Pembina Pipeline (PPL) Q2 2025 earnings summary

Executive summary

• Q2 2025 adjusted EBITDA was $1.013 billion, down 7% year-over-year, with net earnings of $417 million, a 13% decrease, mainly due to lower tolls, NGL margins, and planned outages.

• For the first six months of 2025, earnings increased by $2 million year-over-year, driven by acquisitions and higher volumes, offset by lower margins and increased costs.

• Major capital projects, including Cedar LNG, RFS4, and Greenlight Electricity Centre, are progressing on schedule and under budget, with significant milestones achieved.

• Announced major propane export agreements, pipeline expansions, and strategic acquisitions to support long-term growth.

• Strong business fundamentals and long-term contracts underpin growth outlook across the Western Canadian Sedimentary Basin (WCSB).

Financial highlights

• Q2 2025 revenue was $1,792 million, down from $1,855 million in Q2 2024; net revenue was $1,184 million.

• Adjusted EBITDA for Q2 2025 was $1,013 million, down 7% year-over-year; net earnings were $417 million, a 13% decrease.

• Earnings per share were $0.65, down from $0.75 in Q2 2024; adjusted cash flow from operating activities per share was $1.20.

• Capital expenditures for Q2 2025 were $197 million, down from $265 million in Q2 2024.

• For the six months ended June 30, 2025, revenue was $4,074 million (up $679 million year-over-year), adjusted EBITDA was $2,180 million (up $45 million), and earnings per share were $1.45 (down $0.04).

Outlook and guidance

• 2025 adjusted EBITDA guidance updated to $4.225–$4.425 billion, reflecting updated volume and cost expectations.

• Q3 results expected to be consistent with Q2; stronger performance anticipated in Q4 due to seasonality and new project contributions.

• 2025 capital investment program revised to $1.3 billion, up from $1.1 billion, to support expansions, acquisitions, and project progress.

• Long-term volume growth in the low-to-mid single digits expected through the decade, supported by WCSB fundamentals and long-term contracts.

• Future capital expenditures for the remainder of 2025 are estimated at approximately $500 million, focused on pipeline expansions, Redwater projects, and energy transition initiatives.