Breaking Down Enbridge Inc. (ENB) Financial Health: Key Insights for Investors

You're looking at Enbridge Inc.'s current dividend yield, which is hovering around 5.76%, and wondering if that payout is defintely safe, especially with energy markets still a little wonky. Honestly, the beauty of a midstream giant like this is its predictable cash flow, but you have to look past the surface-level numbers. For the full 2025 fiscal year, management reaffirmed a strong adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) guidance between US$19.4 billion and US$20.0 billion, but the real story is the quality of the cash, which is why we track Distributable Cash Flow (DCF) per share, expected to land between US$5.50 and US$5.90. Even with Q3 2025 Adjusted EBITDA coming in at CAD $4.3 billion, the company is strategically de-risking by leveraging its massive $29 billion secured growth backlog and a strategic pivot to utility-like assets, creating North America's largest natural gas utility platform. The near-term risk is always that 4.8x Debt-to-EBITDA ratio, so we need to see how the new US$1.4 billion Mainline Optimization Phase 1 project, which adds 150,000 barrels per day of capacity, actually flows through the balance sheet and supports the US$3.77 annualized dividend. Let's unpack the four core segments to see exactly where that cash is coming from.

Revenue Analysis

You need a clear picture of where Enbridge Inc. (ENB)'s money is actually coming from, especially with the recent market shifts and acquisitions. The core takeaway is that Enbridge is a fee-based utility giant, not a volatile commodity trader, with nearly 71% of its revenue still anchored in its massive Liquids Pipelines business, but its fastest growth is coming from its newly expanded Gas Distribution segment.

For the trailing twelve months (TTM) ending September 30, 2025, Enbridge Inc. reported total revenue of approximately CAD $64.23 billion. This represents a strong year-over-year revenue growth rate of +32.29%, which is a significant jump reflecting strategic asset integration. This growth is defintely not just market noise; it's structural.

The company's revenue streams are overwhelmingly stable and fee-based, which means they are less exposed to the daily swings of commodity prices (crude oil, natural gas) and more dependent on the volume (throughput) of product moved. Honestly, this fee-based model accounts for over 80% of its revenue, providing a predictable cash flow stream, which is why it's often viewed as a utility-like stock.

Here's the quick math on how the CAD $64.23 billion TTM revenue breaks down by segment, showing you exactly where the cash flow is generated:

What this breakdown shows is that while the Liquids Pipelines segment (moving crude oil) is the undeniable engine, contributing nearly three-quarters of the revenue, the Gas Distribution & Storage segment is now a much bigger player, contributing nearly 16%. This is a deliberate strategic shift, as you can see in the company's long-term goals outlined in its Mission Statement, Vision, & Core Values of Enbridge Inc. (ENB).

The most significant change in the revenue stream for 2025 has been the full-year contribution from the strategic acquisition of three U.S.-based natural gas utilities from Dominion Energy. This is a game-changer. The utility segment provided the 'lion's share of their growth' year-over-year, significantly boosting the Gas Distribution & Storage revenue and adjusted EBITDA. This move is positioning Enbridge Inc. as the largest natural gas utility franchise in North America, which adds regulatory stability and predictable earnings-a key opportunity for investors seeking lower risk.

The growth isn't just organic, it's acquisition-driven, which means you can depend on it. Plus, the Renewable Power Generation segment, while still small at less than 1% of total revenue, is seeing new projects like the Clear Fork Solar development, a 600 MW, US$0.9 billion investment that will serve major industrial customers like Meta's data center power needs under a long-term agreement. This is a clear indicator of future diversification, but for now, the money is in the pipes and the regulated utilities.

Profitability Metrics

You need to know if Enbridge Inc. (ENB) is simply growing its top line (revenue) or if it's actually getting more efficient at turning that revenue into real profit. The short answer is that while the gross numbers look strong, the company's margins are defintely tighter than some of its pure-play midstream peers, reflecting its utility-heavy business model.

For the trailing twelve months (TTM) ending September 30, 2025, Enbridge Inc. reported a Gross Profit of approximately $19.108 Billion. This strong figure translates to a recent Gross Profit Margin of about 41.6%. This margin is the first indicator of operational efficiency, showing that the cost of goods sold (COGS) is well-managed, a hallmark of a stable infrastructure business.

