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

Total Revenue

$503M

No prior period
EPS (adj)

$0.61

No prior period
Normalized EBITDA

$252M

No prior period
Distributable cash flow

$149M

No prior period
Dividends declared

$104M

No prior period
Capital expenditures

$60M

No prior period
Long-term debt

$5.77B

No prior period
Net debt

$4.81B

No prior period
Net debt to EBITDA

4.7

No prior period
Keystone throughput

594.0K

No prior period
Gulf Coast throughput

680.0K

No prior period
Marketlink throughput

531.0K

No prior period
SOF

94.0%

No prior period
Net Income

$156M

No prior period
Operating Income

$153M

No prior period

Revenue & EPS history

South Bow Corp · Revenue · Quarterly

$503M

Q4 2025

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

Historical avgQ4 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

Earnings price reactions
QuarterReport dateReaction (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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