SECURE ANNOUNCES 2025 THIRD QUARTER RESULTS

Executive Summary

• SECURE Waste Infrastructure Corp. reported Q3 2025 Adjusted EBITDA of $135 million ($0.62 per basic share), a 17% year‑over‑year increase on a per‑share basis.
• Full‑year 2025 Adjusted EBITDA guidance was revised down to approximately $500 million (from prior $510–$540 million) due to near‑term softness in metals recycling and lower oil‑price activity.
• The company generated discretionary free cash flow of $68 million, repurchased ~1.7 million shares for $27 million, and declared a quarterly dividend of $0.10 per share.

Key Details

• Revenue (ex‑oil purchase/resale): $365 million, down 2% YoY, offset by higher pricing and contributions from the Edmonton metals recycling acquisition (Jan 31 2025).
• Net Income: $1 million vs. $94 million in Q3 2024; a $55 million non‑cash provision for an underutilized crude storage contract drove the decline. Excluding one‑offs, earnings were flat YoY.
• Adjusted EBITDA: $135 million (6% YoY increase; 17% on per‑share basis). Drivers: metals recycling investments, pricing lifts, cost optimizations.
• Funds from Operations: $96 million; Discretionary Free Cash Flow: $68 million.
• Capital Expenditures: $54 million growth capex in Q3 (total YTD $97 million) focused on two produced‑water processing and disposal facilities in the Alberta Montney region.
• Share Repurchases: ~1.7 M shares at $15.77 average price ($27 M); total NCIB repurchases YTD ≈18.1 M shares for $268 M (≈8% of outstanding shares).
• Dividend: Quarterly cash dividend declared and paid – $0.10 per common share (≈2% yield).
• Leverage: Total Debt/EBITDA covenant 2.1× (1.8× excluding leases) at quarter‑end.

Outlook & Guidance

• 2025 Full‑Year Adjusted EBITDA: ≈$500 million.
• 2025 Discretionary Free Cash Flow: ≈$260 million (reflecting lower EBITDA).
• 2025 Capital Expenditures: No change; $125 million growth capex and $85 million sustaining capex as previously disclosed.
• Q4 2025 Expectation: Adjusted EBITDA expected to be broadly consistent with Q3 levels, supported by core network performance and upcoming infrastructure projects.

Growth Drivers & 2026 Outlook

• Completion of two greenfield produced‑water disposal facilities (Montney) and reopening of an industrial waste processing plant.
• Metals recycling recovery via expanded U.S. rail fleet (50 new cars + 50 short‑term leases) and focus on non‑ferrous materials.
• Continued stable waste and infrastructure volumes tied to upstream production and mandated remediation programs.

Capital Allocation Priorities

• Advance high‑return organic projects and evaluate complementary M&A opportunities.
• Maintain quarterly dividend of $0.10 per share ($0.40 annualized).
• Continue opportunistic NCIB share repurchases.

Notable Quotes

“We were pleased to deliver third quarter Adjusted EBITDA of $135 million… Our revised 2025 Adjusted EBITDA guidance reflects near‑term commodity softness and associated oil and gas activity levels, as well as ongoing market repositioning of our scrap metal to the U.S.” – Allen Gransch, President & CEO

“Our core waste and infrastructure network continues to perform in line with expectations, underscoring the strength and stability of SECURE's recurring cash flow even amid lower oil prices and disciplined producer spending.” – Allen Gransch, President & CEO