Enbridge Inc. (ENB) Income Statement

The 97.1% revenue growth in 2026Q2 is a dramatic acceleration from the 5.9% growth seen in 2025Q4, but the sequential decline from $31.3B in 2026Q1 suggests volatility. This pattern likely reflects the consolidation of the acquired U.S. gas utilities, which add substantial revenue but with lower margins. Investors should monitor whether this growth is sustainable as the acquisition integration matures and commodity price effects normalize.

The gross margin decline from the mid-30s to the low-20s is a significant shift, suggesting that the acquired utilities operate with lower margins than the core pipeline business. This compression may be temporary if the company realizes synergies, but it also reflects the higher cost structure of the new assets. The peer comparison shows Enbridge's gross margin now lags KMI (43.7%) and WMB (42.9%), highlighting a competitive disadvantage in profitability.

The operating margin dropped to 9.9% in 2026Q2 from 15.9% in 2025Q4, indicating that the cost base is expanding faster than revenue. This suggests that the new utility operations have higher variable costs and that the company may be facing increased maintenance and interest expenses. The lack of SG&A data makes it difficult to pinpoint the exact cost drivers, but the trend warrants close monitoring.

The increase in COGS relative to revenue suggests that the new utility assets have lower margins and higher pass-through costs, such as purchased gas. This shift is structural and may persist, requiring management to achieve cost synergies to restore margins. The absence of SG&A and R&D data limits a full cost breakdown, but the COGS trend is clear.