During the second quarter of 2025, South Bow Corp (TSX:SOBO) delivered stable financial results, underpinned by the strong commercial performance of South Bow. Total revenue for the quarter reached $524 million, with net income of $96 million, or $0.46 per share. While normalized EBITDA¹ declined 6% year-over-year to $250 million—primarily due to expected lower contributions from the Marketing segment—the business continued to generate strong cash flow. Distributable cash flow¹ totaled $167 million for the quarter, reinforcing the company’s ability to support both operations and shareholder returns.
Strong Balance Sheet and Leverage Metrics
As of June 30, 2025, South Bow Corp (TSX:SOBO) maintained long-term debt at $5.8 billion and net debt¹ at $4.9 billion. The net debt-to-normalized EBITDA ratio¹ stood at 4.6x, reflecting prudent capital management in a dynamic operating environment.
Ongoing Commitment to Shareholders
South Bow Corp (TSX:SOBO) continued to deliver value to shareholders, declaring dividends totaling $104 million, or $0.50 per share, during the second quarter. In addition, South Bow Corp (TSX:SOBO)’s board of directors approved a quarterly dividend of $0.50 per share, payable on October 15, 2025, to shareholders of record as of September 29, 2025. These dividends have been designated as eligible for Canadian income tax purposes.
Stock Recommendation
Based on the company’s solid financial foundation, consistent cash flow generation, and commitment to returning value to shareholders, a “Buy” rating has been given at the closing price of CAD 38.99 per share as of September 17, 2025. Despite a modest decline in normalized EBITDA, the business remains fundamentally strong, with manageable debt levels and reliable dividend payouts. The company’s stability, especially in a fluctuating market environment, positions it well for long-term growth and income-focused investors.
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