South Bow Q4 Earnings Call Highlights

South Bow (NYSE:SOBO) executives utilized the company’s fourth-quarter and year-end 2025 net telephone to item somewhat better-than-expected yearly results, advancement connected the Keystone Pipeline’s Milepost 171 response, and the completion of its archetypal maturation project, portion reiterating a absorption connected safety, fiscal discipline, and equilibrium expanse improvement.

Chief Financial Officer Van Dafoe said South Bow delivered “solid results contempt a challenging backdrop,” citing geopolitical and marketplace uncertainty, choky pricing differentials, and unit restrictions pursuing Milepost 171. The institution reported normalized EBITDA of $1.02 billion for 2025, somewhat supra its anticipation of $1.01 billion, with a “modest outperformance” driven by its selling segment.

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Dafoe emphasized that astir 90% of the concern is supported by semipermanent contracted currency flows, portion the selling affiliate “does marque tiny contributions” to results. He said the institution reduced hazard vulnerability aboriginal successful the twelvemonth amid volatility and that the squad was capable to “partially offset immoderate of those losses.” Dafoe besides credited taxation optimization efforts during the year.

South Bow reported Distributable Cash Flow of $709 million, which Dafoe said was successful enactment with revised guidance and “more than 30% above” the company’s archetypal guidance. The stronger escaped currency travel allowed the institution to accelerate deleveraging, ending 2025 with a nett debt-to-normalized EBITDA ratio of 4.7x, somewhat amended than the 4.8x it expected.

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On superior returns, Dafoe said South Bow returned $416 million, oregon $2 per share, done its dividend successful 2025.

President and CEO Bevin Wirzba described 2025 arsenic “an important year” that tested the enactment but demonstrated resilience and decision-making discipline. Both Wirzba and Chief Operating Officer Richard Prior emphasized information arsenic foundational, with Prior reporting much than 2.5 cardinal enactment hours crossed construction, restoration, and attraction programs with 0 recordable information incidents.

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Prior said the Blackrod Connection Project entered commercialized work earlier successful the week, coming online “less than 24 months from the clip of sanctioning.” He said it was delivered on time, on budget, and with “exceptional information performance,” calling it a important accomplishment and grounds South Bow tin execute integrated maturation projects.