South Bow Reports $1.02B EBITDA, $709M Cash Flow and Eyes Keystone XL Revival
South Bow Corp posted 2025 normalized EBITDA of $1.02B vs $1.01B forecast, distributable cash flow of $709M (30% above guidance) and net debt/EBITDA at 4.7x, while returning $416M in dividends. Management expects Keystone pipeline restrictions to lift by year-end, restoring 600,000-barrel capacity, and to revive Keystone XL under favorable policy.
1. Q4 2025 Financial Results
South Bow Corp delivered normalized EBITDA of $1.02 billion in 2025, exceeding the $1.01 billion forecast. Distributable cash flow reached $709 million, more than 30% above guidance, while net debt to normalized EBITDA improved to 4.7x. The company returned $416 million to shareholders through dividends.
2. Operational Highlights and Safety
The Black Rod Connection project was completed on time and on budget, contributing to organic growth. South Bow maintained a strong safety record with zero recordable incidents over 2.5 million work hours and is exploring additional organic and inorganic growth opportunities.
3. Keystone Pipeline Outlook
Pressure restrictions on the Keystone pipeline have limited spot volumes, but remedial efforts are underway. Management expects restrictions to be lifted by year-end, restoring 600,000-barrel capacity, and is pursuing revival of the Keystone XL system under a favorable US-Canada energy policy environment.