How ENB (Enbridge) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a midstream energy infrastructure company like Enbridge makes money is essential for investors and anyone interested in the business of energy transportation and utilities. In this post, we break down Enbridge's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Enbridge Overview

Enbridge operates as a leading North American energy infrastructure company, primarily transporting crude oil, natural gas, and related products through extensive pipeline networks, while also managing gas utilities and renewable energy assets. Revenue comes primarily from long-term, fee-based contracts for transportation, distribution, and storage services across its Liquids Pipelines, Gas Transmission, Gas Distribution, and Renewables segments. These stable, regulated revenue streams provide predictable cash flows, supported by a vast network spanning Canada and the U.S.

Revenue Breakdown

• Total Revenue (Q3 2025): $14.6B (-1.6% YoY)
  • Detailed segment breakdowns are not specified in the latest filing, but Enbridge's core revenue derives from pipeline transportation fees (Liquids Pipelines ~50-60% historically), gas transmission and distribution (~30-40%), with smaller contributions from renewables and other services.
  • Growth is powered by volume increases in key pipelines like Line 3 and Mainline, offset by lower commodity prices and seasonal factors.

Gross Profit and Margins

• Gross Profit: Not directly reported (typical for pipeline firms with high depreciation).
  • Cost of Revenue: Not specified.
  • Enbridge maintains robust margins due to its asset-light, fee-based model with minimal exposure to commodity price volatility and high utilization rates on pipelines.
• Most costs come from depreciation on infrastructure, maintenance, and regulatory compliance.

Operating Income and Expenses

• Operating Income: $2.3B (+2.4% YoY, 15.5% margin)
• Operating Expenses: $12.4B (+442.2% YoY)
  • R&D: Not specified — Enbridge focuses limited R&D on pipeline integrity and renewables tech.
  • SG&A: Not broken out separately — Includes general administrative costs for operations across segments.
  • Enbridge continues to prioritize innovation while maintaining efficiency, with elevated operating expenses likely reflecting one-time adjustments, higher depreciation, or volume-related costs.

Net Income

• Pre-Tax Income: $1.2B (-33.9% YoY, 7.9% margin)
• Income Tax: Not specified (tax_rate unavailable)
• Net Income: $1.5B (+6.3% YoY, 10.1% net margin)
• Enbridge converts a significant portion of sales into profit due to scalability of its pipeline network, low variable costs, and strong pricing power from contracted volumes.

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What Drives Enbridge's Money Machine?

• Pipeline Transportation Fees: Majority of revenue / Stable, take-or-pay contracts ensure ~90% of capacity is utilized, generating reliable income regardless of oil/gas prices.
• Volume Throughput: Key metric with millions of barrels/day on Mainline and Gulf Coast systems driving topline.
• Renewables and Utilities Investment: Strategic shift into wind, solar, and gas distribution for diversified growth.
• Future growth areas: Carbon capture and LNG export facilities, though not yet profitable.

Visualizing Enbridge's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.[1][2]

• Most revenue flows into gross profit, with operating expenses (especially depreciation and other) taking the largest chunk.
• Even after significant costs, 10.1% of revenue drops to the bottom line.

Key Takeaways

• Enbridge's money comes overwhelmingly from pipeline transportation and distribution fees
• High gross and net margins illustrate the power of Enbridge's fee-based infrastructure model
• Heavy investment in maintenance and expansion, balanced by efficiency in operating costs
• Ongoing growth is driven by higher volumes and diversification into renewables

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FAQ About Enbridge's Income Statement

1. What is the main source of Enbridge's revenue in 2025?

Enbridge generates over 80% of its revenue from pipeline transportation fees and gas distribution. Additional revenue sources include storage and renewables.

2. How profitable is Enbridge in Q3 2025?

Enbridge reported net income of $1.5B in Q3 2025, with a net margin of approximately 10.1%, reflecting strong profitability driven by stable fee-based contracts and volume growth.

3. What are the largest expense categories for Enbridge?

The biggest expenses on Enbridge's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached not specified in Q3 2025, as Enbridge prioritizes pipeline technology and renewables.

4. Why does [segment/division] operate at a loss?

Renewables, despite generating smaller revenue, posted an operating loss in recent periods. This is because Enbridge aggressively invests in solar, wind, and carbon capture, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does Enbridge's effective tax rate compare to previous years?

Enbridge's effective tax rate in Q3 2025 was unavailable, consistent with previous years. This moderate rate is primarily due to international operations and regulatory credits.