Highlights

  • Record EBITDA and distributable cash flow underline resilient operations.
  • 31st consecutive annual dividend increase reinforces income appeal.
  • Long-term contracts support highly predictable earnings profile.
  • CA$39 billion project backlog strengthens multi-year growth visibility.

Enbridge Inc. (NYSE:ENB) closed FY2025 with another year of dependable financial performance, extending its two-decade track record of meeting guidance. The North American energy infrastructure major reported adjusted EBITDA of CA$20 billion, reflecting a 7% year-on-year rise, while distributable cash flow (DCF) reached CA$12.5 billion, up 4% from the previous year.

The steady expansion in cash generation enabled management to announce a 3% dividend hike for 2026, taking the yield to an attractive 5.2%, further cementing its position as a core holding for income-focused investors.

Stability driven by a low-risk business model

A defining feature of Enbridge’s performance is the visibility of its earnings. Around 98% of its EBITDA is backed by cost-of-service frameworks and long-term contracted assets, limiting exposure to commodity price volatility.

Operationally, 2025 benefited from:

  • Higher tariff rates across key systems
  • Increased asset utilisation
  • Commissioning of CA$5 billion in organic growth projects
  • A strategic stake in the Matterhorn Express Pipeline

These factors combined to create a solid and repeatable earnings base.

Capital strength funds future expansion

Enbridge follows a disciplined capital allocation strategy, distributing 60%–70% of DCF as dividends while retaining substantial surplus cash for reinvestment. Its investment-grade balance sheet and annual investment capacity of CA$10–11 billion provide ample flexibility to fund new opportunities without stretching leverage.

During the year, the company sanctioned CA$14 billion in new projects, lifting its secured capital backlog to CA$39 billion, with completion timelines extending through 2033. The pipeline of opportunities spans:

  • Gas utility expansion
  • Liquids and natural gas pipelines
  • Renewable power, including new solar investments

Management also sees scope to approve an additional CA$10–20 billion in projects over the next two years.

Clear growth outlook for cash flow and dividends

The visible project pipeline supports Enbridge’s expectation of ~3% DCF per-share growth in 2026 and around 5% annual growth beyond that. This trajectory aligns with its long-standing objective of delivering sustainable, inflation-beating dividend increases.

A dependable income compounder

With 20 consecutive years of hitting financial guidance and 31 straight years of dividend growth, Enbridge continues to stand out for its consistency in the energy infrastructure space. Its contract-backed cash flows, strong balance sheet, and deep project inventory provide a high degree of confidence in long-term shareholder returns.

ENB closed at USD 53.88 on February 13, 2026.