Enbridge (NYSE:ENB) Announces Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Enbridge beat first-quarter expectations, reporting EPS of $0.71 versus the $0.69 consensus and revenue of $9.37 billion, ahead of estimates. However, earnings were lower than the $1.03 EPS posted a year earlier.
• The company reaffirmed its 2026 guidance and its outlook for about 5% average annual growth through 2030, supported by a large secured capital backlog of roughly CAD 40 billion. Management also highlighted new projects such as Mainline Optimization Phase 2 and export/storage expansions.
• Enbridge raised its quarterly dividend to $0.97 per share, equal to an annualized $3.88 and a 7.2% yield. At the same time, the stock traded lower on the day, and the company continues to face notable capex and permitting risks tied to the Line 5 relocation.

Enbridge (NYSE:ENB - Get Free Report) TSE: ENB posted its earnings results on Friday. The pipeline company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.69 by $0.02, Zacks reports. The business had revenue of $9.37 billion for the quarter, compared to analysts' expectations of $8.49 billion. Enbridge had a net margin of 11.30% and a return on equity of 11.19%. During the same quarter in the prior year, the business earned $1.03 EPS.

Here are the key takeaways from Enbridge's conference call:

• Enbridge reaffirmed 2026 guidance and its mid‑term outlook, reiterating ~5% average annual growth through 2030 supported by diversified, regulated cash flows.
• Management highlighted a ~CAD 40 billion secured capital backlog (plus ~CAD 17B added since the investor day) and new sanctioned projects including Mainline Optimization Phase 2 (250k b/d by 2028) and Ingleside/Gray Oak export and storage expansions.
• Line 5 relocation in Wisconsin is now approaching US$900 million total cost (about US$600 million remaining) with completion targeted in late 2026 and the Michigan tunnel not until the early 2030s, adding material near‑term capex and permitting risk (company says costs will be recovered via shipper tolls).
• Renewables and power growth accelerated, with Sequoia (815 MW), a sanctioned 300 MW Cone wind project with Meta (~US$700M, in service by end‑2027) and ~1.5 GW of additional safe‑harbor projects providing contracted, long‑term cash flows.
• Leverage sits at the top end of the target 4.5–5.0x debt/EBITDA band; management expects it may remain elevated while executing the build program but plans to normalize as major projects enter service.

Enbridge Stock Performance

Enbridge stock traded down $0.40 during midday trading on Friday, hitting $53.59. The stock had a trading volume of 5,074,274 shares, compared to its average volume of 4,227,808. The firm's fifty day moving average is $53.69 and its two-hundred day moving average is $50.10. The company has a market capitalization of $117.01 billion, a PE ratio of 23.30 and a beta of 0.59. Enbridge has a 52-week low of $43.59 and a 52-week high of $55.49. The company has a current ratio of 0.63, a quick ratio of 0.55 and a debt-to-equity ratio of 1.70.

Enbridge Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Friday, May 15th will be issued a $0.97 dividend. This represents a $3.88 annualized dividend and a yield of 7.2%. The ex-dividend date of this dividend is Friday, May 15th. Enbridge's dividend payout ratio is currently 120.87%.

Institutional Investors Weigh In On Enbridge

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ENB. Raymond James Financial Inc. increased its holdings in Enbridge by 43.7% in the 3rd quarter. Raymond James Financial Inc. now owns 6,633,703 shares of the pipeline company's stock worth $334,737,000 after acquiring an additional 2,016,674 shares in the last quarter. Quadrature Capital Ltd increased its holdings in Enbridge by 337.7% in the 4th quarter. Quadrature Capital Ltd now owns 2,206,300 shares of the pipeline company's stock worth $105,716,000 after acquiring an additional 1,702,200 shares in the last quarter. Morgan Stanley increased its holdings in Enbridge by 13.6% in the 4th quarter. Morgan Stanley now owns 14,067,947 shares of the pipeline company's stock worth $672,870,000 after acquiring an additional 1,687,858 shares in the last quarter. Balyasny Asset Management L.P. purchased a new stake in Enbridge during the 2nd quarter valued at approximately $39,503,000. Finally, Mackenzie Financial Corp grew its holdings in Enbridge by 4.9% during the 4th quarter. Mackenzie Financial Corp now owns 18,163,267 shares of the pipeline company's stock valued at $870,577,000 after buying an additional 844,594 shares in the last quarter. 54.60% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Royal Bank Of Canada upped their target price on shares of Enbridge from $72.00 to $76.00 and gave the company an "outperform" rating in a research note on Tuesday, February 17th. TD Securities cut shares of Enbridge from a "buy" rating to a "hold" rating in a research note on Tuesday, February 17th. Citigroup reaffirmed a "buy" rating on shares of Enbridge in a research report on Thursday, February 19th. JPMorgan Chase & Co. lowered shares of Enbridge from an "overweight" rating to a "neutral" rating in a research report on Tuesday, January 27th. Finally, Weiss Ratings raised shares of Enbridge from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, February 9th. Seven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, Enbridge presently has a consensus rating of "Moderate Buy" and a consensus target price of $65.00.

Key Stories Impacting Enbridge

Here are the key news stories impacting Enbridge this week:

• Positive Sentiment: Enbridge reported first-quarter earnings that topped expectations, helped by stronger gas transmission volumes tied to robust power demand. The company also reaffirmed its 2026 financial guidance, which can reassure investors about the outlook. Enbridge beats first-quarter profit estimates
• Positive Sentiment: Management said secured backlog grew to $40 billion, signaling continued project visibility and future growth potential. Enbridge Reports Strong First Quarter Results, Reaffirms 2026 Financial Guidance, and Grows Secured Backlog to $40 Billion
• Neutral Sentiment: Enbridge’s latest dividend declaration reinforces its appeal as an income stock, with a high yield supporting investor interest, but this is unlikely to be a major near-term catalyst. Enbridge Inc. Announces Election of Directors
• Negative Sentiment: Some coverage highlighted that first-quarter profit fell on derivative losses and softer operating results, which may be tempering enthusiasm despite the earnings beat. Enbridge 1Q Profit Falls on Derivative Losses, Softer Operating Results

About Enbridge

Enbridge Inc is a Calgary, Alberta–based energy infrastructure company that develops, owns and operates a diversified portfolio of energy transportation, distribution and generation assets. Its core activities include the operation of crude oil and liquids pipelines, natural gas transmission and distribution systems, and energy storage facilities. In addition to midstream transportation and storage, Enbridge has expanded into renewable power generation and energy transition projects, including wind, solar and utility-scale generation assets.

The company serves customers primarily in Canada and the United States and has interests in other international energy projects.

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