Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 31, 2026 · Beat 5 of last 6 quarters
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Enbridge's results underscore the accelerating demand for energy infrastructure to support AI-driven power growth, with gas transmission and utilities seeing record interest for data center and power generation capacity. The company's $41 billion backlog and $50 billion opportunity set position it as a key enabler of the AI infrastructure buildout, particularly in natural gas transportation and renewable power for hyperscalers like Meta.
Enbridge delivered another strong quarter with adjusted EBITDA up over $130 million year-over-year, driven by higher volumes on the Mainline, Seaway, and Line 9, plus constructive rate case outcomes in Gas Transmission and Gas Distribution. The company began commissioning the Blackcomb pipeline, brought the Houston Oil Terminal into service, and sanctioned the Wisconsin Line 5 Relocation and Bay Runner Twin projects. They also signed an exclusive option to acquire the TTC Connector Pipeline, which will connect Tres Palacios storage to Freeport LNG. Management reaffirmed 2026 guidance and highlighted a $41 billion secured backlog, with $9 billion of capital already sanctioned in 2026.
Management reaffirmed 2026 guidance, citing strong utilization and favorable contracting tailwinds. They highlighted a generational growth opportunity across all four franchises, with a $41 billion secured backlog and a $50 billion organic opportunity set through 2030. They expect to sanction up to $20 billion of new projects in 2026-27. On MLO2, they are disaggregating and resequencing the project, prioritizing downstream Chicago South market access segments first, with upstream Mainline expansion to follow as producers finalize policy and FID production growth. They also noted the potential to add 100 basis points to enterprise return on capital employed through better build multiples and operating leverage.
“There is a widening array of opportunities in front of all 4 core franchises at Enbridge, reflecting possibly the best environment for growth that we've had in recent memory.”
on Growth environment
“we are on MLO2, Rob, to your point specifically, is we're disaggregating and resequencing segments of our MLO2 path and we'll be now focusing on the Chicago South market access segments first.”
on MLO2 resequencing
“We've got studies that suggest, depending on how big this project is, it could save over $1 billion for utility customers a year in New England.”
on Project Beacon
Can you add color on what drove the MLO2 outcome and when we could see incremental clarity on timing and shape?
Greg and Colin explained that MLO2 is being disaggregated and resequenced, with the downstream Chicago South market access segments prioritized first. This is due to producers waiting for policy implementation before FIDing production growth. The downstream scope is simpler and yields better economics initially, with the upstream Mainline expansion to follow as needed.
What is the return on capital trajectory, and could we see upward pressure on the return threshold?
Greg said the company is targeting a 100 basis point improvement in return on capital employed across the enterprise, driven by better build multiples, operating leverage, and regulatory outcomes. He noted that brownfield projects and the ability to buy materials at scale are contributing to this improvement.
What has changed with MLO2, and how should we think about the balance sheet trajectory through 2027?
Greg attributed the delay to geopolitical volatility and the psychology of sanctioning large projects, while Colin noted the pace of policy implementation. Pat said leverage will stay near the top of the 4.5-5.0x range as projects come into service, but they have levers like hybrid capacity and asset sales to manage it.