South Bow Reports Fourth-quarter and Year-end 2025 Results and Declares Dividend
Executive Summary
- South Bow reported FY 2025 revenue of $1.986 bn, net income of $433 m ($2.07/share) and normalized EBITDA of $1.022 bn, slightly above guidance.
- The Blackrod Connection Project entered commercial service on March 1 2026, expected to generate ~US$10 m of normalized EBITDA in 2026.
- A quarterly dividend of $0.50 per share was declared (payable April 15 2026); FY 2025 distributable cash flow was $709 m, in line with revised guidance.
Key Details
- Financial Highlights – FY 2025
- Revenue: $1,986 m (vs. $2,120 m prior year)
- Net income: $433 m ($2.07/share)
- Normalized EBITDA: $1,022 m (guidance $1,010 m ±3%)
- Distributable cash flow: $709 m (revised guidance $700 m ±2%)
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Total long‑term debt: $5.768 bn; Net debt: $4.806 bn; Net‑debt/EBITDA ratio: 4.7×
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Quarterly Highlights – Q4 2025
- Revenue: $503 m, Net income: $156 m ($0.75/share)
- Normalized EBITDA: $252 m
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Throughput: Keystone Pipeline 594 k bbl/d; U.S. Gulf Coast segment 680 k bbl/d
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Operational Update
- Blackrod Connection Project placed in commercial service (Mar 1 2026); on‑schedule, on‑budget, zero recordable cases. Expected $10 m of normalized EBITDA contribution in 2026.
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Milepost 171 incident remedial work: 11 inline inspections, 51 integrity digs completed; total incident cost ~$53 m, with $42 m insurance recoveries received to date.
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Dividend & Shareholder Return
- FY 2025 dividend paid: $416 m ($2.00/share) plus Q4 dividend of $104 m ($0.50/share).
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Quarterly dividend declared: $0.50 per share, payable Apr 15 2026 (record date Mar 31 2026).
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Guidance – FY 2026
- Normalized EBITDA: $1,030 m ±2% (≈90% secured)
- Segment EBITDA expectations: Keystone Pipeline System ~US$15 m lower; Marketing +US$15 m; Intra‑Alberta & Other +US$10 m.
- Distributable cash flow: $655 m ±2%
- Capital expenditures: growth $10 m, maintenance $25 m ±10%
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Net‑debt/EBITDA ratio expected to modestly decline.
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Corporate Actions
- Open season launched for long‑term firm transportation service from Hardisty to U.S. delivery points; closes Mar 30 2026 (60‑day evaluation thereafter).
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Transition Services Agreement with TC Energy terminated ahead of schedule, under budget.
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Conference Call
- Management will discuss Q4/ FY 2025 results on March 6 2026 at 8:00 a.m. MST (10:00 a.m. EST).
Notable Quotes
“Our disciplined capital allocation and strong contracted cash flows have enabled us to deliver solid results despite a challenging environment, and we remain confident in the growth trajectory of our pipeline network.” – CEO, South Bow Corp.