South Bow posted robust Q2 results and raised full-year guidance, bolstered by record pipeline throughput, even as management cautions that Q3 earnings will likely soften due to shifting crude inventory dynamics.
South Bow reported strong Q2 2026 results with revenue of $546 million, net income of $134 million, raised full-year normalized EBITDA guidance to $1.04 billion, and secured 20-year binding commitments from nine customers, though it warned Q3 EBITDA would be about 10% lower.
South Bow Corp. reported a strong second quarter with $546 million in revenue and $134 million in net income, driven by increased throughput on its US Gulf Coast pipeline system. The company raised its full-year normalized EBITDA guidance to $1.04 billion and secured 20-year binding commitments from nine customers, though it warned of a 10% sequential decline in Q3 EBITDA due to tightening pricing differentials.
The company raised its guidance due to strong second-quarter performance, where throughput on the US Gulf Coast system reached 800,000 barrels per day, significantly boosting net income and cash flow.
Management expects Q3 normalized EBITDA to be about 10% lower than the second quarter, citing declining crude inventories at Cushing, Oklahoma, which are expected to tighten pricing differentials and reduce demand for Gulf Coast capacity.