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Dec 31, 2025
South Bow Corp Q4 2025 Earnings Report
South Bow reported higher fourth-quarter revenue and strong profitability with normalized EBITDA of $252 million and net income of $156 million.
Key Takeaways
South Bow generated $503 million in revenue during the fourth quarter of 2025, producing $156 million in net income and $252 million in normalized EBITDA. Distributable cash flow totaled $149 million as the company maintained strong contracted pipeline cash flows despite tighter pricing differentials and operational constraints earlier in the year.
Fourth-quarter revenue totaled $503 million.
Net income reached $156 million, or $0.75 per share.
Normalized EBITDA was $252 million for the quarter.
Distributable cash flow totaled $149 million while maintaining stable dividend distributions.
Forward Guidance
South Bow reaffirmed its 2026 outlook supported by highly contracted pipeline cash flows, projecting normalized EBITDA of approximately $1.03 billion and distributable cash flow of about $655 million.
Positive Outlook
- Approximately 90% of 2026 EBITDA expected to be secured through committed arrangements.
- Normalized EBITDA projected at approximately $1.03 billion in 2026.
- Marketing segment EBITDA expected to improve relative to 2025.
- Intra-Alberta & Other segment expected to benefit from the Blackrod Connection Project.
- Net debt-to-EBITDA ratio expected to decline modestly during 2026.
Challenges Ahead
- Tight pricing differentials expected to pressure uncommitted pipeline capacity revenue.
- Keystone Pipeline System EBITDA expected to decline slightly in 2026.
- Operational restrictions from the MP-171 incident affected performance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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