by higher interruptible revenue, lower operating expenses, higher contracted volumes on Nipisi Pipeline, and higher Cochin Pipeline revenue due to prior-period tariff adjustments. | $852 million | – | – |
| FacilitiesAdjusted EBITDA increased on higher Redwater Complex revenue from RFS IV entering service in May 2026 and no comparable planned outage, as well as higher PGI volumes, stronger Dawson asset performance, fewer planned outages, and higher recoveries from an asset upgrade. | $314 million | – | – |
| Marketing & New VenturesAdjusted EBITDA increased with wider WCSB and U.S. NGL frac spreads, higher NGL prices, premium propane exposure through West Coast exports, and higher crude oil prices and sales volumes, partly offset by higher realized losses on NGL derivatives and lower realized gains on crude oil derivatives. | $1,248 million | – | – |
| Corporate & Inter-segment EliminationsCorporate adjusted EBITDA declined due to higher long-term incentive costs driven by relative performance compared to peers and the change in Pembina's share price in the second quarter of 2026. | $(262) million | – | – |
2026 outlook
- NoteAdjusted EBITDA guidance range of $4.35 billion to $4.55 billion
- NoteCurrently trending to the midpoint of the range
- NoteTargeted 5-7 percent compound annual fee-based adjusted EBITDA per share growth through 2030
- NoteApproximately 90 percent of NGL frac spread exposure hedged in the third quarter
- Note40 percent of NGL frac spread exposure hedged in the fourth quarter
- NoteFrac spread businesses expected to account for approximately two-thirds of Pembina's marketing business for the period 2025-2026
Capital returns
- Common share cash dividend for the third quarter of 2026 of $0.735 per share
- Dividend to be paid on September 29, 2026, to shareholders of record on September 15, 2026
- For shareholders receiving dividends in U.S. dollars, the cash dividend is expected to be approximately U.S.$0.5219 per share (before deduction of any applicable Canadian withholding tax) based on a currency exchange rate of 0.7101.
What drove it
- RFS IV entered service in late May on time and under budget, adding 55,000 bpd of propane-plus fractionation capacity and increasing total fractionation capacity to approximately 256,000 bpd.
- Wider NGL frac spreads, mainly from rising NGL prices, supported adjusted EBITDA.
- Strong underlying operational performance and volumes across Pipelines and Facilities supported quarterly results.
- The Heartland Extraction Plant was sanctioned as a $570 million project, with a long-term agreement to supply Dow with 22,500 bpd of ethane and downstream fractionation and marketing exposure of up to 9,500 bpd of propane-plus NGLs.
- Pembina and its partners reached a positive final investment decision on the $4.6 billion (gross), 932-megawatt Greenlight Electricity Centre.
Concerns
- The Alliance New Toll Structure, effective November 1, 2025, reduced Alliance Pipeline net revenue.
- Pembina expects adjusted EBITDA contribution in the third quarter to be below the second quarter due to seasonal factors, timing of spending, and certain one time items.
- Pembina expects higher integrity and maintenance spend in Pipelines in the second half of the year compared with the first half.
- Cochin Pipeline contribution is expected to be lower in the second half of the year than in the first half.
- Corporate adjusted EBITDA was negative $59 million, reflecting higher long-term incentive costs.
What to watch
- Fourth-quarter adjusted EBITDA contribution is expected to be higher than the third quarter.
- Western Canadian Sedimentary Basin NGL frac spread seasonality is expected to lower third-quarter and raise fourth-quarter contribution.
- Alliance Pipeline is expected to have lower third-quarter and higher fourth-quarter contribution due to seasonality and the ability to transport higher volumes during colder periods.
- PGI is expected to have a higher fourth-quarter contribution due to new assets entering service and non-recurring revenue recognition.
- Cedar LNG is expected to have first exports in late 2028, with vessel delivery to Kitimat targeted in the first half of 2028.
- Pembina has a 10 percent economic interest through construction in the proposed West Coast Oil Pipeline, with the opportunity for up to an additional 10 percent once commercial operation begins, subject to Pembina's final investment decision.
Balance sheet and cash flow
- Cash flow from operating activities was $897 million for the three months ended June 30, 2026, compared with $790 million.
- Adjusted cash flow from operating activities was $778 million for the three months ended June 30, 2026, compared with $698 million.
- Cash flow from operating activities was $1,232 million for the six months ended June 30, 2026, compared with $1,630 million.
- Adjusted cash flow from operating activities was $1,568 million for the six months ended June 30, 2026, compared with $1,475 million.
- Capital expenditures were $218 million for the three months ended June 30, 2026, compared with $197 million.
Analysis
Pembina reported a stronger second quarter under IFRS, with revenue of $2,152 million, gross profit of $933 million, earnings of $512 million and adjusted EBITDA of $1,064 million. Adjusted EBITDA increased $51 million or five percent from the prior-year period, while earnings increased $95 million or 23 percent. Adjusted earnings rose to $415 million and adjusted cash flow from operating activities rose to $778 million, demonstrating improvement in both reported profitability and the company's non-GAAP cash-flow measure.
Facilities and Marketing & New Ventures were the principal contributors to the adjusted EBITDA increase. Facilities adjusted EBITDA rose $55 million or 17 percent, supported by RFS IV entering service, the absence of a comparable prior-year planned outage, and improved PGI asset contributions. Marketing & New Ventures adjusted EBITDA rose $37 million or 50 percent on wider NGL frac spreads, higher NGL prices, exposure to premium Asian propane prices through West Coast exports, and higher crude oil prices and sales volumes. Pipelines adjusted EBITDA declined $20 million or three percent as the Alliance New Toll Structure reduced net revenue.
The operating update adds visibility to growth projects and contracted infrastructure activity. RFS IV added 55,000 bpd of propane-plus fractionation capacity, while the Heartland Extraction Plant was sanctioned as a $570 million project. Pembina also reached a positive final investment decision with partners on the $4.6 billion (gross), 932-megawatt Greenlight Electricity Centre. These developments were presented as supporting the company's targeted 5-7 percent compound annual fee-based adjusted EBITDA per share growth through 2030.
Capital expenditures were $218 million in the quarter, compared with $197 million in the prior-year period. Pembina declared a third-quarter common share dividend of $0.735 per share, payable September 29, 2026. The release did not provide cash, debt, free cash flow, repurchase activity, or leverage figures, limiting assessment of the balance sheet and total capital-allocation capacity from this filing alone.
Pembina reiterated 2026 adjusted EBITDA guidance of $4.35 billion to $4.55 billion and stated that it is trending to the midpoint. Management expects third-quarter contribution to be below the second quarter and fourth-quarter contribution to be higher, with the outlook affected by frac-spread seasonality, higher second-half Pipelines maintenance spending, Alliance Pipeline seasonality, lower second-half Cochin contribution, and higher fourth-quarter PGI contribution. The quarterly run-rate therefore needs to be assessed against these explicitly disclosed second-half timing factors rather than the second-quarter result alone.
Not in the filing
stated, not guessed- Gross margin
- Operating income
- Operating margin
- Net income margin
- Adjusted earnings per common share – diluted
- Free cash flow
- Cash and cash equivalents
- Total debt
- Net debt
- Leverage ratio
- Share repurchases
- Forward revenue guidance
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior-quarter comparisons for reported quarterly metrics
- Named executive quotes
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.