Enbridge Inc. (ENB) Cash Flow Statement

The wide fluctuation in OCF/NI, from 0.96 in 2026Q1 to 6.15 in 2024Q4, suggests that net income is not a reliable proxy for cash generation. The 2026Q1 dip to 0.96, where operating cash flow barely covered net income, appears tied to a large negative working capital swing of -$1.9B, likely reflecting timing of receivables or payables. Investors should monitor the sustainability of cash conversion, as the utility acquisition may alter the mix of non-cash items.

The FCF margin decline is stark, with 2026Q1 even turning negative at -0.6%, reflecting a quarter where capex exceeded operating cash flow. This trend aligns with the income statement finding that revenue growth is not translating into proportional cash flow, likely due to higher interest costs and integration expenses from the Dominion acquisition. The company's ability to sustain its dividend, which exceeded FCF in several quarters, appears increasingly reliant on debt or asset sales.

The capex-to-revenue ratio shows a rising trend, with a notable spike in 2025Q3, likely reflecting spending on the acquired utilities and maintenance of existing pipeline assets. This elevated capital intensity, combined with a high fixed-cost base, suggests that Enbridge is prioritizing long-term growth over current cash returns. Investors should assess whether these investments generate adequate returns, especially given the margin dilution observed in the income statement.

The large negative working capital changes in 2026Q1 and 2025Q1 suggest that Enbridge may be delaying payments to suppliers or collecting receivables faster, which can temporarily boost cash flow. Conversely, positive changes in 2026Q2 and 2024Q4 indicate cash outflows for working capital, possibly due to inventory builds or slower collections. These swings make it difficult to assess underlying cash generation, but they appear to be a normal part of the business cycle.

In 2026Q1, dividends of -$2.2B exceeded FCF of -$173M, and in 2025Q4, dividends of -$2.2B were more than double FCF of $105M. This pattern indicates a potential reliance on external financing to maintain the dividend, which is a key concern for income investors. The company's high leverage, as noted in the balance sheet analysis, may limit its ability to sustain this payout if cash flows do not improve.