South Bow Corporation
SOBO Energy Oil & Gas Midstream
South Bow Corporation’s revenue for fiscal 2025 (year ended December 2025) was $2.0 billion, down 6.32% from fiscal 2024. In the quarter to June 2026, revenue grew 4.20%, EPS grew 39.1%, free cash flow grew 48.8% and total debt was flat, each against the same quarter a year earlier.
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South Bow Corporation (SOBO) Altman Z-score
South Bow Corporation's Altman Z-score for fiscal 2025 is 0.89, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 0.89 | 0.08 |
| FY2024 | 0.81 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.06 | — | 0.07 | |
| Retained earnings / total assets | 0.00 | — | −0.00 | |
| EBIT / total assets | 0.07 | — | 0.24 | |
| Market value of equity / total liabilities | 0.67 | — | 0.40 | |
| Sales / total assets | 0.18 | — | 0.18 | |
| Altman Z-score | Distress zone | 0.89 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.21 | ||
Z and Z″ put South Bow Corporation in different zones: distress zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| INSW International Seaways Inc. compare | 3.4× |
| STNG Scorpio Tankers Inc. compare | 3.3× |
| AM Antero Midstream Corporation compare | 1.9× |
| FRO Frontline PLC compare | 1.8× |
| GLNG Golar LNG Limited compare | 1.0× |
| SOBO South Bow Corporation | 0.9× |
| CMBT CMB.TECH nv compare | 0.8× |
| KNTK Kinetik Holdings Inc. compare | 0.3× |
| HESM Hess Midstream Partners LP compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets