How ENB (Enbridge) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a North American energy infrastructure leader like Enbridge Inc. makes money is essential for investors and anyone interested in the business of energy transportation and distribution. In this post, we break down Enbridge's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Enbridge Inc. Overview

Enbridge Inc. operates one of the largest energy infrastructure networks in North America, focusing on the transportation, distribution, and storage of crude oil, natural gas, and renewable energy. Revenue comes primarily from long-term, fee-based contracts for pipeline transportation, natural gas utilities, and renewable power generation. The company’s business segments include Liquids Pipelines, Gas Transmission & Midstream, Gas Distribution & Storage, and Renewable Power Generation.

Revenue Breakdown

• Total Revenue (Q2 2025): $11.2B (+4% YoY)
  • Liquids Pipelines: $6.7B (60% of total)
  • Gas Transmission & Midstream: $2.5B (22% of total)
  • Gas Distribution & Storage: $1.6B (14% of total)
  • Renewable Power Generation: $0.4B (4% of total)
  • Growth is powered by expansion of pipeline capacity, increased natural gas demand, and new renewable projects.

Gross Profit and Margins

• Gross Profit: $5.8B (52% gross margin)
  • Cost of Revenue: $5.4B (+3% YoY)
  • Enbridge maintains robust margins due to its regulated, fee-based business model and operational efficiencies.
• Most costs come from pipeline operating expenses, fuel and power costs, and maintenance.

Operating Income and Expenses

• Operating Income: $3.2B (+5% YoY, 29% margin)
• Operating Expenses: $2.6B (+2% YoY)
  • R&D: $0.18B (+6% YoY, 1.6% of revenue) — Focused on pipeline safety, emissions reduction, and renewable technology.
  • SG&A: $1.1B (+2% YoY, 9.8% of revenue) — Includes corporate overhead, regulatory compliance, and administrative costs.
  • Enbridge continues to prioritize innovation and invest in growth while maintaining efficiency across its core operations.

Net Income

• Pre-Tax Income: $2.9B (+6% YoY, 26% margin)
• Income Tax: $0.7B (24% effective tax rate)
• Net Income: $2.2B (+7% YoY, 20% net margin)
• Enbridge converts a significant portion of sales into profit due to its scalable, regulated infrastructure and cost discipline.

What Drives Enbridge’s Money Machine?

• Liquids Pipelines: Over 60% of revenue comes from transporting crude oil and liquids under long-term contracts, providing stable, predictable cash flows.
• Throughput Volumes: Average daily pipeline volumes increased 3% YoY, reflecting higher utilization and demand.
• Strategic Investments: Over $1.2B invested in expanding pipeline capacity and renewable energy assets in Q2 2025.
• Future Growth Areas: Hydrogen and carbon capture projects, though not yet profitable, are positioned for long-term upside as energy transition accelerates.

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.

• Most revenue flows into gross profit, with operating expenses (especially SG&A and pipeline maintenance) taking the largest chunk.
• Even after large investments in infrastructure and renewables, 20% of revenue drops to the bottom line.

Key Takeaways

• Enbridge’s money comes overwhelmingly from long-term, fee-based pipeline transportation contracts
• High gross and net margins illustrate the power of Enbridge’s regulated, capital-intensive business model
• Heavy investment in infrastructure expansion and renewables, balanced by efficiency in operating costs
• Ongoing growth is driven by pipeline expansions, natural gas demand, and energy transition initiatives

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FAQ About Enbridge Inc.'s Income Statement

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

Enbridge generates over 60% of its revenue from liquids pipelines, transporting crude oil and liquids under long-term, fee-based contracts. Additional revenue comes from natural gas transmission, distribution, and renewable power.

2. How profitable is Enbridge in Q2 2025?

Enbridge reported net income of $2.2B in Q2 2025, with a net margin of approximately 20%, reflecting strong profitability driven by regulated contracts and operational efficiency.

3. What are the largest expense categories for Enbridge?

The biggest expenses on Enbridge’s income statement are operating expenses, particularly pipeline operating costs, SG&A, and maintenance. R&D investment reached $0.18B in Q2 2025, as Enbridge prioritizes safety, emissions reduction, and renewables.

4. Why does Renewable Power Generation operate at a loss?

Renewable Power Generation, despite generating $0.4B in revenue, posted an operating loss of over $0.05B in Q2 2025. This is because Enbridge aggressively invests in new wind and solar projects, 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 Q2 2025 was 24%, consistent with previous years. This moderate rate is primarily due to tax benefits from infrastructure investments and international structuring.