South Bow Corp

Latest Results (15.05.2026):

South Bow Corp.'s first-quarter 2026 results show stable operating and financial performance: revenue of $491 million, net income of $77 million ($0.37/share), normalized EBITDA of $257 million and distributable cash flow of $168 million, while Keystone throughput averaged ~616,000 bbl/d and the company declared/paid its regular $0.50/share quarterly dividend.

Financial results

Q1 2026 revenue was $491M; net income $77M ($0.37/diluted share). Normalized EBITDA was $257M (up $5M vs Q4 2025) and distributable cash flow was $168M (up $19M vs Q4, largely from lower current taxes). Marketing contributed to the EBITDA increase, while Keystone Pipeline System EBITDA declined reflecting reduced maintenance activity.

Operations & safety

Keystone system average throughput for Q1 2026 was ~616 kbbl/d with a System Operating Factor of 95%; the U.S. Gulf Coast segment averaged ~709 kbbl/d. The Blackrod Connection Project entered commercial service on schedule and on budget with a zero recordable case rate. Remedial work on the Milepost 171 incident continues (11 in-line inspections and 76 integrity digs completed to date) with findings being integrated into integrity programs.

Projects & near-term contribution

Blackrod is expected to contribute roughly $10M of normalized EBITDA to 2026 normalized results, with cash flows rising through H2 2026 into 2027. South Bow also completed an open season for the proposed Prairie Connector and is evaluating commercial support under a 60-day period.

Balance sheet & capital

Total long‑term debt was $5.8B and net debt $4.7B at March 31, 2026, with a net debt-to-normalized EBITDA ratio of 4.7x. Q1 capital expenditures were $27M. The company says it will update growth capex guidance when it sanctions its next development project and expects the leverage ratio to decrease modestly through 2026.

Returns to shareholders

South Bow returned $104M (or $0.50/share) to shareholders in Q1 2026 and the Board approved a quarterly dividend of $0.50/share payable July 15, 2026 (record date June 30, 2026); dividends will be designated as eligible dividends for Canadian tax purposes.

Guidance & outlook

South Bow reaffirmed 2026 guidance: normalized EBITDA of approximately $1.03B (±2%), with ~90% secured under committed arrangements. Management expects Q2 2026 normalized EBITDA to be slightly higher than Q1 and projects modest deleveraging during 2026. The company reiterates forward-looking caution and refers investors to its MD&A for assumptions and risks.

Non‑GAAP measures & disclosures

Key measures cited—normalized EBITDA, normalized net income, distributable cash flow and net debt—are non‑GAAP; reconciliations and additional detail are in South Bow's Q1 2026 MD&A and financial statements available on the company website, SEDAR+ and the SEC filings.