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South Bow Corp
NYSE:SOBO

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South Bow Corp
NYSE:SOBO
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Price: 27.89 USD 1.53% Market Closed
Market Cap: 5.8B USD

South Bow Corp
Investor Relations

South Bow Corp., nestled in the heart of the bustling industrial corridor, has carved a niche for itself as a powerhouse in renewable energy solutions. Emerging from the ambitious vision of its founders, the company set out to transform how industries meet their energy needs. At its core, South Bow operates by designing and implementing cutting-edge wind and solar power systems tailored specifically for large-scale industrial clients. With an eye on sustainability and cost savings, their engineering expertise enables them to create solutions that not only reduce environmental footprints but also significantly cut energy costs for their clientele. This dedication to clean energy, combined with a deep understanding of industrial operations, positions South Bow as a leader in the transition to sustainable energy sources.

Financially, South Bow capitalizes on long-term energy service agreements with its clients, ensuring a steady revenue stream. These agreements are constructed in a way that allows the company to bear the upfront costs of installation and maintenance, in turn offering clients the benefit of predictable energy costs over time. Additionally, South Bow leverages government incentives and tax rebates available for renewable energy projects, enhancing the economic appeal of their offerings. Their revenue model is not solely service-based; they have ventured into the manufacturing of proprietary renewable technology components, adding another layer of income through product sales. This multifaceted approach—an amalgamation of service agreements and product offerings—establishes South Bow as a resilient player, adept at navigating the intricacies of the renewable sector while also catering to the evolving demands of industrial energy consumers.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 14, 2025
AI Summary
Q3 2025

Strong Quarter: South Bow delivered normalized EBITDA of $250 million and distributable cash flow of $236 million in Q3, showing business resilience and stability.

Revised Guidance: Distributable cash flow guidance for 2025 was raised to approximately $700 million due to tax optimization wins, with an effective tax rate now expected between 20% and 21%.

Steady Dividend: The Board approved a quarterly dividend of $0.50 per share, reinforcing South Bow's commitment to shareholder returns.

Operational Progress: Keystone system remediation is progressing, with 6 in-line inspections and 37 integrity digs completed; pressure restrictions are expected to be lifted during 2026.

Growth Projects: The Blackrod project is on schedule and within budget, with mechanical completion achieved and service expected to start in early 2026.

Transition Efficiencies: South Bow is set to fully exit transition agreements with TC Energy by end of 2025, almost a year ahead of schedule, driving cost savings and operational efficiencies.

Future Outlook: 2026 normalized EBITDA is forecast at $1.03 billion, with distributable cash flow projected at $655 million, supported by contracted cash flows and new project ramp-ups.

Key Financials
Normalized EBITDA
$250 million
Distributable Cash Flow
$236 million
Dividend per Share (quarterly)
$0.50
Effective Tax Rate
20% to 21%
Maintenance Capital (2026E)
$25 million
Growth Capital (2026E)
$10 million
Other Earnings Calls

Management

Mr. Bevin Mark Wirzba M.B.A., P.Eng.
President, CEO & Director
No Bio Available
Mr. Richard J. Prior
Senior VP & COO
No Bio Available
Mr. Kevin Engel
Vice-President of Corporate Finance
No Bio Available
Ms. Tamara Loewen
VP of Information Services & Chief Information Officer
No Bio Available
Ms. Lori M. Muratta
Senior VP & General Counsel
No Bio Available
Mr. Blaine Trout
Vice-President of Business Development & Marketing
No Bio Available
Ms. Renate Poole
Vice President of Human Resources
No Bio Available
Mr. Eric Von Engelbrechten
VP & Controller
No Bio Available

Contacts

Address
ALBERTA
Calgary
450 - 1St Street S.W
Contacts
+14039202000