Here's the quick math on the key profitability layers based on the latest 2025 TTM revenue of $45.917 Billion:

• Gross Profit Margin: 41.6% (Profit before operating expenses).
• Operating Profit Margin (EBIT): 17.8% (Profit after operating costs, or about $8.173 Billion).
• Net Profit Margin: 10.11% (Profit after all expenses, or about $4.642 Billion).

Trends in Operational Efficiency and Margins

The trend in profitability shows a mixed but stabilizing picture. While the Gross Profit has been on an upward trajectory, rising 10.04% year-over-year as of September 2025, the margins themselves have seen some pressure. The Gross Profit Margin peaked at 51.1% in 2023, falling to 45.7% in 2024, and settling around the recent 41.6%. This decline points to rising operating expenses, which were particularly noticeable in the second quarter of 2025 due to increased commodity costs and a $330 Million impairment charge on long-lived assets.

The company's strategic shift toward regulated natural gas utilities and renewables, away from purely oil pipelines, is the core driver of the long-term margin profile. This utility-focused model offers more stable, predictable earnings, but often at lower margin percentages than traditional, high-volume midstream assets. You trade margin percentage for earnings consistency.

Peer Comparison: Where Enbridge Inc. Stands

When you compare Enbridge Inc.'s profitability ratios to a major peer like TC Energy, the difference in business mix becomes clear. Enbridge Inc. has a lower margin profile across the board, which is expected given its significant utility exposure (Gas Distribution and Storage), which operates on lower, regulated margins.

This is not a sign of poor management, but a difference in business strategy. You can see the trade-off in the table below:

The lower margins for Enbridge Inc. are offset by the stability of its earnings, especially from its regulated U.S. gas utility acquisitions, which contributed positively to the record adjusted EBITDA of $4.27 Billion (CAD) in Q3 2025. For a deeper dive into the ownership structure behind this stability, you should check out Exploring Enbridge Inc. (ENB) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You're looking at Enbridge Inc. (ENB), a capital-intensive midstream company, so you should expect a higher debt load than, say, a tech firm. The critical question isn't just the size of the debt, but how it's structured and how it compares to its equity base and the industry average.

As of the end of the third fiscal quarter in September 2025, Enbridge Inc. is leaning more heavily on debt financing for its massive infrastructure projects and growth. The company's total debt is substantial, but it's largely long-term, which is typical for a pipeline operator with stable, long-life assets. This tells you they are funding long-term assets with long-term capital, which is defintely a good match.

Here's the quick math on their capital structure as of September 2025:

• Long-Term Debt & Capital Lease Obligation: Approximately $72.721 billion (USD).
• Short-Term Debt & Capital Lease Obligation: Approximately $2.246 billion (USD).
• Total Stockholders' Equity: Approximately $47.117 billion (USD).

The company's debt-to-equity (D/E) ratio-a measure of financial leverage-stood at about 1.59 (or 159%) as of September 2025. This is a key figure. To be fair, the midstream sector, which requires huge upfront investment in pipelines and storage, naturally carries more debt than other industries. However, this 1.59 ratio is notably higher than the Oil & Gas Midstream industry average, which currently hovers around 1.02. This higher ratio signals an aggressive approach to financing growth, which can amplify returns but also increases interest rate risk.

Enbridge Inc. actively manages its debt profile, balancing the need for growth capital with maintaining investment-grade credit ratings. They use debt financing to fund their extensive capital projects and strategic acquisitions, such as the recent moves to expand their renewable natural gas assets. For more on their long-term strategy, you can check out the Mission Statement, Vision, & Core Values of Enbridge Inc. (ENB).

Recent activity shows a clear focus on refinancing and securing long-term capital. Just in November 2025, the company offered a total of $1.5 billion in Senior Notes across three tranches, with maturities ranging from 2028 to 2035. This follows a September 2025 issuance of $1.0 billion in 5.15% Fixed-to-Fixed Rate Subordinated Notes due in 2055, with proceeds earmarked to repay short-term debt and partially fund capital projects. This is classic utility-style financing: issuing long-dated debt to lock in rates and smooth out the maturity schedule.

The company's Senior Unsecured Debt generally maintains solid investment-grade ratings, such as Baa2 from Moody's and A (Low) with a Stable trend from Morningstar DBRS. These ratings are crucial because they ensure continued access to the debt markets at favorable interest rates, which is vital for a company with such a large and active debt program. The table below summarizes the core leverage metrics.

