Education
About Us
Working with TipRanks
Follow Us
South Bow Corp (TSE:SOBO)
TSX:SOBO
Top Page
South Bow Corp
(TSX:SOBO)
Select Model
Select Model
Rating:66Neutral
Price Target:
C$41.00
▲(11.05% Upside)
The score is driven primarily by solid profitability but constrained by high leverage and weakening recent revenue/FCF trends. Technicals are mildly constructive with neutral momentum, while valuation is supported by a high dividend yield and a moderate P/E. Earnings-call guidance points to stable EBITDA and good project execution, tempered by ongoing operational restrictions into 2026.
South Bow Corp (SOBO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$7.69B
Dividend Yield7.26%
Average Volume (3M)1.63M
Price to Earnings (P/E)18.0
Beta (1Y)0.84
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.65
Shares Outstanding208,250,520
10 Day Avg. Volume1,101,092
30 Day Avg. Volume1,632,679
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$40.05Price Target Upside8.48% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
South Bow Corp Business Overview & Revenue Model
Company DescriptionSouth Bow Corp.is an energy infrastructure company. It engages in the construction and operation of pipelines that transport crude oil and other liquids across Canada and the United States. The company was founded on December 15, 2023 and is headquartered in Calgary, Canada.
How the Company Makes Money
South Bow Corp Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
South Bow demonstrated stable earnings and executed key projects successfully, achieving tax optimization benefits and resolving legal issues. However, operational challenges remain, particularly with Keystone's pressure restrictions and ongoing remedial actions, which may impact future earnings.Q3-2025 Updates
Positive Updates
Stable Earnings and Financial Strength
South Bow reported a normalized EBITDA of $250 million and distributable cash flow of $236 million in Q3 2025, with a full-year forecast for normalized EBITDA reaffirmed at $1.01 billion.
Successful Execution of Blackrod Project
The Blackrod project achieved overall mechanical completion and placed a 25-kilometer natural gas lateral into service on schedule and within budget.
Dividend and Shareholder Returns
The Board approved a quarterly dividend of $0.50 per share, reinforcing the importance of dividends in South Bow's total return proposition.
Tax Optimization Wins
A $71 million tax recovery was achieved due to changes in U.S. tax legislation and optimization efforts, improving distributable cash flow.
Indemnification and Legal Resolution
Legal proceedings related to variable toll disputes were resolved, and South Bow was indemnified up to USD 22 million for pre-spin issues.
Negative Updates
Keystone Pressure Restrictions and Maintenance
Keystone's pressure restrictions are expected to remain in place into 2026, affecting potential EBITDA from spot volumes due to tighter differentials.
Milepost 171 Incident Remedial Actions
Ongoing remedial actions follow the incident, with full system return expected in 2026, impacting operational capacity and future earnings.
Marketing Losses Offset by Higher Maintenance Costs
Marketing losses earlier in the year were largely offset by higher maintenance capital expenditures, reflecting operational challenges.
Company Guidance
During South Bow's third quarter 2025 earnings call, the company provided guidance highlighting several key metrics. The company reported normalized EBITDA of $250 million for the quarter, with expectations for the full year 2025 to reach $1.01 billion. Distributable cash flow was noted at $236 million, benefiting from a $71 million tax recovery, leading to a revised outlook of approximately $700 million for the year. Looking ahead to 2026, South Bow forecasts normalized EBITDA of $1.03 billion, with distributable cash flow expected to be around $655 million. The company emphasized its strategic priorities, including maintaining safe operations, executing on its growth portfolio, and optimizing capital allocation. The Blackrod project was a focal point, with the company achieving mechanical completion and remaining on schedule for service in early 2026. Additionally, South Bow is focused on exiting transition services with TC Energy by the end of 2025, which is expected to enhance efficiencies and reduce costs. The company's board approved a quarterly dividend of $0.50 per share, underscoring its commitment to shareholder returns.South Bow Corp Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
| Breakdown | Dec 2024 | Dec 2023 |
|---|---|---|
Income Statement | ||
| Total Revenue | 2.12B | 2.00B |
| Gross Profit | 1.74B | 1.65B |
| EBITDA | 1.05B | 1.03B |
| Net Income | 316.00M | 442.00M |
Balance Sheet | ||
| Total Assets | 11.33B | 0.00 |
| Cash, Cash Equivalents and Short-Term Investments | 397.00M | 262.00M |
| Total Debt | 5.72B | 5.97B |
| Total Liabilities | 8.72B | 0.00 |
| Stockholders Equity | 2.61B | 2.84B |
Cash Flow | ||
| Free Cash Flow | 407.00M | 742.00M |
| Operating Cash Flow | 529.00M | 779.00M |
| Investing Cash Flow | -80.00M | 62.00M |
| Financing Cash Flow | -307.00M | -577.00M |
South Bow Corp Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$4.21B | 74.84 | 4.75% | 4.91% | 6.52% | -13.92% | |
66 Neutral | C$7.69B | 17.96 | 22.69% | 7.26% | ― | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | C$10.32B | 23.92 | 15.28% | 4.81% | -4.09% | -3.57% | |
43 Neutral | C$126.34M | -1.48 | -33.62% | ― | -23.30% | 76.16% |
* Real Estate Sector Average
TSE:SOBO
South Bow Corp
36.92
3.06
9.04%
PBA
Pembina Pipeline
38.93
3.37
9.47%
GBNXF
Gibson Energy
18.65
1.95
11.68%
TSE:KEY
Keyera Corp.
44.99
5.05
12.64%
TSE:TWM
Tidewater Midstream and Infrastructure
5.85
2.45
72.06%
TSE:TPZ
Topaz Energy Corp
27.40
1.48
5.71%
South Bow Corp Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
South Bow Corp. Reports Q3 2025 Results and 2026 Outlook
Positive
Nov 13, 2025
South Bow Corp. reported stable financial performance in the third quarter of 2025, with a revenue of $461 million and a net income of $93 million. The company achieved significant operational milestones, including the completion of the Blackrod Connection Project, and is on track to enhance cash flows in 2026. South Bow declared a dividend of $0.50 per share and outlined its 2026 budget, focusing on financial strengthening and growth opportunities. The company also resolved disputes related to variable tolls, reaching its maximum indemnity liability of $22 million.
The most recent analyst rating on (TSE:SOBO) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on South Bow Corp stock, see the TSE:SOBO Stock Forecast page.
Financial Disclosures
South Bow Corp to Announce Q3 2025 Results and Host Conference Call
Neutral
Oct 16, 2025
South Bow Corp announced it will release its third-quarter 2025 financial and operational results on November 13, 2025, followed by a conference call and webcast on November 14, 2025. This announcement is significant as it provides stakeholders with insights into the company’s performance and future outlook, potentially impacting its market position and investor confidence.
The most recent analyst rating on (TSE:SOBO) stock is a Hold with a C$39.00 price target. To see the full list of analyst forecasts on South Bow Corp stock, see the TSE:SOBO Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.