South Bow (SOBO) Company Report

South Bow (SOBO) aims to grow its enterprise value to 2-3 times its current size within the next five years through both organic and inorganic opportunities, while maintaining a low-risk profile and disciplined capital allocation.
The company is committed to strengthening its financial position, targeting to reduce its leverage to four times by the end of 2027, which is 9-12 months ahead of schedule, and maintaining its investment-grade rating.
For 2026, South Bow provides normalized EBITDA guidance of $2.6 billion and distributable cash flow (DCF) guidance of $655 million, while also emphasizing a commitment to a meaningful and sustainable dividend.

Nov 19, 2025, 2:00 PM

Transcript

South Bow Outlines Strategic Vision and Financial Targets at Investor Day

SOBO

Guidance Update

New Projects/Investments

M&A

South Bow has successfully completed its spin-off and is now a fully independent company, having met all committed milestones since the July 2023 announcement.
The company is focused on strengthening its financial position, targeting a reduction in leverage to 4 times by 2027, which is 9 to 12 months ahead of schedule, and aims to maintain its investment-grade rating.
South Bow has an aspirational goal to grow its enterprise value from $10 billion to $30 billion within three to five years, driven by an organic strategy targeting 2-3% EBITDA growth and complemented by inorganic opportunities and partnerships.
For 2026, South Bow provides normalized EBITDA guidance of $2.6 billion and distributable cash flow guidance of $655 million.
Operationally, the company has achieved a 94% system operating factor and is committed to continuous improvement in safety, asset integrity, and cost structure reduction.

Nov 19, 2025, 2:00 PM

Transcript

South Bow Outlines Future Strategy at Investor Day 2025

SOBO

New Projects/Investments

Guidance Update

Dividends

South Bow has successfully completed its spin-off, becoming a fully independent company, having listed on the NYSE on October 8, 2024, and finalized all material TSAs.
The company is focused on growth, aiming to be 2-3 times its current size in the next five years through both organic and inorganic opportunities, leveraging its existing infrastructure and strategic corridor.
South Bow is committed to financial discipline, including maintaining a meaningful and sustainable dividend, and has accelerated its deleveraging target to four times by the end of 2027, a year ahead of schedule.
Operationally, South Bow has achieved a 94% system operating factor and is dedicated to continuous improvement in safety and asset integrity, aiming for industry-leading performance.

Nov 19, 2025, 2:00 PM

Transcript

South Bow Reports Q3 2025 Results and Updates 2025-2026 Guidance

SOBO

Earnings

Guidance Update

Dividends

South Bow reported Q3 2025 normalized EBITDA of $250 million and distributable cash flow of $236 million.
The company reaffirmed its 2025 normalized EBITDA guidance at $1.01 billion and revised its 2025 distributable cash flow guidance to approximately $700 million, benefiting from tax optimization efforts.
For 2026, South Bow forecasts normalized EBITDA of $1.03 billion (within a 2% range) and distributable cash flow of approximately $655 million (within a 2% range).
The BlackRod project achieved mechanical completion in October 2025 and is on schedule and within budget to be placed into service early in 2026.
A quarterly dividend of $0.50 per share was approved, payable on January 15th to shareholders of record on December 31st.

Nov 14, 2025, 3:00 PM

Transcript

South Bow Reports Q3 2025 Results, Updates 2025/2026 Guidance, and Provides Operational Updates

SOBO

Earnings

Guidance Update

New Projects/Investments

South Bow reported Q3 2025 normalized EBITDA of $250 million and distributable cash flow of $236 million, benefiting from a $71 million current tax recovery.
The company updated its 2025 distributable cash flow outlook to approximately $700 million and reaffirmed its normalized EBITDA guidance of $1.01 billion. For 2026, normalized EBITDA is forecast at $1.03 billion and distributable cash flow at approximately $655 million.
The BlackRod project achieved mechanical completion in October 2025 and is on schedule and within budget to be placed into service early 2026. South Bow is also nearing the exit of all transition services with TC Energy by the end of 2025, almost a year ahead of schedule, which is expected to result in cost savings.
Remedial actions for the Milepost 171 incident are ongoing, with the goal to safely return the Keystone pipeline to baseline operations in 2026. The board approved a quarterly dividend of $0.50 per share.