Liquidity and Solvency

You're looking at Enbridge Inc. (ENB)'s ability to cover its short-term bills, which is what liquidity is all about. The direct takeaway here is that while the company's core business generates massive, predictable cash flow, its balance sheet ratios suggest a tight, capital-intensive operation. It's a common structure for a major pipeline and utility player, but it demands close attention to cash flow management.

Assessing Enbridge Inc. (ENB)'s Liquidity

For a quick health check, we look at the Current Ratio (Current Assets / Current Liabilities) and the Quick Ratio (Acid-Test Ratio). As of the second quarter of 2025, Enbridge Inc. (ENB)'s Current Ratio stood at about 0.75, and the Quick Ratio was approximately 0.65. A ratio below 1.0 means that, technically, the company's current assets-cash, receivables, etc.-cannot cover all its current liabilities due within a year. This is defintely a tight spot on paper. For a utility-like business with highly contracted, stable revenue, this isn't a red flag for immediate collapse, but it does show an intentional choice to operate with minimal working capital.

Here's the quick math on why this matters:

• Current Ratio of 0.75: Enbridge Inc. (ENB) has $0.75 in current assets for every $1.00 of current liabilities.
• Quick Ratio of 0.65: This is even lower because it excludes inventory, which is less liquid.

The low ratios mean Enbridge Inc. (ENB) has a structural, negative working capital position. This trend is typical for midstream companies, which rely on long-term debt and continuous cash flow, not a large buffer of cash and inventory, to manage operations. Their business model is built on predictable, long-term contracts, which is why the market tolerates these lower liquidity metrics. You can read more about their operational foundation in the Mission Statement, Vision, & Core Values of Enbridge Inc. (ENB).

Cash Flow Statements Overview

The real story for a company like Enbridge Inc. (ENB) is in the cash flow statement, where you see the strength of their operations. The cash flow from operating activities (CFO) is robust, which is the company's lifeline for covering its debt and dividends.

For the trailing twelve months (TTM) ended June 30, 2025, the company generated significant cash, mostly in Canadian Dollars (C$):

The negative financing cash flow is a positive signal for investors, as it shows capital is being returned to shareholders-dividends paid per common share were C$1.88 for the first six months of 2025. But, still, the investing cash flow is a massive outflow. They are a capital machine.

Near-Term Risks and Solvency Strengths

What this balance sheet estimate hides is the high quality of their earnings. The near-term liquidity risk is mitigated by the stability of their cash flow. The company's Debt-to-EBITDA ratio-a key solvency metric for midstream-was 4.8x in Q3 2025, comfortably within their target range of 4.5x to 5.0x. This shows their ability to service long-term debt is sound, which is far more critical than a high current ratio for this industry.

The main risk is that large capital expenditure plans, such as the $35 billion in secured capital projects they are pursuing, require continuous access to new financing. If credit markets tighten significantly, their growth plans could slow. However, their consistent dividend growth-now 30 consecutive years-is a testament to their financial discipline and predictable earnings power.

Next Step: Portfolio Manager: Monitor the Q4 2025 cash flow statement for any material change in the Operating Cash Flow trend, especially relative to the C$12.9 billion TTM figure.

Valuation Analysis

You're looking at Enbridge Inc. (ENB) and asking the core question: is it a value play or a value trap right now? Based on the latest November 2025 data, the consensus points to a stock that is largely fairly valued, but with a few stretched metrics that warrant a closer look, especially for income-focused investors.

The average 12-month price target from analysts sits around $63.00 (USD) per share, which suggests a decent upside from the recent NYSE closing price near $48.27. The current analyst consensus leans toward a 'Moderate Buy' to 'Hold' rating, meaning the market sees some room to run, but not a massive, overlooked bargain. Honestly, the valuation ratios tell a more nuanced story.

Here's the quick math on the key valuation multiples, using trailing twelve months (TTM) data through mid-2025:

• Price-to-Earnings (P/E): The TTM P/E ratio is approximately 23.40. For a stable energy infrastructure company, that's a bit high compared to the broader utility sector, suggesting the market is pricing in future growth or the stability of their toll-road business model.
• Price-to-Book (P/B): The P/B ratio is around 2.51 as of November 2025. What this estimate hides is that this figure is near the high end of its 5-year range, an indication that the stock price has outpaced the growth in the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This multiple, which is often better for capital-intensive pipeline companies, is approximately 13.07x (TTM). This is above the industry median of around 7.025x, which again signals a premium valuation.

