South Bow Reports Q4 Revenue of $503M, Puts Blackrod Connection into Service
South Bow reported 4Q 2025 revenue of $503M and $1.986B for the year, delivering net income of $156M ($0.75/sh) in the quarter and $433M ($2.07/sh) for the year with normalized EBITDA of $252M and $1.022B. The Blackrod Connection Project entered service on March 1, 2026, adding $10M in expected EBITDA.
1. Operational Highlights
South Bow achieved a zero recordable case rate in 2025 while averaging 584,000 bbl/d on the Keystone Pipeline and 718,000 bbl/d on its Gulf Coast segment. The Blackrod Connection Project commenced commercial operations on March 1, 2026, completing on schedule and budget and expected to contribute $10 million in normalized EBITDA this year.
2. Financial Performance
For the three months ended Dec. 31, 2025, revenue reached $503 million with net income of $156 million ($0.75/share) and normalized EBITDA of $252 million. Full-year figures included $1.986 billion in revenue, $433 million in net income ($2.07/share), $1.022 billion in normalized EBITDA and $709 million in distributable cash flow, while net debt was $4.8 billion (4.7x EBITDA). The company returned $416 million to shareholders through dividends in 2025.
3. Corporate Initiatives
South Bow advanced remedial actions after the Milepost 171 incident, completing 11 in-line inspections and 51 integrity digs, and confirmed no material pipe or weld defects. The company launched an open season for new long-term firm transportation service from Hardisty, Alberta, to U.S. delivery points through March 30, 2026, and accelerated exit from its Transition Services Agreement with TC Energy to optimize operations and support future growth.