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South Bow Corporation

SOBO

South Bow Corporation • NYSE
$27.56 ▲ 2.30% (+0.62)
Market Cap $5.74 B
52w High $29.19
52w Low $21.16
Dividend Yield 2.00%
P/E 17.33
Volume 489.97K
Outstanding Shares 208.23M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $263.506M ▼ $1.436M ▼ $66.774M ▼ 25.341% ▲ $0.32 ▼ $180.936M ▼
Q2-2025 $524M ▲ $196M ▼ $96M ▲ 18.321% ▲ $0.46 ▲ $270M ▲
Q1-2025 $498M ▼ $236M ▲ $88M ▲ 17.671% ▲ $0.42 ▲ $259M ▲
Q4-2024 $577.091M ▲ $3M ▼ $70.664M ▲ 12.245% ▲ $0.18 ▼ $241.786M ▼
Q3-2024 $538.828M $256.832M $60.692M 11.264% $0.29 $267.934M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $359.718M ▼ $8.23B ▼ $6.346B ▼ $1.884B ▼
Q2-2025 $452M ▲ $11.483B ▲ $8.846B ▲ $2.637B ▲
Q1-2025 $390M ▼ $11.175B ▼ $8.575B ▼ $2.6B ▼
Q4-2024 $397M ▼ $11.329B ▼ $8.719B ▼ $2.61B ▼
Q3-2024 $5.181B $16.783B $13.963B $2.82B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $66.774M ▼ $52.755M ▼ $-18.828M ▲ $-14.022M ▲ $-93.288M ▼ $34.809M ▼
Q2-2025 $97.582M ▲ $198.44M ▲ $-31.483M ▲ $-105.758M ▼ $-1.016M ▲ $163.852M ▲
Q1-2025 $87.734M ▲ $124.622M ▲ $-31.903M ▼ $-99.698M ▲ $-8.703M ▲ $92.719M ▲
Q4-2024 $53.448M ▼ $-28.693M ▼ $-14.313M ▲ $-4.45B ▼ $-4.718B ▼ $-56.583M ▼
Q3-2024 $60.692M $351.571M $-61.376M $4.554B $4.838B $290.138M

Five-Year Company Overview

Income Statement

Income Statement South Bow’s income statement shows a business with solid underlying economics but some recent pressure on the bottom line. Revenue and operating profit have inched higher, which suggests the core pipeline business is functioning well and benefiting from contracted volumes and stable fees. However, cash-style earnings and net income have slipped, which likely reflects higher financing costs, transition expenses from the spin-out, and incident- or maintenance-related spending. Profitability still looks strong for an infrastructure business, but the step down in net income and earnings per share signals that the company is in an investment and clean‑up phase rather than a peak-profit phase right now.

Balance Sheet

Balance Sheet The balance sheet looks like a classic pipeline company: very large, long‑lived physical assets funded partly with a meaningful amount of debt. Equity has dipped a bit year over year, and leverage remains on the high side, which management itself has flagged by putting debt reduction at the top of their priorities. Cash on hand is modest relative to the size of the business, so South Bow is reliant on steady cash generation and access to credit markets. The key question going forward is how quickly they can use their stable cash flows to bring leverage to a more comfortable level while still funding growth projects.

Cash Flow

Cash Flow South Bow generates positive cash flow from operations and, even after capital spending, still produces free cash flow – a good sign for a fee-based infrastructure operator. That said, operating cash flow and free cash flow have both stepped down compared with the prior year, while investment in the system has ticked up. The business remains self-funding in normal conditions, but it has less cushion than before. With a large expansion project on the horizon and a focus on debt reduction, disciplined capital allocation and tight cost control will be important to avoid over-stretching the balance sheet.

Competitive Edge

Competitive Edge South Bow’s competitive position is a major strength. It controls a critical oil pipeline corridor linking Western Canada to large U.S. refining hubs – assets that would be extremely difficult, slow, and politically challenging for any rival to replicate. Most of its earnings come from long-term, fee-based contracts with high-quality, investment‑grade customers, which helps stabilize cash flows and reduces exposure to swings in oil prices. This forms a strong moat. On the risk side, the company is heavily concentrated in one primary system and operates in a sector exposed to regulatory, environmental, and policy scrutiny, which can limit growth and add compliance costs.

Innovation and R&D

Innovation and R&D South Bow is not an innovation story in the sense of cutting‑edge new products, but it is investing in technology and processes to run a safer and more efficient system. The rollout of new planning and control systems (ERP and SCADA) aims to modernize operations, reduce costs, and give management better real‑time visibility into the network. After a recent rupture, the company has tightened its integrity and safety programs, suggesting a culture that learns from incidents. Growth is focused on disciplined expansions like the Blackrod connection rather than big speculative bets, with technology used more as a tool for reliability, automation, and risk management than as a separate R&D engine.

Summary

South Bow is a newly independent midstream company with valuable, hard‑to‑replace pipeline assets and largely contracted, fee-based cash flows. The business model is built for stability rather than big swings, and early results show healthy operating performance but some pressure on net income and cash flow as the company invests, de‑risks, and absorbs transition and integrity costs. The balance sheet carries notable leverage, making the plan to gradually reduce debt an important pillar of the story. Operationally and competitively, South Bow’s position is strong, anchored by the Keystone corridor and long-term deals with solid counterparties, but it operates under a regulatory microscope and is concentrated in a single system. Execution on safety, system upgrades, and the upcoming expansion projects – while carefully managing debt and cash – will be the main drivers of how attractive and resilient this business looks over the next several years.

NEWS

November 13, 2025 · 6:02 PM UTC

South Bow Reports Third-quarter 2025 Results, Provides 2026 Outlook, and Declares Dividend

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October 16, 2025 · 7:15 PM UTC

South Bow Announces Timing of Third-quarter 2025 Results and Conference Call and Webcast

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