South Bow Corp

Latest Results (20.11.2025):

South Bow Corp — third-quarter 2025: South Bow Corp reported Q3 2025 results showing stable financial performance with revenue of $461 million and net income of $93 million ($0.45/share). Normalized EBITDA was $254 million, distributable cash flow was $236 million, and the Board declared a quarterly dividend of $0.50/share. Operational throughput on the Keystone Pipeline averaged ~584,000 bbl/d (and ~703,000 bbl/d on the U.S. Gulf Coast segment) in Q3 2025, and the company provided its 2026 outlook including normalized EBITDA guidance of about $1.03 billion.

Key financials

Q3 2025 revenue: $461 million; net income: $93 million ($0.45/share); normalized EBITDA: $254 million (up 2% vs Q2 2025).

Cash flow and dividends

Distributable cash flow for Q3 2025 was $236 million (up $69 million from Q2 2025, driven primarily by U.S. tax legislation changes and tax optimization). Dividends declared in Q3 totaled $104 million ($0.50/share); the Board approved a $0.50/share quarterly dividend payable Jan. 15, 2026.

Operations and projects

Keystone throughput averaged ~584,000 bbl/d in Q3 2025 (U.S. Gulf Coast segment ~703,000 bbl/d). Blackrod Connection Project achieved mechanical completion and the 25‑km natural gas lateral entered commercial service; full project on schedule for service early 2026 with associated cash flows increasing through H2 2026 into 2027.

Balance sheet and liquidity

Total long‑term debt and net debt were maintained at roughly $5.8 billion and $4.8 billion, respectively, with a net debt‑to‑normalized EBITDA ratio of 4.6x as of Sept. 30, 2025. South Bow extended the C$2 billion revolving credit facility by one year to Oct. 3, 2029.

2026 outlook

The Board approved a 2026 budget and expects normalized EBITDA of approximately $1.03 billion (±2%), with about 90% secured via committed arrangements; emphasis on strengthening the balance sheet and pursuing organic/inorganic growth.

Milepost 171 incident

PHMSA issued a Corrective Action Order requiring remedial work and pressure restrictions. South Bow has completed six in‑line inspections and 37 integrity digs to date. Total incident costs are estimated at about $55 million and are largely expected to be recovered through insurance by early 2026; ~$16 million has been reimbursed as of Sept. 30, 2025.

Other corporate items

South Bow expects to complete its SCADA transition in Q4 2025 (final item exiting the TSA with TC Energy). The company reached its maximum indemnity recovery of $22 million under the Separation Agreement following withdrawal of variable toll disputes. Q3 2025 capex was reported at $52 million.