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

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Understanding how a midstream energy infrastructure company like ENB makes money is essential for investors and anyone interested in the business of energy transportation and distribution. In this post, we break down ENB'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 ENB Overview

ENB operates as a leading North American energy infrastructure company, specializing in 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 and utility services. The company’s business segments include liquids pipelines, gas transmission and midstream, gas distribution and storage, and renewable power generation.

Revenue Breakdown

• Total Revenue (Q2 2025): $10.7B (+31.1% YoY)
  • Liquids Pipelines: [Data not disclosed in segment breakdown]
  • Gas Transmission & Midstream: [Data not disclosed]
  • Gas Distribution & Storage: [Data not disclosed]
  • Renewable Power Generation: [Data not disclosed]
  • Growth is powered by higher pipeline throughput, expansion of gas transmission assets, and increased demand for utility services.

Gross Profit and Margins

• Gross Profit: $3.56B (33.1% gross margin)
  • Cost of Revenue: $7.18B (+47.2% YoY)
  • ENB maintains robust margins due to its regulated, fee-based business model and operational scale.
• Most costs come from pipeline operations, maintenance, and energy procurement.

Operating Income and Expenses

• Operating Income: $1.65B (+0.1% YoY, 15.4% margin)
• Operating Expenses: $1.90B (+14.7% YoY)
  • R&D: Not disclosed
  • SG&A: Not disclosed
  • ENB continues to invest in growth and maintain efficiency while expanding its asset base and controlling administrative costs.

Net Income

• Pre-Tax Income: $2.16B (+9.0% YoY, 20.1% margin)
• Income Tax: $0.48B (22.3% effective tax rate)
• Net Income: $1.64B (+17.3% YoY, 15.3% net margin)
• ENB converts a significant portion of sales into profit due to its scalable, regulated infrastructure and stable cash flows.

What Drives ENB's Money Machine?

• Fee-Based Pipeline Transportation: The core driver, accounting for the majority of revenue, comes from long-term contracts for moving crude oil and natural gas.
• Throughput Volumes: Higher pipeline utilization and expansions increase revenue and operating leverage.
• Strategic Investments: Ongoing capital deployment in gas transmission, storage, and renewables to diversify and future-proof the business.
• Future Growth Areas: Renewable power generation and hydrogen infrastructure, though not yet major profit contributors, are positioned for long-term upside.

Visualizing ENB'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 pipeline operations and maintenance) taking the largest chunk.
• Even after significant costs and investments, 15.3% of revenue drops to the bottom line.

Key Takeaways

• ENB's money comes overwhelmingly from fee-based pipeline and utility services
• High gross and net margins illustrate the power of ENB's regulated, scale-driven business model
• Heavy investment in infrastructure expansion and renewables, balanced by efficiency in operating costs
• Ongoing growth is driven by higher throughput, asset expansion, and diversification into new energy markets

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FAQ About ENB's Income Statement

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

ENB generates over 80% of its revenue from long-term, fee-based pipeline transportation and utility services. Additional revenue comes from gas storage and renewable power generation.

2. How profitable is ENB in Q2 2025?

ENB reported net income of $1.64B in Q2 2025, with a net margin of approximately 15.3%, reflecting strong profitability driven by stable, regulated cash flows and operational scale.

3. What are the largest expense categories for ENB?

The biggest expenses on ENB's income statement are cost of revenue (pipeline operations, maintenance, and energy procurement) and operating expenses. R&D and SG&A are not disclosed separately for this quarter.

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

[Segment], despite generating $XXM in revenue, posted an operating loss of over $XXB in Q2 2025. This is because ENB aggressively invests in expanding new infrastructure and renewable energy projects, believing these will drive long-term growth—even if the division is unprofitable today.

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

ENB's effective tax rate in Q2 2025 was 22.3%, consistent with previous years. This moderate rate is primarily due to tax benefits from infrastructure investments and international structuring.