South Bow Reports Solid Q4 & Full-Year 2025 Results, Exceeds EBITDA Guidance, and Reaffirms 2026 Outlook

summarizeSummary

South Bow Corp. reported solid fourth-quarter and full-year 2025 financial results, with normalized EBITDA slightly exceeding guidance and distributable cash flow in line with revised expectations, while also reaffirming its 2026 financial outlook.

check_boxKey Events

• Strong 2025 Financial Performance

  South Bow reported full-year 2025 normalized EBITDA of $1,022 million, slightly above its guidance of $1,010 million, and distributable cash flow of $709 million, in line with revised guidance of $700 million.

• Blackrod Connection Project in Service

  The Blackrod Connection Project was placed into commercial service on March 1, 2026, on schedule and on budget, and is expected to contribute approximately $10 million in normalized EBITDA in 2026.

• Reaffirmed 2026 Guidance

  The company reaffirmed its 2026 guidance, projecting normalized EBITDA of approximately $1.03 billion and distributable cash flow of $655 million, indicating a stable outlook.

• Quarterly Dividend Declared

  A quarterly dividend of $0.50 per share was approved, payable on April 15, 2026, to shareholders of record on March 31, 2026.

auto_awesomeAnalysis

South Bow Corp. delivered a strong financial performance in 2025, meeting or slightly exceeding its revised guidance for key metrics like normalized EBITDA and distributable cash flow. The successful, on-schedule, and on-budget completion of the Blackrod Connection Project, now in commercial service, signals a positive growth driver for 2026. The company's reaffirmation of its 2026 financial guidance provides stability and confidence in its operational outlook, despite ongoing market uncertainties and the managed impact of the Milepost 171 incident. This report reinforces the company's resilient business model and disciplined capital allocation.