Pembina Pipeline (PPL) Q4 2025 earnings summary

Executive summary

• Reported Q4 2025 earnings of CAD 489 million and Adjusted EBITDA of CAD 1.075 billion; full-year earnings reached CAD 1.694 billion and Adjusted EBITDA CAD 4.289 billion.

• Achieved record annual pipelines and facilities volumes of 3.7 million BOE/d, up 3% year-over-year.

• Advanced major growth projects, including Cedar LNG, Greenlight Electricity Centre, RFS IV, Wapiti Expansion, and K3 Cogeneration, all progressing on or under budget and on schedule.

• Sanctioned over CAD 625 million (USD 600 million) in new pipeline expansions, including Fox Creek to Namao, Birch to Taylor, and Taylor to Gordondale.

• Strengthened long-term resilience through extensive recontracting and new long-term agreements with key customers, supporting future volume and cash flow stability.

Financial highlights

• Q4 Adjusted EBITDA decreased 14% year-over-year, mainly due to lower marketing and new ventures contribution and changes in Alliance Pipeline toll structure.

• Q4 earnings fell 15% year-over-year, impacted by higher depreciation, lower other expenses, and various gains/losses on derivatives.

• Full-year adjusted cash flow from operating activities was CAD 2.854 billion, or CAD 4.91 per share, down from CAD 3.265 billion (CAD 5.70/share) in 2024.

• Full year revenue was CAD 7.778 billion, up CAD 394 million year-over-year; Q4 revenue was CAD 1.913 billion, down CAD 232 million from Q4 2024.

• Capital expenditures totaled CAD 784 million for 2025, down CAD 171 million year-over-year.

Outlook and guidance

• 2026 Adjusted EBITDA guidance set at CAD 4.125–4.425 billion; midpoint implies 5% CAGR in fee-based Adjusted EBITDA per share from 2023–2026.

• 2026 expected to be peak investment year for Cedar LNG, with leverage (debt/EBITDA) peaking at 3.7–4.0x and returning to target range post-2026.

• Focus on safe, reliable operations, disciplined capital allocation, and advancing major projects including Greenlight and ethane supply infrastructure.

• Continued emphasis on long-term, fee-based cash flow growth and sustainable dividend policy.

• April 7th webcast planned to provide a detailed long-term outlook and business update.