Stock Performance and Dividend Sustainability

The stock has had a solid run over the last year, which explains some of the premium. Over the last 12 months leading up to November 2025, Enbridge Inc. (ENB)'s stock price has increased by approximately 12.07%. The 52-week trading range shows the stock has moved between a low of $39.73 and a high of $50.54, so it's currently trading near the top of that range. This move reflects the company's strong operational performance, including its reaffirmed 2025 adjusted EBITDA guidance of $19.4 billion to $20.0 billion (CAD).

For dividend investors, the yield is the main draw. Enbridge Inc. (ENB) offers an attractive dividend yield of about 5.57%, with an annualized dividend of $2.69 per share. But you need to look past the headline number. The dividend payout ratio based on net earnings is a stretched 147.80%, which is a red flag on paper. Still, for midstream companies like this, the Distributable Cash Flow (DCF) payout ratio is the one that matters most, and that number is a much more comfortable 69.98%. That's the real measure of dividend safety for a pipeline operator.

If you want to dig deeper into who is buying and selling, you should check out Exploring Enbridge Inc. (ENB) Investor Profile: Who's Buying and Why?

The bottom line is that Enbridge Inc. (ENB) is not cheap on a traditional P/E basis, but it looks more reasonable on a cash flow basis, and it's definitely a reliable income generator. The market is paying up for stability and that high yield.

Your next step should be to model the company's DCF against their secured growth projects to see if the expected 2025 DCF per share of $5.50 to $5.90 (CAD) can realistically support future dividend increases.

Risk Factors

You're looking at Enbridge Inc. (ENB) because of its massive asset base and reliable cash flow, but even a utility-like midstream giant faces real headwinds. The biggest risks aren't market-driven commodity swings-since most of their revenue is fee-based-but rather regulatory and financial discipline challenges. Honestly, the core business is a political football.

The company's ability to execute its long-term strategy, which includes a secured growth program backlog of over $29 billion, hinges on navigating a highly regulated North American energy landscape. This is where the rubber meets the road; getting a new pipeline approved is a multi-year, politically charged battle. Exploring Enbridge Inc. (ENB) Investor Profile: Who's Buying and Why?

External and Regulatory Pressures

The primary external risk is governmental and regulatory opposition, especially to new pipeline construction. This is a constant drag on growth and capital efficiency. For example, while the Line 5 reroute in Wisconsin saw a recent regulatory win, the underlying political controversy remains a significant, ongoing concern. Plus, the utility segment, which is a major part of the business after acquiring three U.S. natural gas utilities, faces rate case risk. As the cost of living remains a hot topic, regulators could push back on future rate negotiations, which would slow growth in that segment.

Another factor we're watching is the impact of commodity price and interest rate volatility on their non-core segments. While the majority of the business is insulated, the GAAP earnings for Q3 2025 showed a decrease primarily due to non-cash, unrealized changes in the value of derivative financial instruments used to manage foreign exchange, interest rate, and commodity price risks. It's a reminder that not everything is perfectly hedged.

Operational and Financial Headwinds

In the near term, the Liquids Pipelines business is facing some operational pressure. The Q3 2025 earnings report noted lower contributions from the Liquids Pipelines Gulf Coast and Mid-Continent segment, partially offsetting gains elsewhere. This is due to factors like tight crude quality differentials and strong PADD-2 (Midwest) refinery demand, which can impact the throughput and tolls on certain lines. It's a complex, internal competition issue.

From a financial perspective, maintaining a strong balance sheet is crucial, especially after Moody's downgraded the senior unsecured debt ratings to Baa2 from Baa1 in early 2024. The company is committed to keeping its debt-to-EBITDA ratio between 4.5x and 5.0x. They were right on target in Q3 2025 with a ratio of 4.8x, but higher financing costs were a factor that decreased adjusted earnings by $0.09 per share compared to the same period in 2024. That's a headwind that definetly eats into the bottom line.

Mitigation and Actionable Insights

Enbridge Inc. is actively mitigating these risks through a clear, three-pronged strategy. They are leaning into their highly contracted, diversified business model to offset project risk. They are also focusing on smaller, organic expansion projects that are less susceptible to major regulatory delays than a brand-new, cross-border pipeline.

