NYSE$SOBO
South Bow Corp · Q4 2025 earnings
Q4 2025 earnings · · Investor relations
Briefing
South Bow reported higher fourth-quarter revenue and strong profitability with normalized EBITDA of $252 million and net income of $156 million.
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.
Headline financials
Revenue & EPS history
South Bow Corp · Revenue · Quarterly
$503M
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.
Tailwinds
- 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.
Headwinds
- 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.
- Lower contributions from the Marketing segment during 2025 due to risk reduction strategy.
- Pipeline maintenance activity expected to impact segment EBITDA in 2026.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 5 quarterly earnings reports · overlaid with Q4 2025
+0.7%
Avg return
Earnings day
+2.5%
Avg return
5 days after
+3.6%
Avg return
30 days after
80%
4 / 5 earnings
Positive
+5.2%
Q3 2025
Best reaction
-4.2%
Q1 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +1.1% | +4.3% | +6.2% | |
| Q4 2025 | +0.1% | -0.8% | -0.5% | |
| Q3 2025 | +5.2% | +7.2% | +4.3% | |
| Q2 2025 | +1.1% | +1.7% | +2.6% | |
| Q1 2025 | -4.2% | +0.0% | +5.2% |
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