Nov 14, 2025, 3:00 PM

Transcript

South Bow Reports Q3 2025 Results, Updates Guidance, and Provides Operational Updates

SOBO

Earnings

Guidance Update

New Projects/Investments

South Bow reported normalized EBITDA of $250 million and distributable cash flow of $236 million for Q3 2025, with the latter benefiting from a $71 million current tax recovery.
The company reaffirmed its 2025 normalized EBITDA guidance at $1.01 billion and revised its 2025 distributable cash flow outlook to approximately $700 million. For 2026, normalized EBITDA is forecast at $1.03 billion and distributable cash flow at approximately $655 million.
The BlackRod project achieved mechanical completion in October and is on schedule to be placed into service early 2026. Remedial actions for the Milepost 171 incident are ongoing, with the goal to return the Keystone pipeline to baseline operations in 2026.
South Bow is nearing the exit of all transition services with TC Energy by the end of 2025, ahead of schedule, and has resolved legal proceedings related to variable toll disputes. The board approved a quarterly dividend of $0.50 per share.

Nov 14, 2025, 3:00 PM

Transcript

South Bow Reports Third-Quarter 2025 Results and Provides 2026 Outlook

SOBO

Earnings

Guidance Update

Dividends

South Bow reported Q3 2025 revenue of $461 million and net income of $93 million ($0.45/share), with normalized EBITDA of $254 million and distributable cash flow of $236 million.
The company declared a quarterly dividend of $0.50/share, payable on January 15, 2026.
South Bow reaffirmed its 2025 normalized EBITDA guidance of approximately $1.01 billion and revised its 2025 distributable cash flow outlook to $700 million.
For 2026, the company projects normalized EBITDA of approximately $1.03 billion and distributable cash flow of approximately $655 million.
The net debt-to-normalized EBITDA ratio remained 4.6 times as of September 30, 2025, and is anticipated to decrease modestly through 2026.

Nov 14, 2025, 1:33 AM

6-K

South Bow Corporation Reports Q3 2025 Financial Summary and Subsidiary Guarantees

SOBO

Earnings

Debt Issuance

South Bow Corporation filed a 6-K on November 14, 2025, providing unaudited summary financial information for the nine months ended September 30, 2025.
The company fully and unconditionally guarantees the payment obligations of its 100% owned subsidiaries, South Bow USA Infrastructure Holdings LLC and South Bow Canadian Infrastructure Holdings Ltd., under notes issued by them.
For the nine months ended September 30, 2025, total consolidated revenue was $1,483 million, a decrease from $1,632 million for the same period in 2024.
Total consolidated net income for the nine months ended September 30, 2025, increased to $277 million from $261 million for the same period in 2024.
Financial data for the nine months ended September 30, 2024, reflects information as recorded by TC Energy Corporation prior to the Spinoff Transaction on October 1, 2024.

Nov 13, 2025, 11:25 PM

6-K

South Bow Corporation Reports Q3 2025 Results, Updates 2025 Guidance, and Provides 2026 Outlook

SOBO

Earnings

Guidance Update

Dividends

South Bow Corporation reported Q3 2025 revenue of $461 million, a decrease from $534 million in Q3 2024, primarily due to lower throughput and a $43 million charge related to the Withdrawal of Variable Toll Disputes.
Despite the revenue decline, net income per diluted share increased to $0.45 in Q3 2025 from $0.29 in Q3 2024, and distributable cash flow rose to $236 million from $190 million in the prior year period.
The company reaffirmed its 2025 Normalized EBITDA guidance at $1,010 million and raised its 2025 distributable cash flow outlook to $700 million from $590 million, driven by lower expected current taxes.
South Bow provided 2026 guidance, projecting Normalized EBITDA of approximately $1.03 billion and distributable cash flow of approximately $655 million.
The company maintained its quarterly dividend at $0.50 per share, with the Q3 2025 dividend paid on October 15, 2025, and the Q4 2025 dividend approved for payment on January 15, 2026.