• Prioritize Low-Risk Projects: Focusing on permit-light, high-return organic projects.
• Leverage Diversification: Using the stability of the Gas Distribution and Storage business (North America's largest gas utility platform) to de-risk overall growth.
• Strategic Capital Deployment: Sanctioning key projects like the Mainline Optimization Phase 1 (MLO1), which has an expected aggregate capital cost of US$1.4 billion, to add 250,000 barrels per day of capacity by 2027. This is smart, capital-efficient growth.

The company's commitment to a disciplined capital allocation strategy is the most important mitigation action for investors to watch. They need to fund their $8 billion to $9 billion annual growth project capacity without compromising their balance sheet. That's the simple math.

Growth Opportunities

You're looking for where Enbridge Inc. (ENB) is actually putting its money to work for growth, and the answer is a pragmatic mix of traditional, regulated assets and transitional energy plays. The direct takeaway is that the company's strategic shift toward regulated natural gas utilities and key pipeline expansions is set to drive its near-term financial targets, despite some recent earnings volatility.

Honestly, the core of their growth story isn't a flashy new technology, but rather a strategic de-risking through massive acquisitions. The company's $\mathbf{\$32}$ billion secured capital program through the end of the decade supports an expected $\mathbf{5\%}$ annual growth in distributable cash flow (DCF) per share. That's a steady, predictable pace.

Diversification and Strategic Acquisitions

The biggest move shaping the 2025 outlook was the $\mathbf{\$14}$ billion acquisition of three U.S. gas distribution utilities from Dominion Energy, which closed in 2024. This move instantly created North America's largest natural gas utility platform, a business segment prized for its stable, regulated cash flows. This stability is a huge competitive advantage, as utility earnings are less exposed to commodity price swings.

In 2025, they also acquired an $\mathbf{85\%}$ stake in the Matterhorn Express Pipeline in May. This natural gas pipeline acquisition further strengthens their Gas Transmission and Midstream business, which is already strategically connected to every Liquefied Natural Gas (LNG) export facility on the U.S. Gulf Coast. This connectivity is defintely crucial for capitalizing on increasing global demand for North American gas.

• Stabilize cash flow with regulated utilities.
• Expand natural gas export infrastructure.
• Invest in lower-carbon power solutions.

Projected Financial Trajectory and Core Drivers

For the 2025 fiscal year, Enbridge Inc. (ENB) has reaffirmed its financial guidance, which is what you should focus on. They expect adjusted earnings before interest, income taxes, depreciation, and amortization (EBITDA) to be in the range of $\mathbf{C\$19.4}$ billion to $\mathbf{C\$20.0}$ billion. Distributable Cash Flow (DCF) per share is projected between $\mathbf{C\$5.50}$ and $\mathbf{C\$5.90}$ for the year. Here's the quick math on their long-term outlook:

The growth drivers are clear: their Liquids Pipelines segment is benefiting from Mainline toll escalators and higher utilization. Plus, the company is deploying approximately $\mathbf{\$7}$ billion in capital in 2025 on growth projects, exclusive of maintenance capital. This capital is fueling expansions like the $\mathbf{\$1.4}$ billion Mainline Optimization Phase 1 (MLO1) project, which will add $\mathbf{150}$ thousand barrels per day (kbpd) of capacity to their Mainline system to meet customer demand for heavy oil egress to the U.S. Gulf Coast.

Renewables and Competitive Moat

While still a smaller part of the business (about $\mathbf{3\%}$ of the asset base), the Renewables segment is growing with over $\mathbf{5}$ GW of lower-carbon electricity produced. A concrete example is the $\mathbf{\$900}$ million Clear Fork Solar Project in Texas, which is fully contracted under a long-term agreement with Meta. This shows a clear path to generating predictable returns from the energy transition.

The company's primary competitive advantage is its massive economic moat. It is one of the largest pipeline operators in North America, and its vast asset footprint would cost tens of billions of dollars for any competitor to replicate. This scale, combined with a business model heavily reliant on long-term, fee-based contracts, provides remarkable stability, insulating cash flows from the daily volatility of commodity prices. This is why the stock is often viewed as an equity bond.

For a deeper dive into the valuation and risk analysis, check out the full post: Breaking Down Enbridge Inc. (ENB) Financial Health: Key Insights for Investors.

Next Step: Portfolio Managers should model a $\mathbf{C\$5.70}$ DCF per share for 2025 (the midpoint of guidance) and assess the impact of the regulated utility growth on overall valuation stability by the end of the quarter.